INNOVATIVE - SIVECO RomaniaII.1. Company Profile SIVECO Romania S.A. is a company specialized in developing large and complex IT projects for education, health, agriculture, customs

INNOVATIVE SOLUTIONS FOR A SUSTAINABLE COMMUNITY2016 ANNUAL SUSTAINABILITY REPORT

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CONTENTS

I. Letter from the CEO

II. SIVECO Romania S.A.II.1. Company ProfileII.2. SIVECO Business ModelII.3. Governance & Ethics

III. Sustainability in SIVECO RomaniaIII.1. Sustainability Management & ObjectivesIII.2. Stakeholder EngagementIII.3. Materiality

IV. SIVECO’s Performance

V. The team: passion and innovation

VI. Projects of major interest to the community

VII. Clients are SIVECO’s priority

VIII. Policy and Environmental Management System

IX. AppendixIX.1 Report profile: Methodology, Definitions & PrinciplesIX.2. Global Reporting Initiative (GRI) Content Index

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Letter from the President and CEO

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SIVECO Romania is an European company, with unique skills and internationally competitive experts and the only Romanian software company that provides IT services directly to the European Commission organizations. We are committed to continue innovative projects implementation that are contributing to the welfare of the community.

For more than 25 years our global IT solutions, made in Romania are generating positive, change, prosperity and competiveness for our clients.

In 2016, the defining feature of our company was the economic agility, as we have succeeded to rapidly adapt to the fast changing internal and external environment, launching new products like WAND and INOVAGRIA.

The advantage of having on our side the most passionate and dedicated team allowed us to develop and coordinate important Research & Development projects financed directly by the European Commission. Projects like Brain @ Home: Moving and enhancing brain training for an active life and FLOOD-serv - Public FLOOD Emergency and Awareness SERVice brought to our company the opportunity to coordinate international partnerships and to get involve in solving major problems our community is currently facing.

Through our innovative projects and high qualitative products we want to create digitally inclusive communities and to empower the next generation with the right instruments to tackle the challenges awaiting them. For example, with Wand.education™ application SIVECO wants to raise the quality of the teaching process empowering teachers to bring to their students the pedagogical methods long promised, but never before practical in many schools worldwide.

In the last 2 years, transparency has become one of the main business tools for our company helping us to clarify, understand and overcome critical situations, including the difficulties from 2014. In this regard, we have carried out a thorough analysis of all processes and organizational procedures in order to identify measures needed to correct ethical and law enforcement vulnerabilities and to prevent similar cases from occurring in any of company’s operations.

Continuing the tradition instituted 8 years ago, in 2016 we have published as well our Sustainability Report - Creating Software that matters for Sustainability, in conformity with the Global Reporting Initiative - G4 guidelines, a report that received the award for the best Sustainability Report from Romania within the competition Green Frog Award. Going forward with our commitment to be a responsible and competitive company, we are inviting you to read our new Sustainability Report and discover the main benchmarks of our sustainability performance journey from 2016.

Florian-Gabriel ILIA, President & CEO, SIVECO Romania

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II.1. Company ProfileSIVECO Romania S.A. is a company specialized in developing large and complex IT projects for education, health, agriculture, customs organizations, European institutions, private companies and public sector.

Over more than 25 years, SIVECO is consistently ranked first in the top of the local IT services market. The results of IDC’s - International Data Corporation analysis, a benchmark for local business environment analysis, confirm that company was synchronized in real time with market requirements, proposing mature studyolutions that include modern technology.

The IDC study makes the most complete radiography of the Romanian IT services market and analyzes the evolution of over 100 IT service providers operating in Romania. Thus, IDC reconfirmed SIVECO’s position in the top of the most important IT service providers on the Romanian market in 2016, with a market share of 5.4%.

We want our global IT solutions, made in Romania, to generate to our clients positive change, prosperity, competitivity and access to progress.

Mission

II.SIVECO Romania S.A.

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SIVECO Romania, a company that contributes effectively to the Romanian IT history through determination, character, loyalty, pioneer spirit and intelligence.

Evolution

>> SIVECO Romania SRL is established.1992

>> Starting to develop its own information system called Integrated SIVECO Applications.

1994

>> The organization starts the implementation of the quality system, according to the ISO 9001:1994 standard.

1995

>> SIVECO Romania is changing the form of organization becoming a Joint Stock Company.

1997

>> Participation in consortium in the fi rst large scale project, introducingIT to the Maritime Ports Administration Constanta.

1998

>> SIVECO Romania receives the certifi cation of quality system ISO 9001:1994 by AFAQ ASCERT INTERNATIONAL and by OMCAS.

1999

>> The AeL eLearning solution is launched.2000

>> SIVABON and SIVADOC are launched.>> The project of the IT-based Education System starts (SEI).

2001

>> The quality management system of SIVECO Romania is certifi ed by AFAQ ASCERT INTERNATIONAL in accordance with ISO 9001:2000 standard

2002

>> The AeL eTraining solution and SIVECO Applications 2007 are launched.>> The project of the Unique Integrated Information System for the National Health Insurance House starts.

2003

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>> The portfolio of Romanian clients expands and reaches over 300 large organizations.

2004

>> Intel Capital and Polish Enterprise Fund V become shareholders of SIVECO Romania.

2005

>> The project of introducing IT to APIA (The Payment and Intervention Agency for Agriculture) kicks off. >> SIVECO Romania participates in the implementation of the integrated information system for the National Health Insurance Fund in Bulgaria.

2006

>> The company runs many major international projects in Lebanon and United Arab Emirates.

2007

>> SIVECO Romania acquires Latona Bulgaria SIVECO. >> Balanced Scorecard and iTAX Collect applications are launched. >> The project for introducing IT to the education system in rural areas kicks off.

2008

>> SIVECO Romania launches the new version of the integrated package SIVECO Applications 2011. >> SIVECO Romania launches Agricultural Register. >> eCustoms solution is implemented for National Custom Authority of Turkey. >> Our company is re-certified by AFAQ AFNOR INTERNATIONAL for ISO 9001:2008 standard. >> The first public Social Responsibility Report of SIVECO Romania is awarded with the Ruban d’Honneur.

2009

>> SIVECO Romania is becoming the main supplier of IT solutions for the Ministry of Education in the Kingdom of Morocco. >> Launching SIUI 2 for CNAS>> eLearning platform and digital content for Cyprus school. >> Pilot project - digital content - for 20 schools in Moldova.

2010

>> New contracts with European Union’s institutions: The Publications Office of the European Union and the Executive Agency for Health and Consumers. >> Launch of the eCustoms NCTS solution at the customs in Macedonia. >> SIVADOC solution is implemented in Chisinau City Hall. >> The R&D project RENOVA is launched. >> Launching the Multi-touch discipline in high schools. >> Publishing the computerized examination results for admission in high schools using, in premiere, the cloud computing technology.

2011

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>> A new office in the commercial center of the United Arab Emirates, Dubai, is opened. >> A strategic partnership is signed with the Political Studies School NUR Otan in Kazakhstan. >> SIVECO Romania received a couple of international awards.

2012

>> SIVECO Romania becomes “Winner” at the European IT & Software Excellence Awards 2013 for 3 projects. >> The solution dedicated to managers, SIVECO Business Analyzer, is updated. >> SIVECO Romania is designated one of Europe’s 20 Fastest Growing and Most Innovative e-Learning Companies within EdTech 20 competition, organized by Edxus Group, London. >> The ERP System SIVECO Applications 2020 is implemented at Black Sea Terminal (Georgia). >> SIVECO Romania signs two contracts with the Ministry of Education in Malta. >> SIVECO Romania receives other international prizes. >> The first digital manuals is elaborated.>> The company opens its 5th international office, at Ankara, Turkey, and the 3rd in Asia. >> There is a change in the shareholder structure of SIVECO Romania.

2013

>> SIVECO Romania starts the collaboration with Nazarbayev Intellectual Schools for the development of digital educational content. >> SIVECO launches new products. Launching of the math digital manual.

2014

>> Launching of Farms Management Solution. >> Launching of Health Insurance Card. >> According to the latest market analysis published by International Data Corporation (IDC) for 2014, SIVECO ranks second place in IT Services Market ranking, with a market share of 6%.

2015

>> Launching new products: WAND, Inovagria, Ael Cloud, SIVMED Assis-tance.>> Project Coordinator for the 2020 Horizon projects: RED-Alert - Real time Early Detection and Alert System for Online Terrorist Content based on Natural Language Processing, Social Network Analysis, Artificial Intel-ligence and Complex Event Processing and FLOOD-serv - Public FLOOD Emergency and Awareness SERVice.>> National Winner of the prestigious Green Frog Award – the Best Romanian Sustainability Report

2016

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SIVECO Worldwide

CAPTION

References Business development R&D project coordinator location International office

With its headquarter in Romania, Bucharest and local offices in Constanta and Brasov, the company has commercial relations that cover more than 27 countries from 4 continents. The company counts 3,550 successful projects in a wide range of areas such as education, health and public administration for clients from private and public sector.

IN A NUTSHEL

c +1,700 customer sites

c 27 countries

c 4 continents

c +3,500 projects

c 4 international offices

u Brussels

u Dubai

u Astana

u Ankara102-3; 102-4; 102-6

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Business Card

› The leading software house in Romania

› One of the largest Software Development & Integration companies

in Central & Eastern Europe.

Shareholders Structure1

› SIVECO Netherlands B.V. 63,71%

› SIVECO Management Team 36,29%

SIVECO Romania

› 25 years of evolution

› Total revenue: 46.8 mil EUR in 2016

› 600+ employees worldwide in 2016

Over 200 national & international awards

20142 (€) 20153 (€)

Turnover 58,008,445 50,103,662

Profit/Loss -6,350,610 2,845,845

Employee 695 543

Direct economic value generated 64,147,751 54,675,583

Economic value distributed 70,498,361 51,829,739

Economic value retained - 2,845,845

Financial assistance recieved from Government - 3,292,264

36,29%

63,71%

102-5; 102-7; 102-10; 201-1; 201-4

2016 (€)

33,423,770

7,414,059

394

46,796,183

46,639,705

156,478

746,454

Long term development = stability & reliability

Financial indicators

1 In 2016, the process of changing the shareholders structure, started in 2015 was finalized; 2 average annual (2014) exchange rate of National Bank of Romania; 3 average annual (2015) exchange rate of National Bank of Romania

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II.2. SIVECO Business ModelThe company is a Romanian software house engaged in designing, developing and implementing “software that matters” addressing large and complex projects with a big impact in the community. With operations in 27 countries, the company counts more than 3,550 successful projects in a wide range of areas such as education, health and public administration.

SIVECO Romania creates value through its global IT solutions contributing to generate positive change, prosperity, competitivity and access to progress for its clients, beneficiaries and employees. Furthermore, participating in the implementation of Research & Development European Projects, during the years, SIVECO is able to create innovation in order to anticipate the market trends.

Experience in trans-European projects for capacity building

Experience in large national-wide projects for eLearning, eAgriculture, eHealth, Custom

Development, Integrated Information Systems

Organization and implementation of complex training programs and community-building at

trans-European scale

Extensive and efficient use of cutting-edge technology

Strong know-how of the EU customs and taxation institutions

Positioning, branding, consistent communication

Our Strenghts

We provide software solutions based on state-of-the-art technologies, for organizations in all industrial and commercial sectors, both in the private and public area.

Areas of Expertise

› eLearning /eTraining

› eHealth

› eAgriculture

› eCustoms

› eNuclear

› Customized Application

› Enterprise Application Suites (EAS)

› Research & Development Projects

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25 years of successful projects

eLearning/eTraining

eHealth

eLearning› Education system reform in Malta, for primary and

secondary levels

› Implementation of the eLearning platform at the American Creativity Academy, an important school network in Kuwait

› Project for computer-based high-school distribution in Lebanon

› eLearning project at national level in the Republic of Moldova

› eContent provision for the schools in the United Arab Emirates and Kazakhstan

› Program for implementing the integrated eLearning solution in Azerbaijan

› Project for introducing IT into the educational process in Oman

› IT-based Education System (SEI) - the program for introducing IT into the Romanian education system.

› Implementation of a complex eLearning system for the Ministry of Education and Culture in Cyprus.

eHealth› Project for introducing IT to the National Health Insurance

House (NHIH) in Bulgaria

› IT systems developed for the National Health Insurance House (CNAS) in Romania, integrated into the Health Insurance IT Platform (PIAS):

› SIUI – Unique Integrated IT System, ensures full operation of the whole Romanian medial system.

› SIPE – IT System for Electronic Prescription, provides all the functionalities for generating, validating and issuing electronic prescriptions by pharmacies.

› CEAS – IT System for Electronic Health Insurance Card, provides information management and authorization of medical services flows.

› DES – IT System for Electronic Health Record, manages data flows on the medical history of Relevant Medical Data (DMR) of the patient.

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eCustoms› Project for introducing IT into the customs system in the

Republic of Macedonia and development of the integrated tariff environment (ITE) systems (TARIC)

› Implementation of the eCustoms solution at the Customs Authority in Turkey

› National program for introducing IT into the customs system, for the National Customs Authority in Romania – New Computerized Transit System (NCTS)

Customized Applications› Implementation of SIVABON system (Customer Credit

Risk) at the Credit Bureau in the Republic of Moldova

› Implementation of the SIVABON system at the Credit Bureau in Romania

› System for electronic documents and workflows management - SIVADOC - for the Chisinau City Hall in the Republic of Moldova

SIVECO Applications› EAS system SIVECO Applications 2020 for Banking

Sector: CEC Bank, Raiffeisen Bank (Romania), Human Resources and Payroll Management for Bank of Baku in Azerbaijan

› EAS system for the private companies from Manufacturing sector: AEROSTAR BACAU, DOBROGEA BISCUIT Constanta, GENERAL TURBO, GRIRO SA, Kathrein Romania, MAREX SA, MEVA SA, ROHDE & SCHWARZ, TOPEX SA, SEVERNAV SA, ULTEX, UMR Rovinari, UZTEL Ploiesti

› EAS system for UNDERGROUND DRILLING COMPANIES: FORADEX, Foraj Sonde SA and ) for the oil company SOCAR in Georgia

eAgriculture› National program for introducing IT into the activity of

the Payments and Intervention Agency for Agriculture (APIA) and for the Rural Investments Financing Agency (AFIR)

Customized Application Development

Enterprise Application Suites (EAS)

eAgriculture

eCustoms

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Business partnerships with IT global leaders:

• Oracle Platinum Certified Partner

• Microsoft National System Integrator

• Microsoft Gold Certified Partner

• Intel Premier Elite Partner

• Ventyx, an ABB company

• Finmeccanica

and system integrators:

• HP Sales and Service Partner

• Bull, an Atos company

SIVECO’s strategy is to strengthen and enlarge current Partners network:

• Global partners - multinationals that can support our international expansion

• Local partners - companies with strong local presence in target markets that:

› can support commercial and implementation efforts

› are complementary to SIVECO

Partnerships

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Recognition & AwardsThroughout the time, the company’s activity and the solutions developed have been awarded with over 200 national and international prizes.

The management systems implemented in our company have been certified according to the following standards:

› Quality Management System according to ISO 9001: 2008 standard – AFNOR Group

• International Star For Quality – GOLD Category – Geneva• Arch of Europe For Quality And Technology – PLATINUM Category – Frankfurt

› Informational Security Management System according to ISO 27001:2013 standard – TUV Austria

› IT Service Management System according to WISO/IEC 20000-1:2011 standard - SRAC CERT

› Environment Management System according to ISO 14001:2004 standard – TUV Austria

› Occupational Health and Safety Management System according to OHSAS 18001:2007 standard – TUV Austria

Management Systems Certifications

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II.3. Governance & Ethics

Since 1992, SIVECO Romania is constantly contributing to the development of the Romanian IT sector by providing software solutions based on state-of-the-art technologies, for organizations in all industrial and commercial sectors, both in the private and public area.

Florian-Gabriel ILIAPresident & CEO

Alexandru-Mihail RADASANU

Rene Kurt RUEPP

The company is governed by the Board of Directors with a mandate of four years, composed of three members out of which one member is a non-executive director, with an average age of 58. In 2016, there were organized 6 important meetings of the Board of Directors.

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As previously communicated by the company management, in 2015 the shareholder structure of the Company was modified in order to consolidate SIVECO’s position and strengthen on the market. Thus, the shares of the former President of the Company, Mrs. Irina Socol, were transferred part of it to the other owners and part of it were donated to some of the existing employees – Extended SIVECO Management Team (SMTL). The process started in 2015 was finalized in the first part of the 2016, thereby completing Mrs. Irina Socol undertaking, both as regards the company management, as well as the company ownership.

“I greet the opportunity of the over 35 colleagues joining me also in their quality of co-owners of the company, not just as heads of their departments. I consider this undertaking represents the most authentic way of recognizing and encouraging their performance and a proof of organizational maturity, too.”

Florian-Gabriel Ilia - President & CEO

Doina BINIG

Vice-president Strategy & COO

Florian-Gabriel ILIAPresident & CEO

Dana BICHIR

Vice-president Quality and Human Resources

Alexandru RADASANU

Vice-president R&D and Deputy CEO Resources

The company is divided into divisions and departments, coordinated by SIVECO Management Team (SMT), seconded by another management group, called Extended SIVECO Management Team. In 2016 there were 18 women in managerial positions within the two management groups.

The Management teams are benefiting from the support of two committees – Competencies Development Center and the Scientific Council – composed of an interdependent team, whose members have extensive proven expertise in software engineering and its related fields, with the scope of evaluating from technical perspective the company’s products and optimizing the processes and the tools required for projects development.

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35 employees’ members of the company, most of them for more than 10 years, have become shareholders of the company. The initiative, singular in the Romanian business environment, represents a natural recognition of their contribution during the over 24 years of company activity and an efficient measure for talent attraction and retention. The change in the ownership structure confirms, at the same time, the direct involvement of the company’s specialists, not just at the operational level, but also in the process of strategic decision making.

Shareholders Structure of SIVECO Romania S.A. is the following:

SIVECO Netherlands B.V. - 63.71%,

SIVECO Management Team - 36.29%

The pillars that underlie the Governance of SIVECO Romania are:

› Code of Ethics and Anticorruption Guide ensuring the compliance with the law and regulations

› Quality Management System Policy ensuring continuously improvement of company’s performance by controlling the activities and providing high quality services to all customers

› Environmental Management System Policy ensuring the preservation of the environment and mitigation of the pollution effects

› Risk Management at organizational and project level

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SIVECO Romania is one of the largest Software Development & Integration companies in Central & Eastern Europe. This is a consequence of 25 years of growth and a long term development. Despite the difficulties faced by the IT&C sector both nationally and globally in 2016, SIVECO has continued to strengthen its customer portfolio, delivering stability and reliability.

The UN Global Compact’s ten principles in the areas of human rights, labour, the environment and anti-corruption and the rule of law, transposed within SIVECO Code of ethics and Anticorruption Manual, represented furthermore in 2016 the lighthouses that guided all the company’s operations.

The information within Anticorruption Manual has been completed and aligned with the latest legislative changes in the field, and some of the existing information has been restructured, making it more user-friendly. Both documents are applicable and available to all employees trough:

› induction program of newcomers;

› internal training sessions organized all over the year;

› Informative e-mails;

› Intranet;

› paper document at the Human Resource department.

Code of ethics & Anticorruption & Conformity with the law

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Also, the company is proposing in the next period, to develop interactive training courses for their employees on AeL Enterprise Platform regarding aspects of the Code of ethics and Anticorruption Policies and Measure.

In 2016 more than 53 new employees, out of which 21 women, have received with the induction program training regarding ethics and conformity with the law focused on the Code of Ethics and Anticorruption Guide’s provision. Furthermore, in 2016 there were 0 incidents of discrimination reported.

All violations of the Code of Ethics, Anticorruption Manual or any other non-compliance or infringement of the law can be reported by any employee through the Speak-Up Boxes system. This system is always available and the transmission of the information could be made in total confidentiality. When seeking for advices regarding ethical issues, each employee can address directly to the Law department or the direct responsible manager. All SIVECO’s employees, collaborators, suppliers and clients must fully comply with all internal and external laws, prohibiting providing improper payments, gifts or any kind of incentives to any person and received from any person, including public or private officials, clients and suppliers.

In 2016, SIVECO continued to be focused on the process regarding the selection and monitoring of the partners activities having in view that based on the company risk assessment a significant potential risk regarding corruption could emerge from this level.

The main risk is when a local partner seeks to engage in conduct that is prohibited by SIVECO Romania policies. SIVECO Romania will never allow this approach. If a local partner makes a forbidden payment SIVECO will immediately start the process to conclude contractual relationship with that partner, as it represents a risk for the company.

Therefore for the company is extremely important to know their partner or potential partner and to make a risk assessment related to the engagement in activities that are prohibited by the Anticorruption Guide.

Within the company’s service contracts it have been included clauses that explicitly states that suppliers’ work must be carried out according to the principles of anti-corruption practices.

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Despite the challenges faced by the company starting with 2014, SIVECO has maintained the dialogue with all its stakeholders, improving the communication channels. Starting with the periodical communication of the financial results, continuing with the annual meetings with the shareholders and their employees, the company has always presented its performance to all interested parties.

In 2016, the company has published a comprehensive Sustainability Report that has presented in detail the company economic, social and environmental performance, explaining the entire value that is creating and shared for the community.

One of the most important communication channel in 2016 remained its website www.siveco.ro on which the company published all its new projects and contracts, but also all the media releases and most important projects status.

SIVECO Romania is one of the fewest Romanian company that is transparent about the European projects that it is implementing, publishing on the website http://rd.siveco.ro details about this.

Transparency

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SIVECO’s Sustainability Strategy

III.Sustainability in SIVECO RomaniaIII.1. Sustainability Management & Objectives

SIVECO Romania decision to integrate sustainability principles in the business model has allowed the company to strengthen its capacity to excel in a competitive business environment, taking into consideration the extend of its economic, social and environmental impacts in the short, medium and long period. SIVECO Romania has been constantly preoccupied to generate lasting value for all its relevant stakeholders.

Defining the SIVECO’s Sustainability Strategy, the management has taken into consideration the business objectives the company has to achieve, but also the whole context in which operates.

The three powerful pillars that nationally and globally define, the sustainability challenges represent the groundwork of SIVECO Sustainability Strategy:

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Referring to the Corporate Social Responsibility activities, the company’s main projects are directly derived from the ideas and involvement of its employees who are promoters of various initiatives, covering various directions from corporate giving projects to specific projects that are developed in partnership with schools and/or NGOs.

“In the education sector, SIVECO Romania is improving the way educational contents are created and transferred to students in order to facilitate the knowledge acquisition process. The objective is to continue the introduction of new digital technologies in schools, that are simple to be used by the teachers and that engage the students by using attractive and personalized high-quality educational content. At national level, SIVECO Romania is contributing to raise the level of attractiveness and competitivity of rural areas supporting farms introducing latest IT solution dedicated to the high performing farms’ management.”

Anca Crahmaliuc, Marketing & Communication Manager

Sustainability, in SIVECO Romania, means to propose cutting-edge IT solutions that are able to respond to the global challenges in different sectors of the society.

The continuous dialogue with the stakeholders allows SIVECO Romania to identify and focus on the priorities that are crucial for obtaining a high sustainability performance.

In SIVECO the Sustainability approach is managed by the Marketing Department that, under the direct responsibility of the Board of Directors, coordinates the identification of sustainability priorities and the reporting process according to the latest sustainability standards and guidelines. The Board of Directors has the responsibility to supervise and validate all the decision related to sustainability priorities and to establish yearly the sustainability objectives in line with the company strategy. Each department is responsible for implementation and monitoring specific projects that contribute to the improvement of economic, social and environmental performance of the company.

The management of Sustainability

› The National Sustainable Development Strategy 2013 – 2020 – 2030;

› The UN Global Compact principles;

› The Sustainable development Goals.

SIVECO’s Management has been able to set specific sustainability objectives by responding to national and global priorities that are in line with its know-how and competences. For each specific objective, the company has identified projects and measures able to align its strategy with the expectation of stakeholders, to assess its ability to achieve the established targets and to identify business opportunities from all this process.

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Sustainable Development GoalsIn 2015, the United Nation has established 17 sustainable development goals with the scope to lead the global efforts to achieve better living conditions for everyone by 2030. SIVECO Romania acknowledges that business leaders can contribute to achieve these important targets and is committed to contribute to the UN Sustainable Development Global Goals adopted on September 25, 2015. In congruency with the mission and activities developed by SIVECO in the field of education and its constant contribution to foster innovation and to promote digital inclusion, the company is supporting the achievement of the following Sustainable Development Global Goals: Goal 4 – Quality education and Goal 9 – Industry, innovation and infrastructure.

Spreading princi-ples of ethics and anticorruption to the entire value chain

Ethics

Innovation

Community impact

People Development

Objectives Targetfor 2015 Status Target

for 2016

Increasing participation in the Research & Development project

Zero accident related to ethics and/or corruption issues

At least 1 project in the following areas Education, Environ-ment, Active Ageing

Continuing the introduction of new digital technologies in the Educational and Health Systems

Continuing to invest in Human Capital in order to attract and retain more talents

At least 1 project implemented

80.000 Euro of investments in WWHuman Capital

ProMe reasearch ProjectProActive Ageing

Developing an interactive training course on the AeL Platform regarding the Non-financial Reporting.

At least 1 project developed responding to community major problems

ISE ProjectOpen Discovery Space Project

Continuing to invest in Human Capital in order to attract and retain more talents

At least 1 project implemented

At least 100 training sessions organized for the employees;At least 10 students have participated in an internship program.

SIVECO Sustainability Objectives

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III.2. Stakeholder Engagement

SHAREHOLDERS

MANAGEMENT

EMPLOYEES

CLIENTS

SUPPLIERS AND COMMERCIAL

PARTNERS

MASS MEDIAEDUCATIONAL INSTITUTIONS

PUBLIC AUTHORITIES

R&D PARTNERS

ESF PARTNERS

NGOs

Annualmeetings Employees

survey

Speak-upBox

CustomerSurvey

PublicEvents

JIRASystem

PressReleases

InformationalEvents

InnovationMeetings

CommercialEvents

SocialMedia

RoundTables

CommercialEvents

SIVECO’s 25 years of activity are closely linked to the company’s ability to be connected with its stakeholders, to understand their needs and to identify through an open dialogue the best way to respond to their expectations. For this reason, the company has created a solid process of Stakeholder Engagement, based on GRI Standards and AA1000SE Standard, through which it is possible to identify the opportunities and the possible risks that may arise from the relationship with the stakeholders.

This system is based on the identification and prioritization of stakeholders according two variables: the influence and the interest of stakeholders on the company. The continuous updating of stakeholder information allow the company to respond efficiently to the most important concerns that arise from them.

SIVECO Stakeholders Management System

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Dialogue with Stakeholders

As part of the SIVECO’s Sustainability Strategy, each year, different initiatives are organized in order to get in touch with the stakeholders:

› survey on sustainability issues› specific events› public presentations

All these initiatives have the objective to collect relevant information for the materiality process, allowing a better alignment of the sustainability strategy with the stakeholder expectations.

In SIVECO Romania, each department promotes specific initiatives of dialogue with stakeholders. In 2016, the AeL eContent department organized several meetings across the country with teachers from several educational institutions with the aim to create a group of competent persons in pedagogy domain that will work on a common language for the modern education system.

“Our goal in supporting conferences and other important events with major and direct impact in schools and universities is to change the learning paradigm. In the didactic process, the emphasis should move from blackboard & chalk, from teacher & pupil, to collaborative activities, to projects-based learning, in which creative thinking and intuition, argumentation and demonstration prevail. And this goal can only be achieved by classroom integration of modern approaches and cutting-edge technology.Modern education is more about transferring experience rather than knowledge. It is a great chance for us and we take it as a duty to be able to share with the teachers the newest technology into education and pedagogy research results. When we see on our teacher’s faces the joy of understanding this task is fulfilled.”

Radu Jugureanu, AeL eContent Department Manager102-42; 102-43

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III.3. Materiality

In SIVECO Romania, the findings of the materiality analysis process represent the key impacts that the company has on economy, environment and society. The Materiality analysis methodology set by the management is based on a robust process according to the GRI Standards.

For the elaboration of the Sustainability Report 2016, SIVECO Romania conducted a materiality analysis, having as a reference all the 18 material aspects identified through the process unfolded for 2015. Additionally, within the company were organized interviews with key persons and a peer analysis of the sustainability specifics of the sector, for 2016, was implemented. From this process resulted 11 new topics with a potential to be material. The new topics were assessed against internal and external factors, in order to identify the significant impact the company has on the economy, society and environment, in relation to these. Also, a less extended consultation process was implemented in order to understand the level of importance of each relevant topic.

From the entire process resulted 23 material topics for 2016, that were internally validated by the Management Board of the company.

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SIVECO Materiality Matrix

Governance and Management

Relation with the Community

Environmental Protection

Economic Performance

Relation with Clients Relation with Employees

Relation with Suppliers

G1 - EthicsG2 - AnticorruptionG3 - Organization TransparencyG4 - Conformity with the lawG5 - CSR and Sustainability

P1 - InnovationP2 - Privacy and confidentialityP3 - European FundsP4 - Leadership and Economic AgilityP5 - Disaster recovery planP6 - Intellectual Property RightsP7 - Risk Management

A1 - Training ProgramsA2 - Equal opportunities and non-discrimination policyA3 - Talent Management

S1 - Projects of major interest to the communityS2 - Internship ProgramsS3 - Contribution to Digital Inclusion

C1 - Quality of products and solutionsC2 - Reputation managementC3 - ResponsivenessC4 - Communication channels with external stakeholders

M1 - Policy and environmental management system

102-47; 102-49

Economic, Environmental and Social impacts

The i

nflue

nce o

n Stak

ehold

ers

32

Materiality Aspect BoundariesIn the process of analyzing the scope of the material topics, resulted that each of it has impact both within the organization and outside, but with some differences regarding the intensity of the impact. On one hand there are transversal topics that are relevant to all stakeholders, and on the other hand, there are topics which are more relevant inside the company or outside.

Material Topic GRI Indicators Within SIVECO Romania Outside SIVECO Romania


Ethics 103-1, 103-2, 103-3, 102-16, 102-17, 406-1 Entire Organization

Clients, Suppliers & Commercial Partners, European Project Partners, Mass-Media, NGOs, Public Authorities, Educational Institutions

Anticorruption 103-1, 103-2, 103-3, 205-1 Entire Organization


Organization Transparency 103-1, 103-2, 103-3 Entire OrganizationClients, European Project Partners, NGOs, Public Authorities, Educational Institutions

Conformity with the law 103-1, 103-2, 103-3, 102-16102-17, 406-1 Entire Organization


CSR and Sustainability Policy103-1, 103-2, 103-3, 102-12, 102-20, 102-21, 102-40, 102-42, 102-43, 102-44, 102-46, 102-47, 102-49, 413-1

Entire Organization Clients, European Project Partners, NGOs, Educational Institutions

SIVECO’s Performance

Innovation 103-1, 103-2, 103-3, 102-11, 102-44, 102-43 Entire Organization Clients, European Project Partners,

Mass-Media, Educational Institutions

Privacy 103-1, 103-2, 103-3, 418-1 Entire Organization Clients, European Project Partners, Mass-Media, Public Authorities

European Funds 103-1, 103-2, 103-3, 102-44, 413-1 Entire OrganizationEuropean Project Partners, Mass-Me-dia, Public Authorities, Educational Institutions

Leadership & Economic Agility 103-1, 103-2, 103-3, 102-15, 203-1, 102-2 Entire Organization


Disaster recovery plan 103-1, 103-2, 103-3, 102-15 Entire OrganizationClients, Suppliers & Commercial Part-ners, European Project Partners, Public Authorities

Intellectual Property Rights 103-1, 103-2, 103-3 Entire Organization Clients, European Project Partners, Public Authorities

Risk Management 103-1, 103-2, 103-3, 102-15 Entire OrganizationClients, Suppliers & Commercial Part-ners, European Project Partners, Public Authorities

103-1; 102-46

33

Material Aspect GRI Indicators Within SIVECO Romania Outside SIVECO Romania

The team: passion and innovation

Training Programs 103-1, 103-2, 103-3, 404-1, 404-2 Entire Organization


Equal opportunities and non-discrimina-tion policy 103-1, 103-2, 103-3, 405-1, 404-3 Entire Organization


Talent Management 103-1, 103-2, 103-3, 102-8, 401-2, 401-1, 407-1, 102-41 Entire Organization


The software that matters for Community

Projects of major interest to the community 103-1, 103-2, 103-3, 413-1 Entire Organization

Mass-Media, European Project Partners, Public Authorities

Contribution to the Digital Inclusion 103-1, 103-2, 103-3, 413-1 Entire Organization

Mass-Media, European Project Partners, Public Authorities, Educational Institutions

Internship Programs 103-1, 103-2, 103-3, 413-1 Entire Organization

Clients, European Project Partners, Public Authorities, Educational Institutions

Clients are SIVECO’s number one priority

Quality of products and solutions 103-1, 103-2, 103-3, 102-43, 102-44 Entire OrganizationClients, European Project Partners, Mass-Media, Public Authorities, Educational Institutions

Reputation Management 103-1, 103-2, 103-3, 102-43, 102-44 Entire OrganizationClients, Mass-Media, European Project Partners, Public Authorities

Responsiveness 103-1, 103-2, 103-3, 417-3 Entire OrganizationClients, Mass-Media, Public Authorities, European Project Partners

Communication channels with external stakeholders

103-1, 103-2, 103-3, 102-43, 102-44, 102-13 Entire Organization

Clients, Public Authorities, European Project Partners

Policy and environmental management system

Policy and environmental management system 103-1, 103-2, 103-3, 302-1; 306-2 Entire Organization

Clients, Public Authorities, European Project Partners

103-1; 102-46

35

Innovation, Leadership and economic agility

IV.SIVECO’s Performance

IT sector is one of the most dynamic activity sectors, requiring the companies operating in this industry to adopt innovation as a business usual practice. SIVECO embraced its activity sector associated challenges, transforming them into a great opportunity, as part of the innovation strategy developed at company level.

Thus, the strategy is based on an intense activity of Research and Development with two main components:

› participating in pioneering European R&D projects that allows the company to assess community attractiveness for certain cutting edge IT solutions and to develop it and test it in a protected environment

› collaborating with its clients in order to identify innovative ideas that could have a large market potential.

The end of the programming period 2007-2013 represented for the IT sector a regress factor in terms of collaborations and new partnerships for the implementation of EU funded projects.

This situation had an impact, also, in SIVECO’s activity. Thus, SIVECO Romania implemented a series of measures and adopted a new development strategy that supported the company it to adapt to the national and international changes, with results that can be quantified by measuring the performance indicators of the innovative products and services developed, as well as by the nominations and distinctions offered in the company’s activity competitions.

103-2

36

During reporting period, SIVECO received the following nominations and distinctions:

› First place in the category “Research and Development and High Tech” - Top of High Tech Companies in Romania and Bucharest - http://www.siveco.ro/en/about-siveco-romania/press/press-releases/siveco-ranks-first-also-in-the-top-of-national-companies-2016-at-the-research-development-and-hightech-category

› Best Software Products & Consultancy Projects Exporter distinction, for the remarkable results achieved in exporting expertise and international sales of its educational product, AeL, over the past 10 years - Technology Innovator Awards 2016 - http://www.siveco.ro/en/about-siveco-romania/press/press-releases/cv-magazine-technology-innovator-awards

› Finalist of the competition European IT & Software Excellence Awards 2016 - Project “Diplomatic Archive - Digital Library” – IT Europa 2016 (categories “Solution of the Year for Public Sector and Utilities” and “Solution of the Year in Storage and Information Management”) - http://www.siveco.ro/en/about-siveco-romania/press/press-releases/it-europe-has-nominated-the-f inal ists-for-the-european-it-and-software-excellence-awards-2016-competition

› Winner of the National Competition: best sustainability report in Romania - Green Frog Award 2016 - http://www.siveco.ro/en/about-siveco-r o m a n i a / p r e s s / p r e s s - r e l e a s e s /sustainability-report-siveco-2015

37

SIVECO is the only Romanian software and IT services provider that has signed contracts with central organizations of the European Commission so far. Previously, the company has been chosen to develop and implement major projects for governmental institutions such as the Publications Office of the European Union, European Aviation Safety Agency, the Consumers, Health, Agriculture and Food Executive Agency (CHAFEA), the Directorate General for Health and Consumers, Eurostat (European Union Institute for Statistics), EuropeAid Cooperation Office, and the European Investment Bank.

In 2016, SIVECO signed a new contract with the European Commission, this time with the Taxation and Customs Union Directorate-General, DG TAXUD, leading a consortium that will ensure multifaceted training support programmes, eLearning development and communication services in the field of customs and taxation.

Florin Ilia, President & CEO of SIVECO Romania: “We are honored to be chosen once again as a trustworthy software and services provider by the

European Commission. So far, SIVECO, along with its partners, has implemented more than 20 European projects, directly delivered to the European Commission, that involve the development of integrated IT systems, with direct benefits to millions of EU citizens.”

“The B-Train 3 Programme acknowledges the high added value of SIVECO IT products and services deployed for the European Commission and confirms our strong position in the European software industry.” - Stefan Morcov, Deputy Vice-President of SIVECO Romania.

The gold medal received in 2017 by SIVECO software team within the WORLD Summit Award, the most important global IT competition, for an 18 months working product that allows virtually

exploration of the society and culture of the world’s ninth largest country, Kazakhastan, is a recognition of company’s economical agility and its capacity to be sustainable on a long term.

“The innovation comes from the fact that all the information about a country can be found now on one single application, available for all types of mobile devices. The information on a topic is cross link with others in order to offer a large context of the user’s area of interest. The WSA award confirms that we created a tool that has the capacity to transform information into knowledge. The application framework is suitable for any other similar topic – from country profile to a museum tour - and it can be considered as a starting point for a new generation of mobile applications”, says Bogdan Gornea, Technical Leader of the team that developed the winning application.

38

By implementing, maintaining and continuously improving the management system of quality, SIVECO Romania measures, monitors, evaluates and improves its services and processes. At the same time, the management system of quality ensures the company’s sustainability performance, as well as a multi-dimensional approach of the risks management and mitigation. Managing both risks and opportunities is done continuously within the company, responsible persons selecting, analyzing and prioritizing those that may affect the achievement of the goals established. Risks and opportunities include a wide range of topics and areas, taking into account the variety, but also the complexity of the projects and contracts implemented by SIVECO Romania. Depending on the type of possible impact of these risks and opportunities, which may be financial or reputational, the responsible department identifies and proposes the necessary measures to reduce it.

In 2016, all the departments from SIVECO have been involved in a training regarding the management system of quality, in order to ensure a proper knowledge and usage of the procedures. The company is paying a special attention about the way risks and opportunities are managed, and for this reason constant internal training is needed.

Another important aspect strictly monitored by SIVECO management is ensuring the continuity of business processes in the event of a disaster or disruption of services caused by factors beyond company’s control. In this respect, in 2016, the company ensured a Business Continuity Action Plan, as a control and management system for the operational continuity of the processes, in congruency with the recommendations of ISO 27002/2013 standard.

The efficient management system put in place and the ability of the management team to create and maintain a highly supportive working environment, allowed the company to attract and maintain professional and experienced employees. As a consequence, the company continued in 2016 too, to launch new competitive and innovative products, as result of months of hard work.

One of the most important aspects for SIVECO is the protection of intellectual property rights. In particular, the IT&C sector, which is embracing innovation and investment in technology, protecting intellectual rights is a constant concern. However, the issue should be viewed from two perspectives. On one hand, it is the measures that a company, such as SIVECO, implements to ensure the protection of the solutions it puts on the market to its customers, to prohibit any unauthorized use, and on the other hand is the creation of customized solutions for specific clients based on special orders / contracts. In this case, intellectual rights mean copyrights, trademarks, industrial designs, patents, know-how and can take forms such as: databases, source codes, logo, graphical interface, etc., depending on the technical specifications requested in the order by the Client.

102-15: 103-2; 103-3; 203-1

39

The new products are dedicated to a wide range of customers and aim to respond to community problems, either by offering solutions to existing difficulties or by anticipating the requests of a sector specific market demand.

Wand.education™

Wand.education™ is a content creation platform that enables teachers to create better lessons, faster. With Wand.education™ teachers can create dynamic presentations using pre-built templates such as galleries, mind-maps, flashcards, labels and many more.

Wand.education™ promise is to provide teachers, through an intuitive and accessible platform, full support for developing a quality interactive educational content in a simple easy way.

By using Wand.education™, teachers can create not only interactive and appealing presentations including galleries, labels, mind-maps, hot-spots, crosswords or flashcards, but also Assessments and Learning Games. The content created can be delivered on any device (PC, tablet, or cell phone).

“Teachers are not mere consumers of digital resources, they are co-authors and they want to create their own digital lessons, tailored to their students’ needs. With Wand.education™ we believe that we have developed a platform that will enable

teachers to create meaningful and authentic learning experiences in a matter of minutes”, says Marius Prodana, Product Manager.

The product was launched at GESS (Global Educational Supplies and Solutions) Dubai 2016, the leading education exhibition and conference in the Middle East, annually organized at the Dubai World Trade Centre, under the patronage of HH Sheikh Mohammed bin Rashid Al-Maktoum, Vice-President and Prime Minister of UAE.

Inovagria

INOVAGRIA is an IT solution dedicated to the high performing farm’s management.

The product was launched, by SIVECO’s eAgriculture department, at INDAGRA trade fair, in November 2016. It is the only product, available on the local market that responds to farmers biggest problems, offering them support in evaluating and optimizing farms performance and represents an improved version of the Farm Management Solution launched in 2015. INOVAGRIA incorporated the feedback received from clients that in last year the solution for farm management to which have been added new functionalities.

New products in SIVECO Incubator

102-2

40

“INOVAGRIA is a project in which our team got fully involved, in order to provide the farmers a solution for the problems related to farm’s administration. By using our INOVAGRIA application, the farmers have more autonomy and safety when making decisions related to procurement and contracts. INOVAGRIA is a flexible accessible tool for all Romanian farmers. In order to make it available on a large scale, we give the free of charge use of our Subsidies Simulator on the INOVAGRIA website (http://www.inovagria.ro)”, says Gabriel Lospa, manager of eAgriculture Department, SIVECO Romania.

By using SIVECO’s application, farmers can manage all the processes in the farm and assess their performance. Also, INOVAGRIA helps users to calculate the estimated value of the subsidies they have to receive and obtain relevant information regarding the correct submission of the single payment request to The Romanian Payments and Intervention Agency in Agriculture (APIA).

In a more extensive context, this new product contributes to the development of rural areas by increasing their level of digital inclusion through small farms digitization.

Cloud learning

Employee’s training has a great impact on a company’s performance and a lot of managers and HR coordinators consider this aspect of particular importance. Because of that, they are focusing their efforts on optimizing training tools by integrating Cloud Learning solutions, especially blended learning strategies.

SIVECO’s Cloud Learning training service enables employees to be trained in a short time, directly at their work-place. Thus, employers benefit, not only from a quality training service but also from a significant reduction in costs.

“From the financial point of view, the novelty we are providing consists in the fact that from now on companies may pot for using this as SaaS (Software as a Service) service, which does not impose procurement of hardware equipments or use licenses. Thus, the payment is performed for the effective use of system, on a monthly or yearly basis, depending on the number of active users using the services. Moreover, the first usage month is free of charge”, says Florin Anton, Manager of eLearning department.

The Cloud Learning service provided by SIVECO included a courses editor, a tests editor and an editor for surveys’ creation, allowing users to create specific materials.

The service was presented, at the 10th edition of HR Summit, in May 2016.

102-2

41

European Funded Projects The role of SIVECO to address major societal needs represents a continuous preoccupation and a challenge to the company always respond. For this reason, SIVECO Romania has a dedicated department for developing and implementing European projects and is using its major expertise in building projects financed from different funds, like: European Social Fund (ESF), European Regional Development Fund, the 7th Framework Program for EU research (FP7) and Horizon 2020 Program, that have a direct and important impact on the community.

In 2016, part of the projects financed from Horizon 2020 Program were continued and also, new ones were started. The implementation period for the new projects covers the next 2-3 years. The project initiated in 2015, LetITFow – Supporting Active Ageing covered a very important stage in 2016, namely integrating and testing the functional model previously developed. Performing this important step, the company together with its partners are closer to achieving the set objective of implementing a system that will help the elderly hospital workers to accomplish their daily tasks.

“We are collaborating with many research organizations and companies from all over Europe in developing research and innovation projects tackling applied research in different societal domains as Education, Health, Energy, Security etc. Horizon 2020 is the biggest EU Research and Innovation programme funded by European Commission that offers an excellent framework for such collaboration. By participating in Horizon 2020 projects, as technological partner but also coordinator, we are building a strong network of high experience partners, developing state-of-the-art solutions for a broad range of end users.”

Monica Florea, Manager of European Projects department

FLOOD-serv - Public FLOOD Emergency and Awareness SERVice

One of the main accomplishment of SIVECO regarding European projects in 2016, is winning a complex Research & Development project funded under Horizon 2020 by the European Commission, for which the company has the role of Coordinator, a premiere for the specific Romanian sector. Within this project, SIVECO together with 11 partners will provide a pro-active and personalized citizen-centric public service application that will encourage citizens’ involvement and will harness the collaborative power of ICT networks (networks of people, knowledge and sensors) to raise awareness on flood risks and enable collective risk mitigation solutions and response actions.

The project started in August 2016 and will be running for 36 months. More details about it are available on the dedicated website: http://www.floodserv-project.eu/

103-2

42

Brain@Home

One of the latest R&D projects started by SIVECO as coordinator, during reporting period, was Brain@Home: Moving and enhancing brain training for an active life. The project focuses on providing solutions for ageing populations, particularly for those persons whose health and social conditions may influence their independence and therefore their quality of life. The activities implemented by the project’s consortium, formed of 6 partners, include:

› developing a platform to engage the elderly in brain training and physical activity within the safety of their own home,

› building a hardware system for brain training,

› constructing a gaming platform for social-powered brain training,

› creating a virtual community for older persons and caregivers, families, friends to share and disseminate knowledge and curiosities about interesting visits and travels,

› storing results and give access to this data and trends to users, caregivers and possibly to GP/family physicians,

› examine improvement in different domains such as well-being, quality of life, and cognitive status following the training program.

“Brain@Home focuses on providing solutions for healthy ageing populations with the main objective of improving their quality of life (QoL), particularly for those persons whose frailty and social conditions may influence their independence in coping with everyday tasks. In order to accomplish this main objective, the consortium will develop a platform for brain-training activities, for social-powered participation and engagement in virtual tour and serious games training activities, ecological virtual environments engaging activities designed with neuropsychologists and clinicians”

Marius Preda, Project Manager

Brain@Home will be implemented between 02.06.2016 – 30.11.2018. More details about it are available on the dedicated website: http://www.brainathome-aal.com

43

3D Pathology

The 3DPathology project is a large scale initiative to develop and integrate a fast, digital, quantitative, spectroscopic, and multimodal - 3D pathology analysis system. We foreseen that this 3D quantitative digital pathology solution, based

on a combination of multiple existing pathology modalities will lead to a far more personalized treatment of cancer and cardiovascular diseases. SIVECO Romania is involved in the development of a subsystem for storing, manipulating, analysis of DICOM medical images, as a SaaS in the cloud. Also, an e-learning platform with training modules dedicated to medical educational institutions - attached to the subsystem for viewing and augmenting medical

images - will be developed.

Project implementation period: 01.09.2016 – 30.06.2018. More details about it are available on the project website:

https://itea3.org/project/3dpathology.html

NEWTON

NEWTON is a large scale initiative to develop, integrate and disseminate innovative technology-enhanced learning (TEL) methods and tools, to create

new or inter-connect existing state-of-the art teaching labs and to build a pan-European learning network platform.

The real-life validation will INVOLVE ALL MAJOR STAKEHOLDERS in TEL area, from content providers, innovative idea creators, technology developers, regulators, associations, schools and teachers in a LARGE-SCALE PILOT covering 26 institutions (14 funded from the NEWTON project + 12 associated partners) in 7

European countries. The project started in March and is running for 36 months.

More details about it are available on the project website:

http://www.newtonproject.eu/

BEACONING - Breaking Educational Barriers with Contextualised, Pervasive and Gameful Learning

Together with another 14 partners from 9 countries, SIVECO is aiming to engage an inclusive community of learners in connected and contextualized learning processes. As a partner, SIVECO’s main activity is The Pilot Test Implementation al national level. The Pilot Test Implementation will in particular try to cover the BEACONING project space through blending: the location, the testing population characteristics, the content, the duration.

The project will be implemented between 01.01.2016 – 31.12.2018 and more details about it are available on the dedicated website: http://beaconing.eu/

4 DICOM – Digital Imaging and Communications in Medicine

44

Privacy and confidentiality

When talking about “Privacy and confidentiality” SIVECO refers to a series of elements such as freedom of expression and relationship with national research and investigation authorities, digital footprint, the rules on confidentiality and professional secrecy, data privacy and personal data protection, cyber security and confidential information.

SIVECO Romania is a PERSONAL DATA OPERATOR registered in the Registry of the National Supervisory Authority for Personal Data Protection under no. 18246, the domain “advertising, marketing and publicity”. The registration is made in congruency with the Law no. 677/2001 for Persons’ Protection as regards processing of personal data and the free circulation of this data, modified and amended and the Law no. 506/2004 regarding processing of personal data and of privacy in the sector of electronic communication.

The company ensures that personal data of employees, clients, partners and other stakeholders, as well as other confidential data is optimally processed and protected, by strictly regulating internally (through Code of Ethics, Employee Handbook and other internal procedures) and externally (within the contracts, through special clauses)

In SIVECO Romania confidential information, regarding the company and the clients and partners, are available only to those employees who need the information according to their job description. Each employee signs the employment agreement of confidentiality, which clearly states the obligation of protecting confidentiality.

103-2

45

Employees who come into possession of confidential information are obliged not to use it for personal purposes and not to make it available to others.

The responsibility for managing personal data of employees and those of the target groups from the various projects financed from European funds, in which SIVECO is engaging as partner or applicant, belongs to Human Resources department.

As a global concern and given the company’s business sector and its international dynamics, data privacy, cyber security and confidentiality is also a concern for SIVECO. Actions to respond to these aspects (for all types of stakeholders) were addressed by the Board of Directors and the Management Team, during reporting period, too.

Following the publication of the European Regulation 2016/679 about the new rules for the protection of personal data, SIVECO’s management has started an impact assessment process of the new regulation on the company’s activities identifying the necessary measures to implement

in order to be compliant with the new regulation. Thus, in 2016, various training sessions have been scheduled for those employees that manage this type of information.

In 2016, the company preserved the same set of measures ensuring a proper management of all personal and confidential data, registering 0 incidents related to this aspect and breaches of customer privacy or losses of customer’s data.

103-2; 418-1

47

V.The team: passion and innovation

For any company, but especially for a software company, the most valuable asset is represented by its employees. All sustainability leaders, regardless their activity sector, understood that their people are the foundation of all actions and goals they might establish in the business strategy.

Being constantly preoccupied to improve its employees working conditions, in 2016, SIVECO has conducted a series of activities that encourage creativity and career development among all employees. This environment represents the proper incubator, out of which, through team’s passion, innovative products and services are developed, for the community.

Total number of employees2014 2015 2016695 543 394

695

543

394

2014 2015

Employee trend by year

2016

48

Structure of employee’s specializationDepartment 2015 2016

Commercial, Marketing, BID, Presales, European Projects, Structural Funds

14% 14%

Financial, Administrative, IT 8% 12%Human Resources & Quality Assurance 2% 2%

Operational 76% 72%

Structure of employee’s specialization

Commercial, Marketing, BID, Presales, European Projects, Structural Funds

Financial, Administrative, IT

Human Resources & Quality Assurance

Operational

72%

14%

12%

2%

2015 2016

Total number of employees 543 394

out of which women 266 186

With ILC, undetermined period, full time 488 373


With ILC, undetermined period, part time 55 18


With ILC, determined period, full time N/A 1

out of which women N/A 1

With ILC, determined period, part time N/A 2

out of which women N/A 1

Number of supervized workers N/A N/A

out of which women N/A N/A

out of which self-employed N/A N/A

102-8; 405-1

49

SIVECO is paying great attention to the quality of life of its employees and is promoting and implementing a flexible working program, health insurance program, measures for encouraging proper and healthy nutrition, but also attractive and fair benefits package that rewards their activities.

Benefits package includes:

› Annual Bonuses

› Meal tickets

› Free transport (with company’s minibuses)

› Cars (partially)

› Medical Subscriptions

› Holiday gifts

› Parties

In 2016 SIVECO has upgraded the Quality Management Handbook, Employee Handbook and the Anti-corruption Manual, documents that represent basis for each employee activity. 3 procedures and 98 work instructions, part of the Quality Management System procedures and Work Instructions were upgraded, for the specific activities in SIVECO.

During 01-03 June 2016 was implemented the supervision audit of the Quality Management System in accordance with the requirements of the standard ISO 9001:2008, audit conducted by the certification body AFNOR Groupe.

Gabriel Lospa, Head of eAgriculture DepartmentEmployee of the Year 2016

103-2; 401-2; 404-3

50

Internal and external training

The program for career development from SIVECO has five main components that are in close connection with each other.

› Skill Matrix Application – managing each employee competencies structured in three sections: basic information, training and professional experience.

› The Individual Career Development Plan – revised every two years, based on employee consultation and interpretation of the Skill Matrix, containing in Key Performance Indicators (KPI).

› Training Plan – is elaborated each year, based on the results obtained from the Skill Matrix, Individual Career Development Plan and the results from the assessment of professional competence.

› The evaluation process - is a process that takes place annually and aims to improve employee performance, aligned with the company’s business performance; 100% of the employees are involved in this process.

› Team Building – regularly programs to develop team spirit and competition, confidence, ability to communicate and improve morale.

During 2016, 53 persons were hired, out of which 21 women and 32 men. In the category of persons older than 50 years, 2 persons were employed.

2016

Total number of employees under 30 14

out of which women 6

Total number of employees between 30-50 years old 33


Total number of employees over 50 6


Women Men

Under 30 years old

Women Men

Between 30-50 years

57%

43%

61%

39%

103-2; 404-3; 401-2; 401-1

51

Equal opportunities and non-discrimination policy

In 2016, the skill matrix was updated, in particularly for the new employees, the Individual Career Development Plans were revised and 343 training sessions were organized (internal and external certifications) for 406 employees, representing an investment of approx. 235,291 RON.

In 2016 the total number of training hours was 8,232. Furthermore, SIVECO Romania can benefit of a team of expert with 2,470 certification.

SIVECO ensures that none of the employees is nor privileged or victim of discrimination due to race, nationality, ethnicity, language, religion, social or sexual beliefs. Employees are entitled to equal pay for equal work, fair and satisfactory wages, the right to form unions and to join trade unions, the right to health care, social security and social services. In the relationships between employees, integrity and honesty are encouraged.

All SIVECO employees are free to join any union, association or non-governmental foundation of their choice. Also, all the employee are part of the collective labor agreement and they are being represented

in the relation with the company’s management by a committee composed of 4 employees, out of which 3 are women. The committee is functioning according to the Labor Code of Romania is periodically organizing meetings. The role of this committee is to defend and promote the interests of all company employees.

In SIVECO any form of forced and compulsory labor is forbidden. In

each individual employment contract is specified that the length of the working day is 8 hours, that each employee has the right to annual holiday, other leave (maternity leave, special events) and right to training.

Each employee has the right to a salary above the National Minimum Wage, according to their job offer and their Career Development Plan (CDP) in which each employee sets his/her Key Performance Indicators (KPI) with their direct manager. Also, any employee has the right to end the employment relationship at any time.

404-2; 404-1; 103-2; 401-2

52

During 2016 have left the company 95 person, out of which 40 women and 55 men.

2016

Employees, under 30, that left the company 18


Number of employees, between 30-50 years old, that left the company 57


Number of employees, over 50, that left the company 20


SIVECO’s action plan, elaborated in order to improve company’s sustainability performance, includes a series of measures aimed to promote equal opportunities and non-discrimination, such as: encouraging professional development of women and implementation of induction programs for potential vulnerable employee categories (foreign employees, disabled persons, etc.).

Under 30 years old

Women Men

60%

40%

Women Men

Between 30 – 50 years

44%

56%

Women Men

More than 50 years old

45%55%

53

Talent managementIn order to maximize the chances of meeting the company’s performance goals regarding its human capital, SIVECO has integrated, into the business strategy, a talent management strategy. Thus, this component of the business strategy is the responsibility of each member of the company (focusing on the dedicated human resources department) but especially of the management team. This initiative demonstrates the company’s focus on high performance.

Sustainable development leaders, in IT sector, are companies for which, as a complementary part of the talent management system, the improvement

of working conditions and the level of satisfaction of employees are a permanent concern. SIVECO is taking great interest on the subject and, over the years, developed mechanisms towards creating prerequisites for formal or informal dialogue for the employees, like freedom of association and collective bargaining, employee satisfaction survey and volunteering. Within SIVECO all employees are covered by collective labour agreement and they are represented in the relation with the company’s management by a committee composed of 4 employees, out of which 3 are women.

In 2016 too, the company conducted an stakeholder engagement process, which involved, also, 99 employees. They were asked to anonymously fill in a questionnaire providing their feedback regarding the level of importance of certain aspects that from their perspective have influenced their decisions in a significant way and also had a major impact with respect to the company.

The top 10 important topics for employees, in 2016, identified based on the consultation process, were:

1. Compliance with the law, regulations and with the various standards that relate to the organization’s activity

2. Ability to create and launch new products, services and processes on the market

3. Internal and external training

4. Quality of the products and solutions

5. Transparency and proper presentation of the company’s results and future prospects

6. Intellectual property rights

7. The organization’s salary, bonuses and other compensation system

8. Data confidentiality protection

9. The organization’s code of ethics

10. Measures in order to attract, maintain and develop the talents

Also, as a talent management initiative, the former president that left the company in 2014, decided to donate her last shares to top and middle management representatives. The entire process aimed to recognize experienced employees, part of the management team, for their activity within the company.

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VI.Projects of major interest to the community

In order to materialize SIVECO’s commitments to promote a culture of equal opportunity and try to help any person in a less advantageous situation, the company has developed a strategy that is based on the following type of actions:

› Corporate Social Responsibility campaigns to help different categories of disadvantaged people;

› Research & Development European projects that are creating and testing new solutions aiming to improve the life conditions of certain categories of people or that are responding to some of the crucial issues that the community is currently facing;

› Nurturing talents and encouraging next generation to choose a professional carrier in the IT&C sector by organizing internship programmes.

These types of interventions are implemented every year or on multi-annual base. In 2016, the most representative CSR initiatives implemented by SIVECO Romania were: “Hour of Code 2016”, “A book – a gift from heart to the mind”, “We give double”, “Cutia cu zambete” and transferring 2% of income tax, from employees, to different social causes/entities.

“Our CSR project “Cutia care aduce zâmbet” aims at helping children coming from very poor families, living in economic disadvantaged regions of Romania, lacking any conditions that a happy childhood would imply.Unlike in the past, when this project was developed just within the eAgriculture department, in 2016 employees from the entire company were involved. Moreover, the company has provided the necessary funds, thus joining another CRS program of the company, „We gift away double“. Thus, 101 happy kids received many nice toys, useful cloths and healthy food. We all got joy, empathy, and felt indeed, social responsibility.”

Cristina Șerban, eAgriculture, Deputy Head of Unit

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Hour of code 2016

In 2016 SIVECO donated 20 laptops for supporting the Hour of Code project. The initiative is conducted by ADFABER Foundation and included also the organization of IT workshops for pupils.

Programmers have taught participants to work with the latest eLearning applications and write their first lines of code. IT enthusiasts, between 8-18 years old, learned about the circuit of water in nature, walking through Virtual Reality, handed the scalpel in an Augmented Reality operation room, explored the interior of the Earth, and built a nuclear power plant with full-touch technology.

During Hour of Code program, almost 100 children visited SIVECO Romania headquarter.

A book – a gift from heart to the mind

The initiative consist in donation of educational materials: travel guides, encyclopedias, historical and motivational books. In 2016 SIVECO managed to donate 1,385 books through Bookland Association.

We give double

In 2016 SIVECO started an organizational program which implies that each donation coming from the company’s employees is doubled with an equal contribution of the organization. Thus toys, food supplies and money were offered to children suffering of cancer, from Marie Curie Hospital, The Oncologic Institute and Fundeni Clinical Center, in June 2016.

“Cutia cu zambete”

The project was initiated and implemented by the eAgriculture department and coordinated by the department manager, Gabriel Lospa. For his involvement in the projects undertaken by the community, Gabriel Lospa was designated “Employee of the Year” 2016. Launched in 2013, “Cutia cu zambete” is a project that aims to help children from poor villages with essential goods (clothing, food, etc.). Every year a group of volunteers, packs the gifts into boxes dedicated to a specific number of children, previously identified with support from the local community (schools, local autorities) and travels to the selected locations in order to offer them. In 2016, the boxes were offered to 101 children from poor villages in Teleorman County (Piatra, Viisoara and Voievoda).

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Transfer 2% of income tax

The company collected 100 forms from employees to transfer 2% of income tax to 28 entities (associations, NGO’s, etc.).

List of entities (associations, NGO’s, etc.) who received 2% of income tax from SIVECO employees in 2016

› Emergency Hospital Foundation

› SMURD Foundation

› The First Steps to Performance Association

› “Portul Sperantei” Foundation

› Alfa Omega Foundation

› Help Autism

› WINGS FOR LIFE Association

› Protosinghel Antonie Lita Abbot

› Save the Children Romania

› “Noi Orizonturi Familia” Association

› Snowboard Association of Practitioners of Romania

› Association for development and progress

› “Inima Copiilor” Association

› Princess Margareta of Romania Foundation

› Brebina Perish

› Clean Hospitals Association

› Grigore Alexandrescu Emergency Hospital Foundation

› Church of Giurgiu Emergency Hospital with “Sf. Arhangheli Mihail si Gavril” patronage

› Fight for Charity Association

› “Sf. Spiridon Vechi” Foundation

› St. Stefan Humanitarian Association

› Friends of Adrian Association

› Hospice Hope House

› Never alone – friends of the elderly Association

› Always Close Foundation

› “La Primul Bebe” Association

› Romanian Ornithological Society

› Maia Miruna Humanitarian Association

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Research projects: the promise of a better future for each European citizen

The company’s efforts to help the community does not resume only to sponsorship or volunteer activities. Through sustainable development goals set for the period 2015 - 2017, the company has committed to carry out a series of research & development projects that will contribute to the overall process of solving some societal issues. Increasing participation in the Research & Development project in the areas like Education, Environment and Active Aging are part of SIVECO’s development strategy.

In 2016, SIVECO participated in European projects meant to support Active Ageing (Follow.Me), Digital Inclusion (Inspiring Science Education) and also continued the project SEI – AeL Caravan.

Follow.Me

The project, launched in June 2016, aims to improve quality of life for elderly people suffering from incipient seriously impairing diseases like Alzheimer or dementia.

The Follow.Me platform (GPS tracker, smartwatch app and web app) aims to create an easy to use system to locate people and provide information when they leave a specific area (the house, the hospital, the surrounding streets).

Follow.Me will run on any independent (yet programmable) smartwatch offered by the market, to be used by disabled people with easy to use features and a comfortable wearability.

The project will involve end users throughout its entire life-cycle and carry out experimentations with two different end user categories:

› Elderly people and patients using the Follow.Me system;

› Informal and formal caregivers, including clinical experts, carriers as well as family members of the patients.

In 2016 was implemented first phase of the project - User requirements, user needs analysis and technical specifications analysis for the Follow.Me concept.

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Inspiring Science Education

Inspiring Science Education is a European research project launched in 2013, implemented in 5,000 primary and secondary schools from 15 EU countries.

The project, where SIVECO is partner along with other 15 European organizations, is of major importance at European level, as it allows accessing interactive instruments with help of which teachers can achieve various virtual laboratories and relevant scenarios to be used in the classroom, encourage schools’ collaboration both at national

and European level, provide eScience applications that can be integrated with extra-curricular activities, like excursions to scientific centers or virtual visits to research centers.

In 2016, SIVECO Romania, as national coordinator, organized the Inspiring Science Education - National Conference, an event where the best teachers in Romania, accompanied by their pupils shared their experiences within the project.

Details about Inspiring Science Education project are available on the dedicated website: http://www.inspiring-science-education.net/home

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SEI – AeL Caravan

This projects goal is to disseminate computer aided education among teachers and pupils as the new concept for the teaching –learning process and as a complementary tool to the traditional system.

The dissemination sessions, with pupils and teachers, take place on the occasion of various contests, Olympiads, regional and national conferences on IT issues. At these events, where SIVECO also participates as a sponsor, the company’s specialists present SEI Program stages, accomplishments and discuss about eLearning.

The project was initiated in 2005 and during first stages of implementation, reached more than 20 events. In 2016, a series of dissemination sessions were conducted, ringing together teachers, pupils and IT specialist, aiming to increase the awareness of innovative teaching tools and, in a wider perspective, the level of digital inclusion.

“We are happy that Romanian teachers from over 650 schools actively participate in this project, effectively contributing to numerous experiments organized both at national and European level. The teachers’ role in training the citizens of tomorrow is essential. By involving the teachers and pupils in competitions like those initiated by ISE, the education process becomes motivating and attractive, while the teachers’ purpose is to guide students to carry out their own scientific discoveries and to trigger their imagination. By carrying out these activities the pupils learn to work in a team, developing their abilities for communication and managing various situations occurring during the project’s development.”

Prof. Mihaela Garabet, Expert in Education & Training for Inspiring Science Education, SIVECO Romania

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Internship programs

All industry leaders regarding sustainable development reporting understand the importance of focusing on attracting, retaining and developing human resources. Although the entire process is integrated into a talent management strategy, one of the essential actions when talking about attracting human resources is represented by internship programs.

Nurturing talents is one of SIVECO’s great interests. During the years, the company constantly offered opportunity to a large number of young talents to challenge themselves in an exciting working experience, organizing internship programs within almost all the departments of the company.

When organizing an internship program, which involves the completion of students or pupils studies with a period of practice, SIVECO has to implement the activities in conformity with Romanian Law 258/2007.

The department responsible for organizing internship programs is Human Resources Department. Based on SIVECO’s educational partners (Romanian Universities, High Schools, etc.) needs and in line with company’s requirements, the HR department identifies and selects the most suitable persons for the internship positions.

Internship practitioners are directly involved in relevant projects of SIVECO and they are encouraged to test their skills in order to give their contribution. Each practitioner is assigned to a tutor that is responsible for his activities and represents his reference point in the company.

In 2016, the company received 14 students to participate in internship programs.

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VII.Clients are SIVECO’s priority

In 2016, SIVECO Romania has continued to analyze the business needs of its clients in order to design and provide the best IT solutions. This process has implied consistent investments in innovation that support the company to provide qualitative and improved aiming to raise the level of clients’ satisfaction.

This capacity to respond at the best to the clients’ expectations has allowed SIVECO Romania to have an international client portfolio and projects implemented in different sectors of the economy, such as utilities, administration, agriculture, banking, business services, education, media, medical services, mining and construction, nuclear, oil &gas, transportation, manufacturing and wholesale.

Considering the downward trend of the IT market, both nationally and internationally, in 2016, considering its leadership and agility, SIVECO has been able to strengthen its customer portfolio attracting new clients and contracts.

+ 1,700 27 +3,500 4Clients Countries Projects Contients

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SIVECO Romania adresses the market with:

Business-to-Business Solutions

SIVECO Romania answers the specific needs of companies in the private sector with complete and integrated eBusiness solutions, from EAS (Enterprise Application Suite) and Business Intelligence solutions, eLearning and eHealth solutions, to turnkey solutions or customized application development.

Business-to-Public Solutions

SIVECO Romania responds to the specific needs of the public sector with integrated eGovernment solutions, from EAS (Enterprise Application Suite) and Business Intelligence solutions, eLearning and eHealth solutions, to eAgriculture, eCustoms and turnkey solutions or customized application development.

SIVECO’s Business Solutions Portfolio

SIVECO’ Solutions

SIVECOeLearning Solutions

SIVECOeHealth Solutions

SIVECOeAgriculture Solutions

SIVECOeCustoms Solutions

SIVECOeNuclear Solutions

SIVECOEnterprise Applications

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Major Clients

Ministry of Foreign Affairs of the Republic of Kazakhstan - Development and implementation of an interactive application “Kazakhstan, the land of the great steppe” that serves as a state-of-the-art digital fluid encyclopedia of the world’s ninth largest country. It is a unique opportunity and cognitive experience for the user to interact with a large variety of full rich multimedia interactive resources in one application, in order to virtually explore the Kazakh society and culture. The application won the gold metal in the World Summit Award competition 2016 in for the Culture&Tourism section.

GAZ EST S.A. – Implementation of ERP integrated system SIVECO Applications 2020. The implementation of the system components was carried out simultaneously, starting with Contracts Management, Utilities Billing Management, Human Resources and Payroll Management, Inventory, Procurement and Investments Management, Maintenance Management, Fixed Assets and Inventory Objects, Financials Management, and specific development for GAS solution. Beside 10 of the 50 integrated components of the system, which have been adapted to the specific needs of GAZ EST S.A., SIVECO Romania has also developed a set of dedicated applications specifically requested by the client.

Ministry of Education from the United Arab Emirates - Creating an extensive repository of 7,000 interactive learning objects and integrating it with the existing portal of the Ministry of Education; - offering students and teachers access to the most exciting collection of animations, movies, simulations, exercises and experiments based on Mathematics, Physics, Chemistry, Biology and Geography.

Ministry of Education and Culture in Cyprus - The centralized Learning Management System is used by: 700 schools, 130,000 pupils, 20,000 teachers, 150,000 parents and 20 administrators.

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National Health Insurance House (Romania) – Unique Integrated Information System (SIUI) - Ccoverage area of the system: all the County Health Insurance Houses, 53,910 Physicians, 10,304 Family Doctors, 95,286 Medical assistants, 509 Hospitals, 38 Providers of ambulance services, 328 Providers of homecare services, 458 Out-patient recovery, 2,639 Providers of medical devices, 15 Providers of rehabilitation sanatoria services and 4,140 Providers of pharmaceutical services.

Payments and Intervention Agency for Agriculture (APIA) in Romania – The system provides compatibility between national support schemes for farmers and EU support schemes, covering: evaluation of 1,670,000 physical agricultural blocks (61% of the total agricultural area), more than 5 billion Euro paid to farmers during 2007-2013, processing over 1,000,000 subsidy requests submitted by farmers each year, training more than 750,000 external users and approximately 5,000 internal users (APIA employees), management of information in 261 local APIA centers, 42 regional offices, where farmers submitted aid requests.

Agency for Financing Rural Investements (AFIR) in Romania – the system is supporting the implementation of rural development fund and fishing representing: 5,5 billion EUR for the last 6 years from national and European funds, 143,000 finance requests for over 18 billion EUR

National Customs Authority in Romania – New Computerized Transit System that ensures: 24/7 connection with the digital transmission of data through the Communications Common Network of the European Commission (CCN) and the Common Interface System (CSI), more than 1,700 digital documents processed daily, more than 1,000,000 digital documents stored on a yearly basis in the database, the average response time to a data request: 3 seconds.

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Quality is at the center of SIVECO’s Performance

The most important element contributing to client’s satisfaction is the quality of SIVECO products and services. For this, the quality management system implementation and certification is a way to offer the customers arguments regarding the quality of the processes in the company.

Company’s relationships with the clients are strictly regulated by high quality standards established accordingly with the internal quality policy. Specific quality objectives are established for each department. Furthermore, each department identifies, analyzes and prioritizes risks and opportunities that can influence the achievement of the established objectives for each project.

In SIVECO Romania, specific instruments are used to ensure a rapid and proper response to the client’s request. Through JIRA application it is possible to manage and monitor all incidents that occur during the project implementation phase allowing the identification and implementation of adequate solutions in due time. This system allows SIVECO to have a permanent quality control and to establish a close relationship with the clients, but also to maintain the best software solutions on the market.

SIVECO Clients’ Satisfaction Survey 2016

Every year, SIVECO Romania measures the level of client’s satisfaction in order to have a clear picture of the real situation regarding the quality of the products and services, the reputation, employees’ competence and professionalism, thus understanding the possible risks and vulnerabilities, but also opportunities that can be valorized.

How did the services provided by your company evolve due to the collaboration with SIVECO Romania?

Have improved a lot

Have slightly improved, are the same

Have worsened

I don’t have an opinion

21%

47%

24%

8%

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How well do you think SIVECO understands your company’s needs and requirements?

Entirely

To a very large extent

To a small extent

Not at all


44%

45%

5% 5%

How has your company’s relationship with SIVECO Romania evolved over the year?

Has improved

It is the same

Has worsened


I haven’t worked with SIVECO Romania during the previous year

1%

How do you evaluate SIVECO Romania’s management and control over your project?

Very satisfied

Satisfied

Dissatisfied

Very dissatisfied


19%

72%

6% 3%

0%

32%

48%

2%

19%

0%

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Developing responsible products

As leader in IT industry in Romania, SIVECO acknowledges its role in developing products and providing services that are contributing to the improvement of economic, social and environmental performance of its clients.

In 2016, SIVECO Romania has launched the application INOVAGRIA that incorporates the Farms Management Solution launched in 2015.

The application has been developed based on the feedback received from numerous medium and large farmers that were using the Farm Management Solution. SIVECO has matched their requirements into an IT system solving the most difficult business situations in the agricultural daily activity:

› improve the process of getting the subsidies;

› manage the lease contracts;

› a better control of the resources used in the farms management through the continuous monitoring of the processes developed within the farms.

Through the implementation of this application, the agricultural processes are easier to monitor and manage, leading to higher performances of the farmers’ activity.

SIVECO Romania makes available to the companies obliged to keep record on the waste the Waste Management Component, from the integrated information system SIVECO Applications 2020. The companies using the Waste Management Component are benefiting of major advantages, like notifications in case of potential pollution risks and monitoring all the waste transportation activities, with the possibility to associate a responsible person and a historic cost from the quantitative and financial point of view.

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SIVECO Romania’s reputational capital is composed of several elements that managed in an integrated and coordinated way contribute to building the solid reputation of the company at national and international level. The constant preoccupation of the company in creating a work environment that fosters the well-being and the harmonious development of its employees makes SIVECO Romania one of the best employer among Romanian IT&C companies. The attention to the client’s needs in ensuring a continuous support during the implementation and post-implementation phases of the project allows the company to maintain a high level of customer satisfaction over the year. The preparedness and transparency in the communication with all major media have enabled the company to establish a strong relationship with all its relevant stakeholders.

SIVECO Romania is aware that it has to attain to its economic, social and environmental responsibilities in order to avoid situations that could manifest a reputational risk. In this sense, SIVECO’s Marketing and Communication department has the responsibility to monitor traditional, online and social media; to propose, plan and implement actions that contribute to creating a good reputational mood around SIVECO Brand; to take the right measures when a reputation crisis occurs. Furthermore, in line with the risk management procedure, the reputational risk is also monitored at project level and in relation with each client, in order to avoid situations that can create a reputational damage to the company.

In order to ensure a constant and transparent communication with the stakeholders, as illustrated in the sub-chapter “Stakeholder Engagement”, SIVECO Romania has implemented different communication channels that contribute to create a strong relationship with its stakeholders. SIVECO communication strategy aims to strengthen communication channels in order to respond in time and effectively to all stakeholder expectations.

Reputation Management

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All relevant information about the company activities are published on the company web site - www.siveco.ro - and also on Facebook company page - https://www.facebook.com/siveco/. This communication channels supported by monthly newsletter is allowing an interactive and constant dialogue with the stakeholders that manifest an interest in the

company. In addition, a strong relationship is maintained with almost all relevant national and international mass media in order to promote the achievements of the company.

The company is contributing in achieving and maintaining a good reputation by implementing a correct and responsible marketing and advertising campaigns. For this reason, in 2016 the company has registered 0 incidents regarding non-compliance with regulations and voluntary codes concerning marketing communications, adverting, promotion and sponsorships. In particularly, within the Code of Ethics and Anticorruption Guide, there is a special chapter regarding the management of the sponsorships.

SIVECO Romania is also present as member in relevant associations that represent the economic environment and the specific sector. In its capacity of member in these associations, SIVECO participates to different initiatives in the benefit of the stakeholders and of the community.

Associations in which SIVECO Romania is memberANEIR National Association of Romanian Exporters and ImportersAIRES Romanian Association for the Electronic and Software IndustryANIS Employers’ Association of the Software and Services IndustryAMCHAM American Chamber of Commerce in RomaniaCCIFER French Chamber of Commerce and Industry in RomaniaATIC The Association for Information Technology and Communications of RomaniaBSA Business Software AllianceEfquel European Foundation for the Quality in e-Learning

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VIII.Policy and Environmental Management System

Operating in a sector that is not impacting in a considerable way the environment, however SIVECO is showing interest in protecting and preserving it, by integrating a series of related activities in the company’s development strategy. Over time, SIVECO implemented an environmental management policy, based on a reduced consumption level of all resources and implementing measures in order to reduce pollution as much as possible.

SIVECO Romania is committed to respect the laws, regulations and all the national and international policies concerning the preservation of the environment. This commitment is integrated and implemented within the company through the Environmental Management System Policy. The SIVECO Environmental Management System is certified according to EN ISO 14001:2004, by TUV Austria certification body.

Thus, in order to reduce emissions and ensured a proper transportation system for its employees, the company continued in 2016 too, to make available a free transportation service, with company’s Minibuses. The service is intended to all SIVECO Romania employees and aims to ease the transfer to and from company’s headquarters situated in Victoria Park, from certain points chosen so as to be within walking distance of the headquarters, but to be also in major hubs of the public transport in Bucharest. During 2016, SIVECO minibuses carried out 3960 routes to and from work.

The environmentally responsible behavior was encouraged and sustained, during reporting period, also by purchasing only low-power devices: computers, servers, monitors, peripherals, lighting, electrical appliances and revising the cables network and the air-conditioning systems.

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Among actions undertaken in 2016, new products meant to improve environmental protection were launched, such as INOVAGRIA (an IT solution for collecting, relating, reporting and carrying out forecasting for the data referring to the management of farms and agricultural land) and the Waste Management Application, within the ERP SIVECO APPLICATIONS (an IT solution that allows for centralizing the information referring to licensing the organizations developing activities of collection, transport, sale and/or waste disposal, as well as to the distribution of this organizations in the territory).

In March 2016, SIVECO supported the worldwide movement, by joining the campaign Earth Hour (turning off the lights at the office for one hour).

Part of the company’s sustainability strategy and in order to support the reporting process, during 2016, SIVECO developed the the first Annual Carbon Footprint Report. This document is provind relevant information regarding the carbon footprint calculation. According to this, in 2016, the total GHG emissions of SIVECO Romania are equivalent to 1,541.454 tons of CO2e.

From the total amount of GHG emissions, the activity that generated the biggest share is represented by electricity consumtion (59%).

Activity Emission[ tCO2e ] %

Electricity consumption 915.296 59%

Vehicle operation 362.151 24%

Office heating 183.156 12%

Business nights (accommodation) 65.942 4%

Business flights 14.631 1%

Waste 0.278 <1%

Total 1,541.454 100%

Earth Hour

Emissions

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Scope 1

Scope 2

Scope 3

Carbon footprint share by Scope

59%

17%24%

Carbon footprint share by activity

Electricity

Company cars

Office heating

Business nights

Business flights

Waste

1

2

3

4

5

6

59%

24%12% 4%

1%

0%

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Scope 1 – Direct emissionsAccording to SIVECO Romania Annual Carbon Footprint Report 2016, vehicles owned or operated by the company are the main elements that generated Scope 1 emissions, during reporting period.

SIVECO’s car fleet is represented by 138 vehicles, out of which, in 2016, 24 cars with high pollution level were scrapped.

› 13 cars were sold

› 11 cars included in RABLA program

Also, 11 new reduced pollution models were purchased during reporting period.

Fuel quantity used in 2016, for SIVECO’s car fleet, together with associated emissions, are presented in the table below.

Fuel type Quantity[l]

Distance[km]

Emission[ tCO2e ]

Business flights 76,611.22 1,094,442 242.547

Waste 44,993.89 642,757 119.604

Total 362.151

Scope 2 - Indirect emissionsAccording to SIVECO Romania Annual Carbon Footprint Report 2016, the main activity that generated Scope 2 emissions during reporting period was electricity usage.

Electricity consumption is subject to a slight variation over the year due to the seasonal changes in lighting and air conditioning needs. This form of energy is used for office equipment (printer, computers, cell phones, and servers), air conditioning in the summer period, cleaning and maintenance, kitchen equipment and lighting.

The company-specific consumption was calculated indirectly from electricity bills. Thus, during reporting period, SIVECO Romania managed to decrease its total energy usage with ~4%, compared to 2015.

Scope 3 - Other indirect emissionsThe main activities of the company that are generating Scope 3 emissions during reporting period were office heating, business travel (air travel), waste and business accommodation.

Heat consumption is subject to a substantial variation over the year due to the seasonal temperature changes. In general, from April 15th to October 15th there is no need to heat the office space at all. The company-specific consumption is calculated indirectly from electricity bills, in the same way as the electricity consumption.

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The company has an extensive list of business air travels to various countries from different continents. In 2016, a number of 385 business flights were registered. These travels were taken place between the headquarters and various countries within EU, Asia, Africa and North America.

Also, the company implemented a selective waste collection system for 3 categories: paper, plastic and mixed waste. In 2016, SIVECO continued the implementation of the environment program by collecting 2565 kg of paper, 515 kg of plastic and 577 cubic meters of mixed household waste.

Regarding emissions generated from business accommodation, the total of 2372 business nights, reported by the company, generated 65.942 tCO2e. Business nights were spent both in and out Romania, where the headquarters are located.

Emission performance 2016SIVECO’s emission performance, in 2016, is presented in detail, in the tables below.

Activity type Quantity[MWh]

Emission factor[ tCO2e /MWh]

Emission[ tCO2e ]

Electricity usage 1430.15 0.640 915.269

Office heating 568.81 0.322 183.156

Activity type Emission[ tCO2e ]

Business flights Total emissions (36 countries)

14,63

Activity type Quantity[nights]

Emission[ tCO2e ]

Business nights 2372 65.942

Waste type Quantity[kg]

Emission[ tCO2e ]

Paper 2565 0.054

Plastic 515 0.011

Mixed 1069 0.213

Total emissions 0.278

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Material Aspect MEASURES IMPLEMENTED


Ethics Pag. 22 Induction program training Pag. 22 Speak-Up Boxes

AnticorruptionPag. 21 Revision of the Anticorruption GuidePag. 22 Induction program trainingPag. 22 Speak-Up Boxes

Organization TransparencyPag. 19 Annual meetingPag. 28 Stakeholder Consultation ProcessPag. 23 Web site http://rd.siveco.ro

Conformity with the law Pag. 22 Induction program training

CSR and Sustainability Policy Pag. 25 – 33 SIVECO Sustainability Objective and Management System Pag. 36 Green Frog Award 2016

SIVECO’s Performance

Innovation

Pag. 41 FloodServ ProjectPag. 42 Brain @ Home ProjectPag. 43 3D Pathology ProjectPag. 43 Newton ProjectPag. 43 BEACONING Project

Privacy Pag. 45 Impact assessment European Regulation 2016/679Pag. 45 Training sessions

European Funds

Pag. 41 FloodServ ProjectPag. 42 Brain @ Home ProjectPag. 43 3D Pathology ProjectPag. 43 Newton ProjectPag. 43 BEACONING Project

Leadership & Economic Agility

Pag. 37 Winner of WSA Award in the Culture & Tourism sectionPag. 39 Wand.education™Pag. 39-40 INOVAGRIAPag. 40 Cloud learning

Disaster recovery plan Pag.37 -38 Evaluation of the security management systemPag. 37 -38 Business Continuity Action Plan

Intellectual Property Rights Pag. 38 Implementation of specific measures in order to protect Intellectual Property of the company

Risk Management Pag. 38 Risk Management System

Specific measuresThe company has implemented specific measures in order to respond effectively to the expectation of the stakeholders regarding the topics that have been resulted as material for 2016. In the table below, there is a summary of the way in which indicator 102-44 of GRI 102: GENERAL DISCLOSURES Standard has been respected by the company.

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Material Aspect MEASURES IMPLEMENTED

The team: passion and innovation

Training ProgramsPag. 50 Training PlanPag. 51 343 training sessionsPag. 51 406 employees trained

Equal opportunities and non-discrimination policy

Pag. 51-52 Encouraging professional development of women and implementation of induction programs for potential vulnerable employee categories

Talent Management

Pag. 50 Skill Matrix ApplicationPag. 50 Individual Career Development PlanPag. 50 Evaluation ProcessPag. 50 Team BuildingPag. 49 Benefits package

The software that matters for Community

Projects of major interest to the community

Pag. 56 Hour of CodePag. 56 Implementation of the campaign “A book-a gift from heart to the mind”Pag. 56 Implementation of the campaign “We give double”Pag. 56 Implementation of the campaign “Cutia cu zambete”Pag. 57 Redirection of 2% of income taxes by SIVECO employees – 100 forms collectedPag. 58 Follow-me Project

Contribution to the Digital Inclusion Pag. 59 Organization of “Inspiring Science Education - National Conference”Pag. 60 Organization of “SEI – AeL Caravan”

Internship Programs Pag. 61 14 Students participated in internship programs

Clients are SIVECO’s number one priority

Quality of products and solutionsPag. 67 Upgrading the Quality Management HandbookPag. 67-68 Customer Satisfaction Survey 2016Pag. 69 Launching Responsible Products (INOVAGRIA)

Reputation Management Pag. 70-71 Development and maintaining specific activities to preserve and improve the reputation of the company

Responsiveness Pag. 67 Continuing the process of collection clients’ feedback trough JIRA application

Communication channels with external stakeholders Pag. 67 Continuing the process of collection clients’ feedback trough JIRA application



Pag. 73 Environmental Management System Policy Pag. 77 Waste collecting programPag. 55 Reduction of total purchasing expenditure of fuel and energyPag. 74 Participating in “Earth Hour” initiativePag. 76 Dismissing of 24 old cars from company fleetPag. 73 Continuing the company free transportation program for the employeesPag. 69 Launching Responsible Products (INOVAGRIA)Pag. 74-77 First Annual Carbon Footprint Report

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IX.Appendix

The Sustainability Report 2016 – INNOVATIVE SOLUTIONS for a SUSTAINABLE COMMUNITY presents the main activities implemented by SIVECO Romania in 2016 that contribute to the improvement of its economic, social and environmental performance, creating sustainable value for the stakeholders.

From the review process of the materiality analysis has resulted 23 material topics for 2016, that incorporates the 18th resulted in 2015. These topics are the heart of the report and the main benchmarks of SIVECO sustainability performance for 2016. The materiality analysis methodology is explained in the sub-chapter “Materiality: identification, prioritization, validation, review”. Each chapter and sub-subchapter contain information about the Disclosure Management Approach and the performance indicators for each material topic. Furthermore, for each material topic are reported the actions taken to minimize the negative impact and to maximize the positive impact for the company.

This report has been prepared in accordance with the GRI Standards: Core option.

The reporting process respect the principles, established by the GRI-101 Foundation Standard, to define the contents - Materiality, Stakeholder inclusiveness, Sustainability context and Completeness – and to ensure the quality of information - Balance, Comparability, Accuracy, Timeliness, Clarity and Reliability.

The information reported allows to compare and to understand the evolution of SIVECO sustainability performance from the last report published in 2016. The collection of the information was realized in conformity with the quality standard of the Integrated Management System of the company, ensuring in way the standardization and the consolidation of information.

The last Sustainability Report was published in October 2016 reporting the results of SIVECO Sustainability performance of 2015. In drafting the report, SIVECO has benefited from the support of an external consultant, INNOVA Project Consulting.

IX.1. Methodology, Definitions & Principles

102-46; 102-54; 102-51

82

Report Profile

Reporting PeriodCalendar year 1 January – 31 December 2016. The topics presented in this report have been determined through a materiality analysis conducted in 2016 and 2017.

Reporting cycle

Annual

Date of publication26.09.2017

Sustainability ContextAll the information reported in this report reflects the whole sustainability context in which SIVECO Romania operates. Furthermore, in order to understand which sustainability topics are most likely to be materially significant in the ICT industry, was used as reference the study “ICT and Sustainable Development: a materiality assessment for the ICT industry” by GeSI 2014 and the results of Robeco SAM Corporate Sustainability Assessment 2016 and 2017.

Report contentThe content has been defined in congruency with the internal methodology and on the basis of materiality analysis respecting the principles for defining report content and the principles for defining report quality – GRI-101 Foundation Standard. In some case, the report includes also topics that are not material with the objective to give to the stakeholders a clear picture of SIVECO Sustainability performance. The company is not elaborating a consolidated balance sheet, but is preparing declarations in conformity with International Financial Reporting Standards (IFRS).

Assurance

The content of the report has not been audited by a third party through an assurance process.

Contact Point for Sustainability Issues

SIVECO Romania SA Victoria Park, 73-81 Bucuresti-Ploiesti Drive, Building C4, District 1, 013685, Bucharest Tel: +40 (21) 3023300, Fax: +40 (21) 3023391, e-mail: [email protected]

Referent person in charge for Sustainability: Anca Crahmaliuc, Marketing & Communication Manager.

102-45, 102-46, 102-50; 102-52; 102-53; 102-56

83

GRI Standard DisclosurePagenumber(s) and/or URL(s)

Omission

Part Omitted Reason Explanation

GRI 101: Foundation 2016

General Disclosures

GRI 1

02: G

ener

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sure

s 201

6

Organizational profile102-1 Name of the organization 7

102-2 Activities, brands, products, and services 14, 15, 39, 40, 64

102-3 Location of headquarters 11

102-4 Location of operations 11

102-5 Ownership and legal form 12

102-6 Markets served 11

102-7 Scale of the organization 12

102-8 Information on employees and other workers 48

102-9 Supply chain 16

102-10 Significant changes to the organization and its supply chain 12, 19

102-11 Precautionary Principle or approach 19

102-12 External initiatives 26, 27

102-13 Membership of associations 71

Strategy102-14 Statement from senior decision-maker 5

102-15 Key impacts, risks, and opportunities 25, 38

Ethics and integrity102-16 Values, principles, standards, and norms of behavior 21

Governance102-18 Governance structure 18

102-19 Delegating authority 19102-20 Executive-level responsibility for economic, environmental, and social topics 26

102-21 Consulting stakeholders on economic, environmental, and social topics 26

IX.2. GRI Content Index

102-55

84


Omission



General Disclosures

GRI 1

02: G

ener

al Di

sclo

sure

s 201

6

Stakeholder engagement

102-40 List of stakeholder groups 28

102-41 Collective bargaining agreements 53

102-42 Identifying and selecting stakeholders 29

102-43 Approach to stakeholder engagement 29, 30

102-44 Key topics and concerns raised 78, 79

Reporting practice

102-45 Entities included in the consolidated financial statements

82The company is not elaborating a consolidated balance sheet, but is preparing declaration in conformity with International Fi-nancial Reporting Standards (IFRS) for the following companies: SIVECO ROMANIA, SIV Dubai, EUROSAS, Latona BG, SIVECO Kz, SIVECO Turcia, SIVECO Belgia. This Report covers only SIVECO Romania. For more information: http://bit.ly/2vJ6Il9 http://bit.ly/2xajYNk (please insert the company individ-ual identifi cation code: 476331)

102-55

85


Omission



General Disclosures

GRI 1

02: G

ener

al Di

sclo

sure

s 201

6

102-46 Defining report content and topic Boundaries 32, 33, 81, 82

102-47 List of material topics 31

102-48 Restatements of information

No restatements from the previ-ous period are applicable

102-49 Changes in reporting 30, 31

102-50 Reporting period 82

102-51 Date of most recent report 81

102-52 Reporting cycle 82

102-53 Contact point for questions regarding the report 82

102-54 Claims of reporting in accordance with the GRI Standards 81

102-55 GRI content index 83 - 90

102-56 External assurance 82

102-55

86


Omission


Material Topics

GRI 200 Economic Standard Series

Economic Performance

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary 32, 33

103-2 The management approach and its components 35,38, 41, 44, 45

103-3 Evaluation of the management approach 38

GRI 201: Economic Performance 2016

201-1 Direct economic value generated and distributed 12

201-4 Financial assistance received from government 12

Indirect Economic Impacts



103-2 The management approach and its components 38


GRI 203: Indirect Economic Impacts 2016

203-1 Infrastructure investments and services supported 38

Anti-corruption



103-2 The management approach and its components 21, 38


GRI 205: Anti-corruption 2016

205-1 Operations assessed for risks related to corruption 22

102-55

87


Omission


Material Topics

GRI 300 Environmental Standards Series

Energy



103-2 The management approach and its compo-nents 73, 74, 76, 77


GRI 302: Energy 2016 302-1 Energy consumption within the organization 74, 76, 77

Effluents and Waste





GRI 306: Effluents and Waste 2016

306-2 Waste by type and disposal method 74, 77

GRI 400 Social Standards Series

Employment





GRI 401: Employment 2016

401-1 New employee hires and employee turnover 50

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

49, 50, 51

102-55

88


Omission


Material Topics


Training and Education





GRI 404: Training and Education 2016

404-1 Average hours of training per year per employee 51

404-2 Programs for upgrading employee skills and transition assistance programs 51

404-3 Percentage of employees receiving regular performance and career development reviews 49, 50

Diversity and Equal Opportunity





GRI 405: Diver-sity and Equal Opportunity 2016

405-1 Diversity of governance bodies and employees 18, 48

Non-discrimination





GRI 406: Non-discrimi-nation 2016

406-1 Incidents of discrimination and corrective actions taken 22

102-55

89


Omission


Material Topics


Freedom of Association and Collective Bargaining





GRI 407: Freedom of Association and Collective Bargaining 2016

407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

53

Local Communities



103-2 The management approach and its components 55, 56, 57, 58


GRI 413: Local Communities 2016

413-1 Operations with local community engagement, impact assessments, and development programs

27, 28, 30

102-55

90


Omission


Material Topics


Marketing and Labeling





GRI 407: Freedom of Association and Collective Bargaining 2016

417-3 Incidents of non-compliance concerning marketing communications 71

Customer Privacy





GRI 418: Customer Privacy 2016

418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data

45

102-55

92

Documents

INNOVATIVE - SIVECO RomaniaII.1. Company Profile SIVECO Romania S.A. is a company specialized in developing large and complex IT projects for education, health, agriculture, customs