EXEL industries - 2019 Universal Registration Document

Presentation of c the c Group 2

Business overview of the EXEL Industries group

The applicators are spray gun or rotating bell in manual, automatic or robotic versions that can be mounted on machines or on robots. All of SAMES KREMLIN equipment allows users to achieve higher levels of performance, productivity and quality in their industrial processes while signi fi cantly improving productivity (cost of materials, total ownership costs) and protecting the environment and the operator’s health by reducing paint fume emissions. Using its equipment, SAMES KREMLIN designs, manufactures and distributes standard solutions by means of a worldwide network of quali fi ed integrators. These solutions, from the simplest to the most complex of technologies are manual, automatic or robotic and allow the application of liquids, powders and viscous products. In order to meet its clients’ everyday needs, SAMES KREMLIN develops and markets a service offering through its trained and quali fi ed dealers, which allows them to become and subsequently remain their users’ preferred supplier. A large number of markets are targeted which are divided into seven large categories: automotive, wood, agricultural, construction, industry, transport and consumer goods. The entire range of SAMES KREMLIN products is marketed using the many Group subsidiaries worldwide (Europe, North and South America, China, Japan, India, South-East Asia, Australia, Russia and South Africa). Agricultural spraying equipment is primarily sold ex-works to agricultural machinery retailers sometimes called dealerships. They demonstrate, sell and set up new spraying equipment and also provide after-sales services, trade-in and sales of used equipment. Each Group brand develops its own marketing strategy through its own distribution networks. The rationale behind this “multi-brand” and “multi-network” policy is based on: „ geographical market segmentation and coverage; „ brand loyalty among farmers; „ maintaining and developing the market share historically developed by each Group brand based on speci fi c arguments and an original marketing mix; „ the need to maintain a large selection of several brands of sprayers with decisive di ff erences to increase customer loyalty among the many agricultural equipment dealers through an o ff ering providing di ff erentiation from their competitors. Each of the Group’s main brands therefore has its own network made up of several hundred approved and trained distributors. The distribution agreements are renewed on an annual basis. The technical and sales sta ff of each distributor is required to attend a session lasting several days at one of the Group’s approved training centers. The end users of EXEL Industries spraying equipment are farmers. These include cereal farmers, tree growers, wine growers and 2.3.2 Customers - suppliers 2.3.2.1 The agricultural market for precision spraying equipment

Main competitors The main competitors in this market are: „ Graco (USA) with the Graco and Gema brands; „ Carlisle Finishing (USA) with the following brands: Devilbiss, Ransburg and Binks; „ Nordson (USA);

„ Wagner (Germany); „ Anest Iwata (Japan); „ Dürr (Germany); „ ABB (Switzerland/Sweden) for electrostatic spraying.

Manufacture of technical hoses TRICOFLEX , a company based in Vitry-Le-François in the Marne department, specializes in the manufacture of technical hoses. These hoses are used in the consumer market and in industry. TRICOFLEX joined the Group in October c 2012 following the acquisition of HOZELOCK. TRICOFLEX group’s sales for the 2018/2019 fi scal year amounted to €46.6 c million compared with €48.1 c million in the previous fi scal year.

vegetable growers. Farmers today have a pivotal role in the development of sustainable and eco-friendly agriculture. As part of this trend, they seek to adopt the most sustainable approach for treatment with the goal of producing “clean” products. They also ensure the traceability of treatment operations. Spraying equipment is also used in various exotic or tropical environments such as for cotton production.

The agricultural market for sugar beet harvesters

2.3.2.2

Sugar beet harvesters are mainly used by agricultural service supply agencies, farming associations, very large agricultural holdings that can manage the entire chain up to sugar production (mainly in the CIS countries) and planters with very large sugar beet crop areas. Cleaning loaders are for agricultural service supply agencies and agricultural holdings. Sales are mainly made directly in countries where HOLMER is established with its own subsidiary, or through distributors in other countries. Selling nearly always includes recovering a used machine, refurbishing it and placing it on the market. Countries undergoing mechanization or changing their crop lifting methods represent good opportunities for these used machines. The intensive use of the machines (more than 1,000 c hours in 3 c months) requires highly responsive technical support, 24 c hours a day during the high season. This support is provided by our own teams and our distributors worldwide. An e ffi cient logistics network for spare parts is also crucial for satisfying our users.

EXEL Industries Group I 2019 Universal Registration Document 14