EXEL Industries // 2020 Universal registration document

Presentation of the Group

Business overview of the EXEL Industries group

 EU road transport approval requirements and the new brake regulation are also imposing an increased workload on all design departments. EU Regulation No. 167/2013 of the European Parliament and of the Council of February 5, 2013 on the approval and market surveillance of agricultural and forestry vehicles. As a result, these requirements call for a high level of precision in the application of plant health (phytosanitary) products and demand that the “right dose in the right place at the right time” be applied at all times. For example, nozzle fl owmust not vary by more than 5% from nominal fl ow, and transversal distribution under the boom must be perfectly uniform (< 7% variance). The annual cost of the spraying equipment is often less than 5% of the annual plant protection budget for a farm, whereas the sprayer actually controls and plays an essential role in achieving good application results. This gives us a better understanding of the importance of its performance quality in contributing to controlling and optimizing farmers’ operating costs, when faced with the new challenges of globalization and changing agricultural subsidy policies (in particular the EU’s Common Agricultural Policy). Trends The challenge for agriculture is to feed the Earth’s population in a healthy and balanced manner, while preserving natural resources. In 2050, the planet will have 9.7 billion inhabitants compared with a little more than 7.6 billion today. World agriculture must be able to produce the food necessary to feed the population, two thirds of whom will be living in towns and cities. This food must also be healthy and diverse (plants, proteins, etc.). Moreover, the agriculture of tomorrow must manage the natural resources necessary for life (water, soil, air, biodiversity, etc.), and contribute to combating climate change. Today, the fi ght against the main scourges (weeds, insects, rodents and diseases) relies mainly on the use of synthetic or natural phytosanitary or plant health products. These products are applied by our agricultural sprayers. However, in France and in certain other Western European countries, these increasingly controversial products are subject to strict regulations ( e.g. controversy over glyphosate). Agricultural spraying must play a part in the agroecological transition by innovating and mastering new technology such as precision agricultural, electronics, automation, con fi ned spraying and arti fi cial intelligence to detect plants to be treated, etc., which will allow a signi fi cant reduction in the doses used. Description of Group companies EXEL Industries has 10 main trademarks: AGRIFAC, TECNOMA, BERTHOUD, NICOLAS Sprayers, EVRARD, MATROT, HARDI, CMC, APACHE and BRUIN. Sprayers may be produced by companies of the same name (AGRIFAC, HARDI), or by companies specializing in the design and assembly of certain types of equipment for several brands (GAMATechnologies, SUPRAYTechnologies, PRECICULTURE, ETWorks). TECNOMA SAS , a company based in Epernay, in the Marne department, markets all fi eld crop and viticulture sprayers, as well as the TECNOMA brand high-clearance tractor.

Regulatory constraints Spraying equipment design requires expertise in cutting-edge technologies that are both environmentally friendly and safe for the operators. This equipment must complywith a signi fi cant number of demanding safety and environmental standards. For this reason, new players need to obtain product certi fi cation before they can be introduced on the market. A summary of key regulations and standards in force is provided below:  European directive 2006/42/EC (the amended “Machinery directive” entered into effect on December 29, 2009) setting key European safety requirements for agricultural equipment manufacturers. For sprayers, this directive is based on EN ISO 4254, parts I and VI;  amendment to the Machinery directive (directive 2009/127/ EC adopted by the European Parliament on April 22, 2009). This amendment, that concerns only sprayers, supplements requirements laid down by the directive on machine safety with a speci fi c section on the “Environment”. As of December 15, 2011, new sprayers marketed in the EU must comply with these new environmental standards. The EN ISO 16119 standard speci fi es other speci fi cations;  framework directive 2009/128/EC on the sustainable use of pesticides (adopted by the European Parliament in January 2009) establishes a framework for Community action with respect to the use of phytosanitary or plant health products within Europe, through measures such as user training, obligatory inspection of sprayers, phytosanitary e ffl uent management, adherence to best practices, etc.; in-service inspection of sprayers is explained in the EN ISO 16122 standard. Each EU Member State has developed a National Action Plan which form the basis for a number of national regulations, as the French regulations demonstrate;  obligatory operating safety certi fi cation for high-clearance tractors, self-propelled vehicles and trailed sprayers, both in France and other European countries;  decree of May 7, 2007 on the use of phytosanitary products that notably encourages manufacturers to o ff er sprayers in France meeting new requirements for tank fi lling (over fl ow prevention systems), dilution of tank bottom residue and reduction of spray drift;  new French “Water Act”, adopted on December 20, 2006, that has imposed a requirement for regular technical inspections (every fi ve years) of all sprayers, mandatory since January 1, 2009;  the Water Framework directive (2000/60/EC) has also had some impact by improving accuracy in order to reduce drift;  the Ecophyto action plan adopted by the French government to reduce the use of plant health (phytosanitary) products and strengthen prevention measures in the area of user safety and health;  French Agricultural Act 2014-1170 of October 13, 2014, laying down new provisions on plant treatment restrictions near public places;  decree of December 27, 2019 establishing untreated areas near residential areas and the possibility of altering the safety distance depending on the spraying equipment used;  classi fi cation of vineyard sprayers according to their environmental agricultural performance (LabelPulvé);

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11 EXEL Industries group I 2020 Universal Registration Document