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Corporate Governance

Section 172 Statements

We understand that our business can only grow and prosper over the long term if we understand and respect the views and needs of our key stakeholders.

Recent legislative changes now require certain companies to provide additional information in their strategic reports to allow shareholders to better understand and assess how directors are discharging their duty to promote the success of the company and the other matters set out in Section 172 of the Companies Act 2006 (s172).

Please click to access the Coats Group plc s172 statement

Please find below the s172 statements for the Coats Group subsidiaries which meet the qualifying conditions. During the course of the year, the directors of UK subsidiaries of Coats Group plc continued to have appropriate consideration of the s172 matters when reviewing proposals and conducting the business of these companies:

Coats Industrial Thread Limited

Section 172 Statement – Duty to promote the success of the company

The Board of Directors of Coats Industrial Thread Limited have always taken decisions for the long term, and collectively and individually our aim is always to uphold the highest standards of conduct. We understand that our business can only grow and prosper over the long term if we understand and respect the views and needs of our key stakeholders. We continue to be mindful of the need to create value. As a wholly owned subsidiary of Coats Group plc, our key stakeholders are aligned with our ultimate parent company and you can read more about that stakeholder engagement on pages 19 to 24 of the 2019 Annual Report. By considering Coats Group’s purpose, vision and values together with the strategic priorities, we balance outcomes for our key stakeholders alongside long-term sustainable growth.

As the principal activity of the Company is the holding of investments in group companies, decisions on receiving and making dividend payments are the main decisions taken where we ensure that the impact is considered. The Company’s approach to its suppliers was considered as part of the approval process for the Modern Slavery Statement. We review annually which are our key stakeholder relationships and examine how we engage with them. We also consider ways to ensure that we maintain open lines of communication with those stakeholder groups and whether there are ways that the Board’s engagement can be improved to help us operate more effectively.

J. & P. Coats, Limited

Section 172 Statement – Duty to promote the success of the company

The Board of Directors of J. & P. Coats, Limited have always taken decisions for the long term, and collectively and individually our aim is always to uphold the highest standards of conduct. We understand that our business can only grow and prosper over the long term if we understand and respect the views and needs of our key stakeholders. We continue to be mindful of the need to create value. As a wholly owned subsidiary of Coats Group plc, our key stakeholders are aligned with our ultimate parent company and you can read more about that stakeholder engagement on pages 19 to 24 of the 2019 Annual Report for Coats Group plc. By considering Coats Group’s purpose, vision and values together with the strategic priorities, we balance outcomes for our key stakeholders alongside long-term sustainable growth.

As the Board makes decisions we ensure that the impact on any of these groups is considered. The principal activity of the Company is the holding of investments in group companies. During the year under review the Board considered the impact on both the subsidiary companies and on the employees of the disposal by the Company’s subsidiaries Coats North America Consolidated Inc and Coats Canada Inc of the non-core North America Crafts business to Spinrite Acquisition Corp. The Company’s approach to its suppliers was considered as part of the approval process for the Modern Slavery Statement. We review annually which are our key stakeholder relationships and examine how we engage with them. We also consider ways to ensure that we maintain open lines of communication with those stakeholder groups and whether there are ways that the Board’s engagement can be improved to help us operate more effectively.

Coats Holdings Ltd

Section 172 Statement – Duty to promote the success of the company

The Board of Directors of Coats Holdings Ltd have always taken decisions for the long term, and collectively and individually our aim is always to uphold the highest standards of conduct. We understand that our business can only grow and prosper over the long term if we understand and respect the views and needs of our key stakeholders. We continue to be mindful of the need to create value. As a wholly owned subsidiary of Coats Group plc, our key stakeholders are aligned with our ultimate parent company and you can read more about that stakeholder engagement on pages 19 to 24 of the 2019 Annual Report for Coats Group plc. By considering Coats Group’s purpose, vision and values together with the strategic priorities, we balance outcomes for our key stakeholders alongside long-term sustainable growth.

As the principal activity of the Company is the holding of investments in group companies, decisions on receiving and making dividend payments are the main decisions taken where we ensure that the impact is considered. The Company’s approach to its suppliers was considered as part of the approval process for the Modern Slavery Statement. We review annually which are our key stakeholder relationships and examine how we engage with them. We also consider ways to ensure that we maintain open lines of communication with those stakeholder groups and whether there are ways that the Board’s engagement can be improved to help us operate more effectively.

Coats Digital Limited

Section 172 Statement – Duty to promote the success of the company

The Board of Directors of Coats Digital Limited have always taken decisions for the long term, and collectively and individually our aim is always to uphold the highest standards of conduct. We understand that our business can only grow and prosper over the long term if we understand and respect the views and needs of our key stakeholders. We continue to be mindful of the need to create value. As a wholly owned subsidiary of Coats Group plc, our key stakeholders are aligned with our ultimate parent company and you can read more about that stakeholder engagement on pages 19 to 24 of the 2019 Annual Report for Coats Group plc.

By considering Coats Group’s purpose, vision and values together with the strategic priorities, we balance outcomes for our key stakeholders alongside long-term sustainable growth. As the Board makes decisions we ensure that the impact on any of these groups is considered. We review annually which are our key stakeholder relationships and examine how we engage with them. We also consider ways to ensure that we maintain open lines of communication with those stakeholder groups and whether there are ways that the Board’s engagement can be improved to help us operate more effectively.

Fast React Systems Limited

Section 172 Statement – Duty to promote the success of the company

The Board of Directors of Fast React Systems Limited have always taken decisions for the long term, and collectively and individually our aim is always to uphold the highest standards of conduct. We understand that our business can only grow and prosper over the long term if we understand and respect the views and needs of our key stakeholders. We continue to be mindful of the need to create value. As a wholly owned subsidiary of Coats Group plc, our key stakeholders are aligned with our ultimate parent company and you can read more about that stakeholder engagement on pages 19 to 24 of the 2019 Annual Report for Coats Group plc. By considering Coats Group’s purpose, vision and values together with the strategic priorities, we balance outcomes for our key stakeholders alongside long-term sustainable growth.

As the Board makes decisions we ensure that the impact on any of these groups is considered. We review annually which are our key stakeholder relationships and examine how we engage with them. We also consider ways to ensure that we maintain open lines of communication with those stakeholder groups and whether there are ways that the Board’s engagement can be improved to help us operate more effectively.

Coats Limited

Section 172 Statement – Duty to promote the success of the company

The Board of Directors of Coats Limited have always taken decisions for the long term, and collectively and individually our aim is always to uphold the highest standards of conduct. We understand that our business can only grow and prosper over the long term if we understand and respect the views and needs of our key stakeholders including members of the Coats UK Pension Scheme. We continue to be mindful of the need to create value. As a wholly owned subsidiary of Coats Group plc, our key stakeholders are aligned with our ultimate parent company and you can read more about that stakeholder engagement on pages 19 to 24 of the 2019 Annual Report for Coats Group plc. By considering Coats Group’s purpose, vision and values together with the strategic priorities, we balance outcomes for our key stakeholders alongside long-term sustainable growth.

As the principal activity of the Company is the holding of investments in group companies, decisions on receiving and making dividend payments are the main decisions taken where we ensure that the impact is considered. The Company’s approach to its suppliers was considered as part of the approval process for the Modern Slavery Statement. We review annually which are our key stakeholder relationships and examine how we engage with them. We also consider ways to ensure that we maintain open lines of communication with those stakeholder groups and whether there are ways that the Board’s engagement can be improved to help us operate more effectively. The Directors of the Company implemented the decisions made by Coats Group plc following their engagement with pension trustees during 2019.

Coats Group Finance Company Limited

Section 172 Statement – Duty to promote the success of the company

The Board of Directors of Coats Group Finance Company Limited have always taken decisions for the long term, and collectively and individually our aim is always to uphold the highest standards of conduct. We understand that our business can only grow and prosper over the long term if we understand and respect the views and needs of our key stakeholders. We continue to be mindful of the need to create value. As a wholly owned subsidiary of Coats Group plc, our key stakeholders are aligned with our ultimate parent company and you can read more about that stakeholder engagement on pages 19 to 24 of the 2019 Annual Report for Coats Group plc. By considering Coats Group’s purpose, vision and values together with the strategic priorities, we balance outcomes for our key stakeholders alongside long-term sustainable growth.

As the principal activity of the Company is the holding of investments in group companies, decisions on receiving and making dividend payments are the main decisions taken where we ensure that the impact is considered. The Company’s approach to its suppliers was considered as part of the approval process for the Modern Slavery Statement. We review annually which are our key stakeholder relationships and examine how we engage with them. We also consider ways to ensure that we maintain open lines of communication with those stakeholder groups and whether there are ways that the Board’s engagement can be improved to help us operate more effectively. The Directors of the Company implemented the decisions made by Coats Group plc following their engagement with debt providers during 2019.

GPG (UK) Holdings Limited

Section 172 Statement – Duty to promote the success of the company

The Board of Directors of GPG (UK) Holdings Limited have always taken decisions for the long term, and collectively and individually our aim is always to uphold the highest standards of conduct. We understand that our business can only grow and prosper over the long term if we understand and respect the views and needs of our key stakeholders. We continue to be mindful of the need to create value. As a wholly owned subsidiary of Coats Group plc, our key stakeholders are aligned with our ultimate parent company and you can read more about that stakeholder engagement on pages 19 to 24 of the 2019 Annual Report for Coats Group plc. By considering Coats Group’s purpose, vision and values together with the strategic priorities, we balance outcomes for our key stakeholders alongside long-term sustainable growth.

As the principal activity of the Company is the holding of investments in group companies, decisions on receiving and making dividend payments are the main decisions taken where we ensure that the impact is considered. We review annually which are our key stakeholder relationships and examine how we engage with them. We also consider ways to ensure that we maintain open lines of communication with those stakeholder groups and whether there are ways that the Board’s engagement can be improved.