Second Party Opinion s pglobal.com/ ratings This product is not a credit rating | PUBLIC July 10, 2023 9 Danhos discloses under its sustainability -linked financing framework that instruments under the framework will be subject to step -down or step -up coupon mechanisms depending on the performance of the KPI s relative to the SP Ts . The issuer commits to include within the final terms and conditions of each sustainability -linked instrument a description of the financial mechanisms that will take place if the company fails to meet SPTs on the specified observation dates ( April 1 from 2023 until 2034). Additionally, the framework specifies that a negative financial adjustment will be applied in case the issuer is not able to calculate or provide information of the KPI s performance relative to the SPTs, following best market practices. Reporting The Principles make optional recommendations for stronger disclosure practices, which inform our disclosure opinion as aligned , strong, or advanced. We consider plans for updates on the sustainability performance of the issuer for general purpose funding, or the sustainability performance of the financed projects over the lifetime of any dedicated funding, including any commitments to post issuance reporting. ✔ Danhos ’ sustainability -linked financing framework is aligned with this component of the applicable Principles . Disclosure score We consider Danhos ’ overall reporting practices to be strong . The issuer commits to disclose the performance of its KPIs against its SPTs annually in its integrated annual report, which will be available on its website. The report will include up -to -date information on the performance of selected KPIs against the SPT s, information enabling investors to monitor progress and level of ambition of the SPTs, and the impact on the loan's economic characteristics. This information will be subject to independent external verification. Danhos will disclose , when feasible, the positive sustainability impacts of the performance improvement, potential drivers that may affect the KPI s, reassessments of the KPI s or SPT s, and adjustments to the KPI s’ scope or baseline. In our view, the disclosure of this information is a strong featu re. Post -issuance review The Principles require post issuance review commitments including the type of post issuance third -party verification, periodicity and how this will be made available to key stakeholders. Our opinion describes whether the documentation is aligned or not aligned with these requirements. Please note, our second party opinion is not itself a post issuance review. ✔ Danhos’ sustainability -linked financing framework is aligned with this component of the applicable Principles. Danhos commits to obtain --on an annual basis and whenever relevant --an independent and external post issuance verification of its performance level against each SPT for each KPI. The verification assurance will be public on the i ssuer's website. Aligned No t aligned Str ong Ad vanced