The Purchasing policy of Hidral s.a. aims to build a solid base of suppliers and collaborators that facilitates the acquisition of goods and services in the best possible conditions. In all areas and levels of action, the current legislation must be strictly complied with.

In its relationship with suppliers, Hidral will give objective and weighted priority to the following characteristics depending on the service/product in question:

1. Price

2. Reliability of the contracted product - service

3. Delivery time

4. Communication and collaboration

5. Service level (Flexibility and response to emergencies)

6. Technical and productive capacity

7. National and international geographical coverage

8. Method of payment

9. Integrity

10. Financial responsibility

The Purchasing Department is the gateway for all suppliers and channels relations with all company departments, guaranteeing a procedure based on the following points:

a. Hidral's relations with its suppliers will be governed by the principles of objectivity, transparency, non-exclusivity and equal opportunities.
b. All suppliers involved in any procurement process shall be provided with full information on the product or service to be supplied.
c. The information provided will be identical for all suppliers, so that no supplier will have an initial advantage and legitimate competition will be encouraged.
d. No supplier shall be invited to participate in an award process to cover formal aspects.
e. Any supplier may be entitled to an assessment for approval.
f. All applications will receive a reply together with a comment on their acceptance or rejection. A negative response does not disqualify the applicant from submitting further applications once the reason for rejection has been remedied.
g. The outcome of the approval process shall be communicated in writing to the supplier, together with the decision criteria used.
h. Continuous improvement plans will be established with suppliers that result in an increase in quality and therefore benefit both parties. The supplier is expected to make any suggestions it deems appropriate to improve relations between the two parties.

Hidral evaluates its suppliers on the basis of the following criteria:

1. Price stability.
2. Reliability of deliveries (stock-outs impacting our customers).
3. Number of incidents.