RAFAEL ESG REPORT 20 21 compressed 1

Summary

ESG Report 2020-2021 From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security CONTENTS 4 6 38 94 108 122 From the CEO About the company Rafael – An innovative company Rafael – Leading social and Rafael – a central pillar in Indexes economic change in Israel Israel’s security Company profile …8 Corporate governance …40 Promoting Israeli society and A centra…

Page 1

ESG Report 2020-2021

Page 2

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security CONTENTS 4 6 38 94 108 122 From the CEO About the company Rafael – An innovative company Rafael – Leading social and Rafael – a central pillar in Indexes economic change in Israel Israel’s security Company profile …8 Corporate governance …40 Promoting Israeli society and A central pillar in Israel’s GRI Index …124 communities …96 security …110 Vision, purpose and values …8 Ethics and compliance …42 SASB Index …129 Developing Israel’s Business sustainability Organizational structure …14 Quality at Rafael …46 periphery …102 and emergency Our systems …16 Commitment to preparedness …118 Promoting economic environmental protection …50 Significant ESG issues …32 strength across Israel …104 Employees – the human Dialogue with resource …64 stakeholders …34 Health and safety …82 Cooperation and associations …36 Responsible purchasing …90 About the report …37

Page 3

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security From The CEO Our role as a central pillar in Israel’s national security includes a significant Dear readers, contribution over many years, to Israel’s economy, employment and society. Rafael is the largest employer in the north of Israel. Rafael Advanced Defense Systems Ltd. plays a key role in Israel’s security with a wide range of systems and capabilities such as the “Iron Dome” and “David’s Slingshot” defense systems, the “Windbreaker” active defense system for tanks as well as air, land, sea, cyber and space systems and capabilities. Our advanced systems have been recognized and applauded in Israel and around the world. Rafael has also been the proud recipient of 56 Israel prizes. Rafael is unique in the world in its commitment to influence in the field of education, supports those with We have real partnerships with municipalities and business excellence. It successfully competes with special needs and promotes scientific and technological communities around our facilities. This includes the leading Israeli and international companies active in education for a wide range of stake holders. provision of support, above and beyond our regular the same fields and, at the same time, functions as a volunteer work. Rafael’s activities in the areas of the Rafael’s local purchases constitute a significant growth national Israeli technological and security research environment, society and corporate governance (ESG) engine for the Israeli economy. In 2021 the company’s and development center. It also acts as a significant have been recognized by the ”Maala” organization purchases in Israel were some 3.8 billion NIS which engine for the growth for Israel’s society and economy, for many years. In 2021 we were once again awarded represents 58% of the company’s total purchases. especially in its periphery. the organization’s highest rating, Platinum Plus thus Additionally, the company pays, every year, a significant maintaining years of recognition by this prestigious Our role as a central pillar in Israel’s national security dividend to the state which, so far, total’s some two organization. includes a significant contribution over many years, billion NIS. to Israel’s economy, employment and society. Rafael For the purposes of this report, we identified the most Rafael’s ability to develop and produce ground breaking is the largest employer in the north of Israel and also significant ESG issues for us to focus our activities. We systems and technologies is based on the quality of the largest HI Tec employer with more than 8,000 will continue to invest in these activities and develop a its employees. This is the foundation of its success. people employed directly by the company and an dialogue with all of our partners so that we will continue Thousands of employees work day and night in a additional 20,000 households employed indirectly. In to be in the forefront in the integration of work for Israel’s wide range of areas in order to provide the solutions 2021 Rafael opened, for the first time, a production and security alongside extensive and varied activities for the required, first and foremost, for Israel’s defense system development facility in Shlomi thereby strengthening benefit of society and the community. and its partners abroad. These are the elements that its presence in the north of Israel and creating dozens of allow Rafel to realize its extraordinary achievements in new jobs. all of the areas it operates in. Rafael’s employees also Major General (Retired) Yoav Har-Even Since its foundation, and in addition to its main areas contribute their abilities and energy to Israeli society CEO Rafael of activity, Rafael leads the field in ESG (Environment, and the communities in which they live: thousands Social, Governance) both in relation to other large of the company’s employees are active in voluntary companies and government owned companies. community work, backed by Rafael’s support and The company promotes activities to increase social assistance in finding suitable and effective avenues to responsibility, to create extensive positive circles of volunteer. 4 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 5

Page 4

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security About the Company 6 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 7

Page 5

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security In 2021: Company Profile More than 8,000 Rafael Advanced Defense Systems Ltd.. develops and manufactures a wide range of air, land, sea, and cyber warfare combat systems. The company’s main focus is to meet employees the operational and technological needs of the IDF and Israel’s defense establishment as well as our customers around the globe. Rafael is owned and controlled by the Israeli government and is the second largest government owned security and defense 30 company in Israel. subsidiary companies in Rafael is a force for the State of Israel’s economic and becoming a commercial company, Rafael has paid the Israel and the world security. As a government owned company, Rafael state some two billion NIS. In addition, Rafael has won 56 contributes 50% of its profits to the government and since Israel Defense Prizes as well as many international prizes. Vision Our Goals 400M NIS net profit To lead in the development of advanced, ground breaking security, in Israel and the world. To continue to be a national center for security research and development and a central pillar in the 700M To be a central and significant pillar for the security of the State of development of the State of Israel’s deterrent and defense capabilities and Israel’s military dominance. NIS Israel, to be a global, expanding and profitable innovative company, in self-funded research that produces and supports military systems that place operational To be a major force that attracts and inspires and developmen outstanding minds in all areas of the company’s needs and technological advances at the forefront. activities. Each of the attributes in Rafael’s goals is vigorously 3.5B implemented in its activities and is a force that attracts and inspires excellence in its employees in all areas of NIS the company’s activities. in purchases (yearly average) 8 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 9

Page 6

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Values Rafael has defined core values that govern how it operates and that support its vision and its three goals: COMMITMENT TO COMMITMENT TO ISRAEL’S SOCIAL PEOPLE AT THE THE CUSTOMER AT THE EXCELLENCE AS A WAY DARING AND INNOVATION ISRAEL’S SECURITY AND ECONOMIC STRENGTH CENTER FOREFRONT OF LIFE We will strive and be ready to face new challenges. We will identify problems that Rafael is committed to Rafael has set itself the goal of contributing to Israel’s We believe that people are We believe in and are committed We will be the best in every require unique solutions, lead in providing the security of the State economy, both by being a profitable company that Rafael’s most important to our ability to provide real value field and never settle for valuable solutions for our customers and of Israel and sees the IDF contributes a portion of its revenues to the state asset - they are the company’s to our customers. We continue less. We will maximize the sow the seeds of future success. We will do as a strategic partner. The treasury, and by working with Israeli suppliers, many main strength and its lever to lead in the development, potential of people and this by striving to develop and bring new company aims to maintain of them small. for success. We are committed production and maintenance of managers, knowledge and knowledge into the organization. We will Israel’s proven military and to creating a challenging, our products. We provide solutions abilities, in order to reach Rafael has established branches in Shlomi, Be’er encourage personal skills, innovation security superiority in the rewarding and meaningful work and combat systems that help greater achievements and Sheva, Terdion, Tel Aviv, Shadma (near Mitzpeh and creative and groundbreaking region and to develop the environment for our employees, our customers, in Israel and successfully deal with Ramon) and in Jerusalem, it has a dedicated branch thinking. We will embrace changes that IDF’s deterrent capabilities one that continuously nurtures abroad, achieve technological developing challenges. Our that employs ultra-Orthodox men and women. challenge the existing, we will learn from and its ability to overcome their abilities, encourages and operational superiority and goal is to carry out every all enemies. Rafael will continue to concentrate its activities in diversity, increases their realize their goals. To achieve this, activity in a professional our successes as well as our mistakes. We the north of Israel and is committed to being the connection to society and we foster a continuous and close manner, while setting high will encourage people to take risks, with largest employer in the area. In addition, Rafael recognizes them for their relationship with our customers standards and doing the right the understanding that this is the route “graduates” make an important contribution to the performance and successes. based on fairness, integrity and thing in the right way. We will that will bring Rafael to greater heights. development of Israel’s flourishing high-tech sector. We will provide people with the professionalism. We study the make our employees proud of We will encourage connections with the Rafael also contributes to Israel’s social resilience by knowledge, tools, conditions challenges, needs and intentions themselves, not only because academic world and start-up companies in running over 50 diverse community programs with and leadership they require to of our customers in order to of their excellent results, but order to be exposed to new, innovative and approximately 2,500 regular volunteers. maximize their potential and provide full service and support for also because of the paths they groundbreaking technologies. succeed. We continue to develop their Rafael systems, and we will choose to achieve their goals Rafael’s community activities are based on four Rafael as an organization that continue to develop systems that and success. guiding principles: cares for its employees, that will answer their future challenges. Promotion of scientific-technological education respects and nurtures every Assisting populations that require support. employee, is a professional home Assistance to those with special needs for them and a source of pride ONE RAFAEL Preserving the memory of the Holocaust and both for them and their families. reaffirming the message “Never again”. Rafael’s divisions at work together with shared ideas for the advancement of the company’s products, interests and goals. The Rafael spirit reflects shared responsibility, teamwork, uncompromising quality and professional ethics. Cooperation is facilitated through managerial leadership that creates common goals, minimizes barriers, increases transparency and gives priority to projects that combine the capabilities and systems of different fields. 10 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 11

Page 7

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Milestones in Rafael’s Development 1948-2021 Years Of Activity 2001 1958 From a “Division” 2007 2016 2019 The division’s name was the company changed to “Rafael” – The 1984 The company changed its Establishment of Establishment of became a state- Authority for the Development name to “Rafael Advanced the National Cyber the Petach Tikva The “Leshem owned company. of Combat Systems. Defense Systems Ltd.” Command research branch Institute” was 2003 established in 1974 the Galil. The AI guided 2011 2017 2021 weapons system 1952 Start of “Barad” (Hail) “Kipat Barzel” (Iron Establishment of the Establishment of the exports 1991 The division became operational Dome) and “Meil Terdion research branch. Shlomi production was transferred 1968 The company in the Israeli Air Ruach” (Windbreaker) Establishment of the facility to the Ministry began its Force became operational Jerusalem research branch. Start of of Defense. international 1948 production Establishment of the Tel cooperation Aviv research branch The IDF’s “Scientific Research” Division was established. 12 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 13

Page 8

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Organizational Structure Rafael Divisions The company’s organizational structure includes its head office that operates with agencies both within and outside of the company, three business divisions, and four technological divisions. In addition, Rafael has subsidiary companies and partnerships in Israel and abroad and representatives abroad. Technology Divisions Land & Sea Systems Division This division develops rocket engines, space propulsion This division designs, develops and manufactures systems, warheads and pyrotechnics and disposable systems that operate on land and at sea and offers naval decoys. The key products of this division include all complete and integrated solutions in the fields of propulsion systems for Rafael systems and other systems precision attack, maneuvering and cyber warfare, CEO Chairman in Israel and abroad. protection and survivability, border and facility protection on land and at sea. Armament Systems Division This division is a focus for national systems and infrastructures. Amongst other areas, it includes a national testing section, the Center for Military Research, and the Electronic Warfare Simulation Center. Air Defense Systems Division Technology Land & Sea Air Defense Air & Intelligence Company Head Division Systems Systems Division Systems Division Office This division designs, develops and manufactures Marketing Safety Research, Development and Engineering air and missile defense systems and one of the Armament Maritime Air to Air and Air Electro- & Business Officer most advanced air-to-air systems of its kind in the Systems Division Combat Systems Defense Systems optic System Development Division world. This is an important component of Israel’s Administration Administration Administration Finances and Internal This division brings together Rafael’s research and multi-layered defense concept. Comptroller Auditor Manor Division Survival & Long Range Air Ground – Air development activities with advanced capabilities Human Maneuvering Systems Defense Systems Systems Compliance in the fields of image processing, mechanics, Resources Administration Administration Administration Officer Research, combat intelligence, cyber, electronics, software, Research & Development & aeronautical engineering, microelectronics and more. Development Israeli Operations Engineering Division Accurate Short Range Air Intelligence & & Marketing Unit This division brings to light the core capabilities Tactical Systems Defense Systems Cyber Systems Project Administration Administration Administration Operations Amalgamations of the organization in the fields of research and Air Systems & Intelligence Operations and Purchases development and enables the implementation of our Regulatory & Division Multi-front Customer Communications vision and the provision of systems with the most Division Logistics C Ad o m m i b n a is t tration Support Center C Ad o m m i p n u is te tr r a tion Administration H En e g a i d n e S e a r fety advanced capabilities. This division develops and manufactures a wide Infrastructure Administration variety of air and intelligence systems for combat Administration Legal Advice Quality Control and closing circles of fire that enable optimal Production Officer Operations Division synchronization between combat teams on the Administration Customer This division is responsible for maintaining the ground and in the air/ This includes electro-optical Project Support & supply chain and managing Rafael’s production and systems, communications and information, space Procurement Retention Officer Administration procurement resources, as well as and the provision of advanced responses to cyber issues. IT The institutionalization and implementation of Technology project management and control processes, while determining and optimizing cross-organizational work processes. 14 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 15

Page 9

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Our Systems Air & Space Air Defense Land Sea Intelligence & Cyber 16 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 17

Page 10

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Rafael provides its customers solutions with its range of different systems: Maritime Systems Air & Space Systems Rafael offers solutions that provide a multi-layered for the protection of ships at sea, along the coast, and on Rafael specializes in the development and production of advanced weapon systems, which enable identification and solution for the protection of maritime vessels while facilities of national importance close to the coast. Rafael tracking as well as navigation and attack capabilities. Rafael offers the following solutions that it develops and produces: providing a comprehensive and integrated solution, i.e. also provides solutions for protection against enemy swarm perimeter protection, surface protection and underwater attacks such as drones and fast ships as well as torpedo Air-to-Air Missiles protection. Solutions include the “Naval Dome” system protection for submarines and surface ships. I-Derby is a light weight missile that allows adaptation Python 5 - an innovative fifth generation with a to modern fighter planes and a variety of light planes. It revolutionary capability of firing backwards. The can be launched throughout the day and in any weather missile, which provides the pilot with 360-degree launch conditions. It is integrated with an active radar and can be capabilities, incorporates advanced technologies including used short range and beyond the line-of-sight firing. navigation, detection and jamming systems. The missile can also be launched for short ranges. 18 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 19

Page 11

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Ground-to-Air Systems Target Missiles “Bardim-” Rafael developed the “Bardim” ground-to-air “Ancor” – is a family of target missiles designed to be launched from an missile family. This is a collection of armament systems aircraft and simulate ballistic missiles, which are used by Israel for the with artificial intelligence. The system, which is based on testing of air defense systems. The missile has different models that allow the ability to compare images, is sufficiently advanced to flexibility and adaptability to any potential purpose. Ancor accurately locate targets at a range of 100 kilometers with an accuracy of a few meters. Navigation, Collection & Attack Systems Rafael was awarded the Israel Security Prize for this system Based On Advanced Electro-Optical in 2008 and in 2019. Capabilities Litening is a navigation pod for identifying and attacking targets based Litening on electro-optical technology. It includes a laser designator for precise launching of laser-guided weapons. The system, which is installed externally underneath the allows for the reception of clear, high-quality images in real time thus enabling accurate identification and fast homing to the target. RecceLite is a tactical intelligence system used for observation and real- time data collection. The system simultaneously collects high-resolution images from a large number of sensors and sources and in addition enables long-range photography, in a stable and continuous manner. The system is not affected by aircraft movements and maneuvering. Toplite is a system that upgrades the intelligence gathering capabilities including the manual or automatic tracking of targets, measuring the range Toplite to the target and precise firing direction. It is used for tracking, targeting and weapon control. The system is based on advanced sensors and also combines computerized image and vision processing capabilities. Electronic Warfare Systems with Deception, Sky Shield Jamming & Protection Systems Sky-Shield - the third generation of Rafael’s electronic warfare systems. It enables the disruption and evasion of the enemy’s detection systems. The high-power system has 360-degree coverage, a wide frequency range and a compact configuration. Space Propulsion Systems For Satellites & Launchers Rafael is a key partner in the Israeli space program and in collaborative programs with space agencies around the world. Today, Rafael products are installed in over 80 satellites orbiting in space. Rafael applies solid Space Propulsion propulsion technologies, hydrazine propulsion and electric propulsion System and even develops and supplies structural products made of composite materials for satellites. 20 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 21

Page 12

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Intelligernce & Cyber Systems Rafael specializes in providing defensive solutions for border control and the protection of facilities and infrastructure in the SCADA Dome Wisdom Stone field of cyber defense, intelligence systems and Big Data analysis systems. A cyber protection system based on advanced artificial A unique cyber system for intelligence management and The company was chosen by the Israeli government to establish and operate the National Cyber Security Agency. Among intelligence algorithms. The system can warn of cyber- interpretation of large quantities of data in a multi-sensor other things, Rafael provides cyber and infrastructure protection for significant entities in the Israeli economy such as Israel attacks and repel them. environment and different types of information. The Railways and the Bank of Israel’s national credit pool. Its products include: system is able to analyze a huge amount of DATA and turn it into accessible and valuable information. It is designed and constructed using the “open architecture” method and to all of the customer’s sources and sensors. ImiSight ImiLite An intelligence and visual analysis system that can A multi-sensor intelligence system that uses advanced process a great amount of image data using a large image processing algorithms for the purpose of processing number of sensors therefore providing real-time and distributing incoming information from a large number operative intelligence. of different types of intelligence platforms. 22 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 23

Page 13

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Air Defense Systems As part of Rafael’s mission to protect Israel’s security, it manufactures and develops life-saving systems that have changed Israel’s defense concepts. As part of the State’s multi-layered defense concept, Rafael provides solutions for 3-layers of defense. Thus Its systems protect Israeli civilian population, strategic sites and infrastructures, and maneuvering forces. Products include: Iron Dome An air defense system to intercept short range aerial threats such as mortars, artillery shells, rockets, unmanned aerial vehicles and helicopters. In 2012 the system was awarded the Israel Security Award. David’s Sling A nationwide air defense system developed in collaboration with the American company Raytheon. The system has won the technological innovation award presented by the American Missile Defense Agency (MDA) - the system has an interceptor with extremely high maneuverability and a single multi-stage engine, the only one of its kind in the world. Drone Dome Defense system against drones and mini-UAVs - a defensive system for intercepting drones and mini-UAVs that is built from several components including radar, electro-optical resources, jamming systems and laser interception capabilities. 24 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 25

Page 14

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Land Based Systems The resources developed and produced by Rafael are a key milestone in the strengthening of the IDF and the building of its military superiority. Active protection systems for tanks, missiles, remotely controlled weapon positions, observation and identification capabilities are only some of the solutions that make up the technological and operational infrastructure that strengthens the ability of ground forces to maneuver effectively. Among the solutions offered include: Spike Missiles Passive & Active Samson – RWS Defense A family of advanced, fifth Weapons positions that are remotely generation, electro-optic missiles. controlled and integrated into land Modular protection systems that The missiles can be launched from a and sea platforms. They have high provide protection from a wide range variety of land, sea, and air platforms. survival rates on land and at sea of threats such as armor-piercing The missiles have “fire and forget” and are adapted to a wide variety missiles, powerful charges, artillery capabilities, learning and updating, of armored vehicles, amphibious shrapnel, improvised charges and automatic steering and the ability to vehicles, trucks and ships. slingshot charges. attack camouflaged targets. Windbreaker “Smart Trigger” The system that changed the face of A digitization battlefield system that land maneuvering. This is an active connects all participants in the land system for armored combat vehicles, battlefield with the aim of enabling the only one operational in the world. effective, fast and safe closing of The system detects threats precisely accurate circles of fire. The system at an angle of 360 degrees, alerts the displays all operational information vehicle’s crew and autonomously on one screen based on 3D models destroys the threat through and augmented reality. unique and advanced interception capabilities. 26 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 27

Page 15

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security The map of Rafael’s activities Subsidiary companies Rafael also works to implement the company’s strategy for the fields of medicine and more. Collaborations with through the establishment of subsidiaries in Israel and the subsidiaries allow for the preservation and transfer abroad. These companies operate in a wide variety of of knowledge and capabilities to maximize research and military and civilian fields, starting with command-and- development potential, to enable feedback between civilian control systems, advanced navigation systems, observation and military technologies, and to jointly market mutually The map of Rafael’s activities balloons and electro-optical capabilities, and on to products synergistic capabilities and relative advantages. throughout the country reflects Shlomi Terdion the company’s significant presence in Israel’s geographical Haifa – David Institute Leshem periphery on the one hand, and Israel Australia Far East Americas Europe Institute its presence in Israel’s main cities in Israel, where it successfully competes with leading high-tech companies in Israel and the world in attracting talented and high- quality human resources. Tel Aviv Experimental Missile Unit Jerusalem Be’er Sheva Negev (Shadma) 28 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 29

Page 16

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Buisness Partnerships Rafael Representatives Globally Rafael has representatives around the world that focus on companies are located around the world, for example in Rafael implements a corporate culture of creating This is why the acquisition of subsidiaries in Israel and the the promotion and marketing of the company’s products, the USA, Brazil, Great Britain, Germany, India, Thailand and partnerships in Israel and around the world with world and cooperation with leading companies in Israel on continuous and close contact with customers, on gaining Australia. The spread of local representatives is dynamic governments, aerospace companies and leading defense and the world results in the creation of synergy “(a force a greater understanding of local security and defense and changes according to marketing efforts and regional industries. These partnerships provide a combination of multiplier)” for winning tenders in Israel and other countries needs and on getting to know the companies operating potential. strength and leverage for Rafael’s technological know-how and saving development and production costs. in the various countries. Rafael’s representative offices or and advanced systems. Sometimes winning an order from a foreign country The company operates in a competitive environment, requires Rafael to carry out a direct and indirect reciprocal which includes local and international competitors. In purchase of significant volumes in that country. In recent some cases, the customers purchase considerations may years, the demand among customers to transfer production also be determined by external considerations, apart from capabilities to create jobs and build local industrial capacity the cost of the product, its characteristics and the extent has also been increasing. This trend requires evaluation and to which it is suitable for the customer’s needs. Sometimes adjustments in Rafael’s activities around the world through international political considerations, a preference for the expansion of joint ventures, mergers and acquisitions. local production over imports (localization) and security restrictions are at work. United Kingdom Germany United States South Korea Israel India Mexico Thailand Brazil Australia 30 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 31

Page 17

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Significant ESG Issues S Rafael concentrates its ESG activities on issues that the company has identified (Social) as essential to its nature and fields of activity. Subject Description Managing community Rafael considers it vital that the company creates a positive impact on the communities in which The essential issues presented in this report were identified using an international methodology based on GRI guidelines, relations it operates and sees this as an essential part of its activities. Employee volunteering is in areas the world’s leading organization in setting standards for ESG reports. It includes an analysis of global trends in the defense where they can make a unique contribution such as science, technology, engineering and the systems manufacturing sector, and broad research based on ESG rating bodies, international investors, international issue is managed centrally, with the effect of the activity being measured and monitored. standards and leading companies in the industry. The report provides an answer to all the sections (disclosures) defined by the organization as core sections (Core), and also lists additional indicators that reflect material issues, as emerged from the materiality analysis conducted at Rafael. These G are the material issues in the ESG areas identified at Rafael and the company’s principled approach regarding each of them: (Governance) E Subject Description (Environment) Management of Just as it is important for Rafael to conduct itself responsibly, it is also important for the company a responsible that its suppliers, throughout the entire value chain behave in this way, in aspects regarding the Subject Description supply chain safeguarding of workers’ rights, the environment and safety. Energy management Effective management of the company’s energy consumption, while striving for reduction, and Confidentiality Due to Rafael’s areas of business, the company possesses large quantities of confidential personal increased use of energy from renewable sources. and information and commercial information. Rafael take great care to preserve the privacy and confidentiality security of stakeholders’ information through a strict privacy protection policy, procedures for handling Climate change Monitoring and measurement of greenhouse gases emitted directly by the company resulting violations, and providing annual training to all employees regarding privacy protection and management from its electricity consumption with the intention of reducing the scope of emissions. of greenhouse gas Ethics Rafael is committed to ethical conduct in all aspects of its activities - between employees and emissions managers, between the company’s employees and its customers, suppliers and partners, regarding the company’s responsibility to its employees and their responsibility to it. The company’s code of Waste Management Monitoring the amount of waste in the various waste streams that the company produces ethics for itself and its employees deals with the prevention of corruption and bribery, regulates (organic, paper, metal, hazardous, etc.) in an effort to reduce the amount of waste, to facilitate relations with government officials and lobbying activities, commits to non-discrimination of workers, the optimal treatment of waste for reduced environmental impact, with an emphasis on the and promotes transparency, integrity and trust. treatment required for hazardous waste. Product quality Rafael is active in a field where its products have a high-risk potential if quality is insufficiently high. In Materials and resource The company uses a large number of materials in the manufacture of its products and places and safety order to maintain the highest level of safety and quality in the world, Rafael operates a quality system management an emphasis on responsible procurement and active initiatives for a transition to the use of independent of the product’s developers manufacture’s and operators. This unit is responsible for the environmentally and employee friendly materials. company’s quality assurance operations. S Adhering to Due to the nature of its systems and its sensitive fields of activity, and also because it is a government regulatory issues company, Rafael is subject to extensive regulations, for example in the fields of safety, environment, (Social) suppliers from which it is allowed to buy and those agencies to whom it is allowed to sell. Rafael works thoroughly and continuously to meet all relevant regulatory requirements. Subject Description Innovation and Innovation is an essential aspect in all fields in which the company is active, fields that are constantly Health & Safety in the Rafael’s safety requirements are higher than the legal requirements and include risk assessment, digitization changing and highly technological. The desire for innovation and the success of its implementation, workplace work plans and support systems. including the digitalization of processes, is deeply embedded in the company’s nature which invests Corporate culture at Rafael sees safety as a way of life for all employees and transparency as one many resources in research and development and encouraging and rewarding innovation among its of the keys to achieving it. employees. Diversity & acceptance Rafael places great importance on the recruitment and integration of employees who belong to Commercial Due to the nature of its products, Rafael’s continuous operation, even in emergency conditions, is underrepresented populations and operates in a variety of programs to promote the issue. We sustainability essential to Israel’s security. Therefore business continuity is essential for the company both from expanded and established the holistic treatment of occupational diversity with an emphasis on a business and a value perspective. The company has a permanent committee that deals with the those with special needs and then ultra-orthodox. subject and is updated on a regular basis. 32 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 33

Page 18

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Dialogue With Stakeholders During the past year, surveys and tests were conducted among We believe that an inspiring organizational culture, one that encourages managers and professional various stakeholders - employees, customers and consumers, and value orientated employees to behave at a high is an essential and necessary element for suppliers, subcontractors and business partners - which the organization’s success. Rafael’s strength is built not only from its business successes and evaluated, among other things, their positions in relation to technological capabilities, but also from its branding as a company whose integrity, business and ethical aspects of the company’s conduct. human ethics are important to it and allow us to justify the trust that our customers, employees and business partners have in us. Rafael managers maintain a regular and open dialogue Employees - Rafael is in constant dialogue with Suppliers - Rafael sees its suppliers as business that Rafael conducts among its suppliers, it initiates with partners relevant to their field of activity. The employees throughout the life cycle of the employee partners essential for the success of its operations and partner improvement processes and relevant training discourse usually deals with coordination and in the organization, from recruitment to the end to that end ensures regular contact with them. Rafael for its suppliers development. Rafael is, for many of its clarification regarding essential issues for Rafael such as: of employment. The company’s concept is that of operates a special area on its portal for suppliers. suppliers, a significant and critical customer. Rafael environmental protection, current government relations ” employee first.” Among employees, surveys are As part of the portal, suppliers can ask questions on identifies opportunities to strengthen its suppliers in and neighboring communities. Care is taken to provide a distributed on a regular basis that receive a high various topics relating to Rafael’s work with them and terms of quality, safety and employee employment, comprehensive response to inquiries. Rafael is committed response rate and serve as a tool for managers to receive relevant answers. As part of quality surveys thereby retaining quality suppliers over time. to transparency in its relationship with stakeholders, and provide feedback and implement plans among the to periodically presenting its performance in the areas of employees. corporate responsibility. Community - We are proud to be an integral part of Rafael conducts the dialogue with the stakeholders Israeli society in general and in particular communities in a responsible manner ensuring the privacy and in the north where we operate. We act responsibly confidentiality of all information received from them, towards the community and the environment. We through a privacy protection policy and procedures for encourage social involvement and contribution to the handling violations. In addition, all employees are given community both at the organizational level and by Community annual training on the protection of privacy. At Rafael, each employee individually. Rafael operates a variety there were no cases of information leakage or customer of activities in the community, and the annual activity privacy. plan is planned in consultation with the community Employees partner, from initiation to implementation. Rafael As an integral part of Rafael’s corporate responsibility maintains extensive community activities near its main development, the company initiates a dialogue with its centers of activity, and over 2,500 employees volunteer main stakeholders: Customers in some 50 projects. Rafael is in contact and partnership Customers - Rafael places great importance on loyalty with over 14 local authorities as part of its volunteering and commitment to its customers. This is reflected activities. Business partners in our pursuit to provide our customers with the best Regulations - Due to the nature of its systems and its value in terms of solutions, products and service, sensitive fields of activity, Rafael is subject to extensive while observing the rules and regulations that protect regulations in the fields of safety, the environment, Suppliers Rafael’s core assets and financial strength. We strive the suppliers from whom it is allowed to buy and the to build a long-term relationship with our customers agencies to which it is allowed to sell. The company based on trust, integrity, mutual respect and an works diligently and regularly to comply with all Regulatory understanding of their needs. regulatory requirements. 34 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 35

Page 19

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Partnerships & Relationships About The Report Rafael takes an active part in promoting corporate responsibility and ESG principles as This is the seventh report reviewing the company’s social responsibility (ESG) part of its membership in a number of leading organizations and institutions in the field performance and it covers the years 2020-2021. in Israel and the world, including: The report reviews Rafael’s performance, not including The report was written according to the guidelines and subsidiaries, and the information in it does not include standards of the Global Reporting Initiative (Global GRI) “Maala” – the Association for Transparency International – information relating to Rafael’s missions abroad, other at reporting levels determined by the Sustainability the Advancement Corporate ימואלניבה תופיקשה ןוגרא than employee data. Accounting Standards Board (SASB) for the Defense & Responsibility in Israel Aerospace sector. The contact person for the report is Mrs. The company committed to publishing a periodic ESG Ricky Meman, Director of Corporate Responsibility. You report that presents the achievements of Rafael and its can respond and submit questions regarding the report to employees in the field of ESG, as well as long term trends, Israel Standards Institute [email protected]. Transparency International Israel goals and developments. In some of the data tables, percentages may not equal 100% or exact amounts, due to numbers being rounded up Manufacturers לש םיזרכמה םורופו ינוחטיבה םורופה or down. Association of Israel ACC תיטפשמה הכשלה יגיצנ - לארשי הלא םימורופ תושארב םידמוע Quality Association The Security Forum and of Israel Tenders Forum of ACC Israel - representatives of the Legal Bureau head these forums Iltem - Association of users of advanced technologies in knowledge-intensive integrated systems In 2021, Rafael won, for the ninth time in a row, a Platinum Plus rating (the highest rating government company to join achieve this prestigious ranking) for corporate responsibility, from the “Ma’ala” organization. Rafael is the first. 36 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 37

Page 20

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Rafael As An Innovative Corporation 38 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 39

Page 21

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Corporate Governance Rafael is a government company with the government of Israel being its majority Control and audit programs. shareholder (99.9%).In addition there are a number of other government companies The company’s mergers and acquisitions plan. Compliance and code of ethics programs. that hold individual shares. However, Rafael operates as an international, competitive Financial reports, annual and periodic reports. company and strives to meet the highest international standards of proper corporate The principles of the company’s organizational governance. structure . Strategy for sustainable development and At the beginning of 2011, Rafael’s board approved the environmental preservation. Board Responsibility and Roles ‘Corporate Governance Procedure’ which was updated in Once a year the complete board of directors meets as Strategy and Business Development Committee 2019 and included an update regarding the composition The board of directors bears ultimate responsibility for an ESG committee. In this capacity, the company’s ESG Compliance Committee and powers of the board’s committees. The procedure is Rafael’s activities, its solidity and its success. The board’s strategy, relevant risks and opportunities, activities Audit and Safety Committee based on the Companies Law, the Government Companies role is to outline the Rafael Group’s vision and policies, to executed in the field and their effectiveness, planned Law, guidelines of the Government Companies Authority ensure their implementation and to supervise the actions actions and training to promote knowledge regarding and basic documents relating to the company and its of the CEO and management and the manner in which ESG issues are detailed. In addition, the subject of ESG is Preventing Conflict of Interests regulations. The procedure is a criterion for reference, and they perform their duties. The board of directors also sets presented to management once a year. as such regulates the relationship between the board of and implements high standards of behavior to promote Each member of the board of directors owes a fiduciary The board of directors may delegate its powers regarding directors, management, shareholders and other company excellence, professional behavior and integrity and their duty to Rafael, and they must avoid any action that could economic, social and environmental matters to company stakeholders. It is designed to assist the company in the assimilation in Rafael. The board of directors determines be seen to be a conflict of interest between their position managers and employees, with the exception of those establishment of mechanisms for defining its goals, means clear areas of action and responsibility, while maintaining as a director and any other position they hold or their powers specified in section 32 of the Government for achieving them and monitoring the manner in which a clear separation between its responsibilities and those personal interest. They must also avoid any action that is in Companies law, and those that the government or they are implemented. of management. It also supervises and outlines the competition with Rafael’s business or that takes advantage government ministers have informed Rafael cannot be Rafael’s principles of corporate governance reflect the company’s monitoring and risk management policy. of Rafael’s business opportunities. At the time of their delegated. company’s goals for honesty and ethical behavior, In addition, the board of directors establishes guidelines appointment, directors sign a statement in which they are transparency, responsibility and commitment to the for the preparation of ongoing company work plans and obliged to avoid any conflict of interest between their non- organization. They integrate with the company’s values their approval, including long term plan, the annual Board Structure and Composition company related activities and the company’s activities. and vision and are another aspect of Rafael’s pursuit business plan and a work plan in terms of an execution A Rafael employee and/or a service provider employed by for excellence in its operations while maintaining all and budget. The board appoints the company’s general The Companies Authority is responsible for the Rafael, either directly or through a company or another mandatory regulations and beyond (Beyond Compliance) manager, approves the appointment of senior company appointment of the board of directors and is responsible entity, for the purpose of carrying out work, a project or a in all areas, including environmental protection and officials and determines their terms of employment as per for the diversity of its composition and the expertise service agreement, such as a consultant, supplier, human sustainable development, safety, transparency and the Governmental Companies law, as well as employee and knowledge of its members. As of 31.12.2021, 2 resources, etc. may find themselves in a situation in which business ethics. standards and the company’s salary and remuneration women out of 5 directors serve on the board of directors. there is a suspicion of a conflict of interest in their work. The directors are paid according to standards set by policy. Rafael is subject to the Government Companies Law and its the Government Companies Authority, based on a To address this matter, Rafael has a procedure that relevant regulations that determine the composition and The board of directors approves: methodical and approved formula, by which managers handles the issue by reporting and a process for examining work of the board of directors, its powers, the suitability Directors acting on Rafael’s behalf in its subsidiary and senior company employees receive payment and a appropriate solutions to resolve any concerns regarding a of directors and how they are appointed, directors companies based on the CEO’s recommendation. bonus according to the company’s annual and quarterly conflict of interest. The process is carried out by a conflict- remuneration and rules for ensuring the accuracy of Appointments of the heads of the company’s foreign performance. of-interest committee consisting of the senior VP human financial statements and board of directors report. offices resources and the company, a senior vice president and At the time that the present procedure was approved, the the company’s legal advisor, plus another board member The financial and financing plan to create financial following board of director committees are part of Rafael: determined ad hoc and in accordance with a letter of resources that will allow Investments required in the Finance and Investments Committee appointment issued by Rafael’s CEO. company. 40 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 41

Page 22

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Ethics and Compliance We believe that an organizational culture that inspires and encourages managers and professional and valuable employees to behave at a high ethical level, is an essential and necessary element for the company’s success. Rafael’s strength is built not only on its business successes and technological capabilities but also on its reputation and standing as a company whose integrity and business and human ethics and the trust that our customers, employees and business partners have in the company are of prime importance. Protection of customer and employee privacy. Rafael is obligated to act according to all applicable organizational quality, foster employee identification policy in 2019 and will complete another update in early Use of confidential and internal company information. laws and regulations. But has, for many years, assumed with Rafael and their desire to continue belonging to a 2023. ethical obligations and limitations far beyond them. For valuable and leading organization . Ethics pertains to Prevention of bribery and corruption. The compliance plan includes an action plan for example, in order to ensure compliance with the highest the organization’s rules of conduct– whether between an Prevention of conflicts of interest. implementation at all company levels as well as with its international standards, Rafael has been complying with individual and their colleague, between a manager and Transparency in personal relationships with customers business partners. The plan’s procedures are intended to the ISO 37001 standard for several years which stipulates his employees, between the company’s employees and and stakeholders. effectively implement ethical conduct and prevent bribery a management system to prevent bribery and corruption. its customers, suppliers and partners, and the company’s Fair competition including the collection of information and corruption, and they apply to all directors, managers, The company is also active in international compliance responsibility to its employees and their responsibility regarding competitors. employees and consultants within the company and its and ethics organizations, such as the International Forum towards it. business partners. As part of the company’s compliance on Business Ethical Conduct. Government relations. Rafael’s code of ethics is a compass for proper behavior. efforts, the company has a VP for compliance who reports Non-abuse of company power. Dealing with issues relating to ethics and compliance It reflects the values and norms for behavior and actions to the CEO who reports to the CEO and to the company’s within the company is the foundation of Rafael’s corporate within Rafael, and its purpose is to maintain high ethical Validity and reliability of company reports. board of directors on the implementation of compliance culture and supports both the company’s excellence and levels within the organization and act as a tool for the All employees are expected to adhere to these rules and efforts. the existence of a clear ethical identity. Rafael’s approach development of an organizational culture and internal report their violation, even if instructed otherwise by their These are the main topics referenced in the compliance to these issues requires all of the company’s managers standards. It addresses issues of responsibility, reliability, superiors. The code of ethics was reviewed and evaluated program: and employees to meet strict standards of integrity and honesty, professionalism, sensitivity to “how things appear”, over the previous two years in order to verify its relevance, Due diligence regarding suppliers, consultants and reliability, as the company believes that such an approach and also to the company’s commitment to its employees, including employees involvement in the process and business partners, especially those involved in the reduces the taking of unreasonable and unwanted risks. the safeguarding of human dignity, life and health, as well discussion and approval by the company’s management. organization’s sales processes or representing the as to the interface with all company stakeholders, including The company’s management has an active ethics organization with government authorities. customers, suppliers and competitors. Code of Ethics committee as well as an ethics forum with representatives Training for the prevention of corruption and to The code, which is published on the company’s website, from a variety of company departments and agencies. encourage ethical behavior. The company’s and employees code of ethics is based is adapted for the international business sector in which A range of monitoring processes. on the company’s vision and values and supports our Rafael operates and reflects the unique characteristics Preventing Corruption aspiration to continue to be a central pillar bolstering of its activities. It includes values, standards, issues Internal approval processes and management the security of the State of Israel, while at the same and mandatory rules of conduct, which define what is Rafael and its affiliated companies believe in conducting compliance risks. time continuing to be a global, innovative, growing and appropriate and permissible for Rafael employees and its business fairly. This has always been the company’s policy, Reporting business violations. profitable company that develops, manufactures and managers at all levels of operation including issues such and the company obeys all of Israel’s anti-corruption Hospitality, leisure & cultural events and expenses. supports combat systems that are at the forefront of as: legislation, the anti-bribery convention of the Organization Donations and sponsorships. operational needs and technology. Equal opportunities and non-discrimination based for Economic Cooperation and Development (OECD) and As such, we are required to apply ethical rules of conduct, on race, religion and sex, gender identity and sexual all relevant anti-corruption laws in the countries in which it adhere to high standards of honesty and integrity, and identity. operates. observe fairness, reliability, transparency, integrity and Prevention of harassment. In order to ensure its effectiveness Rafael’s compliance incorruptibility in our internal conduct, in order to preserve Guidelines regarding the receiving of gifts and benefits. program is dynamic. Rafael updated its anti-corruption 42 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 43

Page 23

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Lobbying and Political Donations Employees who wish to consult ethical issues should, first deviation constitutes a disciplinary offense, to deal Marketing Communications, and foremost, contact their superiors, and then the VP of with the issue on this level, while referring it to relevant As a general rule, Rafael, as a government-controlled Sponsorships and Advertising Compliance and Ethics, or the unit’s director of human elements in human resources management. company, is not allowed to make political contributions of resources director. If necessary, other parties are available Due to the company’s areas of activity and the fact that it any kind, whether in money or any monetary equivalent, who can be contacted for appropriate advice. Reports is a government company, its advertising and advertising including allowing the use of its assets and rights by others, Integrating Ethical Principles In The and complaints regarding ethics are handled with total targets are limited, specific and closely supervised with either directly or indirectly. Additionally, the company does discretion and with the assurance that the complainant Company the majority of advertising being focused on professional not employ lobbyists acting on its behalf. During 2020-2022 will not be harmed and will not be exposed to harassment exhibitions. All marketing material presented to a client Rafael had no fines or convictions regarding customer In order for the ethical code and the behavioral standards due to their complaint. undergoes internal approval processes by the company’s service and lobbying issues or activities. it outlines to be effective, and to assist in dealing with After disclosure of suspected unethical or illegal activity marketing communications director, a senior vice president everyday ethical situations, every year a program is at Rafael, an investigation will be conducted by one of for marketing and business development and the security developed at Rafael that aims to integrate its guidelines Ethics Management In The Company the relevant parties. The complaint handling process is division and must also be approved by the Ministry of with employees. This includes: documented by the party dealing with the complaint. At Defense Export Control Division. Rafael employs marketing The implementation, management and assimilation of Corruption prevention study software - prepared in the investigation’s completion the main recommendations representatives in strategic countries who ensure that Rafael’s ethical code is entrusted to the Compliance and collaboration with a legal team. This was last updated are submitted to the complainant. If necessary, actions marketing materials comply with the laws of that country. The Ethics Division headed by the VP of Compliance and Ethics. in 2019 and is expected to undergo another update are taken to correct the issue and prevent the recurrence company’s marketing consultants are also checked by the In addition a managerial ethics committee was appointed soon. Employees must successfully complete the of similar cases in the future. These include disciplinary business intelligence unit to verify their reputation and ensure by the company which includes the VP of Compliance program once every two years. measures and publishing the circumstances of the case. that no conflict of interests exists. and Ethics, the legal advisor, the VP of Human Resources A management system for the prevention of bribery and the internal auditor. The committee meets at least The Compliance and Ethics Department is responsible for and corruption, certified according to the ISO 37001 As per company procedure, a committee examines the once a year. The ethics committee’s areas of activity handling the following, main issues: standard. Rafael’s compliance policy document in this sponsorship requests and decisions. All sponsorship requests include interpretation of the code of ethics, setting an Prevention of bribery and corruption area can be found on the company’s website. must be approved by the committee. ethics policy, determining goals and targets for the ethics Relevant regulation updates Starting in 2022, employees and managers are obliged program, discussions for the implementation of ethic International sanctions. to successfully complete a computer-based ethics Transparency of Information plans, discussion of specific and annual plans, monitoring Procurement supervision course. Regarding Company Products the effectivity of the ethics program, reviewing incidents of ethical violations in the organization as well as periodic The various aspects of ethics in Rafael The company evaluates the success of its integration As part of marketing procedures, customers are provided efforts based on a number of indicators: updating of the code of ethics, all subject to privacy with approved materials, in accordance with the company’s protection requirements and company procedures. The percentage of employees who underwent ethics Consultation procedures and the nature of the activity. As part of training . In addition to the VP of Compliance and Ethics and the project procedures, Rafael strives to fully meet the client’s Each and every one of Rafael’s employees is personally Ethics Committee, an ethics forum is also active in Rafael The percentage of units that underwent ethics training. requirements, both in terms of specifications and the responsible for acting and behaving in a manner consistent whose members are relevant stakeholders in the company, Number of calls to the anonymous telephone line. production of instruction manuals for the systems provided. with Rafael’s values and ethical principles. In order to help including “ethics trustees” from the various divisions. Their Number of approaches to the Ethics Officer. These include full technical specifications for components fulfill this obligation, they are invited to contact divisional role is to serve as a professional-resident authority for and the system, instruction manuals produced according to ethics trustees or contact the compliance and ethics consulting and reporting on ethics issues. Also included the company’s procedures and the client’s requirements while department directly, for consultation on an issue where the in the forum are the security unit reliability officer, parties Ethical Violations conducting a series of surveys and meetings with the client employee suspects there has been a violation of the code involved in ESG, internal audit officers, legal advice agents both at the company’s facilities and at the client’s sites. of ethics. There were no criminal proceedings or administrative and others. enforcement proceedings against the company or its Project documentation and literature provided to the client Rafael’s VP of Compliance and Ethics, in consultation with Enforcement officers in 2021 - and no fines were imposed on the includes chapters that detail all tests performed on and for management’s ethics committee and with the assistance of company resulting from violations. The company’s the system, such as environmental, safety, quality, calibration A code of ethics is essentially an educational and guidance the ethics forum, is responsible for implementing an ethics managers have not been charged or convicted by a and performance tests. In the years 2020-2022, no lawsuits tool and is not punishment oriented. The company’s integration plan that includes periodic updating of the regulatory authority of such violations. were instigated against the company regarding its marketing management seeks to encourage company’s employees code of ethics, an annual report to company management, communications or for failure to provide mandatory and managers to meet the standards of proper behavior the implementation of ethics information and training information about a product or service it provided. dictated by the code of ethics. Therefore, the organization’s activities for employees and managers, the publication managers are expected to warn their employees of any and distribution of the code of ethics , integration of ethics deviation from the ethical code and in cases where the content in executive training and more. 44 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 45

Page 24

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Quality at Rafael Quality Management 50001 standard. Rafael was awarded a “diamond rating” Quality Stages In by the Israeli Standards Institute for the compliance of 15 A Product’s Life Cycle At Rafael, the pursuit of quality and excellence is an management systems with quality standards. essential element in the creation of value for the customer The company’s quality policy is available to all employees, Rafael has the unique ability to engage in a and realizing the strategic goals of the organization. it is distributed via internal communication channels, and systemic project from the initial concept stage, Therefore the integration of a culture of quality its assimilation is ensured by the implementation of quality through development to implementation management at all stages of a project and throughout the procedures and annual quality improvement plans. and customer service. Quality management company is essential for the existence and growth of Rafael is integrated in all phases throughout the and is a derivative of its mission and vision. The goal of project’s life cycle and throughout the promoting quality processes throughout the company is Rafael Has Several Approaches Regarding organization while coordinating with the to preserve and promote Rafael’s reputation as a company Quality Management Proceses: customer’s requirements. The quality system that strives for excellence, to achieve profitability and is involved in contract and proposal review growth, and to ensure that the norms by which Rafael Continuous improvement: annual quality improvement processes where the customer’s requirements operates meet international standards. Rafael’s quality programs at Rafael. The programs set goals, targets and are examined and risks are identified, through management processes encompass the entire company, relevant indicators for essential issues such as customer design and development planning and the are uniform and systematic from initial development centricity, project management, the design process, tools definition of verification and validation points. stages and through to production, customer service and and infrastructure, procurement and logistics and human This includes design surveys and engineering support while being flexible to the special needs of each resources. Divisional plans are derived from the annual change management, in the purchasing and customer. plan and are monitored on an ongoing basis. supplier phase and all stages of production Rafael implements an integrated management systems Total quality: quality processes are integrated in all control processes . Even when the product is approach: the quality management system, environmental organizational activities and in all aspects of project released to the customer, compliance with protection, occupational health and safety, safety and management and system engineering from the proposal their requirements is checked. This includes quality of transportation and shipping systems and stage and throughout the product’s life cycle while verifying the existence of all required parts and social responsibility. Management system standards are coordinating with the client and regulatory authorities. documents, the absence of damage or foreign approved by the documentation and certification bodies bodies, as well as marking and labeling in Integration of management systems: quality, and by customers relevant to the entire organization and accordance with requirements. environmental protection, safety, occupational health and its divisions. safety, and the quality of shipping and land transportation The company’s activities are dependent on international systems - creating a management infrastructure and the and local standards, specifications, laws and contractual integration of processes in these systems increases their Systematic Projects requirements and quality aspects as defined in each efficiency, raises their level and facilitates a managerial and project’s quality plan . The quality management system integrative focus for all processes. meets the requirements of the AS9100 standard (a quality Integrated engineering: an approach used from a standard for companies in the aviation, defense and project’s initial stages to shorten time to market (TTM), space sector and also includes Israeli Standard 9001). improve production processes and lower costs. In addition, the environmental protection management system complies with ISO 14001 and ISO-45001 standards Rafael’s process approach, which is constantly identifying for safety and security system management and and assessing risks, allows for the identification of factors Israeli Standard 10000 standard for responsible social that may lead to a deviation from planned results and Initial idea Development Realization Service at the customer’s site management. Laboratories at Rafael meet the ISO 17025 the implementation of necessary prevention and control standard, and Rafael’s energy management meets the ISO activities. 46 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 47

Page 25

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security The Organizational Structure of Rafael’s Quality System Quality Training Components or materials that are suspected or verified as counterfeit are handled through a Material Review Board Those responsible for quality at Rafael are deployed Components and Materials Quality Engineering The training center consolidates training necessary for (MRB). When an item has been verified as counterfeit, an throughout the company’s organizational and Center - Rafael’s main professional body which outlines quality, safety and occupational health, environmental alert is issued to the quality and engineering authorities. In operational hierarchy with the aim of adapting the policy for electronic and mechanical component and protection and safety and transportation and land traffic addition, the information is also distributed to the item’s quality management system to customer requirements material engineering. The center’s activities include system quality issues. It provides guidance for quality supplier, including a decision to reject the component and applicable standards, managing product quality the formulation, development and maintenance of personnel as well as technicians, engineers and managers and destroy it. If necessary, a Supplier Quality Committee and processes throughout the product’s life cycle as a professional infrastructure for component quality from other fields as needed. The majority of officials in the convenes to decide whether to continue working with the well as implementing improvement processes in cross- engineering, evaluation of new components, component quality system participate in courses that grant quality supplier. organizational management processes while continuously acceptance tests , procurement and standardization. degrees and certification: Certified Quality Engineer working on the assimilation of a quality culture in the (CQE) Certified Reliability Engineer (CRE) Certified Quality Reliability and Safety Center - The central body Constant Quality Improvement company. Manager (CQM). Quality training is not limited to quality that provides services for all Rafael units for issues personnel. Courses and seminars are given to technicians, Management Surveys The system includes designated quality bodies and office relating to reliability and safety of systems. Deals with engineers and managers from other areas and other Rafael holders operating in two main sectors: the formulation, development and maintenance of a employees. In order to maintain and improve high quality levels comprehensive professional infrastructure for matters of , a periodic review of quality management systems is reliability, availability, safety and maintenance. performed, by management, or an agency appointed by Environmental Engineering Center - The body provides Preventing The Use of it, in accordance with the 9100 AS standard. The review’s Organizational Professional all Rafael units with environmental engineering services purpose is to ensure the continuity and effectiveness of Counterfeit Components Operating a quality Activation and assimilation and operates the company’s environmental engineering the quality management system over time. The review system as an of tools, procedures, laboratories. The center is also certified according to ISO and Materials includes an assessment of improvement opportunities , independent agent methods and experts on 17025 for product support at various stages: development, decisions regarding required changes and improvements Counterfeit components and materials are a central issue quality issues production and testing. in the management system and its processes, including in the aerospace defense sector to which Rafael belongs, updating policy and quality goals. Quality departments - in production plants, divisions due to the fundamental consequences that may result and the supply chain, these departments handle quality from the presence of such items in products. As part of At least once every six months, the management of assurance issues, where operations are focused on 3 the company’s quality processes, and in order to prevent each division holds a discussion on quality issues which Activities in both sectors are combined and measures are sectors: quality engineering, examination and inspections, counterfeit components or materials from entering the examines the effectiveness of quality management taken to ensure maximum effectiveness. and infrastructure.. supply chain and Rafael products, the company has a processes and defines process improvement targets. Designated bodies in the quality system that serve Quality bodies in the engineering and development and procedure to prevent the use of counterfeit components In addition, once a year a quality summary for the as professional bodies and service providers: technological divisions - serve as a professional agency in based on the guidelines of the SAE standard AS5553. entire company is distributed to management and the engineering, design and testing phases. The procedure contains risk management methods, quality system, which includes highlights provided The Calibration Center - the professional body that prevention processes that include quality requirements by the respective divisions, managerial elements and defines calibration regulations at Rafael and oversees their The quality system and its operators have extensive for procurement and product verification, and overall companywide infrastructure factors and reference to the implementation. The center’s calibration laboratories powers, and it is independent in its decisions and management that includes preventing the entry of effectiveness of quality management processes. are certified by the National Laboratory Accreditation independent of development, production, operation and counterfeit components or materials into the supply chain. Authority to the ISO 17025 standard. service factors. 48 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 49

Page 26

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Commitment To Protecting Design For The Environment Preserving Nature The Environment One of the most effective ways to reduce a product’s There are two nature reserves within Rafael environmental impact is to design them, from the outset, facilities: one on the coast near the David Institute, in a fashion that takes possible environmental impact and the other the “Winter Pool” at the Leshem into account with the aim of reducing it. This is known Institute. Rafael works to protect these reserves internationally as “Design for the Environment’. In the and prevent damage to their biological diversity. Rafael sees the protection of the environment as a central value for the company and initial stages of Rafael’s product planning, the chemical In addition, academic studies are being carried out its stakeholders, including employees, neighbors, municipalities and authorities, composition of materials and their compliance with to preserve the pools and maintain the region’s customers and suppliers, especially due to its being a government company that is environmental regulations is examined. “The Rafael’s unique biodiversity. committed to the Israeli public. Because of this, Rafael operates according to principles Designer’s Guide,” provides instructions on how to Rafael operates a quarterly program to clean implement environmental protection requirements during of sustainable development and with an ongoing goal to reduce as much as possible its the beach of waste washed up from the sea. In development of the company’s products. This includes addition, we are prepared to respond to pollution environmental impact and its use of resources. restrictions and prohibitions on the use of certain materials events originating from the sea, similar to the “Tar and production processes, and the offering of alternative, in a storm” event of February 2021 where huge environmentally friendly materials and technologies. amounts of tar washed up onto Israel’s shoreline. Rafael faces considerable challenges to realize this technologies with a reduced environmental impact, When managing a product or service’s life span, health, In response to this incident, a cleaning team goal as the company is an industrial manufacturing provides an environmental response in emergency safety, environmental quality, accessibility, information consisting of Rafael employees, in cooperation company. However, it is a challenge that the company incidents and liaisons with regulatory agencies. Engineers transparency and other social responsibility considerations with the Ministry of Environmental Protection, is meeting successfully through its commitment to in the safety and environmental protection system are taken into account at all stages of planning, production, worked to clean the beach of tar in a thorough and continuous improvement. Environmental protection is a coordinate and approve work processes and risk surveys to distribution, storage, use and end of product life, to ensure professional manner. consideration from development and production phases ensure optimal environmental protection and compliance no harm is caused to the environment or people. and through to the storage stage and transportation with regulations and laws. to the customer. Over the past three years, Rafael has In addition, an internal communication program invested approximately NIS 36 million in environmental encourages Rafael employees to identify with the management. The majority of operations dealt with the company’s environmental protection programs and treatment and reduction of waste, energy efficiency and activities. .. All new employees undergoes dedicated treatment of atmospheric emissions. environmental protection training . In addition, every Environmental protection at Rafael is guided by employee whose role has an effect on the environment, the environmental policy defined by the company’s for example those working with hazardous materials, management. This policy is reviewed and updated undergoes dedicated training and refresher courses related periodically as needed and is embedded in Rafael’s to their job function. corporate culture through procedures, websites on Rafael implements the requirements of ISO14001 for computer networks, publications and trainings to all products and services provided to the company’s increase awareness among stakeholders, including customers, for all its activities, from initial development employees, visitors, neighbors and suppliers. stages and on through production and final delivery, The policy is implemented by the environmental The company operates in accordance with all local and protection system whose goal is to ensure efficient and national laws and regulations. Rafael is committed to proactive environmental management while complying preventing environmental damage and to the continuous with all legal requirements and constantly improving improvement of its environmental performance, including environmental performance. It includes environmental recognition of natural resources as a public resource. protection offices , safety and environmental protection Rafael manages environmental protection issues through CLEANING OUR engineers, a poisons management system and managers an environmental management system, encourages of production facilities. The head office develops suppliers and subcontractors to use such a system, and BEACHES procedures and guidelines on environmental issues, conducts random inspections of suppliers in order to analyzes Rafael’s environmental performance, leads determine their compliance with requirements while in the implementation of green technologies and providing recommendations for improvement. 50 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 51

Page 27

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security David Institute Perimeter Fence Coastal Strip Border Fence Upgrade Environmental Risk Assessment Lighting Replacement Project And Replacement Project Rafael implements a structured process for assessing consults professional literature, and more. Also, in the “Light pollution” is artificial light at night that potentially During 2021, the old fence at the northern and southern risks using a dedicated risk management procedure for various production processes, Rafael applies the best harms an area that should not be lit, or that is excessively borders of the Rafael complex was dismantled to be work, transportation safety and environmental protection. available technological methods, thus helping minimize lit. This could disrupt the essential natural mechanisms replaced by a fence with greater resistance to the The process applies to all activities carried out under the environmental impact of its activity. of animals and plants, including those active at night, environmental conditions of a marine environment (salt, Rafael’s responsibility that involve risk factors: research In 2020-2021, Rafael was not fined or prosecuted for thus damaging the biodiversity of the area being lit. In moisture and winds) and that blends more harmoniously and development activities, infrastructure construction, environmental violations. order to reduce light pollution caused by lighting installed into the landscape. When designing the fence, sea water production, testing, examination and operation, on the David Institute’s perimeter fence, Rafael initiated flow regimes were taken into account in order to reduce maintenance and service, demonstration, training and use, a pilot program in 2019 - which included inspections its environmental impact. The project was executed in knowledge transfer, upgrading and disposal. by an ecologist to identify, characterize and define the coordination with the Ministry of Environmental Protection Rafael’s risk management procedures are unique in that biological diversity of species at the sea line and the and cost some NIS 2.5 million. each risk is assessed separately in relation to the risks institute’s fence, during day and night. Subsequently, an involved for people, equipment and the environment. optimal lighting system was defined, which takes into In doing so, Rafael guarantees a thorough and rigorous account low power consumption, the height of lighting assessment of the environmental impact of each columns, light intensity and required illumination operation. For example, in order to minimize the risks distances and that will prevent light pollution,. As a result, of using a new substance whose effect has not yet been fence lighting was replaced during 2020-2021. This helped proven or is unknown, Rafael consults with experts, preserve the area’s biodiversity as well as providing added value due to reduced electricity consumption. 52 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 53

Page 28

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Energy As an industrial manufacturing company, energy Energy Consumption management is an essential issue for Rafael. The company undertakes to establish and maintain energy management Rafael’s energy sources are electricity and diesel. As of systems with the aim of improving energy performance, 2021, the David and Leshem Institutes have the highest More than achieve energy savings and increase the efficient utilization energy consumption with remaining consumption being of natural resources to reduce greenhouse gas emissions divided between the other institutes and branches. From 3 Million NIS whilst continuing to provide a suitable solution for all the 2020, monitoring began of energy consumption at external company’s energy needs. sites (branches) including the following sites: Tel Aviv, Was invested to reduce Jerusalem, Be’er Sheva, Terdion and Shlomi (as of 2021). In December 2018, a company energy survey was the organization’s energy implemented and in February 2021 the survey was Rafael’s highest energy consumption levels include air consumption between updated (executed once a year). This is part of Rafael’s conditioning, production machinery, server rooms, commitment to the ISO 50001 standard and its ongoing indoor and outdoor lighting and air compressors. Rafael’s 2020 - 2021. efforts to identify potential areas for energy savings and electricity is purchased from a private producer, Dorad, the formulation of energy saving recommendations. which produces electricity using natural gas. Diesel fuel is used primarily for heating and generators and gasoline is In addition, in order to effectively manage energy in the used by the company’s vehicle fleet. company and to identify energy saving opportunities , Operations To Reduce Energy The company’s energy consumption 2020-2021 Rafael has been certified by the Israeli Standards Institute When examining Rafael’s energy efficiency index in relation in gigajoules (GJ) Consumption since 2015. Certification is reviewed and renewed yearly. to a built-up area, it can be seen that during the reporting period, a decrease of approximately 2% was measured Between 2020-2021, over 3 million NIS was invested in 2021 compared to 2020. Also, the company’s absolute Source 2020 2021 in operations to reduce the organization’s energy energy consumption increased by 5% in the same period consumption. Operations included: due to increased activity. Diesel - heating 28,851 20,994 Purchase of energy efficient machinery, equipment and facilities. Diesel - transportation 17,625 9,885 Conducting efficiency and productivity tests of chillers, air conditioners and air conditioning pumps, replacing Gasoline - transportation 137,682 147,291 old systems and repairing leaks. During this period, The company’s energy consumption 2021 about 60 split air conditioners were replaced, resulting in savings of some 100,000 kWh per year. Electricity consumption 498,114 522,400 Boiler combustion efficiency test . 3% Diesel - heating Replacement of outdoor lighting with economical LED Total 682,271 700,569 lighting. Optimization of air conditioning and lighting usage 1% Diesel - transportation resulting in annual savings of approximately 300,000 kWh. 21% Gasoline - transportation Improved monitoring of electricity consumption and the installation of electricity meters in new buildings. Reducing the use of diesel fuel and switching to 75% Electricity consumption electrical water heating systems. An additional advantage of this move is diesel fuel storage will no longer be needed thus negating the danger of diesel leaks and the use of polluting fuel. 54 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 55

Page 29

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Greenhouse Gase and Pollutant Emissions Management Of Pollutant Emissions Into The Atmosphere Into The Atmosphere As an industrial manufacturing company, Rafael uses material was replaced with another material and the hazardous materials. However, the company continuously entire system was converted into a closed system with no Rafael is aware of the increased need to reduce Reducing Transportation works to improve production and mechanization emissions into the air. In another facility, the need for the greenhouse gas emissions that contribute to accelerated processes, to change work methods if necessary or to specific material was re-examined and, as a result, work Emissions climate change. It manages these emissions intelligently replace materials to reduce hazardous emissions. Two methods were changed, and a new structure was erected through periodic and regular monitoring, maintenance production lines have undergone such a conversion at a cost of millions of shekels and new work methods Vehicles purchased for Rafael employees have a low air and measurement activities. The company’s main sources process with a hazardous material being replaced by one implemented that completely eliminated the need to use pollution index and employees who are entitled to receive of greenhouse gas emissions are electricity and fuel less dangerous for the environment and the workers. this material. Both initiatives illustrate Rafael’s policy to a company car have the option of choosing a hybrid consumption in production and shipping processes. reduce emissions at source as much as possible in order to vehicle. Also, dozens of electric vehicles and forklifts were As part of a 2019 emissions reduction project Rafael put prevent the use and emission of hazardous materials into introduced for internal use to replace gasoline and diesel- into service 2 “scrubbers” - facilities to deal with acids the air. Greenhouse Gase Emissions powered vehicles . which reduce the use of these materials by at least 98% In addition, the company has ongoing Leak Detection The percentage of hybrid vehicles in 2021 was through a chemical neutralization reaction process. In 2021, 60% of Rafael’s carbon footprint originated from and Repair (LDAR) activities to detect emissions resulting approximately 34% of all company cars and leased electricity consumption (total 2), 27% from refrigerant Volatile organic substances (VOCs) are a large and from the unintended leakage of materials from pipes and vehicles, and their proportion in relation to the total gases and the remainder from transportation and other diverse group of substances in a gaseous state at operations necessary to replace equipment and as part of number of vehicles including work tools and mechanical sources. ambient temperature that are used widely in industry. an annual maintenance plan. Sensors are also installed for engineering equipment was 22%. Some of these materials may have a negative effect the real time detection of leaks at different locations. Rafael conducts air quality tests of vehicle exhaust systems on human health. As part of Rafael’s efforts to reduce In addition to emission reduction operations by reductions Details of greenhouse gas emissions in tons CO2e: during periodic servicing at the company’s vehicle service its environmental impact, and in response to the at source, we are establishing end-user facilities to treat air centers. In addition, the company operates an extensive requirements of the Clean Air Law, actions were taken to Per ton of greenhouses gases in relation to SqM emissions in a proactive and preventive manner to prevent shuttle system that includes approximately 780 shuttle significantly reduce emissions of substances from this built up area. the emission of VOCs. In 2022, the David Institute began lines used by 4,600 commuters daily. Rafael encourages group. construction of an emissions treatment plant for volatile employees to use the shuttle system thus saving many An example of operations to reduce such emissions is organic substances, which is expected to be completed 2020 2021 tons of emissions that would have been emitted if the Rafael’s cessation of use of a specific material in two in early 2023, at an expected cost of approximately NIS 12 employees had come to work with private cars. Greenhouse gases intensity 0.18 0.18 separate initiatives. In one production line, the hazardous million. Figures for greenhouse gas emissions are reported voluntarily once a year to “Dirug Ma’aleh.” We plan to replace a significant portion of our vehicle fleet with electric or hybrid vehicles whose greenhouse gas and pollutant emissions (SO2) PM NOX are much lower than those of the current fleet. 12 million NIS The expected cost of treating emissions from volatile organic substances that began at the David Institute in 2022 and is expected to end in early 2023. In 2021 60% Of Rafael’s carbon footprint was from electricity consumption In 2020, there was an increase of 8% resulting from Rafael’s increased activities. From the calculation of emissions in relation to the company’s built-up activity area, it can be seen that the intensity of greenhouse gas emissions remained unchanged between 2020 and 2021. 56 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 57

Page 30

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Water Consumption TREATING WASTE WATER FROM SANITARY SYSTEMS TO BE Water in Israel is a scarce resource and is a prime concern Between 2019 and 2021, there was an increase of some for Rafael. Rafael uses water for industrial purposes, for 12% in the company’s water consumption. This followed REUSED FOR IRRIGATION drinking water, for air conditioning, irrigation, and for a major leak during January and February of 2021. Some sanitary purposes and is constantly striving to reduce 24% of Rafael’s water consumption in 2021 is attributed to its water consumption. To facilitate this the company this leak. Following conclusions drawn from the leakage, implements careful monitoring and measurement of water actions were and are being taken to manage and reduce consumption including the monitoring of usage in different water Rafael’s water consumption including: sectors within the company whilst identifying possible Installation of water meters in all new buildings weak points that, if addressed, could lead to a reduction constructed for Rafael to identify abnormal in water consumption. In addition the company monitors consumption and locate faults. facilities and processes that use large amounts of water, Installation of internal water meters in central buildings with the aim of reducing usage as much as possible and to detect leaks and facilitate the early treatment of also recycles large amounts of water for reuse. The water faults. used by Rafael is supplied by local water corporations. Promotion of a pilot program for the installation of water controllers that can be read remotely using RF Sanitary Wastewater Treatment and Purification technology for the continuous management of the company’s water consumption. Rafel operates two facilities for the purification of The Shadma Institute wastewater treatment plant sanitary wastewater that operate in accordance with is a sanitary wastewater treatment plant that purifies the requirements and guidelines of the Ministry of approximately 24 cubic meters per day to a secondary Environmental Protection and the Ministry of Health. level. The facility underwent localized upgrades in 2021 and the wastewater it purifies is used for the irrigation of Fresh water consumption (in cubic meters) The David Institute sewage treatment plant - an vegetation in the area with the approval of the Ministry of upgraded sewage treatment plant that was renovated Health. about a decade ago at a cost of tens of millions of shekels, 738,622 treats some 600 cubic meters of waste water per day and At the Leshem and Giva Institutes, sanitary wastewater includes a primary collection pool and an emergency only is discharged into a regional wastewater collection 674,167 collection pool, filtration and disinfection systems and and treatment system and later used for irrigation. 661,750 a computerized control system. The facility treats non- Industrial wastewater is collected, removed and treated at industrial sanitary sewage which is treated to a tertiary sites licensed for the management of hazardous materials level and then transferred to the “Mateh Asher” regional waste. effluent reservoir for reuse as agricultural irrigation water. 2019 2020 2021 58 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 59

Page 31

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Waste Rafael recognizes the importance of responsible waste management, and primarily, the need to reduce it. Rafael’s waste “Rafael Thinks Green” Project Initiatives During 2022-2023 management and treatment system includes the separation of different types of waste classified by their different treatment methods. The aim is to recycle and reuse as much waste as possible. For example, waste from trimming trees is shredded and This is a multi-year project that Rafael promotes to reduce Distributing reusable utensils to employees and spread as fertilizer throughout Rafael facilities. Waste that cannot be recycled is separated and treated in accordance with the environmental impact of its employees. Measures were embarking on a campaign to reduce the use of Ministry of Environmental Protection guidelines and transferred for treatment at authorized sites. As part of the Packaging implemented to reduce the amount of waste generated disposable utensils. Law, an agreement was signed with the Tamir Recycling Corporation to handle packaging for recycling starting in 2022. and to improve the waste separation system and recycling Move to the use of disposable, biodegradable utensils streams. in coffee areas and food courts. Approximately a hundred recycling containers for Placing recycling bins near dining rooms and bottles and cans and 6 orange recycling bins for outdoor eating areas and advertising their location to packaging were placed throughout Rafael complexes employees. and near building entrances. Eliminating the option to order drinks in small bottles that produce more waste. Composition of waste treatment - 2021 Non-hazardous waste materials in 2021 (tons) Reducing paper waste by switching to an electronic pay slip instead of a paper one. To date, approximately half Waste type 2021 the employees have chosen this option. In addition, 30% landfill two-sided printing was set as the default on all Rafael Residential waste 1,614 printers. 600 Above Mixed solids 1,017 recycling bins Increasing the number of publications and at Refael Construction waste 182 communications on recycling and increasing awareness among employees. Total waste - landfill 2,813 70% recycling Steps to reduce food waste in Rafael the donation of Metals 4,781 leftover food by the catering provider in cooperation Electronic 962 with the “Collect (Leket) Israel” organization. Wood 503 Reducing the use of disposable utensils in the catering system and at coffee stations: stopping the use of Cardboard 214 straws, switching to paper bags, using biodegradable plates in the cafes, using disposable biodegradable Paper 72 utensils in multi-participant events. These steps are Garden, tree 37 of great significance as Rafael has 27 catering facilities serving over 150,000 people per month as well as 377 Plastic 11 kitchenettes with 331 coffee machines. Total waste for recycling 6,580 Total waste 9,393 60 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 61

Page 32

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security A MODERN PLANT Hazardous Waste Materials FOR THE TREATMENT The management of hazardous materials waste is the RAFAEL’S HAZARDOUS WASTE DATA (TONS) OF VOLATILE responsibility of the company’s toxics department in accordance with legal requirements and Rafael’s toxics ORGANIC MATERIALS Waste type 2019 2020 2021 permit. Toxic waste is stored at designated storage sites and includes separation according to risk groups, standard Hazardous waste - landfill 1,690 1,879 737 signage, the presence of emergency equipment and more. Treatment Hazardous waste - recycling 130 120 728 All hazardous waste materials are transferred to authorized efficiency sites for treatment in accordance with regulatory approval. 99% Total Hazardous waste 1,820 1,999 1,465 In 2021-2022, Rafael will build a new site for the collection and concentration of hazardous waste materials until its removal to an authorized facility. The site is built with the most advanced and innovative design while maintaining all regulatory requirements and meeting all the conditions of Rafael’s business license. It will begin operation during 2023. The new facility enables inventory management and the concentration of waste until removal for treatment. EVERY YEAR Abou t t o 1 n , s 3 of 5 0 Abo o u f t p 5 la 0 s 0 tic t & o ns Ab o o f u t p 2 ap 4 e 0 r a t n o d n s construction wood waste cardboard waste waste About 100 tons About 720 tons of hazardous of metal waste materials waste A MODERN FACILITY FOR THE STORAGE OF HAZARDOUS MATERIALS 62 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 63

Page 33

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Employees - The Human Resource Rafael’s employees are the company’s most valuable asset, and they are responsible Rather than focusing on task management, Rafael Rafael’s strategy is based on 12 vectors, each of which has shifted its focus to growth and managing people. It is its own action plan and success indicators: for making it the leading company it is today. The company’s three goals are: to be a the Human Resources Department’s responsibility to business committed to excellence and profit, to serve as a center for defense technology 1. Employee experience and the work environment support the managers, who are responsible not only for research and development, and to be a central pillar in the security of Israel as well as the performance of employees in their tasks but also 2. The quality of management and the empowerment of for supporting them throughout their tenure with the an integral part of its economic and social development. This gives Rafael employees managers organization. a sense of purpose and mission. In today’s changing employment environment, Rafael 3. Recruitment, mobility and retention of employees As a result, a human resources strategy was developed works to retain employees by providing fair employment conditions, providing equal based on the relationship between the employee, their 4. Employee development opportunities to employees from diverse sectors, and promoting their personal and manager, and Raphael as an organization and which 5. Personal and organizational learning professional development. focuses on three main areas: 6. High performance and personal excellence Managing Human Employee experience - to provide all employees 7. Assimilation of Rafael’s values into the organizational with a meaningful and satisfying work experience, culture to provide employees with optimum conditions for Resources 8. Personnel planning, productivity and labor economy perform their work, ensuring that employees receive clear and accessible information about the benefits 9. Strengthening business perception Rafael launched a new human resources strategy in 2018 and social conditions they are entitled to under the law that aims to support the company’s general strategy as 10. Process and organizational efficiency and beyond, ensuring that information and processes well as serve the following purposes: are transparent, information sheets are available, 11. Benefits, wages and labor relations Strengthening Rafael’s reputation as an organization at procedures are updated, automated processes can the forefront of innovation and technology. be monitored by the employee/manager, as well 12. Human resources metrics as advanced work environments customized to the Provide employees with a response that creates a employee’s needs. positive employee experience. Human resources at Rafael is managed through a Growth - Rafael creates a challenging and exciting dedicated system that works together with divisional Enhancing each employee’s sense of value and work environment for its employees. By building career human resource managers who nurture Rafael’s human encouraging their professional and personal paths, strengthening learning cultures, and developing capital, and guide, advise and implement processes in development. managers, employees are able to advance to the next the various units. The guiding principle of Rafael’s human stage of their development. Taking a differential view of each employee and resources management is to ensure that the abilities determining the most appropriate and relevant Performance - By treating each employee as an and skills of Rafael employees are realized by respecting evaluation for them. individual and evaluating and rewarding them their independence of thought and their aspirations for personal development, as well as their contribution to the individually, Rafael encourages excellence, increases company’s success. organizational flexibility, and strengthens a collaborative culture. 64 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 65

Page 34

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Human Resources Includes The Following Units: Direct Employment At the end of 2021, Rafael had approximately 8,000 Employee Experience Core Population Management employees, of which 7,902 were full-time and the rest Management part-time, an increase of approximately 3% compared Building an infrastructure for the development to 2020. The majority of the company’s employees are The unit treats employees as customers, of Rafael’s future managers and the optimal between the ages of 30 and 50, and this ratio remains from hiring until retirement (from hire to staffing of key positions from an organizational the same in 2021 compared to 2020. In addition, there retire) and defines the services that the and systemic point of view in accordance with has been an increase in the number of employees under system should provide employees. Rafael’s needs and in response to changes that the age of 30. have arisen. Employee numbers does not include students working in the company. The recruitment unit is in constant and Measuring Human Resources Wages, Benefits and Work Relations close contact with all universities and the majority of colleges in Israel. Rafael places great importance on the A systems and analytics unit allows every The unit is responsible for defining and employment of students and the majority of students manager to access and use information implementing a salary strategy and policy, are hired as full-time employees upon graduation. In regarding their employees and make compensation and benefits, managing labor 2021, we admitted 227 students as Rafael employees. informed decisions accordingly. relations with workers’ committees and overall responsibility for the development and implementation of collective and personal labor agreements within the company Rafael employees by full-time and part-time positions and gender Methods and Processes 2019 2020 2021 Recruitment and Mobility The unit maps human resource processes and promotes automation processes Identifying the most qualified candidates, both Women Men Total Women Men Total Women Men Total where necessary, to reduce bureaucracy internal and external, to fill each position in the Full time employees 1,800 5,914 7,714 1,817 5,895 7,712 1,930 5,972 7,902 and optimize them. most efficient manner, assisting managers in selecting the most suitable candidate based on Part time employees 55 79 134 46 48 94 42 75 117 an accurate job description, ensuring a respectful, Total employees 7,848 7,806 8,019 transparent, and unique candidate experience that maintains Rafel’s “employer branding”. Organizational Development and Learning Percentage of women in Rafael by rank Percentage of company’s employees by age group Guiding learning processes , employee 2019 2020 2021 Age 2019 2020 2021 development and career guidance, internal organizational communications, preparing Senior management 20% 21% 20% Above 50 31% 28% 25% for the digital age, and implementing Management - intermediary 23% 23% 24% 30 –50 67% 69% 69% remote work procedures. Non-managerial employees 24% 24% 25% Below 30 2% 3% 6% *No student jobs 66 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 67

Page 35

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Employees Terms of Employment And Benefits Rafael implements fair employment policies and good employment conditions for all its employees, and the company pays Assistance To Employees particular attention to the employees’ rights and their well-being. During A Crisis A company’s commitment to its employees is tested not only during normal day-to-day activities, but especially in times of crisis, when its employees need the company’s “Mutual Aid” fund - the goal of the fund is to help support and flexibility more than ever. Rafael is well employees who find themselves in situations of qualified to pass this test. In order to assist employees severe financial distress. The fund provides a grant or who find themselves in need of financial assistance, the an interest-free loan that will be deducted from the company operates a number of dedicated services and employee’s salary. funds: Internal social services - help identify employees Aid Fund - operates in accordance with regulations and families in distress or crisis. Assistance includes and reimburses members for medical expenses, guidance, mentoring, and linking to community psychological treatment, nutritional counseling and resources, depending on the type of treatment other costs that other health insurance does not cover. required: social, health, mental or financial. In the Membership in the fund must be renewed once a case of employees suffering from a prolonged illness, year and costs each employee NIS 100. Rafael pays an a Human Resources Department representative , identical amount for every employee who is a member together with other elements in the company and of the fund. from outside, provide assistance and guidance to the Sick day fund - provides financial assistance to employee to assist them in maximizing their rights employees who have joined the fund and who are and those of family members during this period. The absent from work due to a prolonged illness and who company has an assistance procedure for employees have no remaining sick or vacation days. Employees in distress due to illness or who have lost the ability who choose to participate in the fund contribute one to work. The responsibility for identifying a situation Employee Benefits sick day per year and, if necessary, after exhausting in which an employee or a family member needs their sick day quota, they can use sick days accrued in assistance and help rests with the employee’s direct Rafael’s salary and benefits policies are based on two for the holidays . In addition, the company gives gifts the fund. supervisor. important values - fairness and the encouragement of to mark employees’ life events such as weddings and excellence and innovation. These values are reflected in birthdays, as well as a full wage benefit on 8 national Support For Employees During The Corona Epidemic a number of processes used to determine an employee’s holiday evenings during the year and shortened working salary and benefits. Many of the benefits provided to days with full pay on Hanukkah and Purim. During the Corona crisis, and in an attempt to ensure The Corona epidemic resulted in a significant increase in Rafael employees, such as transportation, catering, Once a year, every employee receives a “salary and business continuity while at the same time maintaining psychological and social problems, including loneliness and expenses, are uniform and outlined in collective benefits” booklet, which consolidates personal employees well-being, the company expanded the range and social distancing from family and friends, as well as agreements. information including a variety of activities, benefits of programs and arrangements designed to support the loss of financial and personal security. Rafael understood The company’s employees enjoy additional benefits, and information regarding the various components of combination of work with leisure and family life. Despite that the mental and physical health of its employees is including collective and group health insurance, pension the employee’s earnings during the previous year. The the sensitivity involved because of the areas in which the critical to both them and the company, and therefore arrangements with preferential terms, the possibility booklet also provides information regarding participation company operates, , Rafael began allowing its employees continued to operate and even expand its employee of vehicle leasing and loans on favorable terms, a in training, awards for excellence, the main points of the to work from home where this was possible and continued support services. consumer club with significant discounts on a variety of employee’s pension portfolio and insurance plan. to do this even after the pandemic ended. This is based on leisure attractions and products, as well as exhibitions an understanding that part-time work from home allows showcasing products from Israeli suppliers in preparation for a better balance between home and work. 68 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 69

Page 36

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Male and Female Employees Who Are Parents or Connection and Resilience - On Maternity Leave From Measurement To Action As part of Rafael’s commitment to its employees and their personal and family needs, and in order to allow parents of young During 2021, the company carried out a survey: children to leave work early, Rafael has a working mother/ father arrangement which allows any parent who has at least two “Integrating Connection and Resilience - from children up to the age of 12 or one child up to the age of 8 to leave half an hour before the end of the official working day at Measurement to Action.” The survey is designed to provide Rafael’s expense and without affecting the employee’s salary. senior management and all company managers a snapshot of the moods and attitudes of employees following two Rafael has a high rate of parents returning to work after maternity leave and remaining with the company as shown in the challenging years of the Corona pandemic. Another aim table below. The table shows that Rafael provides conditions which enable new parents to continue working. was to provide managers with tools to create employees connections with the company. key areas: The project included: Compensation, development and career

1. Building an assimilation program and the Hybrid work Maternity leave implementation of a company-wide survey The employee experience and the work environment 2020 2021 2. Formulating a picture of the existing situation as opposed to the desired one. Reducing bureaucracy and streamlining processes Women Men Women Men
2. Integrating ‘Connection and Resilience’ by the creation Strengthening the management track Total number of employees who took maternity leave 185 6 204 3 of action plans following the organizational survey and The survey “Integrating Connection and Resilience - from its implementation. Total number of employees who returned to work after the end of their Measurement to Action.” won the Israel Human Resources 185 6 204 3 maternity leave 67% percent of Rafael’s employees participated in the Association 2021 award for excellence . survey. As a result, an overall organizational concept was Total number of employees who returned to work, after the end of their 153 6 167 2 formulated called “People First” and an action plan with maternity leave and who wanted to continue working 12 months after practical and quick systematic solutions was developed Periodic Feedback Meetings that will give employees and managers an improved work Every year Rafael holds feedback and evaluation meetings experience. Following the analysis of the survey’s results a for employees with more than four months seniority number of focus points were defined at the organizational Dialogue With Employees (including students, soldiers and reservists). These level. These were presented to the CEO and a work plan meetings, between the employee and his supervisor, are Rafael considers a continuous and open dialogue with was established that was integrated into Rafael’s strategic held to coordinate the employee’s expectations regarding its employees to be an important value. This dialogue is management plan. their role and performance over the past year. Meetings carried out through several channels throughout the years Following the survey, management training and tools are held with maximum transparency to reinforce positive that the employee is with the company. These include were prepared, including: a manager’s kit that includes behavior and to focus on issues for improvement, to a variety of communication channels, including a new recommendations for optimal communications with strengthen organizational connection by encouraging recruitment survey, a survey for those finishing their work employees, work with the management team and motivation and harnessing the employee to the unit’s goals. with Rafael and feedback processes. These measures help the employee team and development of a work plan, The discussion is an opportunity to take joint responsibility, the company to gauge employee satisfaction, their level preparation of an operation bank with 12 management to map the development of the employee’s career and of connect ion with the company and the organization’s goals for developing and improving connection, and over promotion, as well as an opportunity for the employee to resilience. 60 ideas for implementation. express their feelings towards issues that concern them. Rafael also has an officer responsible for employee The plan for implementing survey findings includes five The meetings are recorded and saved in a dedicated portal. complaints. Rafael employees can contact the officer This makes possible, throughout the year, a developmental and raise concerns in different ways on a variety of issues discourse and continuous examination of all the topics that include misconduct at work, harassment and other that came up in the meeting as part of the “personal complaints. development space .” 70 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 71

Page 37

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Workers Union Employee Retention Rafael has collective labor agreements with two Rafael has many long-term projects and products that combine skills and knowledge from different fields, and which require representative workers’ organizations: the New General the unique expertise accrued in the organization through long term learning processes. The constant need to be at the Union and the Research Faculty Organization. Additionally, forefront of technological knowledge results in fierce competition from other companies for the best employees. Therefore there are employment relationships based on personal employee retention is a significant challenge for Rafael. The employee experience as seen in an employee’s connection with employment agreements. About 90% of the company’s the company is a strategic need for the company and makes a vital contribution to the creation of organizational resilience. employees are unionized in the research workers’ organization and the New General Union, and the rest are employed under individual contracts. As part of the company’s significant decision-making EMPLOYEE TURNOVER RATE BETWEEN 2019-2021 IN PERCENTAGES processes, employee representatives participate based on Round Table Discussions With the company’s management concept in which employees Age group 2019 2020 2021 have a significant and important role in the decision- Employees making process and the belief that it is essential to hear Under 30 0.6 0.8 0.8 their positions, claims and concerns, if any, regarding Following the connection survey, a round table meeting Female planned processes. If there is a need for an organizational 30 - 50 2.1 2.3 3.1 was held in which employees raised questions and gave change, Rafael’s management holds talks with employee suggestions for management in line with the concept Above 50 0.4 0.6 0.6 representatives from managements initial decision of “managerial presence,” which is a tangible physical to implementation - with full transparency towards Total female 3.1 3.7 4.5 presence of management together with the employees, employees and their representatives. with the aim of creating an open and constructive Under 30 0.4 0.4 0.5 dialogue. Male 30 - 50 2.4 1.7 3.9 Above 50 2.6 3.2 2.5 At Rafael We Listen - So You Can Bring Dogs Total male 5.4 5.3 6.9 An example of a change that emerged from listening to employees in roundtable forum discussions is the decision to allow employees to bring their pets to work. Many Under 30 1 1.1 1.4 dog owners have a deep bond with their pet and being separated from them during כ״הס 30 - 50 4.5 4.0 7 the working day is difficult for them. However, for many years due to bureaucratic and logistical obstacles within Rafael, bringing pets to work was not allowed. With the Above 50 2.9 3.8 3 increase in demand from employees wanting to bring pets to work, Rafael conducted a comprehensive assessment of barriers against pets in the work space, and after Total 8.5 9 11.4 extensive consideration by senior management, and approval from veterinary, safety and insurance authorities, a procedure was approved that stipulated approval must be given in order to bring a pet to work. Two days after the procedure’s approval, 150 To identify the root causes of an employee’s decision to for reducing the turnover rate by improving the requests have already been submitted. leave Rafael, two measures are taken. Every employee employees perceptions of connection with the company who gives notice of their intention to leave the company and addressing the aspects that led to their leaving the is given a questionnaire which asks them to give their company. reasons for leaving the company. A sample of those leaving are selected for a face-to-face interview. An analysis of responses to the questionnaire is used to draw conclusions 72 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 73

Page 38

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Promoting Diversity and Inclusion Diversity in employment is based on the concept that the themselves and maintaining their uniqueness, without any composition of employees in the organization should demands, even hidden ones, from the organization to play reflect the diversity of the populations that make up down or assimilate into the organization. society as a whole. As a company that respects the values The importance of encouraging diversity in employment of corporate responsibility (ESG), Rafael attaches great and diversity inclusion is also rooted in Rafael’s aspiration importance to encouraging the inclusion of employees to provide its employees with a rich work environment. from a variety of populations, whose numbers in Rafael This provides a high potential for innovation, creativity do not necessarily represent their percentage in the and boldness as well as contributing to increasing an general population. If possible, Rafael strives to give these employee’s sense of connection and pride through their populations affirmative preference in the recruitment identification with the important values that Rafael process. promotes and represents. Rafael also places emphasis on the inclusion of all its Rafael has established a long-term plan for the diverse employees and the acceptance of diversity in any form, populations within the company - ultra-Orthodox, Druze, so that each employee is given the opportunity to express workers of Ethiopian origin and workers with disabilities. The program also addresses gender equality. The Ultra-Orthodox Cyber Branch In Jerusalem Rafael operates a facility in Jerusalem which is responsible for securing systems such as Iron Dome and Windbreaker, and missiles such as Spike and Python, from cyber-attacks, and also to prevent the disclosure of classified technology should it fall into enemy hands. This unit is unique in that all of its employees come from the ultra-Orthodox community. This is a classic hi-tech space, but as you walk in there you see black hats and coats hanging from the wall. None of the employees in this unit went through the classic high-tech route, which also includes serving in the IDF, and many never dreamed of working in such a challenging environment. Rafael knows how to show flexibility, how to treat ultra-Orthodox workers differently when they come to social events or vacations. Here, when there is an activity that does At the seminary I was drawn to the There are different challenges here not suit the ultra-Orthodox, Rafael knows how to create alternatives for us. Even in real world, I studied programming than in other high-tech companies and secular high schools, not everyone comes out ready to work in high-tech. In the ultra- and electronics and discovered that it this spoke to me. Orthodox public as well, you have to know who to choose and identify who has potential. interested me. But after school it wasn’t H, 53, is one of our veteran employees at the cyber unit. But it’s there like everywhere else. In the end, recruiting ultra-Orthodox workers can’t easy to find a job, and I was very happy to With 10 children, he is far from the classic high-tech remain a slogan. The manager and the recruiter should be there with 100% commitment, discover this place and be accepted. employee or cyber expert. But this didn’t prevent him and as more ultra-Orthodox enter the world of high-tech, they will bring more ultra- from working at several high-tech companies, until he Orthodox who will follow in their footsteps. S. is one of ten ultra-Orthodox women working at the heard about the Jerusalem unit. cyber unit. She is 24 years old and graduated with a degree in computer science from the Tal Institute in S. A Rafael employee at the Jerusalem cyber unit Jerusalem, a religious academic college for women that combines studies in technology and Judaism. 74 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 75

Page 39

P e r s o n a l c a re e r co n sulations A I From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Employee Training and Development Average study hours per employee As a leading, groundbreaking company in its field, Rafael environment and great scope for developing diverse career 2019 2020 2021 offers a challenging, technological work environment paths. that is among the most advanced in the world with the Managerial training 10 5 10.5 Rafael’s concept of development encompasses a potential to grow together with first-rate knowledge broad spectrum, one that offers employees a variety of experts. Technological training 13 7 13 alternatives for development in several career paths: Rafael’s employees and managers are a significant part of management reserve plans, reskilling programs for Safety training 5 2.3 2.5 its success, and the company has as one of its core values, desirable professions, integration into technological maximizing and exploring all avenues for the growth and and management paths, and diverse possibilities for Total 28 14.3 26 development of its employees. development within their job and mobility across the organization. By virtue of its size, its professional diversity and the quality of its human capital, Rafael creates a diverse work In 2021 there were 165,417 Quality hours of in-company study engineering h trac k arc Cyber Res e That is on average org t a ra I n n n i t z s r a f a t e

i r o s nal re C tr a a r i e n e i r n g Tech t n ra o c l k o s gical Professional F tr i a e c ld k roles m A r B a e d s a n v e r a a e r g n v k e c e e r e s t i d a : l 26 study hours per employee Yuvalim Rakia Dev O e n lo - p jo m b e nt My development D ev t e r l a o c p k m s ent Ma t n ra a c g k e s rial ( a T n L B e d i u c n h s E i e n n n o e g m l s o in s g a e m y n e m a r a i n n g a a g n e g a s m e y g m s e e t m e e n n m e t t n s t . ) C C h h a o la s m he is n h g possibilities a ti n e r s. ng o r di a n a o m a n d c wit h Dis e cu xp ss e i c o t n a ti o ns During 2020-2021, Over 2,000 employees and managers participated in programs. In addition, training programs took place at Rafael using the “Key Manager” module whose aim was to improve the ability of managers to function in a competitive,. Challenging and dynamic environment. This through focusing on employee development as a strategic lever to improve recruitment and preservation of the human resources that the company needs. 76 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 77

Page 40

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Encouraging Postgraduate Studies Cultivating Rafael’s Future Female Work Force As of the end of 2021, some 300 Rafael employees were studying for advanced degrees at leading academic institutions in Israel and 12 are studying for doctorates at leading universities abroad. Rafael finances their tuition fees and the time needed for their studies and provides students abroad with a complete support package. Rakia Program School For Procurement Officers The program is aimed at training employees for a transition to senior management in Rafael’s core position. It does An ongoing annual learning program covering the this by creating a learning environment where participants worlds of procurement intended for all the company’s experience the challenges of senior management, expand procurement officers and contract managers. their knowledge of Rafael, study case analyses, share knowledge within the group and provide new knowledge The program focuses on the processes, systems and skills from a variety of sources. The program is an opportunity required to establish a sense of service and partnership. It to create a joint learning and working group as the was developed as an innovative digital “learning capsules” foundation for an active peer network. format, once a week, on a fixed day, for two hours. The program was spread over one year and was based on The training process is based on the Life Long Learning internal resources, knowledge, and experience from the concept, continuous learning by participants from their purchasing unit in particular and Rafael in general. In Israel there is a continuous shortage of workers with As part of the program, female scientists from Rafael act as entry into the program until they are appointed to their technological training, especially in the periphery, and mentors for students, conduct tours to show the different next position. The process is spread over two years and The program’s goals are: among women. The percentage of women in academic technologies in use at Rafael, the company’s scientific includes core training consisting of 8 modules that deal Learning and strengthening professionalism to develop technological and engineering studies is significantly lower work environment, and give lectures to introduce various with the following topics: complexity and strategy, leading professional consensus, new ideas and innovation in than their proportion in the population. This is one of the scientific topics. The program is currently available in 17 and managing change, a business game based on an the work methodology. most important factors that affect the company’s ability to schools in 11 local authorities in the northern region, and adapted Rafael scenario, multidimensional management, achieve its goals. some 400 female students participate every year, with developing a managerial identity and managing people Establishing a knowledge base of specialist expertise in approximately 100 female engineers who volunteer in the To meet this challenge, Rafael developed, through a and culture. various procurement fields. project. process of creative thinking, the Rafael Next Generation At the end of core training, learning continues but changes: Collaboration and strengthening of interfaces within project. This sows the seeds to answer the challenge: a Students selected for the program are nominated by the four peer learning units, one per quarter, cover different the procurement unit. project aimed at encouraging girls to pursue technological schools who are able to identify potential candidates. and topics. The aim of the peer learning is to create a group careers. The project is motivated by Rafael’s desire to build the opportunity to change or strengthen the perception of and an intimate learning environment that allows those in Strengthening the connection between the unit’s a female management track that will be open to graduates women in technological professions. Program participants the program to share knowledge, insights and experiences management and the unit. of technology faculties. This is based on exposing girls come to the company’s facilities, to the scientist’s work as a basis for professional, personal and organizational Empowerment, connection and development through in the 9th grade who are about to choose a high school environment, hear their personal and professional stories, development. internal learning. major to technological professions, thereby increasing the and are exposed to the worlds of aeronautics, space, About 37 managers took part in the training, with over half likelihood that they will adopt this career path in general, chemistry and software, and to groundbreaking projects. Preservation and documentation of knowledge. of them already appointed to their next position. and Rafael in particular. 17 11 The program is available at high schools in local authorities in the north. 400 There are some participants every year and approximately 100 female engineers work voluntarily in the project. 78 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 79

Page 41

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Assistance In The Preventing Sexual Harassment Retirement Processes Sexual harassment and harassment on a sexual basis violate From A Spark Of Inspiration As A Girl - human dignity, freedom, privacy and equality between the Rafael has a retirement center that provides To A Senior Manager - Dikla’s Story sexes, as well as working relationships. They are completely a professional and sensitive response to contrary to the law and to Rafael’s policy of zero tolerance for employees in the process of retirement or leaving sexual harassment in all of its operations. Rafael works in all the company. Every employee who leaves the the avenues available to it and according to law, to educate and Dikla joined Rafael 14 years ago as a process engineer positions. “On the other hand, I like being in the field, company, either through resignation, retirement explain this issue in order to prevent cases of sexual harassment at the chemical plant. She says that as a child climbing on equipment and facilities, being a living or layoffs, receives all the information necessary among its employees or employees working in its premises. growing up in the north of Israel, she disassembled example of the abilities each of us has.” to exercise their rights derived from the collective The company also encourages an atmosphere that allows and assembled a radio and batteries. In the 11th agreement or individual contract - whichever Dikla was later promoted to plant management and sexual harassment complaints to be submitted without fear grade, she received a scholarship to further her applies to them. This information is provided five years ago she was promoted to be the head of and provides effective investigation and treatment within the technological education, and she remembers being through dedicated information sheets or in a the inspection department for manufacturing plants framework of the law. told by Rafael’s VP of Human Resources: “If you want personal meeting, as needed. This center also and process development. She is responsible for two it, this is the place for you.” acts as a consultation center for managers and As part of the company’s efforts to create a safe environment in chemical plants with a great deal of technological human resources staff who are required to the workplace, Rafael does the following: She completed her academic studies in chemical equipment and a third plant that serves as an respond to employees who are in the process of Appoints a trained sexual harassment prevention officer. engineering at Ben Gurion University in the Negev integration plant for one of Rafael’s defense systems, retirement or termination of employment. Set up a complaints hotline . and after 6 years of working at Teva returned to “Windbreaker.” In total, Dikla manages about 50 Formulates regulations for the prevention and treatment the north and from there to Rafael. Dikla describes employees, most of them mechanical and electronic The center offers Rafael-financed retirement of sexual harassment in the organization in line with the the engineering environment as a very masculine engineers, of whom about 20% are women. preparation courses, counseling for exploiting company’s unique characteristics. one where most of the women’s positions are staff National Insurance rights, pension rights and Integrates the topic into orientation and training for new taxation aspects, as well as links to volunteering, employees that also refers to the prevention of harassment educational and leisure organizations. Also, some in the work space. of the retirees continue to contribute their skills Participation of all company employees in training activities and experience to Rafael in many different ways, of at least one hour on the zero tolerance and prohibition for either as volunteers or freelancers, according any and all forms of sexual harassment and its prevention to the company’s needs and the wishes of the As a woman, I feel a heavier responsibility for my employees, including their at least once in the previous year. As part of the training, retiring employees. Both employees and Rafael moods. Perhaps thanks to being a female manager I manage to combine the company managers are reminded of their responsibility to benefit from the opportunity given to retirees to play an active and leading role in the prevention of sexual two areas, on the one hand the softer area, where I am more sympathetic, and continue contributing their skills and experience. harassment. on the other hand I never compromise on quality. The most important thing In addition, the company assists employees Integration of instructional software to prevent sexual to me is that the team succeeds, I have no ego and I don’t care who gets to the in their pension planning, including helping harassment. finish line and onto the podium. increase awareness of the importance of pension Publication of complaint investigation procedures on the savings through lectures, information sheets corporate portal and in informational material, including In Rafael you can go from hierarchical management to project management. and information sessions, pension planning an interactive presentation adapted to the organization’s When I stood up and said I was looking for a change, I was offered several consultation, a dedicated area for the subject on needs, rulings, and clear messages from the company’s positions, including some technological ones. There is a plenty of room here to the corporate portal, and trains experts on the management on the subject. develop and enjoy yourself at the same time. subject from the human resources department. Details of the sexual harassment prevention officer and points of laws for the prevention of sexual harassment Dikla, process engineer at a Rafael chemical plant in the workplace are placed in locations accessible to all employees. Regular communication regarding the importance of the issue to managers and employees and subcontractors. Evaluation of the implementation of all legal provisions by Rafael employees. 80 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 81

Page 42

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Health and Safety Rafael places the utmost importance on employee safety in all of its operations and invests heavily in creating a safe working environment, even going beyond legal requirements. Safety Management Rafael’s managers and employees work to fulfill Rafael’s many different subsidiaries and manufacturing plants Rafael’s occupational health and safety system is Rafael’s safety concept mission while committing to safety levels designed to globally and implements high safety standards in all of its committed to promoting and implementing health & The early involvement of all safety agencies and prevent injury to employees, visitors, activities both in Israel and abroad. safety issues in the company and maintaining a culture of an emphasis on safety throughout the entire work safety that enables the achievement of Rafael’s mission, customers, users, the environment, neighboring Rafael is responsible for providing its customers with process and product lifecycle - from the development whilst maintaining a minimal level of risk in the company’s populations and property, ensuring that they meet all legal operationally safe combat systems and ensuring that risk of new technology, through to product production, its activities and ensuring the supply of products at the levels requirements. As an industrial company that develops and levels involved in their use, including logistics, storage, maintenance and use, in accordance with the following of safety required by the user. manufactures combat systems, Rafael and its employees maintenance, training, operational use and disposal, will principles: are often involved in activities that involve safety and be acceptable. Therefore, product safety engineering is a The system is headed by the company’s chief safety Predict - future eventualities and formulate possible environmental risks. In addition, the company operates central concern alongside work and testing safety. engineer, part of the company’s senior management who modes of action. reports directly to the CEO. The safety system includes the safety division, divisional safety engineers, professional Analyze - risks professionally and comprehensively based safety engineers and other safety bodies. The company on knowledge and insights from learning processes and also uses external consultants who provide additional research founded on binding requirements. Rafael pays attention to safety in all areas of its activity, assistance in specific areas. Enable - activity based on risk analysis through the including research and development, infrastructure Rafael meets the following safety standards: provision of applicable solutions and an overall mission construction, production, testing, inspection and vision. operation, maintenance and service, demonstration, ISO 45001 - Occupational health and safety training and use, the transfer of knowledge, upgrades TI 9301 - Traffic safety and quality management system and disposal. Safety practices are integrated into the Safety incident reporting process core of the company’s activities while encouraging the ISO 14001 - Environmental Management System Safety management at Rafael is supported by creation of an organizational culture of safety as a way computerized data collection and analysis systems , with of life at all levels of management. The company sees a user-friendly interface that includes a comprehensive transparency as a central component for improving Rafael encourages a culture of safety for managers who dashboard. The interface displays relevant indicators safety and encourages a culture of reporting as a lever for set a personal example, rewarding employees who excel for each unit, including contractors and foreign workers, improvement and learning lessons. in safety, encouraging active involvement of employees in and generates alerts accordingly. The system’s goal is risk management processes, investigating safety incidents to create an accessible, transparent, and easy-to-use and implementing their recommendations and activities reporting environment that makes safety information to strengthen safety awareness in general and proactive accessible to all those elements within the company who safety in particular. are responsible for drawing conclusions and learning from safety incidents. Every incident reported in the system must be reviewed by the relevant management chain following which all corrective actions and the implementation of conclusions drawn from the incident are also reported. Employees, including foreign workers, who report a safety incident receive an update, as part of the process, on actions taken resulting from their report. 82 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 83

Page 43

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Promoting Safety At Rafael Measuring and setting goals for safety incidents 2019 2020 2021 Rafael promotes an intra-organizational dialogue on safety issues and Industrial accidents 53 37 43 encourages the reporting of incidents that could have caused harm Rafael employees Investigation and learning “(almost got hurt)” as the company considers the reporting of safety Industrial accidents In safety management processes, an emphasis is placed incidents as an important factor in accident prevention. 104 71 102 contractor employees on the investigation of work accidents and occupational The following table displays trends regarding the number of incidents, health. Investigations are carried out according to a Industrial accidents for and reflects the improvement in Rafael’s safety data between 2019 and 157 108 145 specific procedure that addresses how the investigation all employees 2021*: will be conducted, the compilation of its findings, Industrial “almost conclusions and recommendations for improvement, and A 19% decrease in industrial accidents (accidents at a 243 244 348 hurt” incidents monitoring the implementation of recommendations. workstation that happened while working) for Rafael employees The investigation report is distributed and brought to and a 2% decrease in industrial accidents for contractor Ratio of near miss the attention of all interested parties, and following it, incidents to industrial employees, and on average, an 8% decrease in the number of accident incidents for 1.55 2.26 2.40 if necessary, safety procedures and instructions, risk Noise control and reduction in work stations – based industrial accidents for all employees (Rafael employees and all employees management procedures and relevant training are on a two-year plan for noise tests in work stations where contractor employees together.) updated. Investigation and learning are carried out via workers are exposed to noise. According to test results, Ratio of industrial In addition, a significant decrease of 22% can also be seen in the platforms that encourage knowledge sharing. recommendations are given to minimize noise levels. A accidents to Rafael 6.43 4.28 4.99 few years ago, a unique project that provided anatomical relative index which examines the ratio of industrial accidents to employees normalized headphones to workers in a noisy environment was started Rafael employees. in the thousands Procedures and measures to promote at all Rafael facilities. A positive increase of 43% in the reporting of “almost hurt” safety This improvement, and the decrease in Construction work and installation of equipment incidents, which reflects success in the assimilation of the accidents in relation to “almost hurt” events Work stations are designed according to the strictest and systems - are implemented by expert planners and importance of reporting. This upward trend is also reflected in is also reflected in the ratio between the national and international standards of comfort and safety experienced professionals, in accordance with all relevant the decrease in accidents: when more “almost hurt” incidents are two, which has increased positively and to maintain employees health. laws, including the Planning and Construction Law and reported and the hazard fixed, accidents are avoided. significantly, from 1.55 to 2.40. in accordance with Israeli and international standards for Regular monitoring of materials and processes - as equipment and systems. Work with a high-risk potential required by occupational safety and health regulations for is carried out with remote monitoring, while effectively workers working with materials and processes as per an Annual goals are set for the ratio protecting workers. annual monitoring plan. between the number of reported “near miss” incidents and the actual number Measures to assimilate a culture of safety of accidents. Rafael set a long-term goal for continuous improvement of at least a Theoretical and practical training and certification 10% percent increase in the ratio of near- for employees miss incidents by encouraging reporting by all employees and assimilating it into A prioritized safety committee for contractors and the company’s safety culture. professional knowledge communities on safety issues In 2022, Rafael developed a safety Inspections and safety surveys in the different units culture index that is expected to be Internal safety procedures that require specific actions implemented as a pilot in 2023. The to address defined risks. main topics in this index are safety training, risk management, safety Collaborative learning through platforms that encourage incidents, safety checks and the levels of communication and knowledge sharing: website, management awareness of safety issues. professional learning forums, annual safety conferences and informal meetings for professional learning.

• The table also takes into account students involved in an industrial accident working for the company – Promoting a safety culture index in Rafael Industrial accident - a work accident that occurred at a workstation while working. 84 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 85

Page 44

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Encouraging safety among suppliers Managing Safety and contractors Risks Rafael considers suppliers and contractors employed in all its activities to be an integral part of its operations Safety risk management is an essential process in Rafael’s and therefore obliges them to adhere to the same overall safety planning for its operations and products safety standards as the company’s employees. The as it proposes corrective actions whose implementation policy encourages suppliers and subcontractors to result in improvements in safety levels for the operation or implement EHS management systems by integrating product. Rafael managers and employees are responsible safety appendices into contracts, supplier inspections for ensuring that in all activities and products that are and source audits. All those entering a company Rafael’s responsibility, safety levels will exist that prevent area undergo safety training suitable for the purpose harm to employees, users, the population, property and of their visit, their work tools are checked, as well the environment, and that all activities will be carried out in as their compliance with the requirements and the accordance with all legal requirements. certifications they require to perform their duties at A risk management procedure defines the way this process Rafael. Contractors work is managed and supervised by will be carried out. It determines issues and activities for which a designated contractors safety committee. safety risks must be managed; assigns responsibility for risk management; presents risk management methods and their adaptation to typical activities; assigns responsibility for the Sharing professional knowledge execution and control of any required corrective activities ; defines a method for applying risk management insights Rafael believes in sharing knowledge through and lessons regarding a specific activity to similar activities; discussions and forums with parties both inside suggests formats for risk management reports using familiar and outside of the company in order to provide methods. mutual enrichment regarding safety issues and Any employee at Rafael can initiate a risk management their assimilation. Rafael safety officers bring to the process, but the responsibility for initiating such a process table a mass of unique knowledge based on years of rest with heads of department and above who will be assisted experience. by unit safety engineers. They must identify all the facilities, processes and activities that are in their area of responsibility Contact with relevant stakeholders - Rafael and that have the potential for a safety incident and all factors maintains frequent contact with institutions and that are defined as harmful factors. Implementation of the risk state authorities on safety issues, including the management process by the employees in each department, Occupational Health and Safety Administration, rather than by an external party, assists in the assimilation the Institute for Safety and Security, Home of a safety culture due to employees participation and the Front Command, the Ministry of Environmental importance of their professional knowledge and experience. Protection, the Ministry of Transport and the The process identifies and assesses risk factors and Standards Institute. subsequently proposes, manages and monitors the implementation of corrective actions for the risk, in order to Professional conferences - with comparable eliminate or reduce the likelihood of the risk materializing, and, defense industries that promote the sharing of if it does, reduce its severity. Corrective actions are planned safety knowledge. based on the following hierarchy: elimination of the risk factor, replacement of the risk factor with one that is less of a risk, use Professional forums - with comparable industrial of engineering measures (such as remote work), administrative companies and institutions such as the Israeli Safety measures (procedures, posters, instructions, trainings, etc.) Forum to promote industrial safety. and personal protective equipment. Internal professional committees and knowledge Rafael implements a methodological process based on the

• communities that deal with safety aspects unique American military standard, mil-std, 882, by which the risk to Rafael such as: electrical risks, hazardous factors are identified, the severity and likelihood of their materials, high pressure systems and lasers. occurring is assessed in relation to existing safety measures after which the specific activity is approved. 86 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 87

Page 45

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Employee Health Rafael considers maintaining and promoting its employees’ health to be of the utmost importance and with this in mind takes a variety of steps: Reports and Monitoring Accessibility Conducting preliminary medical surveys and Access to health services for employees - Rafael occupational monitoring - according to annual operates a dedicated clinic that coordinates all planning that complies with legal provisions, Rafael’s occupational medical issues, including medical policy and risk assessments. examinations before new employees begin work, follow ups after reports of employee exposure to hazardous Hazardous substances - a dedicated system for substances, medical examinations and providing a reporting employees who come into contact with medical opinion following such examinations. hazardous substances and that coordinates all of the employee’s exposure to such substances during Periodic tests and treatments - assessing employees’ their work and forwards reports to an occupational health through regular tests including weight, clinic, where the occupational health protocol for each blood pressure, cholesterol any required periodic employee is compiled. vaccinations administered by the various health funds within Rafael complexes. Diagnostic monitoring to examine exposure during tests to materials, noise, dust, etc., and, based on the findings, examining alternatives to minimize exposure Raising Awareness by changing existing work methods, technological efficiency and the use of new materials. The findings Promoting fitness and health - Rafael offers its of such monitoring processes are distributed to the employees discounted entry to a variety of private various units and the occupational clinic in order to fitness clubs. In addition, the company offers sports supervise the employee’s health. classes such as yoga, Pilates and TRX in designated rooms at all the company’s premises. The company Internal Mechanisms and indicators regarding also organizes sports days and group health training, employees’ occupational health that Rafael has and also supports the activities of Rafael sports teams, developed to measure medical competence. including cycling, soccer and basketball. Encouraging a healthy diet by offering healthy dishes in the dining room, healthy nutrition courses and nutritional counseling. Raising awareness of health issues through internal communications. 88 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 89

Page 46

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Maintaining The Rights of Dialogue With Suppliers Responsible Procurement Service Contractor Employees As part of its dialogue with stakeholders, Rafael maintains regular communications with its suppliers through a Rafael is active in maintaining the rights of service dedicated portal Through which, 2021, suppliers posted contractor employees in areas stipulated in the Law on 104,105 questions to Rafael. Rafael’s influence on the economy and environment is also reflected in its responsible Increasing the Enforcement of Labor Laws (2011). The conduct towards its supply chain. Rafael purchases services and products worth company does this on several levels in order to ensure that Improving response to suppliers - through a change service contractors who employ workers in its facilities in work procedures and the implementation of a new billions of shekels from suppliers every year, and considers that any service, product comply with relevant labor laws and regulations. Steps supplier dashboard, the purchasing unit has been more or process that is not at the core of the company’s operations must be purchased from taken include: precise in responding to the needs of customers and external suppliers. suppliers while creating transparency and convenience in Periodic inspections of the working conditions and the work process. In addition, over time there has been wages paid to the contractor’s employees by a certified a significant improvement in response times from initial wage inspector. wever, Rafael goes beyond that and emphasizes that the Scope of Procurements posting to orders in most procurement groups thanks to conduct of its suppliers, whom it sees as its partners, Checking the economic structure of agreements with the digitization of procurement systems. must reflect the company’s values. Rafael works to In 2021, the company’s purchases in Israel was some NIS Rafael to ensure that the contractor’s contract does not Helping suppliers during the covid19 pandemic - Rafael’s ensure that its suppliers operate according to principles, 3.8 billion, which is about 58% of the company’s total involve them in a loss, which could lead to a violation of suppliers also suffered the consequences of the Covid19 procedures and appropriate values in the fields of purchases. The company had approximately 2600 local their employees’ rights of. crisis which affected their production capabilities and their society, the environment and corporate governance (ESG) suppliers - similar to the previous year. Approximately 45% ability to meet agreements. With the understanding that including issues such as workers’ rights, environmental of the volume of local procurement in 2021 was purchased Call to encourage employees’ to contact Raphael if this was an extraordinary crisis that affected suppliers, protection, social involvement in the community, business from suppliers outside of the central region (north of there is a suspicion of a violation of workers’ rights. and the entire world, and in order to allow suppliers to management ethics and compliance with Israeli Standard Hadera and south of Gedera). Decentralizing procurement This is published both on central bulletin boards in the prosper during this challenging period, Rafael maintained 10000. Priority in Rafael is always given to procurement in this fashion also provides employment and income various work areas and also by sending a physical letter continuous contact with its business partners, updated from local suppliers, in particular from the periphery for Israeli businesses, located in areas where success is to each employee once a year. them on changing work routines, and responded to many or businesses that give preference to employees from sometimes difficult to achieve. Thanks to this view, Rafael If there is suspicion of a violation, the contractor/ requests to reopen agreements, to renegotiate prices and underemployed or disadvantaged populations. In 2021 provides quality employment and job security throughout supplier is required to provide a response and ensure to change delivery dates. To this end, we established a Rafael’s procurement system won the Israel Forum the country to approximately 30,000 people directly and that, if necessary, the violation is corrected. If disputes dedicated hotline in the procurement unit that responded for Operations and Supply Chain award as the best indirectly. arise, a legal opinion will be sought regarding the to many needs related to the crisis: we provided suppliers procurement organization in Israel for that year. Among the compliance of personnel contractors with labor laws with information regarding all requirements to continue considerations for the award: the organizational structure and, if necessary, their methods for dealing with operations and work during the pandemic, we distributed and its suitability to achieving procurement goals, the employee rights violations . “essential supplier” certificates that allowed suppliers free procurement processes and its digitization, methods for passage even during lockdowns, and we handled requests managing competitions and tenders, suppliers evaluation, Some 3.8 Billion NIS to cancel fines for arrears and more. the management of supplier infrastructures and their quality systems, and special procurement efficiency projects. Scope of the company’s purchases Procurement is a part of the operations division, which in Israel in 2021 contributes to Rafael’s vision by fulfilling the customer’s procurement needs in an optimal and professional manner, under the procurement policy, while ensuring that price, schedules, and quality are optimized in accordance with the procurement policy. All of the company’s needs and procurement quality are the responsibility of the procurement unit, including mechanical, electronic, and computer technologies. also supervises. 90 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 91

Page 47

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Promoting Procurement Quality In The Supply Chain Promoting suppliers procurement their activities to protect the environment and whether they are certified to any standard of environmental quality. quality In addition, the general conditions of each purchase Rafael invests in the quality of the procurement process order require that the supplier must “comply with the throughout its supply chain both with its suppliers provisions of any law in connection with environmental and among its owners and procurement employees. protection and quality in Israel and wherever the supplier Procurement quality is measured at the supplier’s end operates… and for this purpose, it must act in accordance through supplier inspections, product acceptance tests with the provisions of any law in order to prevent any and training and improvement activities carried out damage, disturbance, nuisance, to an individual, the public together with strategic suppliers. or the environment, as a result of the use of materials, goods, items, products, processes, production methods As part of Rafael’s continuous improvement processes and more.” Suppliers also undertake to act beyond with its suppliers, in one case we worked with a supplier the requirements of the law as necessary “to prevent after many deviations in parts quality were found in several environmental pollution in the processes they use and to projects. The supplier was suspended until a joint learning use environmentally friendly supplementary materials and process was carried out with Rafael and an exact work packaging.” plan was defined with Rafael’s purchasing unit. As a result of this activity there was a dramatic improvement in the quality of the supplied products and the supplier’s quality School for Rafael purchasing agents scores. In 2021 the School for Rafael purchasing agents began Another supplier that had an influx of new personnel, operations. Purchasing agents were exposed, during 7 a joint work plan was defined, and work processes months of training, to some 60 hours of varied content were improved, which included assistance from Rafael. in purchasing related areas including negotiations, Following the implementation of these processes there regulations, insurance, the law on tender obligations, etc. was a significant improvement in the relevant indices. Specific training was also given for procurement at Rafael Additionally, as part of the environmental management in areas such as procurement quality processes, supplier policy and principles of sustainable development, Rafael certification processes, supplier rankings, procurement encourages its suppliers and contractors to operate an audits and training for subcontractor managers. environmental system. As part of periodic discussions with central suppliers, they are required to provide details of 92 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 93

Page 48

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Rafael As A Leader For Economic And Main figures 2,500 52 12 Social Change Employees volunteer in Social projects Local authorities the community partner in activities 94 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 95

Page 49

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Promoting Society and The Community Employees Volunteering For more than two decades, Rafael has been working for the community and society through many voluntary activities in more than 12 local authorities, in dozens of diverse projects. Some 2,500 Rafael employees participate in these activities and volunteer Rafael employees volunteer in their free time in 50 different projects defined by the company which provide a logistical framework and professional guidance including resources to facilitate volunteering. Each project is weekly and sometimes even daily. Rafael’s volunteering spirit is embedded in the assigned a leader from among the volunteers who is responsible for recruiting additional volunteers, formulating company’s employees and managers, who are constantly initiating and striving to an annual work plan and implementing it. expand Rafael’s influence in the community. Rafael has established four main areas for its activities in society and the communities in which it operates: We as a company are not only measured by our ability to develop systems and technologies, but also measured by our ability to live in the space, environment and 1. 2. 3. 4. society in which we operate. Relationships with the community is one of Rafael’s strengths. Promoting Promoting and Volunteering with From Holocaust This practice, which has been part of our culture throughout the years, is something we are technological and strengthening at-risk children and adults to Revival proud of and is an integral part of the Rafaelian DNA. Employees contribute from their own scientific education populations with special needs time, while thinking creatively and constantly looking for where they can contribute and help more. I hope we will continue to do this every year, all year round. Major General (Retired) Yoav Har-Even, CEO Rafael Operational Model Rafael’s model for managing community relations together with the employees, managers and partners in the community includes three guiding principles:

1. Sphere of Influence 2. The Nature of 3. Partners Community Activity Rafael strives to foster local Rafael has partners in the community economic and social development in Activities are adapted to the core who are an integral part of planning the geographical areas adjacent to its business of Rafael and its employees and implementing community facilities and the residential areas of and focuses on promotion of activities. Dialogue with our partners most of its employees. The aim is to technological education for different is an ongoing process and is strengthen local communities with populations. examined periodically in a focused the understanding that it is possible manner when new and renewed to have a positive influence over initiatives are discussed. time. 96 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 97

Page 50

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security

1. Promoting Technological and Scientific Education Rafael employees work to strengthen and promote technological and scientific studies by young people in middle and high school with the aim of strengthening technological studies in Israel and, as a result, also helping the education system, the IDF and Israel’s industries. A Cyber Project With The “Magshimim” Rafael employees serving as mentors in the program and investigations, encryption implementation, Data Science, Rafael Ms assisting the students in their studies. mobile and web development, and more. (Fulfillment) Association The project brings together students who have completed Before being drafted into the IDF’s Cyber Command, the The purpose is to challenge this elite class with extreme, the 8th grade and confronts them with technology from Service in an IDF cyber defense military unit and elite program’s top graduates are employed by Rafael in a high-level tasks, in order to encourage them to study the worlds of mechanics, electronics and software used in IDF intelligence units has become a gateway to possible “Cyber Situation Room” which regularly monitors cyber- independently and carry out an in-depth investigation Rafael’s various systems through demonstrations, lectures, success in the high-tech world and social mobility for attack attempts against Rafael and in the development of complex issues in the development and cyber worlds. hands-on experience, a construction project and more. those who have completed their army service. However, division in order to provide them with knowledge and Rafael is the only company among Magshimim partners At the end of the semester, students present the “Rafael most those who serve in these units come from the practical experience that will serve them in their military that operates ” Magshimim +.” Head” project, which was designed and inspired by the central region. Rafael aims to promote the inclusion of service. “Rube Goldberg Machine.” Students learn about teamwork, outstanding students from the periphery in these units as cooperation and self-learning. well. “Summer School” – Haifa “Magshimim+” For this reason, Rafael joined with the Magshimim A unique program developed with Haifa’s education association, which together with elite IDF technology units, Within the Magshimim project, a group of outstanding departments Excellence Unit that aims to encourage Rafael AI the Rashi Foundation and the Ministry of Education have students was formed known as ” Magshimim +”. This students from the city’s technological reserve. Students A project intended for students finishing the 9th grade developed a training and enrichment program for high includes 12th grade students who participate in a more meet with Rafael engineers during the Passover and who have an affinity to and are interested in the world school students participating in this important project. intensive and concentrated study program (“bootcamp”) summer vacations for a week where they are exposed to of software. Students meet with mentors during four The project provides outstanding high school students where they study different topics from the worlds of cyber exciting and complex engineering challenges from the concentrated days where they are given enrichment with knowledge, methodology and experience in software and software at the highest level, including communication worlds of mechanics and artificial intelligence. To date, lectures and experiment with a complex programming task engineering and cyber while still in high school, with over 700 students have participated in the program. incorporating aspects of AI. 98 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 99

Page 51

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security 2. Promoting and Strengthening At-Risk Populations Rafael aims to advance youth and adults who are on the fringes of society through frameworks that provide them skills and then mentors them as they begin a normative and full life. In order to promote this aim, Rafael maintains basic and advanced technological activities in boarding schools for those at risk and in local authority and municipal social service departments. Nirim Youth Village model, students participate in challenging treks that involve navigation, survival skills, abseiling and sea The therapeutic youth village - Etgar Nirim is a boarding activities. Rafael has been closely involved with the village school for at-risk youth named after late first sergeant for the past decade and its employees are involved in Nir Krichman a soldier in the Israeli navy’s 13th flotilla’s social activities and accompany technological enrichment commando unit,. It was established in 2003 by Nir’s activities there. friends, most of them officers and soldiers from his unit and it is supervised by the Youth Sponsorship Authority. About 100 boys and girls between the ages of 14-18 who Shelter For Battered Women are defined as extreme at-risk youth live in the village, studying in a high school established in the village with a In Haifa a shelter for women who are victims of violence personalized curriculum for each one. They are required to serves as an emergency home for women and children who take a theoretical-scientific matriculation examination and were forced to leave their homes due to the violence they are encouraged to serve in the IDF in a meaningful role and experienced. Rafael employees are involved in a variety express social involvement, with the aim of bringing them of activities to strengthen the life skills of the women. The into Israeli society as equal and contributing citizens. goal is to help them return to society with abilities that will help them to advance and develop themselves. Rafael The village is unique in the challenging approach that volunteers also lead social, individual and group activities characterizes its activities. Based to the field therapy with the women and their children. 100 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 101

Page 52

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Employee 3. Volunteering With Children 4. From Holocaust To Revival and Adults With Special Needs Rafael has made a unique contribution to building Contributions Israel’s deterrent and protective capacity and we find Volunteering In Special Needs Schools deep meaning in the transition from the dark days of the Rafael, as a government owned company, is prevented Holocaust to the revival and strength that is manifested Rafael is involved in volunteer community activities at Beit from making donations. However, a need arose from in the State of Israel. We are dedicated to spreading the Kessler and Ma’on Atidot, primarily in activities centered within the community and the employees to establish an The Sivan Team message “Never again!” Rafael employees volunteer at day around Israeli holidays and festivals, as well as activities infrastructure where employees could donate their own with disabled children at the Regavim and Nitzanim To Be The Champion Attacker centers for Holocaust survivors where the activity focuses money to a central fund and authorize the company’s on writing their life story, group social activities and schools. management and employee committees to direct the assistance with simple everyday technological operations. funds to those places where they are needed, within the “Regavim” is a school in Kiriyat Haim, near Haifa, for The company has also adopted the Ghetto Fighters House framework of Rafael’s community activities. girls and boys who require special education, who have

• the first Holocaust museum in the world, and company emotional, behavioral and academic difficulties as well volunteers assist the museum staff in various technological as severe hearing impairments. Volunteers provide Passover Food Bank For The Needy challenges. organizational advice to the school’s management and hold social activities throughout the year. In addition, periodically an employee delegation goes on Rafael employees get together and contribute funds for the March of Life in Poland. Members of the delegation the purchase of food for the needy before Passover. The “Nitsanim” is a school in Acre for children and youth with study and prepare for the trip and to process their food is distributed in coordination with principals of the moderate, complex and severe mental disabilities. As part experiences after, all accompanied by a Holocaust survivor. schools and institutions where Rafael operates throughout of the project, the volunteer team holds a supportive social Sivan Abarbaya Levy, 29 years old, married + a the year and Rafael volunteers are mobilized to personally activity once a month on Fridays. dog, from Ramat Gan. About nine years ago, she distribute the food to the homes of those in need. became blind during her military service as a medic Measuring Impact and instructor of reserve soldiers at the Home Front Development of Aids For People With Command. After a while, she discovered goalball and Contributions To Hospitals As with any system managed by Rafael, we try to measure Disabilities joined the women’s team. Sivan represented Israel the short and long term effectiveness of community Rafael also has a fund for employee donations targeted at Rafael employees apply their sense of innovation and their in the Paralympic Games in Rio and continued to projects and their impact on the communities in which hospitals and the “Ezra Le Marpeh” (Help to Get Well) fund technological knowledge not only for the development compete and play in many tournaments. Today she we operate. Measurement is challenging because managed by Rafael workers committees and management, of advanced combat systems but also, totally voluntarily, is a management student and not on the team, but success requires reference to a variety of aspects such which helps in the purchase of medical equipment for for the development of aids for people with disabilities in her love for goalball remains, and she continues to as: educational achievements, student participation in hospitals in the north. order to facilitate and improve their daily functioning. train and compete in the Israeli league. activities, fulfilling needs that have arisen in the local municipality - the welfare department, the education Restart Foundation – Makers For Heroes department and more. The challenge: To be the champion attacker. The promotion of scientific-technological education is An inspiring program that brings together teams of A very important part of goalball is the attack the most significant level of voluntary activity at Rafael, “makers,” people with a creative ability to invent, from formation where the ball is thrown to the opposite and about half of Rafael’s projects in the community are the best companies in Israeli industry, to develop side. Sivan trains a lot and strives to progress. dedicated to this area. That’s why we focus on quantitative technological solutions that do not, as yet exist, to help Improving speed and power when throwing the measurement for scientific-technological projects and the wounded and disabled IDF soldiers and veterans cope with ball are the main indicators of progress. Sivan immediate impact on students. the challenges they face on a daily basis. was looking for a training solution that would give As part of the program, a number of “culmination” days are an indication of the strength of her throw when held and every year complex projects that have reached throwing in different styles. Throwing a ball contains the threshold requirements of the Restart program are many components from the movement of the body chosen by Rafael’s chief scientist to be built by selected and the speed of the hand swing to the type of court units within Rafael. and the material it is made of. The more accurate the index, the more accurate and improved the shot will be, thus also improving the player’s abilities. 102 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 103

Page 53

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Developing Israel’s Periphery Quality Employment and Employment Opportunities Employment Project For People Excellence In Industry With Special Needs A program that aims to promote and strengthen factories in the north by encouraging them to adopt principles of quality and excellence. The program runs alongside the annual National Award for Quality in Industry competition. Rafael, most of whose facilities are in the north and who is the largest employer in the region, feels an obligation Opening The Shlomi Unit In 2021 towards the north and places emphasis on advancement programs where its ability to influence is significant and As part of the company’s strategy to operate a development The plant in Shlomi is an operational branch of Rafael’s the necessity of its contribution is clear. unit near universities with relevant faculties, Rafael facilities extensive production and maintenance activities in the Rafael’s main contribution to the project is the close are spread across the country, from Shlomi in the north to north. It was established in an existing building in the mentoring and advice given to the factory’s management the Negev in the south,. This includes the company’s own industrial area, and most of its employees live in Shlomi in the development and implementation of a defined work sites and affiliates, as well as dozens of its suppliers, both and the surrounding area. In the near future, the plant Rafael continues to operate in projects that provide plan to improve the quality of the factory’s management large and small. is expected to expand and open more employment employment for populations defined as having special and the products it produces. Improvements registered opportunities in the region. needs. Projects may require an adjustment to meet by the factory are presented to the competition’s judging the employee’s abilities and close supervision, without committee which awards stars to the factory according to compromising on high performance levels. The creation of its achievements. meaningful employment for these populations is essential for their ability to live in dignity and their contribution to The opening of the Rafael unit in Shlomi is a It’s not just business, it’s also Zionism. Israeli society. turning point for the town and the Galilee. It In 2021 We are a global manufacturing company that signifies a change in thinking and a recognition “Atidot” is a government hostel, owned by the Ministry of supports national security. This is not related 10 factories took part Welfare and Social Services, where special-needs residents of the need to strengthen those towns that to business, it is also related to Zionism. The live. The hostel operates an employment center where are far from Israel’s main population centers. in the project with plant in Shlomi doesn’t only produce combat some 80 residents are employed daily. A decade ago, a Today we are witness to the fact that Rafael systems, but also works for the community, with dedicated production line for Rafael was established in the Rafael volunteers operates in exactly this way, strengthening the community, and also in education. I have residence. The residents are employed in unravelling wires, the north and the south and thus planting the sorting screws, assembling sub-assemblies and preparing no doubt that we will integrate into community being the majority of all volunteers. seeds of education for future generations. infrastructure for assemblies. The income from this activity activities as well. I am confident that what you is paid to the hostel’s residents and used for their personal see here is only the beginning, dozens more Head of Shlomi local council, Gabriel Naaman needs. workers and products will come from here, we The residents employed at the hostel are able to realize are here to stay. their abilities while playing a significant role at the heart of operational activities. The hostel is defined as a Rafael Major General (Retired) Yoav Har-Even, CEO Rafael subcontractor with all that implies. Rafael’s activities at the Atidot hostel won the company an award from the Minister of Welfare and Social Services. 104 | Rafael ESG Report 2020-2021 2020-2021 לאפר ESG חוד | 104 Rafael ESG Report 2020-2021 | 105

Page 54

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Moting Economic Resilience Throughout The Country The concept behind Rafael’s operations is that any service, product or process that is not at the core of its activities will be provided or produced by external suppliers. Rafael is obligated to act according to the tender law that allows all suppliers in Israel an equal opportunity to participate in and win tenders. In 2021, the company’s purchases in Israel amounted to regards its suppliers as partners and invests in them in a about NIS 3.5 billion, which is about 60% of the company’s number of ways including, for example, assisting them in total purchases. Some 44% of this amount was from internal efficiency programs and in the formulation of high suppliers from outside of the central area, north of Hadera standards of quality. and south of Gadera. In other words, Rafael provides Rafael’s procurement system won the award of the quality employment and job security to approximately Israeli Forum for Operation and Supply Chain as the best 30,000 people directly and indirectly. The company procurement organization in Israel for 2021. Cooperation With The Academic World Rafael also contributes to Israeli society in a variety of ways Support For Academic Research through its cooperation with academic institutions: Each year, Rafael finances academic research to the Raphael Employees As Lecturers extent of approximately NIS 2 million in the fields of AI - aeronautics, materials engineering, electro-optic Rafael places great importance on academic research components, cyber and more. Research results are and Rafael employees, acting as external lecturers, integrated into the development processes of Rafael’s give about 15 courses at universities in their areas of operational systems in a process of mutual fertilization. specialization and share knowledge that exists at Rafael with researchers and students. In cases where the lecturers are not financed by the academic institution, Raphael Employing Consultants and Laboratories finances their employment. From The Academic World Rafael employs consultants from the academic world and thus combines the excellence and knowledge of the Israeli academic world with the company’s activities. 106 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 107

Page 55

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Rafael - A Central Player Main figures 56 700 Million 33 In The Country’s NIS Israel Prizes Self-financed R&D Knowledge hubs and national infrastructures Security 108 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 109

Page 56

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security A Central Player In Israel Security Awards The Country’s Security From its foundation and until today, Rafael has won 56 Israel Security Awards for significant and groundbreaking achievements contributing to the state’s security. This prestigious prize expresses the state’s appreciation for the company’s contribution to its security over the years. The Since its establishment in 1948, as the State of Israel’s National Security Research and award is given annually to individuals or entities for activities Development Laboratory under the Ministry of Defense, Rafael has made a decisive that have contributed significantly to increasing the security of the State of Israel, usually for technological developments. contribution, as expressed by the company’s vision and mission, together with the IDF The winners of the prize, which is awarded in a ceremony by and the defense establishment, to maintaining Israel’s technological-security advantage the President of the State and the Minister of Defense, are and the response to security threats targeting the country and its population. A legacy determined by the Minister of Defense whose decision is based on the recommendations of an external jury appointed by him. of over 70 years of groundbreaking technology, creativity, boldness and innovation. The Israeli defense system is Rafael’s largest customer and the systems that Rafael has Every year the Israel Security Award is given to two or three people or teams whose activities made a significant developed protect the lives of citizens and security forces in Israel every day. contribution to the operational field. At least one award is given for a weapon or a combat support system that are not from the intelligence field, provided that the system has a proven contribution in the operational field and is characterized by creativity and originality. Many of the awards are given for classified systems, operations and achievements, “To be a significant pillar in the security of the State of Israel, to but some of them can be published, among them: the award be an innovative, growing and profitable global company that for the “Windbreaker” and “Iron Dome” systems. develops, manufactures and supports combat systems that are at the forefront of operational needs and technology.” 110 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 111

Page 57

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Our systems Rafael develops and manufactures systems in the field targets are classified as those likely to hit a protected area of air, sea, land and space and offers a wide range of and those not. The former are targeted by the system’s innovative solutions that are at the forefront of global interceptor missile (Tamir,) which flies accurately towards technology. The company operates in both the military the target and destroys it. and non-military security market with a wide range of The system runs advanced artificial intelligence algorithms customers in Israel and around the world. One of the and performs data analysis to map the rockets’ trajectories company’s advantages is that the majority of the solutions in order to determine if they should be intercepted, where it offers to its customers have already proven themselves and when. Thanks to its ability to distinguish and classify operationally. threats that endanger the protected area and those that We are proud of many unique developments led by Rafael, do not, the system significantly reduces costs and prevents including: the launch of unnecessary missiles. Also, the price of the Tamir missile is much lower than previous systems that Air Defense Systems were used and were also less efficient. The system can act against multiple threats simultaneously and effectively, In recent decades, the State of Israel has undergone wars in any weather conditions, 24 hours a day. The modular and military operations, in which thousands of rockets and structure of Iron Dome allows integration with a variety of missiles were launched towards the civilian home front. In other defense systems and with different components such Israel, there was a growing and urgent demand for defense as radars and launchers. systems providing protection from high-altitude weapons. According to Air Force data, since it began operation in Rafael began to develop, manufacture and market two April 2011, Iron Dome has intercepted over 2,500 rockets, main systems, “Iron Dome” and “David’s Slingshot.” In the with a success rate of approximately 95%, thereby saving “Protective Edge” operation (2014) and in the ” Guardian lives and preventing damage to property worth millions. of the Walls” operation (2021), the “Iron Dome” system Moreover, these high success rates allow life in Israel demonstrated an impressive ability to protect the State of to continue even during a missile attack and give the Israel’s home front and was even adapted to be launched country’s decision makers the ability to consider their from naval vessels. steps in response to attacks, and possibly avoider larger However, the threat of drone attacks has risen in recent scale conflicts. The Iron Dome system provides Israel with years, both drones carrying explosives and those designed a protective mantle enabling wider political and military to disrupt civil aviation. Rafael has begun to develop freedom of action. Users of YNET, a popular news website systems to neutralize this new threat. in Israel chose the system in 2018 , as the best Israeli invention in the 70 years of the state and was proudly Iron Dome shown to President Biden during his visit to Israel in 2022. In 2019 Iron Dome was chosen by Forbes magazine as one A short-range air defense system to intercept threats such of the most important weapons systems of the previous as mortar and artillery shells, rockets, unmanned aircraft, decade. helicopters and more. The system was developed in a “Naval Dome”, which became operational recently, is record time of two and a half years and consists of several the version of the “Iron Dome” system designed for the components: a radar unit, a command-and-control center, protection of ships at sea and close to land. The system and an array of launchers each carrying 20 interceptor also provides protection for coastal assets against a variety missiles. In 2012, the system was awarded the Israel of threats. The system’s capabilities, which include the Defense Prize. In 2017, Iron Dome systems were installed ability to deal with the mass firing of several missiles at on Navy ships, and in 2018, the system was sold to the US the same time, constitutes a significant addition to the Army. defense capability of Israel’s naval forces in their missions, Using its radar, the system performs rapid detection, including the protection of strategic assets, Israel’s identification and classification of threats. This information economic waters and the preservation of Israel’s maritime is transmitted to the command-and-control center, where superiority in the region. 112 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 113

Page 58

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security David’s Sling (previously “Magic Wand”) Air To Ground Missiles air defense system designed to intercept ballistic missiles, cruise missiles and other aerial threats from a variety of ranges. Rafael’s activity in the field of airborne precision guided other air forces around the world (USA, Australia, and The system includes several components: radar used to locate and track the threats; a command-and-control system armament “(missiles)” is carried out by the Surface to Air others). Today, the administration produces a family of for optimal mission planning; launchers carrying 12 advanced interceptors; an interceptor missile with extremely high Administration and the Airborne Systems Administration. armaments known as SPICE, which turn a simple aerial maneuverability. The interceptor, with a multi-stage engine, and which is the only one of its kind in the world that can These weapons were developed following lessons learned bomb, which must be dropped above the target, into a deal with advanced threats, destroys the threat with a direct hit. The system is based on “open architecture,” which allows from the Yom Kippur War and the Israeli Air Force’s smart bomb, which can be launched from a distance of for its integration with other air defense systems, including individual components such as radar, command and control need for missiles for counterattacks against high-value, tens of kilometers and is capable of hitting ground targets centers and more. long range ground targets to avoid the entry of manned with extreme accuracy. aircraft into areas where anti-aircraft defense systems Rafael specializes in the development and production posed a significant threat. The first missile, “Popeye,” was of advanced missiles and armament systems for fighter introduced into service with both the Israeli Air Force and planes and other aerial platforms. Rafael’s systems are installed on the most advanced fighter planes in the world, including those of the Israeli Air Force and other national air forces. The systems, which have been proven on the battlefield in countless hours of operational use, have identification, location, navigation, and attack capabilities, and are based on unique capabilities and a technological heritage spanning decades. The HAIL family “HAIL” systems are a family of aerial armament systems, with autonomous artificial intelligence, the first of its kind in the world - based on advanced image comparison capabilities for accurate target location, and independent of GPS. The Hail systems, or as they are known in English - SPICE systems - have a range of some 100 km with an accuracy of a few meters are divided into three types - “Steel Hail”, “Light Hail” and “Small Hail”. The HAIL systems have been in operational use with the Israeli Air Force since 2003 and with seven other air forces for several years. HAIL systems have demonstrated excellent operational abilities in countless hours of operational use. The Hail systems won Rafael two Israel Defense Awards - “Steel Hail” in 2008 and “Small Hail” in 2019. 114 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 115

Page 59

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Maritime Systems Intelligence and Cyber The solutions offered by Rafael for the maritime arena are With regard to defense systems for aircraft and ships - in Rafael is a leader in cyber defense capabilities, intelligence In 2021, Rafael established the first cyber consortium of its based on Rafael’s core systems and capabilities, which the air and sea, substantial threats have developed, both systems, and systems for Big-Data analysis and kind in the State of Israel operating in the field of critical have been adapted for maritime use and which provide for fighter planes and ships,, from advanced missiles information fusion and also provides defensive solutions infrastructure protection. Rafael leads the consortium with a multi-layered solution for the protection of surface launched from the ground, from ships, from aircraft for border control operations and for the protection of the support of the national cyber system, and it includes 11 vessels. Rafael’s maritime systems combine a variety of and ground positions on land and on the coast. These strategic facilities and infrastructures. Rafael was chosen leading companies in the Israeli economy all active in the technologies with extensive operational experience in necessitated the development of electronic defense by the Israeli government to establish and operate the field of cyber protection. Among the 11 companies are the Israel and abroad. Rafael’s maritime solutions are adapted systems for both aircraft and ships. National Cyber Command (CERT) and also provides cyber Israel Electric Corporation and the Energy Infrastructures to meet the customer’s operational needs and thus provide and infrastructure protection for Israel Railways and the Corporation. The consortium is known as the “Israeli In the underwater arena as well, there is a need to protect a comprehensive and integrative solution - for perimeter Bank of Israel’s national credit pool. In addition, Rafael’s Operational Technologies Cyber Consortium” and offers submarines from torpedo systems that are launched from defense, surface defense and underwater defense. advanced intelligence and cyber systems ensure the solutions to protect infrastructures from cyber warfare by helicopters and ships to sink and destroy their targets. In highest level of safety and security for infrastructures that hostile parties and is designed to protect critical assets in Rafael was one of the pioneers and one of the first the underwater defense field, Rafael has the advantage are vital to the functioning of the State of Israel. the fields of transportation, oil and gas, manufacturing, companies in the world to enter the field of controlled of being a national center of underwater acoustics water and sewage, energy infrastructures and more. naval weapon positions. We began with the development knowledge, and its products currently have no competition of controlled and stabilized gun positions for the Israeli in Israel from other industries. Navy, and later expanded our operations to include developments for land warfare. 116 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 117

Page 60

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Windbreaker Spike The Windbreaker system is a revolutionary system, the Following the lessons of the Yom Kippur War, from the only one of its kind in the world that is operational and that late 1970s Rafael developed advanced electro-optical protects a tank crew through the accurate identification missiles. The first version was the Tammuz missile, which Land Systems and Missiles of threats from all sides (360 degrees). After detection, the was an operational and technological breakthrough system alerts the tank crew and destroys it autonomously that made it possible to strike hostile targets from a long Since Rafael establishment as the security research center organized armies has gradually decreased, and its place through an advanced and unique interception mechanism. range and with extreme precision without being exposed of the State of Israel, its land systems have played a key has been taken by the asymmetric warfare of regular This is the only combat-proven system in the world to the enemy. Since then the company has continued role in strengthening the IDF and building its military armies against guerrilla and terrorist organizations. These providing protection from anti-tank threats. The system to develop the missile, which is now a unique weapon, superiority. The Tammuz missiles developed after the organizations usually operate in urban areas and among became operational in the beginning of 2011 thanks to the the best of its kind in the world. Today, the Spike missile Yom Kippur War have evolved into an array of guided the civilian population, which requires the IDF to use pioneering work of Rafael employees from the late 1980s family is used by over 40 countries and can be launched electro-optical missiles, which are sold to dozens of precise weapons rather than statistical weapons such as and has since protected the lives of hundreds of tank crew from the air, sea and land. countries around the world. These systems, along with bombs and artillery shells. members. protection solutions, remotely controlled weapons Alongside the continued development and supply of After Operation Protective Edge, the system won the 2014 positions, observation and identification capabilities and advanced combat systems to ground forces, Rafael Israel Security Award for saving many lives on the battlefield. the “smart trigger” system, lead the IDF towards the future established the Center for Innovative Programs, which The system creates a battlefield revolution as it gives of the modern battlefield. They are the technological and is tasked with evaluating and developing solutions and tanks the ability to deal with all anti-tank threats thereby operational infrastructures that enhance ground forces’ systems that will enable the IDF to deal with the full strengthening their role as a central combat tool on land and maneuverability and effectiveness. spectrum of dynamic threats it may face in future conflicts. on the battlefield. In the last decade there has been a fundamental change It develops underground systems, advanced navigation In December 2019, “Windbreaker” was named by “Forbes” in the nature of war in the world in general, and in Israel capabilities, drones and autonomous, networked systems magazine as one of the 12 protective systems that changed in particular. Symmetric warfare against regular and that will play a central role in multidimensional warfare. the face of the decade. In 2018, the system was sold to the American Armored Forces to be installed on the Abrams tank and in 2021, it was selected for use on the German Army’s Leopard tank and the British Army’s Challenger tank. 118 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 119

Page 61

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Business Sustainability And Emergency Preparedness Principles, Importance and Policy supply requirements and securing the production and maintenance of essential products. Rafael’s policy regarding maintaining the company’s Implementation of the organizational resilience policy sustainability even in emergencies and after disasters among employees, rescue agencies and stakeholders, stems from a deep understanding of its importance and including encouraging suppliers and subcontractors to the company’s commitment. The importance of Rafael’s manage emergency preparedness. continued operation even during a crisis is not just from Goals and objectives set by management for a business point of view in relation to the company, its continuous improvement. customers and suppliers. It also derives from the fact that Rafael is an essential supplier for Israel’s security forces Organization of Emergency Operations Response to emergencies and business help during the extensive fires in the Jerusalem mountains whose ability to continue operations becomes more sustainability includes: in 2021. and Business Sustainability critical and extreme during an emergency. Therefore the Inclusion of emergency issues and continuity of Training for EmergenciesAs part of Rafael’s preparations company’s continued normal operation is essential for the Rafael has an emergency committee that meets regularly operations to continue functioning in emergency situations and to country’s security. consisting of managers and others in senior positions from Responding to military, safety, environmental, and strengthen our partnerships with Home Front Command, Rafael’s policy reflects its commitment to comply with all of the company’s units. It deals with the improvement medical incidents, and emergencies at the David and the fire service, MDA, the Ministry of Defence and the all relevant regulatory requirements, with an emphasis of emergency preparedness and response processes Leshem institutes as an integrated force police, we hold joint working meetings and exercises, on the requirements of the Ministry of Defense, the IDF for civil defense, raw materials inventory, identification including systemic exercises in which we work jointly Maintenance, supervision and professional guidance and of Israeli Standard 24001 “A system for managing the of officials and essential suppliers for crisis situations, with official agencies and train for a wide range of conflict for the implementation and observance of occupational functional resilience of an organization.” Rafael is the only business sustainability plans including redundancies and scenarios and mass casualty incidents. laws, regulations, standards and procedures. major company in Israel that has been certified for this production line replacements , appointment of divisional standard, based on the concept of business continuity that officials, supply and maintenance of products to the IDF. Coordination of dangerous activities and experiments As part of Rafael’s preparations for the exercise, a special, requires the formulation of a business continuity plan. In addition, the company has an annual operations plan at the David and Leshem institutes. designated destruction site was set up at the David Institute to practice rescue operations from debris. Drones that includes updating procedures, audits, exercises and Providing firefighting and rescue services, testing The policy is embedded among the managers, employees were used to obtain a real-time picture of the situation, investments for improving infrastructure designed for firefighting equipment and fire prevention. and all stakeholders through procedures, exercises, and rescue and emergency personnel, fire and medical content on the company’s internal computer network, its emergencies. Providing emergency and occupational medical teams, and Raphael’s fire engines and ambulances, which website, publications and employee training. The policy is Rafael has consistent and comprehensive plans and work services. are on constant alert to provide a first response, were reviewed periodically, updated and adapted to changing procedures for the continuity of operations in emergency Planning and implementing occupational courses, activated. The war scenario practiced by the forces tested a circumstances as needed. It refers to alerts, prevention and situations. These define the steps and activities required advanced training and instruction. number of capabilities , including integration with frontline protection, response, functional continuity and restoration. for advance preparation and prevention , dealing with an Taking actions and measures to prevent incidents and command forces, management and control of the incident Rafael has a system for managing functional resilience emergency incident, incident management, including the emergencies. on four command levels, rescue from debris and dealing whose role is to ensure the continuity of the company’s operation of an “emergency headquarters” and divisional Coordination and mutual cooperation with foreign and with a mass casualty incident. functioning even during emergencies. It is designed situation rooms, the adjustment of production and national security agencies. During the exercise, a special Rafael robot was used to to respond to a variety of threats, including security customer support procedures, contact with regulatory incidents, earthquakes and tsunamis, climatic disasters authorities and the Ministry of Defense, and finally a return Using professional, diverse and innovative equipment, handle explosive objects. The robot team routinely takes and substantial damage to infrastructure and energy to normalcy and rehabilitation. the rescue and emergency department strives to prevent care of explosive tests performed at Rafael and in an production and supply. injuries to people, property and the environment. This emergency it assists rescue forces when clearing fallen Rafael also operates a command and control center includes medical evacuation vehicles with the same objects and scanning buildings. The robot has additional Rafael maintains an emergency management system whose role is to provide an up-to-date picture of Rafael response capability as an intensive care ambulance, an capabilities such as photography, that involve no risk whose role is to ensure the company’s continued facilities and their employees in routine and emergency advanced medical simulator for the independent training to people. As part of the exercise, a simulated missile operation, and which provides solutions for the following situations. The center activates relevant forces, compiles of medical teams, methods for dealing with hazardous strike caused the collapse of a building and suspicious issues: a situation picture and provides reports from the field to material incidents, rescue resources, communication objects were identified in the rubble. The robot moved Ensuring the safety and health of the organization’s Rafael’s management as well as external parties working in systems, advanced personal protective equipment and the suspicious objects away from the destruction site to a cooperation with the company - police, fire service, MDA, employees, adapting infrastructure to various fire engines. Rafael’s “Leviathan” type fire engine is the protected area and enabled rescue operations to continue Home Front Command and the Ministry of Defense security emergency situations, determining the scope of largest of its kind in Israel and sometimes assists in efforts in a safe manner. control center. to extinguish fires in the Haifa area and was of significant 120 | Rafael ESG Report 2020-2021 Rafael ESG Report 2020-2021 | 121

Page 62

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Indexes

Page 63

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security GRI Index GRI Index Indicator Indicator Source Location Indicator Indicator Source Location number name number name The Organization and Its Reporting Practices Strategy, Policies and Practices 2-1 The organization’s details ESG Report 8-15 2-22 Statement on sustainable development strategy ESG Report 4-5 2-2 The percentage of employees who received ESG Report 37 2-23 Statement on responsible business conduct ESG Report 42-43 anti-corruption training 2-24 Implementation of the statement for responsible business ESG Report 42-43 2-3 The entities that appear in the organization’s ESG Report 37 conduct sustainability reports 2-26 Mechanisms for obtaining advice and raising concerns ESG Report 44-45 2-5 External auditing of report ESG Report No auditing performed regarding ethics issues 2-6 Activity and products in the company, the value chain and ESG Report 16-30 2-27 Compliance with laws and regulations ESG Report 42-44 other business relationships 2-28 The company’s participation in organizations and associations ESG Report 36 2-7 Workforce head count ESG Report 67 within the industry and others Governance & Ethics Stakeholder Engagement 2-9 Corporate governance structure and composition ESG Report 40-41 2-10 Determining the composition of board of directors Annual report Chapter 1. Restrictions 2-29 The organization’s approach to dialogue with stakeholders. ESG Report 34-35 2021 and supervision of company activities, Employment & OHS Regulation 21, Page 47 2-30 Collective labor agreements ESG Report 72 2-11 Role of the Chairman of the board Annual report Chapter 1. Restrictions 2021 and supervision of Materiel Topics company activities, Regulation 21, Page 47 3-1 The process for defining essential issues ESG Report 32 2-12 Role of the board in supervising the management of ESG ESG Report 40-41 3-2 List of essential topics ESG Report 32 impact Economic Performances 2-13 Delegation of powers to manage EGS impact ESG Report 40-41 201-1 Direct economic value created and shared Annual report Chapter 2, Financial 2-14 The board of directors role in reporting sustainability issues ESG Report 40-41 2021 statements, page 6-11 2-15 Processes to prevent conflicts of interest among board of ESG Report 41 directors members 201-3 The company’s commitment regarding retirement/employee Annual report Chapter 2, Financial compensation and pension plans 2021 statements, Note 20, 2-16 Description of the process for communicating important ESG Report 41 page 54 issues to the board of directors in economic, social and environmental fields and the number of issues reported Indirect Economic Impacts 2-17 Increasing the board’s knowledge of ESG issues ESG Report 41 203-2 Significant indirect economic effects ESG Report 90-93 2-19 The company’s compensation policy Annual report Chapter 2, Principles of Procurement Practices 2021 Accounting Policy, Note 3, page 33 204-1 Policy, procedures and actual percentage in relation to local ESG Report 90-93 procurement 2-20 The company’s method for defining compensation Annual report Chapter 2, Principles of 2021 Accounting Policy, 2-22 Statement on sustainable development strategy ESG Report 6-9 Note 3, page 33

Page 64

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security GRI Index GRI Index Indicator Indicator Source Location Indicator Indicator Source Location number name number name Anti-Corruption Waste 205-1 Description of how to detect corruption risks, including the ESG Report 42-43 306-1 Waste production and effects ESG Report 60-64 percentage and number of units where inspections were carried out to detect corruption related risks. 306-2 1. Actions taken to prevent the creation of waste and its ESG Report 60-64 effects as a result of the company’s activities throughout 205-2 The percentage of employees who received anti-corruption ESG Report 42-43 the value chain training. 2. If the waste generated as a result of the organization’s 205-3 Description of how identified corruption cases are handled. ESG Report 42-43 activities is managed by a third-party company, a description of the actions taken to ensure that the third Energy party follows the procedures. 302-1 The organizations energy usage ESG Report 54-55 3. The processes used to collect and monitor waste figures 302-3 Amount of energy consumed in the organization ESG Report 54-55 306-3 Waste generated ESG Report 60-64 302-4 Reducing the organization’s energy consumption ESG Report 54-55 306-5 Waste transferred to landfill ESG Report 60-64 Water and Effluent Employment 303-1 Managing water as a shared resource ESG Report 58-59 401-1 New employees and employee turnover ESG Report 77 303-2 Sewage and effluent management ESG Report 58-59 401-2 Exclusive benefits for full-time employees ESG Report 68-69 303-3 Use of potable water ESG Report 58-59 401-3 Maternity Leave ESG Report 70 Occupational Health & Safety 303-4 Sewage and effluent ESG Report 58-59 403-1 Occupational health and safety management system ESG Report 82-89 303-5 Water usage ESG Report 58-59 403-2 Hazard identification, risk management and incident ESG Report 82-89 Biodiversity investigation 304-1 Description of activities to enrich biological diversity in areas ESG Report 51-52 403-3 Existence and number of disease prevention trainings for ESG Report 82-89 controlled by the company and near them employees, their families and the community 304-3 Description of habitats where protective or restoration ESG Report 51-52 403-5 Employee training regarding workplace safety and security ESG Report 82-89 operations have been carried out issues Emissions 403-6 Promoting employee health ESG Report 82-89 305-4 Intensity of the organization’s greenhouse gas emissions ESG Report 56-57 Training & Education 305-5 Description of initiatives to reduce greenhouse gases ESG Report 56-57 404-1 Hours of training in relation to the number of employees ESG Report 76-77 emissions and the results achieved 305-6 Description of actions taken to reduce emissions of substances ESG Report 55 404-2 Skill management and career completion programs ESG Report 81 that deplete the ozone layer Percentage of employees receiving professional employee 404-3 ESG Report 71 feedback and organizational development tools 305-7 Air pollutant emissions ESG Report 56-57

Page 65

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security GRI Index SASB Sector Level: Aerospace & Defense Indicator Indicator Source Location number name Diversity and Equal Opportunity Table 1. Sustainability Disclosure Topics & Accounting Metrics 405-1 Diversity of management bodies and employees ESG Report 67 TOPIC ACCOUNTING METRIC CATEGORY UNIT OF CODE Response Freedom of Association and Collective Bargaining MEASURE 407-1 Description of steps taken to guarantee employees freedom of ESG Report 72 Energy (1) Total energy consumed, (2) Quantitative Gigajoules RT-AE-130a.1 ESG report association Management percentage grid (GJ), P.55 electricity, (3) percentage Percentage (%) Local Communities renewable 413-1 The nature, scope and effectiveness of actions designed ESG Report 96-107 Hazardous Waste Amount of hazardous waste Quantitative Metric tons (t), RT-AE-150a.1 ESG report to manage the company’s effects on communities and Management generated, percentage Percentage (%) P.60 community development programs recycled2 Number and aggregate Quantitative Number, RT-AE-150a.2 0 Public Policy quantity of reportable Kilograms (kg) spills, quantity recovered 415-1 Description of essential issues inherent to the organization’s ESG Report 44 participation in public policy development and lobbying Data Security (1) Number of data breaches, Quantitative Number, RT-AE-230a.1 0 (2) percentage Percentage (%) involving confidential CUSTOMER HEALTH AND SAFETY information 416-1 Stages in a product life cycle where safety and health aspects ESG Report 46-49 Description of approach to Discussion and n/a RT-AE-230a.2 ESG report of the product are examined identifying and addressing Analysis P.34 data security risks in (1) 416-2 Description of health and safety conduct as per regulations ESG Report 46-49 company operations and (2) and voluntary codes products CUSTOMER PRIVACY Product Safety Number of recalls issued, Quantitative Number RT-AE-250a.1 N/A total units recalled 418-1 Description of cases, based on law, standards and codes, ESG Report None where the privacy of customers/visitors was violated or Number of counterfeit parts Quantitative Number, RT-AE-250a.2 N/A information about them was lost detected, percentage avoided Percentage (%) Number of Airworthiness Quantitative Number RT-AE-250a.3 N/A Directives received, total units affected Total amount of monetary Quantitative Reporting RT-AE-250a.4 0 losses as a result of currency legal proceedings associated with product safety

Page 66

From About the Rafael- An innovative Rafael- Leading social and Rafael- A central pillar Indexes the CEO company company economic change in Israel in Israel’s security Table 1. Sustainability Disclosure Topics & Accounting Metrics(Cont.) TOPIC ACCOUNTING METRIC CATEGORY UNIT OF CODE Response MEASURE Fuel Economy & Revenue from alternative Quantitative Reporting RT-AE-410a.1 Data is Emissions in Use- energy-related currency unavailable at phase products this time Description of approach and Discussion and n/a RT-AE-410a.2 Data is discussion of Analysis unavailable at strategy to address fuel this time economy and greenhouse gas (GHG) emissions of products Materials Description of the Discussion and n/a RT-AE-440a.1 Data is Sourcing management of risks Analysis unavailable at associated with the use of this time critical materials Business Ethics Total amount of monetary Quantitative Reporting RT-AE-510a.1 0 losses as a result of currency legal proceedings associated with incidents of corruption, bribery, and/or illicit international trade Revenue from countries Quantitative Reporting RT-AE-510a.2 N/A ranked in the E or F Band of currency Transparency International’s Government Defence Anti- Corruption Index Discussion of processes to Discussion and n/a RT-AE-510a.3 ESG report manage business Analysis P.44-45 ethics risks throughout the value chain Table 2. Activity Metrics Activity Metrics Production by reportable Quantitative Number RT-AE-000.A N/A segment Number of employees Quantitative Number RT-AE-000.B 8,019

Page 67

www.rafael.co.il