EXEL Industries // 2020 Universal registration document

Presentation of the Group

Business overview of the EXEL Industries group

TRICOFLEX selects the best raw materials, makes the formulations and manufactures the equivalent of twice the Earth’s circumference each year. ISO 9001 certi fi ed, the brand guarantees a high level of quality. TRICOFLEX joined the Group in October 2012 with the acquisition of HOZELOCK.

Manufacture of technical hoses TRICOFLEX has more than 60 years of innovation in the service of industry and the general public. FromVitry-le-François in the Marne department, TRICOFLEXdevelops andmanufactures fl exible technical hoses. The company is one of the European leaders able to o ff er knitted hoses, spiral hoses, covered hoses and unreinforced tubes.

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2.3.2 Customers – suppliers

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 hours over 4 months) requires highly responsive technical support, 24/7 during the high season. This support is provided by our own teams and our dealers worldwide. An e ffi cient logistics network for spare parts is also crucial for satisfying our users. The consumer market Products marketed by HOZELOCK and HOZELOCK EXEL, specialized in watering and plant protection, are mainly sold through specialized dealers (garden centers, agricultural cooperatives and DIY superstores) in traditional retailers and online (pure players or sites a ffi liated to our specialized dealers). Keen to work closely with its customers, the Group enjoys excellent relationships with major international and national groups, as well as networks of independent dealers. In an extremely seasonal watering market, our dealer customers expect our teams to be very responsive. Consumers are now looking for products made close to home. With the strengthening of our industrial and logistical capacities, we will be able to respond more fl exibly to our customers’ demands. We believe that our European production bases are a major asset in meeting the level of service expected by our distribution networks. The health situation related to Covid-19 has prompted people to stay at home and garden. The result is an increase in the number of gardeners, which should structurally strengthen the garden business. The industrial market The companies operating in the Industrial Spraying segment are major players in traditional and sustainable markets such as the automotive industry, the timber industry, railways, consumer goods and farmmachinery, and pursue growth in high value-addedmarkets: the food industry, healthcare and renewable energy. This enables the Industrial Spraying business to fund research and innovation. Distribution The equipment is sold from our plants and distributed through a variety of distribution channels coordinated by our subsidiaries. These networks are made up of “Approved Resellers” (typical of counter sales and modern distribution), “Approved Dealers” (active sales including servicing) and consolidators (sale of “turnkey” solutions). 2.3.2.3 2.3.2.4

2.3.2.1 The agricultural market for sprayers 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 dealers. 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 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 base 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 (Eastern Europe) that can manage the entire chain up to sugar production, and planters with very large sugar beet crop areas. Cleaning loaders are for agricultural service supply agencies and agricultural holdings, or directly used by sugar re fi neries. Sales are mainly made directly in countries where HOLMER and AGRIFAC are establishedwith their own subsidiary, or through dealers

EXEL Industries group I 2020 Universal Registration Document

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