Hedging Policy

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This document sets out the policy of Promercium in relation to hedging activity undertaken by Promercium in relation to business with its clients.

Definition:
The Group is exposed to various financial risks because of its activities. These risks comprise market risk, credit risk, currency risk and liquidity risk. The Group's general risk management program is focused on the volatility of financial markets, and minimizing the impact of probable negative developments on the Group's financial performance.

Purpose:
Creating a framework where the scope, limit and liability related to the impact of rapid changes in the commodity market on our group companies and the activities of Promercium can be determined in addition to assuming foreign exchange liability, sharing this framework with the stakeholders in a transparent manner, reducing uncertainty finally, and minimizing probable damages.

Scope:
Market Risk: price volatility related to main ingredients
Credit Risk: Observing credit/equity ratio
Currency Risk: The exchange rate volatility related to capital and interest
Liquidity Risk: Keeping the current ratio within acceptable limits

Methods to be Used:
Forward, Option-Based Instruments, Option Instruments with Premium Payment, Natural Methods of Hedging, Derivatives, Market Surveillance and Follow-up, etc.

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Compliance: Promercium has rigorous policies and procedures in place to ensure that it complies with all relevant national and international legislation and regulation. Business solicitation scams: Promercium never requests an advance fee to conduct business. Neither via social media, nor by unsolicited email or written correspondence. Recruiting scams: Please be aware of phishing emails that are being sent to job applicants and scams involving employment search websites. These have not been sent or created by Promercium, often contain malicious content and should be therefore deleted or at least be disregarded. Promercium will never make an offer of employment to anyone without going through a full and face-to-face interview process. Additionally, we will never ask you to send us any funds as part of an employment process.