1. Sparrow Ambattur Best Practices Be a leader in Heath, Safety, Sustainability and Workers satisfaction in Bangladesh

2.  Lead in Fire Safety in Bangladesh  Lead in Environmentally responsible green company  Reach HIGG LEVEL 3 by 2015  Maximum workers satisfaction and minimum workers attrition  Empowering women and improve women health standards  Training and constant communication with the employees  Elected Workers Participatory Committee  Involved in decision making, constant Voice of the workforce surveys  Incentive and reward system: productivity, rework and quality  Maximum transparency and partnership with vendors Sparrow-ACL CSR Programs

3. CSR = Business Sparrow Value System Invest in People: Training, Retention &, Ownership Salary and Profit Sharing Career & Opportunity Health and Nutrition Safety and Work Environment Compliance (lead by Example) Result => 80% of the Workforce are with Sparrow for 5+ years No Interruption of work in the middle of all the Political and social issues

4. Ann Taylor American Eagle Outfitters AllSAINTS Banana Republic Bass Pro Gap Kohls Levis Old Navy Talbots Zara Zara Kids Mango Michael Kors …… BUYERS

5. ACL JV with Sparrow in Dec’07

6. Salary and Wages C GRADE B GRADE A GRADE A + GRADE SAMPLE TAILORS New JOINEES (Trainees)

7. Worker Distribution in Production Lines  Large number of highly Skilled Labors  Very low attrition rate  High Productivity  Low Defect and Rework

8. Rewards: Bonuses and Incentive Two Incentive Bonuses per year (55-60%) Attendance Bonus (Tiered) - 5 to 10% per month Production Target Bonus 3% Yearly Profit Sharing 5% of the Yearly Net Profit Employee Ownership Yearly Profit Sharing 5% of the Yearly Net Profit Employee Ownership

9.  Started joint initiative with Gap Inc. on October 2012  Full electrical system audit and Structural Audit by International Consultants  Be the first Garment industry in Bangladesh to install a centralized Fire Detection and Monitoring System  Install automatic Sprinkler System, and Fire doors  Have dedicated Fire safety department with Fire Marshall and trained fire fighting staff  Have 300 trained staff with Fire Training certificate (In Each Unit)  Trained all 5000 employees on basic fire safety (in each unit)  Conduct Fire Drill every month in the presence of Fire Department  In process of getting Completed by March 31, 2014  Complete the underground water reservoir, diesel operated high pressure fire pump, fire hydrant system around the building and every floor Lead in Fire Safety

10. Path to Safety PreventionDetection Training & Awareness Evacuation Flow of People via stairs, smoke free evacuation path Infrastructure Fire doors, Sprinklers, dedicated reservoir, Fire Hydrants

11. Electrical System Upgrades Completely Dust Free Electrical Circuit Box Fully load balanced Circuit Continuous monitoring and maintenance Prevention

12. Automatic Fire Detection SystemsCentralized monitoring Advance Fire Detection Manual Fire AlertsPowerful Audio Visual Alerts

13. Training and awareness Fire Training and safetyPractical training and demonstration Certified Fire Fighting Team Regular Fire Evacuation Drill

14. Sprinkler System Sprinkler System in the Warehouse Fire Door Protecting Warehouse to Factory – Smoke and Fire Protection

15. Safe, Environment Friendly work place Sparrow Crown Natural Green Setting

16.  Heat Recovery from by returning steam into condensate unit to Boiler  Natural Gas based boilers with water softener  Special valves and Condensate Recovery for steam loss protection in finishing  Solar Panels providing power to warehouses – 12%  Committed to HIGG Index 2 by Dec 2013 and HIGG Index 3 by 2015  Replacement of lights with LED and T5 Light-set  Energy Efficient Servo motors for Sewing Machines  Front loading washers and Zero water based washer – gradually by 2016 Green Initiative and Energy Efficiency

17.  Sparrow is Making a Saving Pledge of USD 118,313  The Pledge is to save 32% of Total Energy Usage by end of 2014  This will reduce Greenhouse Gas (Carbon) by 1300 CO 2 e  The Pledge will be met by Dec 2014  The Implementation will be done in phases and continuous and monthly reports will show the progress  Total Investment will be around USD 310,000 Summary of HIGG Index 2 Saving Pledge

18. Green Initiatives Solar Panels – 8% of the energy needs ETP Plant Treated Water Reused for Gardening

19. Visual Tour SewingFinishing WashingQuality Control

20.  RO Plant for safe drinking water, Doctor and Nurses  Maternity Benefit and special maternity care  First Doctor Visit and doctor assisted child birth support  Child Care and education scholarship on basis of merit  Medical Assistance  Special assistance for special needs:  Emergency medical expense for the family  Family Wedding and other special needs Employee Welfare

21. Medical and Day Care Center In house doctor and Nurse Financial Support for Special needs

22. HERs Project  Participated Twice and trained 500+ women  Women health, sanity, safety, discipline and empowerment

23.  Training program for Sewing operators  Special retention and promotion program for Helpers or entry level people  University affiliated practical training program  Merchandisers  Industrial Engineers  Production Technicians (Currently working with Santo Maria University in Dhaka)  Training sessions for different employees at all levels Continuous training & Skill improvements

24. Training – All levels, All the time IT Users training Orientation Program Security Team training Mid Management Training

25.  Elected Workers Participatory Committee (WPC)  Elected by direct voting by the workers and election conducted by the Government Labor department  WPC is involved in all decision making along with the factory Owners and Management  Regular WPC committee meeting with HR department, and Top Management  Constant two way communications – Satisfied workers who does not use violence as a mean  Open door policy by Factory owners Elected and Active Workers Committee Employees voices are heard and represented

26. Empowered WPC Employees Voting for WPC Regular meeting with Management and WPC

27.  Employee society  Owns two Trucks used for transportation of the company goods and profits return to workers – Employee managed  Annual Picnic and recreation program  Annual Sports  Annual Celebration of New Years  Profit Sharing Program  Continuous training of middle Management, KPI for Managers on worker retention and very active and trained HR team  Orientation program, promotions and growth, talent management, exit interviews Employee Retention Programs – Just do it

28. We give employees ownership Annual Picnic where the top Entertainers of the country Performs Worker’s Appreciation and Rewards Annual Sports and Games 10 years completion Award

30. Sparrow – Committed to CSR, Sustainability and People A Group Company of ACL