EXEL industries - 2019 Universal Registration Document

Management report Research and development

Research and development

3.3

3.3.1 A culture of innovation

Since its creation, the EXEL Industries group has been a pioneer in developing technologies in its core business of spraying. In an increasingly competitive environment, research and development (R&D) enables the EXEL Industries group and its subsidiaries to: „ improve their production efficiency, through innovations in processes; „ set their o ff ering apart and create more value for customers; „ boost revenue and related income, through product innovation; „ make use of the Group’s distinctive know-how and stand out from competitors. On average, we fi le between fi ve and seven newpatents designating several countries every year. As of September c 2014, EXEL Industries’ industrial property policy fi rst introduced in 1994 is being applied to all its subsidiaries, in keeping with its role as the Group’s holding company. Our Company therefore registers any new industrial property right (Patent, Trademark, or Design) in its own name and for each of its subsidiaries in France and abroad. We filed around 35 c new patent applications over the 2018/2019 period. The patent applications fi led during the previous period were on average extended to six designations (Europe counting as one designation). For the EXEL Industries group and its subsidiaries, R&D implies a signi fi cant investment in terms of time, workforce and cost. At least 7.6% of our employees are permanently employed on R&D projects. R&D also implies the development of partnerships with companies, universities and innovative SMEs, and patent acquisitions, competitive intelligence and the search for pro fi table niches. Research and development expenditures are recognized as ordinary annual operating expenses and therefore not capitalized as assets, except on an exceptional basis. Furthermore, to optimize the management of research and development expenditures, the Group uses the system for research tax credits available in France. Products for “large-scale crops” and “vineyards” In order to consistently respond in the best possible way to new market expectations, EXEL Industries’ research and development is based on: „ greater precision in applying and targeting the drops on the target; „ greater safety for the operator; „ greater comfort in operation, usage and adjustment through the development of assistance systems; 3.3.1.1 Agricultural Spraying

„ greater environmental protection primarily due to an optimized volume of product sprayed; „ greater longevity and reliability of equipment. Some noteworthy examples of innovations include: „ self-propelling booth mounted on hydraulic rails with access from the ground (LASER FC); „ four-component electro-pneumaticcarried jet system(OPTI-SPRAY); „ new variable-width chassis (225 to 320 c cm) for use with all crops (WideTrackPlus); „ new chassis with clearance ranging from 125 to 200 c cm for tall crops (ClearancePlus); „ a new exclusive system fully automating the process of opening and closing spraying booms (Press’n’Go). Innovation Award at the Innovagri 2010 trade fair; „ a new application system for use in arboriculture andwine growing using air-assisted technology for precision spraying (IRIS). FIMA 2010 Innovation Award; „ automatic driving of the self-propelled sprayer to allow the operator to concentrate solely on the operating settings. This “automatic pilot” operates when receiving a DGPS or RTK signal and may be disconnected at any time by the operator; „ automatic management of the ramp height through ultrasound sensors (AutoHeight); „ lift and chain system providing a wide range of spray heights from 0.5 c m to 3.15 c m (Twin Lift); „ bi-turbine centrifugal pumps that are easier to clean and more economic in fuel consumption (Omega); „ an interlined air jet system for spraying in vineyard rows making it possible to signi fi cantly reduce doses of plant care products (Précijet) and, more recently, the use of recovery/con fi nement panels; „ air-assisted spraying that will enable drift from the sprayed products to be very signi fi cantly reduced (Twin); „ “automotive” drive that allows self-propelled sprayers to be controlled by both hand and foot; „ filling management system which prevents tank overflow and helps the operator to adjust the sprayer (Nova fl ow); „ fi lling the sprayer’s main tank via an intermediate tank to avoid any risk of contamination (O’Clear); „ system that recycles the air in the sprayer’s cabin and prevents any air entering from outside during spraying work for better operator protection (Clinair); „ guiding systems, section management and dose modulation coupled with GPS mapping of the fi eld; „ automatic sequential rinsing system for the whole spraying cycle (Autonet); „ automatic follow-up system for the ramp and system for keeping the chassis of the self-propelled sprayer horizontal (Stabilis); „ the new STILA towed sprayer, awarded machine of the year at SIMA 2015;

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EXEL Industries Group I 2019 Universal Registration Document

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