To implement guidelines in line with European requirements, the German legislator has issued in 2017 regulations to strengthen non-financial reporting for companies. The CSR- directive implementation act concerning corporate social responsibility (“CSR”), which governs the reporting of non-financial information for certain capital market-oriented companies, became effective on April 19, 2017. KHD Humboldt Wedag International AG (“KHD AG”) has to provide this non-financial report for the KHD Group in accordance with Section 315b Paragraph 1 of the German Commercial Code (“HGB”). For this reason, unless otherwise indicated, this information applies to the Group associated with KHD AG (“KHD Group” or “KHD”), i.e. the global activities of the KHD Group.

The Management Board of KHD AG is responsible for the preparation of this non-financial report. In accordance with the specifications of Section 315b Paragraph 3 HGB the Management Board decided not to integrate the non-financial report into the Group Management Report, but instead to create a separate, independent report that is published on the KHD website.

In accordance with the specifications of Section 171 Paragraph 1 of the German Stock Corporation Act (“AktG”), the Management Board presented the non-financial report to the Supervisory Board for audit before publication. The Supervisory Board audited the separate non-financial Group report in accordance with the legal requirements.