The HUK Group Tax Strategy

Scope

This strategy applies to Hermes Parcelnet Ltd and, in general, to the group of companies headed by Concert Topco Ltd (“the HUK Group”).

The HUK Group is a part of the wider Advent International Group of companies which operates on a global basis.

The strategy is considered to cover the following taxes paid and administered by the HUK Group (“UK taxes”): Income Tax; Corporation Tax; PAYE; NIC; VAT; Customs Duty; Import VAT; Stamp Duty Land Tax.

The strategy has been agreed by the relevant Executive Boards of the above HUK Group entities and is considered to apply from its date of publication until it is superseded.

Commitment to compliance

The HUK Group always applies the core principles of social responsibility and sustainability to its business and considers potential reputational impacts as part of decision making.

The aim of the group is to be a preferred choice for customers; building sustainable long-term relationships by acting fairly and, ethically with integrity, following necessary due process.

Whilst the HUK Group has a responsibility to deliver returns and value for our shareholders, we also take seriously the requirement to comply with UK tax rules and regulations and to pay the right amount tax, in the right place, at the right time.

The owners expect its member businesses to aim for strict adherence to local tax legislation and the HUK group also maintains this commitment.

Tax governance

The CFO of Hermes Parcelnet Ltd (“CFO”) has assumed responsibility and ownership of the tax strategy for all tax matters, for all group companies, with day to day management resting with the Financial Controller of Hermes Parcelnet Ltd. The CFO is also appointed as Senior Accounting Officer (“SAO”) with responsibility for monitoring the integrity of the respective financial reporting systems, internal controls and risk management frameworks which includes those elements relating to taxation.

Processes relating to specific UK taxes are allocated to appropriate internal specialists who maintain monitoring of systems and activities to identify and mitigate risks. Changes to business activity and in legislation are considered for impact on existing systems, processes and reporting, with required consequential changes made to address risks based on materiality and relevant obligations.

The HUK Group is also required to report to and consult with the shareholders regarding material issues affecting the structure or operation of the UK businesses from a tax perspective, including identification of significant risk.

Responsible attitude toward risk and arranging our tax affairs

The HUK Group seeks to actively identify, evaluate, monitor and manage tax risk associated with our business activities.

We aim for certainty on the tax positions adopted and, in order to adhere to our principles, any structuring undertaken will have commercial and economic substance.

We will take advantage of available tax incentives, reliefs and exemptions in line with, and in the spirit of, the tax legislation.

In line with its cultural values, the HUK Group will not enter into transactions which it considers are contrived, artificial or counter the spirit of the law or whose main purpose is to create an abusive tax result.

UK tax law is, however, complex and constantly evolving; consequently the correct position can sometimes be unclear. The HUK Group may therefore challenge the interpretation and views of the UK tax authorities.

Where there is significant uncertainty, complexity or material amounts in question, in order to address identified risks, we may seek external advice from reputable tax advisors, legal firms or tax counsel as appropriate and will follow necessary due process.

Relationship with HMRC

The HUK Group is committed to the principles of integrity, transparency and openness and seeks to apply these in its dealings with UK tax authorities. Wherever possible we seek constructive and early discussions on any new arising tax matter to obtain certainty.

The HUK Group seeks to pay its UK taxes at the appropriate times and provide any relevant information requested by the tax authorities.

The HUK Group and the companies within it regard publication of this Tax Strategy as complying with the duty under paragraphs 16(2) and 22(2) of Part 2 of Schedule 19 of the Finance Act 2016 in the current financial year.

Dated: January 2021.