EXEL industries - 2019 Universal Registration Document

Management report 3

Statement of Non-Financial Performance

„ SAMES KREMLIN has instituted a process for reusing wooden pallets/recycling suppliers’ packaging as blocking padding in shipment crates. Water curtain spraybooths have been replaced by dry fi ltration booths to end polluted industrial water (besides the energy savings). The surplus paint is given to training schools with the dual e ff ect of reducing the recycling of these products and providing additional means for professional training. Chemicals are inventoried and kept in storage tanks. Waste management is controlled: a waste hold is in place; the waste is regularly emptied and removed by a fi rm specialized in the management of chemical waste. Soiled rags are treated in the same way; „ HOZELOCK EXEL recycles hazardous waste and there are sorting bins in every department; „ HOLMER: recycling of paper, plastic, metal, used pallets, oils and metals depending on sites; „ VERMOREL: metal, oil, plastic and paper recycling; „ TECNOMA: powdered paint, steelshot and polyethylene are collected directly by suppliers for treatment and recycling in their production processes; „ CARUELLE: recycling of scrap metal, steel shot, and paper/ cardboard; „ PRÉCICULTURE: non-hazardous waste, metal, wood, pallets, used packaging, batteries, neon tubing, cartridges, oil and diluent recycling. The site is fi tted with oil separation tanks and storage tanks. In the work-related transport fi eld: we encourage our employees to use public transport (the train rather than the car). To limit travel, the Group is equipped with video-conferencing and web-conferencing systems and makes increasingly frequent use of shared digital applications such as Skype. Vehicle fl eets are managed in a way that limits CO²/km. Several companies in the Group now o ff er mileage allowances to employees who travel to work by bike. AGRIFAC encourages car-pooling. SAMES KREMLIN’s Chinese site organizes a shuttle service for home-work journeys. The companies are starting to purchase electric company cars. More than that, at SAMES KREMLIN the “bike bonus” has been extended to users of electric vehicles; and the company installed the fi rst electric charging station on the Meylan site, which makes it the fi rst such model company in its economic area. At HOZELOCK a purchasing program to acquire a hybrid automotive fl eet was undertaken, and discussions are under way to invest in electric vehicles for short trips. Recharging stations are also being planned. On sites with painting facilities, VOC emissions are monitored and limited by the air extraction and fi ltering equipment installed in paint booths and welding stations. 3.4.4.2.4 Take climate action by reducing air emissions and controlling energy usage a c - c Climate action By our activity:

We encourage the installation of radiant heating systems: they are more energy e ffi cient than oil heating systems, which have been replaced on certain sites. Within TRICOFLEX , an “energymanagement committee” was formed this year, consisting of members of the Executive Committee, the HSE manager and the maintenance manager. This was combined with a management system whose goal is reduce TRICOFLEX’s energy impact, in terms of kWh used per metric ton transformed. New cooling units will allowelimination of the 400 c m3 water tank and replacement of the piping, now to be thermally insulated. Since the circulating water is replaced once a year and treated throughout the year, our environmental impact has also decreased in this regard. In the new installation there will be only 60 c m 3 instead of the previous 460 c m 3 . Due to our customers using our equipment: To reduce the greenhouse gas emissions of the farm machinery we market, our Research and Development Departments are working on lighter and lighter machines. The standards we respect are an essential benchmark for these machines (Tier 4 fi nal emission standards, progression to phase 4F engines). PRÉCICULTURE is changing its motors over to 5-phase. ET Works and the American market, the world’s largest agricultural equipment market, are a ff ected by the changes, and the research arms have been put to work to meet the stage 5 emissions standard for diesel motors. Likewise, in Sugar Beet Harvesters and Agricultural Spraying (with AGRIFAC for example), the speci fi c plans for renovating and exchanging machines help to limit our environmental footprint. Another issues on which our agricultural businesses are working is the quality of their customer service. The quality of this service as established in premium programs ( e.g ., “Dark” in the case of BERTHOUD) includes full-service packages that get the customer up and running with training in using the technologies included in the device and regular visits to the customer by technicians in order to guarantee the maintenance and use of the sprayer under optimal conditions. This in turn guarantees the quality of the spraying and the optimization of the phytosanitary products used in the treatment of growing areas. Industrial painting equipment (pumps and applicators) consumes electricity and compressed air. This consumption represents a cost for our customers which go beyond ecological concerns. Our engineers are trying to make our equipment consume the minimum necessary. Adapt to climate change: Our machines already adapt to di ff erent climates, desert climates in Australia, wide expanses in Russia, with humid weather in the fall for beet crops, agriculture on small plots in France, c etc. HOZELOCK is adapting its product lines to allow more widespread development of micro-irrigation, which uses less water.

Calculation of CO 2 emissions:

10/01/2017- 09/30/2018

10/01/2016- 09/30/2017

09/01/2015- 09/30/2016

10/01/2018- 09/30/2019

Calculation of CO 2 emission s

33,518,791

33,772,359

32,989,610*

32,044,312*

* Calculated on ISO scope of electrical consumption.

The calculation of CO 2 emissions in prior years was revised in order to measure on the same scope throughout the period under study. At constant scope, a slight decline in CO 2 emissions, primarily due to lower consumption of electricity and propane.

EXEL Industries Group I 2019 Universal Registration Document

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