Internal Control

The Audit & Risk Committee (ARC) supports the Board in meeting its responsibility for maintaining and monitoring sound risk management and internal control systems and achieves this by assessing the effectiveness of these areas. Essentra has a well-established Internal Audit function, which sits within the Risk Assurance function, and is responsible for supporting the work of the ARC by reviewing and monitoring the Company’s key operational, compliance and financial controls.

In performing its role, the ARC is responsible for:-

• Reviewing regular risk reports from the Group Executive Committee and reviewing risk management processes

• Reviewing the effectiveness of internal controls

• Monitoring the Right to Speak arrangements and the assessment and investigation of any claims made through this mechanism

• Reviewing regular compliance updates and assessing progress on the compliance transformation programme

• Overseeing the internal audit activities

• Monitoring and reviewing the effectiveness of the Internal Audit function

• Agreeing the annual internal audit plan and monitoring its delivery

In response to the UK Brydon review into the , the Company is in the process of developing an Audit and Assurance Policy which will seek to provide further transparency around audit, risk, internal control and assurance processes.