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LYONESS CODE OF TEAM

CULTURE

Ing. Mario Slivka, MBA

Lyoness International

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Dear colleagues,

Mutual respect, your polite expression, and your behavior in a

team environment is a sufficient guarantee that you will feel

good in Lyoness. Our code of a team culture contains all of our

important visions, goals, and expectations, which will all

contribute towards our better teamwork at Lyoness.

The team culture is binding for all of us. Under all

circumstances, we are all entitled to expect the same

performance of all duties from each senior worker or colleague.

However, if you feel it is otherwise, do not hesitate to talk

about it openly according to our Codex.

Moving forward together depends on an open communication

within a team. It belongs to the basic rules, and only together

we are strong.

We are part of the largest shopping community in the world.

Team culture is an integral part of the working environment in

relation to the external environment, our partners, and, last but

not least, to our members.

Thank you already for your personal contribution to the

adoption of the Code of Team Culture, because even you,

personally, are a model for others.

I remain yours faithful,

Mario Slivka

Managing Director

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What is our team culture at Lyoness?

Together we are strong

Company:

o Working environment, facilities, history,

honesty and achievements make up our

corporate spirit. Clear objectives and principles

of leadership are the key elements of our

strategy.

People:

o Being a role model for others.

o 360 degree feedback.

o Be prepared to continually develop.

o We are the mirror of our corporate culture.

o We value ethics and respect diversity.

o Trust of co-workers.

Members, customers, and business partners:

o Are the most important entities of our

company.

o Our shopping community creates our lasting

value.

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Lyoness Corporate Policies and Principles

The joy of shopping of our members and their satisfaction

shapes our personal character.

Understanding the environment determines our market share

in relation to business partners.

Flexibility and responsibility, acting swiftly, and knowledge of

procedures determines our success.

Honesty and openness are a principle of our behavior to others.

Points motivate us to improve.

Fairness to all of us, to members, and to business partners.

All our efforts must be directed to the satisfaction of our

members and business partners.

What is said is done.

Regional Office as well as the Head Office complies with the

legislation.

Our rules consist of regular feedback in the form of praise and

suggestions.

We are responsible for dynamic working environment and

committed people around us.

Good knowledge of our work provides for interchangeability.

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Lyoness Corporate Values

Corporate Shared

Freedom Strive for perfection

Responsibility independence

Sharing values transparency and

Respect open communication

Honesty and sincerity collective social

Solidarity success

Progress

Willingness to help others

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Lyoness Corporate Values

Lyoness corporate values are shared among its employees and intertwined into each of our

activities.

The global size of our company brings responsibilities and duties against our members, co-

workers, business partners.

Leadership, bringing pride that we are the leader, also requires a constant search for

perfection.

The art of being a merchant implies an ongoing openness to the world and people.

In order to sell, we must listed to and understand our customers.

In order to understand, we have to respect cultural differences of communities,

because we operate our business in their environment.

Our values are the heritage of people and companies that participated in the establishment of

Lyoness.

Our values are:

Freedom

Responsibility

Value sharing

Respect

Honesty and sincerity

Solidarity / willingness

Progress

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FREEDOM

Respecting freedom of choice of our members by offering various forms of purchase,

diversity of products and services. Strengthening freedom of our members by providing

complete and objective information.

Allowing our members to purchase at prices that match their purchasing power.

Making sure that all colleagues have the right to initiative and free work.

RESPONSIBILITY

Taking full responsibility for the consequences of the proceedings against our members,

company and its associates, business partners, institutions, and the environment.

SHARING VALUES

Focusing the entire know-how and potential of the company on value creation that will be

distributed among our members, colleagues, shareholders, and partners.

Discussing our values with our team, clearly stating our expectations and goals. Subsequently

creating a space for competence and personal development.

RESPECT

Respecting our employees, business partners, members. Listening and accepting their

differences. Understanding and respecting their way of life, customers, culture, and interest,

wherever we are present.

HONESTY AND SINCERITY

Observing our commitments and promises, always acting sincerely and honestly with our

members, customers, colleagues, and business partners.

Being honest as an individual and as a team.

SOLIDARITY

Contributing to the development of the local economy, employment, education, and

contributing to the fight against discrimination in the communities, countries, cities, and

districts, where we develop our activities.

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Establishing fair trade and corporate policies by developing and sharing our values.

Developing mutual solidarity between workers throughout our company, regardless of

profession, position, or division.

PROGRESS

Promoting the progress and development of new technologies with a regard to the needs of

our members and business partners. Recognizing and accepting changes, promoting new

approaches and innovations.

1. Members (Shopping Community)

Each subsidiary of Lyoness adjusts and differentiates within the market in order to be seen as

a specific reference by each member.

Each subsidiary integrates into its surroundings in order to create a strong image.

The image of each subsidiary is the capital, which has to be protected and strengthened:

Image of member advantages over competitors

Image of offer adapted to the expectations of the members, offer shall be clear and

efficient

Image of quality through the offered services

Image of modernity, practicality, speed.

The pursuit of economic results should not be in conflict with the protection of the above

capital.

The image of our service, offer, and services is an important element to the overall reputation

of the company. The image shall be constantly improved.

We listen to our members and business partners

Personal contact is the best way of listening to our members and business partners. This

activity is continuous and allows to anticipate the needs, expectations, and behavior of our

members and business partners.

It is the most reliable means to find new members and business partners, while:

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Improving our business offer of services, products, and support.

Streamlining purchasing (CB Card, E-Vauchers, Online...)

Co-workers who are in direct contact with the members are responsible for listening to the

members. They forward all information to their superiors, who further deal with the

knowledge.

Receiving and listening contributes to the acquisition of faithful members and business

partners.

The use of all means of communication for attracting loyal members and business partners

(databases, studies, loyalty systems, etc.).

Advertising

Is an integral part of trade policy and image of the Lyoness Group. Contributes to the

development and turnover to gain market share.

Strengthens the image of each specific regional representation. Improves our members and

business partners and expresses the values of Lyoness.

Must be clear, transparent, effective, and for the best price, with the highest return on

investment. Its effectiveness is assessed regularly.

Institutional Communication

Strengthens the reputation of Lyoness in every place, in every country, and around the globe.

Its aim is to support the incorporation of Lyoness and its subsidiaries to the environment. It

expresses the value of the entire Lyoness Group.

Market Shares

Increasing market shares are a common goal for all regional branches and all employees of

Lyoness.

Market share in terms of services, market segment, product groups, departments, trade marks,

provides the country with an objective scale to evaluate the satisfaction of members and

business partners.

It has a direct impact on the competitiveness of purchase and sell prices and subsequently on

the turnover.

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In order to acquire market shares, it is necessary to be able to withstand and predict the

evolution of the behavior of our members, competitors, environment, and business partners.

Development of market shares is observed in each country and individual representations are

compared with each other. In case of a failure, measures are immediately taken to recover any

lost position.

2. Assets

Lyoness capital consists of tangible and intangible assets.

Tangible assets: intangible property

Shopping vouchers, premises and their facilities, supplies, etc.

Intangible assets:

Company name, concepts, symbols, names, partnership contracts, appearance of signboards

with Lyoness logo.

Lyoness oversees the treatment of its assets and their commercial exploitation. Lyoness

premises shall not be rented to anyone.

Concept

Lyoness is an international group, the operation of which is based upon a loyalty system,

giving money back to the customer with every purchase. Within the industry, Lyoness aims to

take a leading position in the market Each type of regional representation is conceived so as

to best serves its members, business partners and adapt to local market.

Technology services may vary by country and correspond to the services and products and

purchase logic of our members.

3. People

Our strongest instrument is the motivation of Lyoness employees. Leyoness employs the best

traders and the largest experts in the field.

We act so that we are externally recognized and known. The filling of vacant positions

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is always based on the professional selection. Individual statements are always based on the

principle of 4 eyes at the presence of immediate superior. We personally greet each new

employee. We provide each employee with a sufficient assistant to integrate into the

company. We bid farewell to our employees in a fair and respectful manner.

Work organization

Work organization of Lyoness and regional offices.

Determines the number of employees and necessary qualifications.

Optimizes the efficiency of co-workers

Promotes balance and personal development of each individual.

It is closely related to the development of members, business partners and turnover,

peculiarities of the country, and technological innovations.

Lyoness invests in instruments that allow its staff to increase its efficiency and to decide to its

profession, i.e. to the trade and provision of services.

Trainings

It is essential to educate ourselves and others, if we want to:

Strengthen our expertise and professionalism in our fields and positions

Exchange experiences and skills

Engage and participate in the company values

Spread and enrich of Lyoness culture.

Before recruitment, each employee passes through worker training.

Trainings are adapted to the evolving requirements of members and trading partners, which

helps to develop the employees and their careers.

Senior workers are responsible for the quality of training. They deal with the quality of

training and regular checks thereof.

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Professional approach

Every employee in the company can advance to a higher position as soon as (s) he fulfills its

role, achieves its goals, and adapts and comes up with new methods.

Professional advancement of staff meets the needs of the company and takes into account

personal wishes.

Occupational and geographical mobility facilitate this development.

We prefer an internal procedure; however, the arrival of new employees from the outside

enriches the experiences of the Lyoness Group.

Experience in trade at other companies, as well as international experience is most welcome

for professional development.

We have full confidence in our employees that there will overcome their forthcoming

challenges. We are constantly open to receive suggestions from them for improvements and

ideas, which together will move our company forward.

“Talk, not Tick”. We communicate personally. We talk. We support each other and encourage

us to be productive. We engage our colleagues and use their expertise and competence.

We share all necessary information so that the employees can properly use them to meet our

expectations and work assignments. Our regular personal interview serves to provide our own

feedback. The way we communicate and our approach is open and fair to all of our

employees. We act as we expect to be dealt with by our superior -- with respect.

We serve as a model for our employees.

Remuneration

Remuneration must be motivating for each brand of the Lyoness Group, in each country.

Remuneration is fair, which means that it corresponds to the level of skills, training,

responsibility, and efficiency of each individual.

It strengthens the motivation of employees to achieve their objectives, especially in some

places, with the possibility of receiving a variable component.

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The status of "shareholder", as a complement to other elements of the remuneration system,

gives each employee to benefit from the value created by the company.

Organization and Operation of the Company

Support

Decisions are taken as close to the field as possible with a regard to the general interests.

Simplicity

Responsibilities associated with a given position are clear and simple. Structures are minimal.

Members and business partners are a priority.

Transparency

The arrangement is clear to all, from company headquarters, regional offices up to the trade

itself.

Single Representative

Clearly designated persons are dedicated to each area and each team responsible for making

decisions; partner is always the same.

Responsiveness

Action and reaction happen fast and continuously at all levels of the company.

Solidarity

Groups, sectors, and individual offices always act to be in solidarity with each other.

People leadership

Leadership is based on the involvement and motivation of Lyoness employees. The rule is the

decision-making on two levels.

Everyone can choose the means necessary to attain its objectives.

We encourage individual expression and initiative.

The activity of each employee is regularly evaluated in collaboration with its supervisor, on

the basis of clearly defined objectives.

We encourage and reward collective success.

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A systematic comparison of the efficiency of workers allows for their overall improvement.

Observation of fundamental workers' rights is part of the culture of Lyoness.

Internal communication

Internal communication is the main prerequisite for the smooth operation of the entire

company; its aim is to give complete and clear information to all of our employees.

The information is simple, accurate, and trustworthy.

Information is available to all. They spread fast.

Everyone can find necessary information, and everyone is responsible for information

that it shares.

Positive experiences are shared and valorised. The company's success is brought to the

fore.

Each employee shall respect the strict confidentiality of the available information in

regard to the outside world.

4. Services

Services are the driving force behind our activities to attract members to our business

partners.

The services we offer must meet the expectations of our members and business partners in

every country, in every region, and in every type of business.

Key factors of service policy are as follows:

Composition of benefits

Competitiveness when purchasing

Competitiveness when selling

Quality of service and processes

Communication Service:

Information at the point of sale

External information

Flow management

Business partners

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The relationship with trade partners takes place on the basis of the profitability of each party.

When assigning a business partner, it is necessary to monitor, mainly, the following three

conditions:

Meets the expectations of members.

Lyoness gains market shares in the segment.

The assigned business partner contributes to a quantitative and qualitative

improvement of trade categories, to which it belongs.

In the context of sustained and balanced concept, Lyoness develops specific relations with

various business partners.

We distinguish between:

Large national and international groups, which occupy a leading place within their

group, that supply and sell products

SMEs that supply and sell products that are leading in their segment and local

products

Business partners offering services.

Online

The balance between different types of business partners ensures economic independence of

Lyoness and supports its inclusion in the economic context.

Through local business partners it is easier for Lyoness to involve in economic and social

fabric. Lyoness makes sure that its business partners comply with social and societal

agreements.

Quality of service

Quality is a factor, thanks to which Lyoness differs from its competitors.

It is constantly adapted to the needs, expressed or implied, of our members and business

partners. It must be sufficiently distinct to be recognized by our members and business

partners.

Each level of ratio « requirement / quality » corresponds to a certain price level. Each price

level must have the best relationship « quality / price ».

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5. Money

All managers and business executives must do everything possible to reach or exceed the

objective set out in the office budget.

Tools and methods

All senior workers have an access to a planning schedule and performance indicators that

enable to measure progress and quickly identify deviations from targets and immediately

implement necessary measures to mitigate these deviations.

Analysis of the breakdown and detailed elaboration of action plans is carried out by each

responsible employee, together with its superior, during the monthly performance review, at

all levels of the company.

All responsible workers favour transparency, simplicity, efficiency, and graphical

representation. Procedures have a well-defined form, which ensures consistency and safe

operation of the company. Audits control all aspects of the operation and provide for

reliability of the operation.

Investments

Each investment becomes part of the medium-term plan. The decision is taken at the

appropriate hierarchical level, depending on the amount of investment and based on the

following economic considerations:

Return on employing capital, net present value of cash flow.

The level and nature of investment must be tailored to the potential of the project and the

specifics of the country and the economy of the zone.

Each investment must fit into the financial policy of the Group, country, and the company.

Distribution costs

Management of distribution costs is necessary for the company's profitability.

Distribution costs may not grow faster than turnover. We constantly strive for higher

productivity and profitability through:

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Adjustment of systems, organization, and procedures.

Reduction of the number of missing gift vouchers and their optimization versus

turnover.

Mastering overheads.

These activities must not jeopardize the permanence of the working instrument.

Management principles

All senior workers spend only the costs that are associated with the operation and application

of the policy.

It is necessary to constantly monitor the rate « turnover / used capital » (assets, cash flow

stored in assets - shopping vouchers) and optimize this rate.

The cash flow stored in assets (shopping vouchers, inventories, supplier payment terms) is

subject to regular monthly monitoring.

Objectives and action plans are formulated to reduce inventories and optimize payment terms.

Conclusion

For us, the team culture is fair and collegial management on the part of our

leadership. It is a sufficient step for our employees to enjoy our work.

Our policies and corporate values, which form the basis of our team culture, we

have summarized for you all goals and expectations, which lead to even better

results and cooperation within our teams.