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 prioritise objectively and in a weighted way the following characteristics according to the service/product in question: 1.

2. Reliability of the product - service contracted

3. Delivery time

4. Communication and collaboration

5. Level of service (Flexibility and emergency response)

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 departments of the company, ensuring a procedure based on the following points:

a. b. Hidral's relations with its suppliers will be governed by the principles of objectivity, transparency, non-exclusivity and equal opportunities. All suppliers involved in any award process will receive full information about the product or service to be supplied.

c.d. The information provided shall be identical for all suppliers, so that no supplier has an initial advantage and legitimate competition is encouraged. No supplier shall be invited to participate in an award process to cover formalities.

e. f. Any supplier may be entitled to an evaluation for approval. Each application will receive a reply together with a comment on its 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 result of the approval process will be communicated in writing to the supplier, as well as the decision criteria used. h. Continuous improvement plans will be established with suppliers that will result in an increase in quality and therefore benefit both parties. The supplier is expected to make suggestions to improve relations between the two parties. Procurement Processes As a general rule, Hidral's procurement processes will start with the sending of a request for tender to approved suppliers that meet the required profile. The supplier will receive the notification and will proceed to make its offer. Once all the bids have been received, the Purchasing Department will launch negotiation rounds with those suppliers that have offered the most favourable conditions, until the final award agreement is reached. Therefore, in order to participate in any procurement process, it is essential to be approved and to form part of the catalogue of suppliers.