MITIE GROUP PLC

Payment terms are agreed with our suppliers on a case by case basis depending on the nature of work, length of relationship, and size of the supplier. The majority of our suppliers are paid on terms of 30 days from the end of the month in which the invoice is dated or better, where 14 days and prompt payment may sometimes be agreed.

Depending on the agreement reached with the supplier, payment terms of 60 days from the end of the month in which a correct, undisputed and properly due VAT invoice is received may also be agreed.

The business also operates a no purchase order, no pay policy, unless otherwise agreed, in exceptional circumstances, by a duly authorised representative. Invoices received, and which do not include a valid purchase order number, are rejected and returned to the third party.

Over the course of the last 18 months, Mitie has made a significant number of changes to its accounts payable processes. At times, unfortunately, this has resulted in unintended disruption, impacting our payment performance. To address this, Mitie is actively working to improve our processes to ensure there is an overall improvement in our payment practices and our paid-on time performance.

We recognise the strategic importance of our supply chain partners, and as such are committed to treating them fairly. Our preference is to always address disputes in a transparent and timely manner, always acting in good faith, through open and constructive discussion.



If such discussions fail to resolve a dispute, an authorised representative of the supplier and the company shall, within 30 days of a written request from one party to the other, meet in good faith to resolve the dispute. If the dispute remains unresolved either the supplier or the company shall refer it to mediation in accordance with the Centre for Effective Dispute Resolution ("CEDR") Model Mediation Procedure that is in force at the date of the referral.