EXEL Industries // 2020 Universal registration document

Management report Research and development

plan to intensify our diversi fi cation with the development of TERRA VARIANT in France. GARDENWATERING AND SPRAYING. 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. INDUSTRIAL SPRAYING. The recovery of the automotive sector is set to be slow, but we continue to implement synergies between SAMES KREMLIN and iNTEC. In addition, newproducts and the strengthening of our commercial organization should make it possible to boost TRICOFLEX.

Research and development

3.3

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. As of September 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 fi led around 30 new patent applications over the 2019/2020 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.

Agricultural spraying

3.3.1.1

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;  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-pneumatic carried jet system (OPTI SPRAY);  new variable-width chassis (225 to 320 cm) for use with all crops (WideTrackPlus);  new chassis with clearance ranging from 125 to 200 cm for tall crops (ClearancePlus);  exclusive system fully automating the process of opening and closing spraying booms (Press’n’Go). Innovation Award at the Innovagri 2010 trade fair;  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 m to 3.15 m (Twin Lift);

EXEL Industries group I 2020 Universal Registration Document 21