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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 seek to ensure that the decisions that we take in the interests of promoting the success of the Company are made with the appropriate consideration of our relationships with, and our impact on, our various stakeholders. The Board’s intent is always to maintain high standards of business conduct and governance in all of the Company’s operations, which is critical in maintaining our reputation for doing the right thing. We do not underestimate the importance of understanding our stakeholder expectations and needs to achieve our strategy and accordingly our long-term sustainable success. 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 17 to 22 of the 2020 Annual Report for Coats Group plc, which can be found online at www.coats.com. 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 of these decisions, including the impact on our stakeholders, is considered. The Company’s approach to its suppliers and the wider employees of the Coats Group was considered as part of the approval process for the Modern Slavery Statement published on the Coats Group plc website. We regularly review which are our key stakeholder relationships and examine how we appropriately 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.

In response to COVID-19 the Board of Coats Group plc agreed a set of key Group priorities focusing on continuing to ensure the health and safety of employees and contractors, supporting customers, maintaining critical aspects of our supply chain and providing supplies and training to our employees and the communities in which the Coats Group operate.

Coats Holdings Ltd

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

The Board of Directors of Coats Holdings Ltd seek to ensure that the decisions that we take in the interests of promoting the success of the Company are made with the appropriate consideration of our relationships with, and our impact on, our various stakeholders. The Board’s intent is always to maintain high standards of business conduct and governance in all of the Company’s operations, which is critical in maintaining our reputation for doing the right thing. We do not underestimate the importance of understanding our stakeholder expectations and needs to achieve our strategy and accordingly our long-term sustainable success. 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 17 to 22 of the 2020 Annual Report for Coats Group plc, which can be found online at www.coats.com. 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 of these decisions, including the impact on our stakeholders, is considered. The Company’s approach to its suppliers and the wider employees of the Coats Group was considered as part of the approval process for the Modern Slavery Statement published on the Coats Group plc website. We regularly review which are our key stakeholder relationships and examine how we appropriately 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.

In response to COVID-19 the Board of Coats Group plc agreed a set of key Group priorities focusing on continuing to ensure the health and safety of employees and contractors, supporting customers, maintaining critical aspects of our supply chain and providing supplies and training to our employees and the communities in which the Coats Group operate.

Coats Limited

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

The Board of Directors of Coats Limited seek to ensure that the decisions that we take in the interests of promoting the success of the Company are made with the appropriate consideration of our relationships with, and our impact on, our various stakeholders. The Board’s intent is always to maintain high standards of business conduct and governance in all of the Company’s operations, which is critical in maintaining our reputation for doing the right thing. We do not underestimate the importance of understanding our stakeholder expectations and needs to achieve our strategy and accordingly our long-term sustainable success. 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 17 to 22 of the 2020 Annual Report for Coats Group plc, which can be found online at www.coats.com. 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 of these decisions, including the impact on our stakeholders, is considered.

The Company’s approach to its suppliers and the wider employees of the Coats Group was considered as part of the approval process for the Modern Slavery Statement published on the Coats Group plc website. We regularly review which are our key stakeholder relationships and examine how we appropriately 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.

In response to COVID 19 the Board of Coats Group plc agreed a set of key Group priorities focusing on continuing to ensure the health and safety of employees and contractors, supporting customers, maintaining critical aspects of our supply chain and providing supplies and training to our employees and the communities in which the Coats Group operate.

The Directors of the Company implemented the decisions made by Coats Group plc following their engagement with pension trustees during 2020 notably including the agreement to defer payment of deficit repair contributions as a result of the impact of COVID-19. The interests of employees and shareholders of the Group were appropriately considered when agreeing the deferral.

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 seek to ensure that the decisions that we take in the interests of promoting the success of the Company are made with the appropriate consideration of our relationships with, and our impact on, our various stakeholders. The Board’s intent is always to maintain high standards of business conduct and governance in all of the Company’s operations, which is critical in maintaining our reputation for doing the right thing. We do not underestimate the importance of understanding our stakeholder expectations and needs to achieve our strategy and accordingly our long-term sustainable success. 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 17 to 22 of the 2020 Annual Report for Coats Group plc, which can be found online at www.coats.com. 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 of these decisions, including the impact on our stakeholders, is considered. The Company’s approach to its suppliers and the wider employees of the Coats Group was considered as part of the approval process for the Modern Slavery Statement published on the Coats Group plc website. We regularly review which are our key stakeholder relationships and examine how we appropriately 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.

In response to COVID-19 the Board of Coats Group plc agreed a set of key Group priorities focusing on continuing to ensure the health and safety of employees and contractors, supporting customers, maintaining critical aspects of our supply chain and providing supplies and training to our employees and the communities in which the Coats Group operate.

The Directors of the Company implemented the decisions made by Coats Group plc following their engagement with debt providers during 2020.

GPG (UK) Holdings Limited

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

The Board of Directors of GPG (UK) Holdings Limited seek to ensure that the decisions that we take in the interests of promoting the success of the Company are made with the appropriate consideration of our relationships with, and our impact on, our various stakeholders. The Board’s intent is always to maintain high standards of business conduct and governance in all of the Company’s operations, which is critical in maintaining our reputation for doing the right thing. We do not underestimate the importance of understanding our stakeholder expectations and needs to achieve our strategy and accordingly our long-term sustainable success. 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 17 to 22 of the 2020 Annual Report for Coats Group plc, which can be found online at www.coats.com. 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 of these decisions, including the impact on our stakeholders, is considered. We regularly review which are our key stakeholder relationships and examine how we appropriately 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.