ANNUAL REPORT 2015 - EXEL Industries€¦ · Patrick BALLU passes the baton to his son, Guerric...

WORLD LEADER IN PRECISIONSPRAYING SOLUTIONS

ANNUAL REPORT

2015

Agricultural spraying

Sugar beet harvesters

Garden spraying and watering

Industrial spraying

Contents

Our objective / Our values .02

Profi le .01

Message from the Chief Executive Offi cer .04

Governance .06

Strategy .08

International presence .10

Innovation .12

Our operations .14

.32Societal and Environmental Responsibility

.36Financial data


AGRICULTURE

.16


AGRICULTURE

.20


CONSUMER

.24

Industrial spraying

INDUSTRY

.28

The main business line of EXEL Industries is spraying, for

agriculture and industry. The Group also competes in the

consumer watering products market and in sugar beet harvesters.

EXEL Industries’ goal is to be a global leader in its markets and

to do so through constant innovation and an international strategy.

Since its founding, the Group has experienced signifi cant growth in

each of its markets, through organic growth or corporate acquisitions,

and so becomes either a worldwide leader or a key competitor.

Today, EXEL Industries is a worldwide leader in agricultural spraying

solutions and sugar beet harvesters, and one of the principal global

leaders in consumer watering solutions and industrial spraying solutions.

A Leader in each of its markets

€725.2 mrevenue

3,677employees, including

52.4% outside France

and 98 apprentices

200patent families

.

Revenue breakdown

14% consum

er

19% sugar beet harvesters

2

7% in

dust

rial s

praying

40% agricultural spraying

EXEL Industries GroupAnnual report 2015 01

EXEL Industries Group Profi le

Our objective:to spray the right dose in the right place at the right time.

199446Vincent BALLU invents and builds on his own the prototype of the fi rst “high-clearance tractor”.

1998877EXEL group formed and acquisition of BERTHOUD, the top company in France in sprayers for farm and garden, along with its subsidiaries SEGUIP, THOMAS and PERRAS.

119980Patrick BALLU succeeds his father and TECNOMA produces nearly 80 million francs (€12.2 million) in revenue.

199522TECNOMA created by Vincent BALLU: high-clearance tractors and agricultural precision sprayers.

19988666The Epernay plant is modernized, new line of agricultural sprayers. Takeover of RAM and CARUELLE in the Orleans area and NICOLAS in Agen.

1999900Acquisition of PRECICULTURE, the French leader in agricultural self-propelled sprayers.

1999966Diversifi cation into industrial spraying with the acquisition of KREMLIN, the French leader in painting equipment.

History

The quality of our costumer services is a precondition to the Group developmentand lastingness.

Customer care

1Innovating means bringing our Customers new answers that serve their real – but sometimes unspoken – needs.

Love of product, Innovation

2Aiming at excellence means always striving to improve our offer in order to grow our customer base.

Excellence, Professionalism

3Allow each employee to take the initiative in quickly responding to high or urgent stakes.

Trust, Initiative

4

Being transparent means daring to tell each other everything and accepting to listen to everything, in the respect of others.

Frankness, Transparency

5Lasting success isalways a collective.

Team spirit

6Everyone is an Group’s Ambassador, internally as well as externally. Both inside and outside the company.

Pride of belonging

7Improving our environment andquality of life.

Corporate responsability

8

Our values

2000Acquisition of EUROTEC followed by REXSON in industrial spraying.

19997The EXEL Group takes the corporate name of EXEL Industries and is traded on the Paris Bourse’s Second Market.

KremlinRexson

RAM

Hardi

HozelockExel

Capagri

Sames

Matrot

Vermorel

BerthoudCaruelleNicolas

Préciculture

Evrard

Tecnoma

Hozelock

Tricoflex

Fisher

Agrifac

CMC

Holmer




Industrial spraying

Federation of dynamic companies


EXEL Industries Group Our objective / Our values

Nevertheless, your revenue was aff ected by this crisis?In 2014-2015, our Group generated a revenue of €725 m, almost three-quarters of the international revenue. The global crisis in the Agricultural Spraying market drove down the Group’s revenue by €50 million, which essentially came from agricultural spraying and in France. The Agricultural Spraying activity represents 40% of the Group’s consolidated revenue.However, in this troubled economic situation, our Group succeeded in maintaining its level of profi tability at 7% (Current Income from Operations as a proportion of revenue) and reducing the debt by €20 m, while continuing to invest.

Which fields will you invest in?Our aim is to become a world leader in each of our markets. Consequently, we are investing in innovation and in our production tools. Our development is achieved through a permanent innovation of our products, processes and our organisation.

How did the EXEL Industries Group overcome the crisis in agriculture? The EXEL Industries group experienced a 2014-2015 year of contrasts with a very substantial crisis in agricultural spraying while, at the same time, the other activities – Beet Harvesting, Garden Spraying and Watering, and Industrial Spraying – made progress on their markets.We continued to organise ourselves by improving our processes, and by equipping ourselves with tools that allow for a better appreciation of our activities to be had and, thus, enable us to take the most appropriate decisions. Among the measures taken this year to limit the effect of this crisis, we very substantially re-organised all the Agricultural Spraying companies.

To give us the means to develop and to invest,

the whole Group is dedicated to improving

profi tability and the “supply chain”.

Our sources of growth are mainly on international

markets, and more specifi cally in the United

States and in Asia. We are studying all the means

to develop in these two areas that are strategic

and promising for our activities. Today, more

than 52% of our Group’s employees are already

working in our international subsidiaries.

How do you see yourself in the near future?Our strategy is based on Internationalisation,

Sustainable and Profi table Growth and Innovation

with new products that provide savings, comfort

and productivity for our customers, while

enabling them to better protect the environment.

We are proposing new sprayers which make it

possible to reduce consumption of fuels and

phytosanitary products in agriculture, paints

and solvents in industry, to better control

consumption in watering by the general public,

and to continue to improve the quality of beet

harvesting with even more effi cient machines.

Inevitably this will take place by the use of

increasingly connected machines, enabling our

customers to obtain even more relevant and

rapid information.

Our Group is fi nancially robust and has signifi cant

growth capabilities.

We have proven our ability to overcome crises, in

2008 in industry and in 2015 in agriculture, and

our Group always comes out of these situations

stronger and prepared for new developments.

Our objective is to achieve a revenue of a

billion euros, while continuing to increase our

profitability, always in our businesses. This

objective will be achieved by organic growth

and also by external growth. The road is of little

importance, it is enough to have the will to arrive.

Guerric BALLUManaging Director of the Group

Message from the Managing Director

We have the will to become a world leader on each of our markets and each of our activities.

Wa

200111Patrick BALLU passes the baton to his son, Guerric BALLU, as CEO of the EXEL Industries group, whose revenue at that time amounted to €430 million.

220001Acquisition of SAMES, number 2 worldwide in electrostatic industrial spraying. Acquisition of MATROT Equipements, a specialist in self-propelled spraying and in sugar beet harvesters.

22000077Acquisition of MOREAU, the French leader in sugar beet harvesters.

Acquisition of the Danish group HARDI, number 2 worldwide in agricultural precision sprayers. With this acquisition, EXEL Industries consolidates its global leadership in agricultural spraying.

20013Acquisition of the German group HOLMER, the historical leader on the sugar beet harvester market, with a global presence. EXEL Industries achieve a revenue of €775 million.

In its Consumer operations, EXEL Industries acquires the English group HOZELOCK, a major European maker of gardening equipment (sprinkling, watering, spraying).

Acquisition of TRICOFLEX, a specialist in technical hoses.

2200122Acquisition of AGRIFAC, a Dutch company specializing in agricultural spraying and sugar beet harvesters.


EXEL Industries Group Message from the Chief Executive Offi cer

This Committee is comprised mainly of Managing Directors of Group

subsidiaries. Four Strategic Committees are responsible to think and

to decide on strategic decisions on the broad guidelines to be adopted

by activity (Agricultural spraying, Beet harvesters, spray and watering

Consumer and Industrial spraying).

The Board of Directors, aims fi rst and foremost to develop the company, to adopt major

strategies and monitor their implementation, verify the reliability and accuracy

of information pertaining to the Group and protect its corporate assets. Guerric BALLU

Chief Executive Offi cer,EXEL Industries group

1 Patrick BALLU,

Chairman of the Board of Directorsof EXEL Industries

2 Guerric BALLU,

Chief Executive Offi cer of EXEL Industries group

3 Marc BALLU,

CEO of HOZELOCK and HOZELOCK EXEL, Chairman of TRICOFLEX

4 Marie-Pierre du CRAY-SIRIEIX,

Representative of EXEL SAS company, Group Chief Legal Offi cer

5 Marie-Claude BERNAL,

Independent Director

6 Claude LOPEZ,

Representative of JUMP’TIME company,Independent company Director

The board of EXEL Industries is entrusted to a Board of Directors composed of six members,including two independent directors.The Board of Directors sets the Company’s business priorities, ensures their implementation and performs the controls and verifi cations it considers appropriate.

The Board meeting of April 22, 2011 decided to modify corporate governance procedures involving a separation of the powers of Executive Management: the Chairman of the Board of Directors and the Chief Executive Offi cer.

The Board of Directors meets as often as is necessary in the interest of the company.

The Audit Committee, under the chairmanship of Ms. Marie Claude Bernal, Independent Director, is responsible for ensuring monitoring of the following, in particular:

• the process for producing fi nancial information;

• the effi ciency of the internal control systems;

• the identifi cation and audit of risk management;

• the statutory audit by the Auditors of the separate parent company and consolidated fi nancial statements;

• the independence of the Statutory Auditors and the quality of the information received.

The Boardof Directors Management Team

Sébastien TREMBLAIS

CEO of BERTHOUDAgricole

Wolfgang BERGMANN

CEO of HOLMERMaschinenbau Gmbh

Cédric PERRES

strategic facilitator “Industries”.

CEO of SAMES

Laurent de BUYER-MIMEURE

CEO of TECNOMA Technologiesand CMC

Marie-Pierre du CRAY-SIRIEIX

Group Chief Legal Offi cer

Sylvain ROUSSEAU

Group chief Financial Offi cer

Philippe BESANÇON

Group Human Ressources Coordinator

Sten KJELSTRUPstrategic facilitator “Agricultural Sprayer”.

CEO of HARDI International

Daniel TRAGUSstrategic facilitator “Beets”.

Chairman of HOLMER,MATROT, CARUELLE NICOLAS, AGRIFAC Administrator, Executive Vice-Chairman of HARDI International

Marc BALLUstrategic facilitator “Consumer”.

CEO of HOZELOCK of HOZELOCK EXEL,Chairman of TRICOFLEX

Dominique LAGOUGECEO of KREMLIN REXSONand PRECICULTURE,Chairman of VERMOREL

1 2 3 4

5 6


EXEL Industries Group Governance

Innovation, sustainable and profitable growth

and international development are

the foundations of the Group’s development.

GROUP STRATEGY

The EXEL Industries group was built in

Europe by consolidating small SMEs,

all of which were highly innovative in their

own markets.

The Group strives to maintain the company

culture of each subsidiary in the Group,

which gives us an in depth knowledge of

the market and of customers - provided by

proximity, fl exibility and great responsiveness.

The Group’s growth drivers are largely

international, and EXEL Industries is

determined to keep developing a strategy

of innovation and a policy of sustainable

growth, to be a leader on all continents.

Founded on the basis of strong human

values, EXEL Industries will continue

its trajectory of growth guided by

these principles.


EXEL Industries Group Group Strategy

Agriculture

Consumer

Prod

uctio

nSa

le

Sugar beet

Industry

International presence

EXEL INDUSTRIES GROUP

Our focus on international expansion has resulted in market share gains

and acquisitions, the opening of new subsidiaries in growth markets, the higher

professional standards of our local teams and the launch of new products

specifi cally adapted to each market.

54subsidiaries

5continents

28countries

THE AMERICAS EUROPE ASIA - AFRICA - AUSTRALIA - CIS

€75.0m revenue

€530,4 m revenue

€119.8 m revenue

6sites

38sites

11sites

10.4%of total revenue



The Australian subsidiary of AGRIFAC that opened last year employs nearly ten people. The fast-growing team covers almost the whole of Australia. The Australian market holds great potential for AGRIFAC.

HOZELOCK is expanding and investing in new markets, notably Australia, where it opened a subsidiary in the last fi scal year.

HOLMER Maschinenbau continues to expand internationally: a new subsidiary has opened in Turkey, a high-potential market in terms of sugar beet farming.

The joint subsidiary KREMLIN REXSON SAMES in the USA achieved 2014-2015 revenues signifi cantly above the previous year, which lay behind the growth in the industrial precision spraying solutions business.

AGRIFAC AUSTRALIA

HOZELOCK AUSTRALIA

HOLMER TURKEY

KREMLIN REXSON SAMES USA


EXEL Industries Group International presence

A Group driven by innovation


The EXEL Industries group built its market

leadership position thanks to innovation:

it all began with Vincent Ballu’s invention

of the high-clearance tractor.

The principal subsidiaries all have research laboratories and R&D teams, working on the development of new products.

The growth of the Group has been driven by a strategy of constant innovation, to offer customers unique, effective, competitive products that are simple to use.

To stay innovative, the Group has integrated a great many skills from a variety of disciplines within its teams — mechanical engineering, hydraulics, electronics, fluid mechanics and electrostatics — and mastered a great many manufacturing processes, such as mechanical welding, rotational casting, plastic injection, lasercutting and machining.

The Group designs all the machines and products that it assembles in 20 plants and can subcontract certain components to outside suppliers, which makes it possible to handle seasonal spikes or spurts in demand.

There are two parallel innovation processes in the Group: Planned innovation is an incremental, organized process referring to very precise specifi cations drawn up by the sales force so as to offer innovative solutions through the use of our products, such as the creation of a new line of higher-capacity machines.

Spontaneous innovation, which is the result of our regular contacts with customers, inspiring ideas about ways to improve our products. A simple, effective organizational structure of the Group’s R&D teams allows us to test ideas rapidly, in the fi eld, and to perfect and patent them. This process leads to disruptive innovations.

The principal subsidiaries all have research laboratories and R&D teams working on the development of new products. Every year the Group devotes about 5% of sales revenue to R&D, and 6% of the Group’s personnel are directly involved in the innovation process. Three to six patents are registered every year, and the Group thus owns over 200 active patents. .

INNOVATION INDUSTRIAL SPRAYING

INNOVATION AGRICULTURAL SPRAYING

Delta Force spray boom:adapts perfectly to uneven ground thanks to its trifoldingdesign.

Togrewithydelemawelas

neven ground nks to itsldinggn.

INNOVATION GARDEN SPRAYING AND WATERING

Ultra Twist:a spray gun and a lawn wateringsystem, changing from one to the other with a twist of the wrist.

Airless Skill:new nozzle generation fi ner spray.

ra Twist:y gun and

n watering

INNOVATION SUGAR BEET HARVESTERS

AutoFill:laser detection system allows lorryloading to be automated.


EXEL Industries Group Innovation

Our operations


AGRICULTURE

1616page

Sugar beetharvesters

AGRICULTURE

2020page

Garden sprayingand watering

CONSUMER

2424page

Industrialspraying

INDUSTRY

2828page


Our operations


AGRICULTURE The businessAgricultural spraying consists of protecting and improving crop yield by applying the right dose of product in the right place at the right time.

Optimizing the use of pesticides requires increasingly precise and effi cient application, so that it protects only the plant and prevents any dispersion of sprayed products.

Thanks to ongoing innovation of its precision sprayers, EXEL Industries provides manufacturers with spraying methods that are more and more adapted to new environmental practices and measures.

From its central involvement in the world’s food issues and as one of the leaders in agricultural precision spraying solutions, EXEL Industries has a major role to play. Continuously increasing effi ciency in order to spray the right dose, in the

right place at the right time through ongoing innovation.

Thanks to the performance of existing equipment and to the development of new sprayers, EXEL group companies contribute and will continue to contribute to boosting agricultural output by improving the quality of crops, while reducing the environmental impact.

StrategyEach company is responsible for its own brand, which is marketed through independent networks of approved distributors who handle the sales and after-sales service of our sprayers.

This strategy allows the Group to ensure a presence in all of the world’s major agricultural

regions (Europe, CIS, the Americas, Asia and Australia), where agricultural productivity is at high levels.

EXEL Industries’ potential for growth lies in increasing its market shares in regions where the Group already operates and developing new products, as well as exploring geographical regions where yields are not yet at European levels but that have signifi cant land reserves.

The Group’s development on all continents also enables it to limit the risks of regional climatic variations on its businesses. .

“World population growth and

dietary changes in developing

countries are going to call for

a 70% increase in agricultural

production by 2050.*”* Source FAO

The EXEL Industries group is one of the worldwide leaders in agricultural

spraying equipment through its portfolio of brands: HARDI, EVRARD,

BERTHOUD, TECNOMA, CARUELLE, NICOLAS, SEGUIP, THOMAS,

MATROT, CMC and AGRIFAC. EXEL Industries has a wide range of

sprayers designed to protect and to improve agricultural productivity,

whether it is for small or large-scale crops, cereal crops, vines, market

gardening, fruit trees or tropical crops.

We are experts in spraying the right dose: in the right place at the right time.


Our operations Agricultural spraying

Strong development in ChinaFollowing on from the sale of vine sprayers and some 20 mounted sprayers, TECNOMA has delivered fi ve self-propelled sprayers to China. The local team, which has just been strengthened, is pursuing its sales development by intensifying its training activity for its network of partners.

China sales: CCC certifi cation for BERTHOUDBERTHOUD has become the fi rst French sprayer manufacturer to obtain CCC approval, certifying that its products sold in China comply with current international standards.This approval is in keeping with the Group’s development strategy for a country of enormous potential.

Learning to control your environmentTECNOMA has offered to share its expertise in spraying by organizing demonstration and training days on subjects ranging from nozzle choice and meteorological conditions, to the optimal use of sprayers.As a result, experts and users were able to discuss best practices to be implemented in order to boost operating performance while limiting environmental impacts.In addition to this training, the second professional handbook has just come out and addresses these issues in particular.

HARDI’s new Delta ForceHARDI’s new Delta Force spray boom adapts perfectly to uneven ground thanks to its tri-folding design and pendulum suspension. Trailer movement in the field is completely safe thanks to system which locks the boom in position. Folding and unfolding of the boom is hydraulically controlled for a smooth and gentle opening/closing mechanism.

AGRIFAC AUSTRALIAIn 2014, AGRIFAC launched the Condor Endurance on the Australian market. This self-propelled sprayer was specifi cally developed to meet the requirements of the Australian market (a high spraying capacity, the sprayer has an 8,000 liter capacity tank). Since the fi rst Condor Endurance arrived in Australia, many others have followed.

360° control for the STILLA 460The new trailed sprayer from Caruelle Nicolas, the “STILLA 460” has functionalities that simplify work on a daily basis and provide genuine control over spraying.The farm management/fi eld log settings, the import-export of data, real time information reporting are just some of the innovative features which made a big impact at SIMA 2015... the show at which the STILLA 460 was chosen as 2015 machine of the year in the sprayer category.

INTERNATIONAL

NEW PRODUCT

ENVIRONMENT

AWARDS

The MATROT Falcon: a giant opportunity for the export market... and for France!An over-sized chassis, an XL cabin, a large capacity tank (6,000 liters) and a powerful engine. Those are the defi ning characteristics of the Falcon, the new self-propelled sprayer from the MATROT Equipements range. Designed for export and the great plains of the American continent, the Falcon is also winning hearts in Eastern Europe. It will soon be doing so in France, where it will shortly go on sale.

2015 Event

AGRIFAC EVRARD collaboration AGRIFAC’s trailed sprayer, Milan, is back on the market! The manufacturing of the Milan is an example of the way in which EXEL Group companies work together. AGRIFAC is responsible for design and technology and HARDI Evrard is in charge of assembly and manufacture. The fi rst AGRIFAC trailed sprayers were delivered to its customers in June 2015.


Our operations Agricultural spraying

Leader in a consolidating market.Sugar beet

harvesters

AGRICULTURE

The businessIn 2013, HOLMER added to the existing activity in the Group through its MATROT, MOREAU and AGRIFAC brands.

HOLMER develops, manufactures and markets three product lines:• A full line of sugar beet harvesters for a wide

variety of applications• Cleaner-loaders for cleaning and loading beets • High-capacity carriers used for logistics in the

fi eld

The sugar beet harvesters are used by agricultural production companies, farmer co-ops, large-scale farmers and agricultural holding companies. Sales are in the main made directly or through dealers.

Cleaner-loaders are used by contractors who work for sugar operators. Sales are made directly to

the contractors, on recommendation by the sugar

operation.

The Terra Variant high-capacity carriers are used to

transport sugar beets or grains from the harvester

(picker or reaper) to the fi eld’s edge or directly

into the truck. They also act as high-capacity

spreaders of liquid or solid manure.

StrategyThe strategy of EXEL Industries’ Beet Harvesting

division is based on its strong ability to innovate

and to identify high value-added markets.

Innovation is central to HOLMER Exxact’s product

policy. Three patents were fi led during the period

that, in particular, offer greater fl exibility in the use

of machines and enable more effi cient harvests.

Sales development intensifi ed, targeting markets

according to our product lines.

For tanker harvesters, two large markets remain

to be converted: the USA and Turkey.

For the Terra Variant line – high capacity carriers –

efforts are focused on Europe, with the priority on

France, Great Britain and Denmark.

“In 2015 HOLMER Exxact

has consolidated its

position in sugar beet

harvesting and developed

a line of high-capacity

carriers: Terra Variant.”

In 2013, following the acquisition of the German

company HOLMER, the EXEL Industries group

became the leader in the sugar beet harvester

market, with more machines in use than any

other company in the world.

EXEL Industries GroupAnnual report 2015 2120 2120

Our operations Sugar beet harvesters

The T4-30, the ultimate sugar beet harvesterAll of the top of the range harvester technology of the Terra Dos T4-40 can now be found in the T4-30. This new model and those in the T4 range has all the innovative features that have made the high capacity harvesters so successful (EasyConnect, EasyHelp, etc.).

HOLMER invests in a new logistic warehouseHOLMER has just invested in 10 ha of land, with an option for a further 4 ha, located a few kilometers from its historic Eggmühl site. The logistics center and workshop for renovating used machines will be based at the site, which will eventually enable all the company’s different parts to be brought together.

INVESTMENT

NEW

EasyHelp: a remote communication systemThe EasyHelp system is a remote maintenance system which collects operating data. The customer, or HOLMER customer services, is in permanent communication with the sugar beet harvester via a GSM link. EasyHelp allows instant diagnostics of the way the machine is operating, the identifi cation of possible problems and decisions to be made about parts to be replaced.

EasyLift: accuracy all the way to liftingHOLMER is revolutionizing the world of sugar beet harvesters thanks to the EasyLift system. Integrated with the onboard computer, it continuously measures the crest and size of the sugar beets and thus adjusts the share height in order to facilitate their lifting.

AutoFillThe AutoFill laser detection system allows lorry loading to be automated by the Terra Felis 2 beet cleaner loader. Empty spaces within the tank are reduced to a minimum and the sugar beets are carefully positioned. AutoFill is an indispensable tool for optimizing loading.

2015 Event

HOLMER Exxact in FranceThe French company HOLMER Exxact has become a subsidiary of HOLMER Maschinenbau. HOLMER Exxact’s role is to market all of the sugar beet harvester range together with the Terra Variant models. It also renovates used machines, caries out after-sales activities and distributes spare parts.

REORGANIZATION

HOLMER sets the world record for harvesting sugar beetsShortly before Agritechnica 2015, HOLMER demonstrated that its Terra Dos T4, with its 12 row lifting capability, can revolutionize sugar beet harvesting. How many sugar beets can be harvested in 24 hours? At midday on September 28, 2015, a small team from HOLMER tried to answer this question in a fi eld in northern Germany. 24 hours later, they had harvested 85.6 hectares of sugar beet, in other words, 6,000 metric tons of sugar beet or 332 million sugar cubes.

HOLMER Terra Dos T4 awarded machine of the yearFor the second Agritechnica edition, HOLMER has been awarded machine of the year 2016. This price, granted by jury of european journalist, rewards Terra Dos and his 12 row harvesting system.

PRIZE


Our operations Sugar beet harvesters


CONSUMER

The activity: a dynamic marketAccelerating urbanization means that consumers increasingly consider their garden, terrace or balcony as another separate living area, a place where they can also enjoy their hobby, or even their passion, of gardening.

The growing number of older people in employment, combined with returning consumer confi dence, has resulted in increased expenditure on gardening products throughout Europe, particularly in the areas of watering and plant protecting.

StrategyEXEL Industries group’s strategy for the garden spraying and watering operations is based on three major elements: reinforcing the brand portfolio, conquering new markets and improving internal processes. Our ability to innovate allows us to strengthen our leading position with respect to professionals and “general public” consumers, particularly by offering differentiated premium brands.While all of the brands are available internationally, the growth strategy is focused as a priority on European markets.An optimized approach to quality enables the garden spraying and watering business to increase not only customer satisfaction but also improve its profi tability.

HOZELOCK : “Gardening For Life”

COOPER PEGLER : “Spraying Technology”

TECNOMA : “The pleasure of gardening”

LASER INDUSTRIE :“Spraying Solutions”

Through its HOZELOCK, BERTHOUD, TECNOMA,

LASER and COOPER PEGLER brands,

the EXEL Industries group offers innovative

and quality watering and plant protection

solutions to gardeners and professionals.

Worldwide leader in watering and plant protection.


Our operations Garden spraying and watering

Aquasolo, made in France, is going international under the HOZELOCK brandFollowing the purchase of Aquasolo in early 2014, HOZELOCK EXEL repatriated the assembly machines for ceramic cones and blister packaging. This total control over manufacturing the fi nished product will make it possible to relaunch the product line internationally through the network of subsidiaries and distributors in the EXEL Industries Consumer division.

EXEL Gsa becomes HOZELOCK EXELSince the acquisition of HOZELOCK in 2012, EXEL Gsa has marketed all products of that name. By changing the corporate name on September 1, 2014, the new company, HOZELOCK EXEL, has announced its strategy to its customers and the industry press.The principal business lines of HOZELOCK EXEL are now sprayers, garden pumps and watering products.The international renown of the HOZELOCK brand can be expected to benefi t the HOZELOCK EXEL Company, particularly with the support of its reorganized network of subsidiaries and distributors to boost sales of HOZELOCK EXEL sprayers and garden pumps.

Vermorel Electrique V3000: High-Tech for this agricultural sprayerIn October 2014, HOZELOCK EXEL introduced a disruptive innovation in the professional electric sprayer market with its new Vermorel 3000. Using a lithium ion battery and an electronic board, the Vermorel 3000 provides constant pressure throughout the spraying job.

Green Power Thermal Weeder: makes things hot for weeds!How do you get rid of weeds without chemicals or spending hours pulling them out by hand? By using the Green Power Thermal Weeder.

This alternative solution comes from a thermal jolt (600°C) that destroys weeds in seconds and keeps the garden safe for children and animals.

The Pico Reel, or how to add color to your fl ower boxesPico Reel, the complete watering kit by HOZELOCK, is perfect for patios and balconies and this year comes in fashionable colors – pink, violet and lime green. This new design adds color to outdoor work and makes a practical gift at any time of year.

Ultra Twist, for ultra fl exible wateringThe Ultra Twist 2-in-1 is both a spray gun and a lawn watering system, changing from one to the other with a twist of the wrist.

The three types of spray it provides make the Ultra Twist 2-in-1 an indispensable watering accessory: one spray for washing the car, another for plants and a third for the garden (up to an area of 69 sq. m.)

REORGANIZATION

NEW PRODUCT

NEW PRODUCT

2015 Event


Our operations Garden spraying and watering

Industrial spraying

INDUSTRY The business: complementary business linesThrough its companies KREMLIN REXSON and SAMES, the EXEL Industries group offers equipment for distributing and applying paints (liquids and powders), glues, adhesives and lubricants.

TRICOFLEX, specializing in the manufacture of technical pipes, is a company that plays an important role in our Industrial spraying business.

Renowned in the fi eld of dust-elimination by spraying, RAM solutions are aimed at any industry that emits dust, whether it be from minerals or food.

To stay ahead of increasingly aggressive competition, EXEL Industries group companies focus on innovation and differentiating technologies. They develop complete lines of pumps, machines, reinforced hoses and applicators, whether manual, automated or robotic. These products enable our customers to improve their productivity signifi cantly through increasingly accurate spraying, while protecting the environment and operator health.

StrategyAs a major player in the automotive, aerospace, rail and agricultural machinery markets, the Industry division continues its strategy of expanding in high value-added markets (food, health and renewable energies), as well as in emerging countries.

Major ongoing investment in research enables the Group to be a constant creator of value through innovation. In this way it has created long-term growth for itself, made more secure by numerous international patents.

All product lines are marketed through the Group’s numerous subsidiaries worldwide.

Strengthening our Chinese and Latin American subsidiaries, as well as opening two new entities in Japan and the Republic of Côte d’Ivoire, will let us support our customers closely. .

“Increasingly precise application, while protecting the environment and the health of the operator.”

The Industrial spraying business provides its customers with

integrated solutions and services in the areas of protection,

fi nishes, lubrication and pollution clean-up. It operates in

a variety of markets: wood, metal and plastic but also glass,

leather, minerals and foods.Strengthen our customers’ competitiveness and image through innovative products and services.

EXEL Industries GroupAnnual report 2015 2928 2928

Our operations Industrial spraying

Volkswagen Poznan, a customer with high standards Always on the cutting edge of manufacturing processes, SAMES has automated for Volkswagen the application of paint to the interiors of its commercial vehicles.

Since summer 2014, two fully-fi tted Accubell stations have been at work at the automaker’s plant in Poland.

SKILL nozzlesKREMLIN REXSON is marketing its new generation of Skill airless nozzles. Combining all the know-how of KREMLIN REXSON, they handle the changes that have occurred in paints used in fl atbed and profi le automatic spraying installations, as well as where air-atomization is not recommended.

NEW PRODUCT

PRESENCE

2015 Event

SUCCESS STORY

KREMLIN REXSON and SAMES: a GLOBAL presence as of 2015 Accurate, customized responses with local, high-quality service, thanks to a regularly trained, skilled global network.” This is what makes KREMLIN REXSON and SAMES more than just a supplier to the companies they support.

“Exhibition, training, testing...an essential customer proximity.”

Expansion of SAMES headquarters SAMES expanded its plant by constructing a new 3,500 sq. m. building. Cost of the investment: €2.5 million.

Since January, the Meylan site has had a dedicated platform for pre-installing surface

preparation lines before a product is sent to the customer, ensuring rapid delivery to the fi nal production site.

In the interests of effi ciency, the site’s traffic flows and supply chain were completely reconfi gured.

INVESTMENT

Nissan: from Asia, by way of EuropeAfter using KREMLIN REXSON and SAMES in Japan, NISSAN has extended its confi dence in them to increase its productivity in Europe.

The Sunderland, England plant, which in particular produces the Juke, is now equipped with a KREMLIN REXSON SAMES undercarriage gluing station and a painting line.

London Cab, start of the art in the streets of LondonKREMLIN REXSON equips the windshield

assembly line of the London Taxi Company.

The trio of a “Thor pump with a Rex Flow

temperature regulation booth and high-

speed extrusion spray gun” was chosen for

its fl exibility and ease of application.

NANOGUN-MVNANOGUN-MV is the new low-pressure electrostatic spray gun by SAMES. It is equally useful in the wood, agriculture, construction and automotive markets. NANOGUN-MV’s 488 grams make it the lightest spray gun on the market. It provides optimal results both in terms of fi nish and low production costs, thanks to a paint transfer effi ciency 30% greater than conventional spray guns.


Our operations Industrial spraying

Respect for and development of each person; success of allOur long-term growth is based on our people and our fl exibility: changes in headcount are due solely to people joining and leaving, since the Group’s scope was unchanged this year. There has been little change despite the various workforce restructuring plans in the agricultural precision spraying solutions business: reduced activity has been absorbed by the high reduction in the number of temporary employees in this sector.

The human scale of the Group allows the senior management team to be physically present in the fi eld, showing the importance we attach to each person, in all countries in the world. The Group is becoming more and more international, with a great majority of its manpower in Europe and employees working on every continent.

Assistance to our people throughout the world takes the form of signifi cant training activities.

The Group’s overall policy is to manage its employees with regard only to their abilities, without regard for gender, age, disability, ethnic group, religion, sexual orientation, political opinion, health, marital status, etc. Women in the Group have the same access as men to managerial positions.

As a matter of ethical principle, the Group, which is a family business, scrupulously honors the fundamental rules governing Human Rights.

Our companies integrated into local socio-economic lifeThe organization of the Group comprises a union of medium-sized enterprises which, along with respect for local cultures, has historically favored locating our sites in rural areas and integrating them into local industrial life and society.

In these rural areas our companies often play a predominant role. Aware of this responsibility, we become very locally invested.

Relations with our local business partners are marked by respect and high standards in terms of their own societal practices.

Innovation helping the environmentRespect for the environment is the fundamental approach at EXEL Industries and we are proud to work in business sectors that are closely linked with this concept.

In itself, our business has a limited impact on the environment. Every Group company takes concrete steps to reduce its environmental impact. We have made numerous industrial investments in this area.

It is chiefl y through the products that the Group offers its customers that we are most signifi cantly involved in protecting the environment.

Technical developments in precision spraying equipment fall within the Ecophyto 2018 action plan, set up by the French Minister for Agriculture following the Grenelle Environmental Forum, which aims to reduce the use of phytosanitary products in France by 50% by 2018 and to reduce the risk to operator health.

Societal andEnvironmental Responsibility


Each of the Group’s companies is independently responsible in

terms of HR practices, and its social and environmental projects.

Nevertheless, a general CSR theme is clearly discernible, a refl ection

of one of the Group’s core values: “Acting responsibly.”

Our family business carries strong human values.Guerric BALLU


EXEL Industries Group Societal and Environmental Responsibility

Various actions taken to improve the environment

Examples of steps taken: Water recycling system for agricultural machinery tests;

Installing domes which reduce the need for artifi cial lighting;

Construction of an industrial building of 3,400m2 in compliance with French RT 2012 standards;

Installing a platform for dumpsters in order to improve waste sorting;

Investments to improve water usage and awards for reductions in water consumption in sanitary facilities;

Reduction in raw materials by reducing waste;

Purchase of storage tanks and ventilation hoods;

Plumbing works to enable water savings.

Plant protection Air-assisted spraying that will enable drift from the sprayed products to be very signifi cantly reduced (Twin);

Filling management system which prevents tank overfl ow and assists the operator to adjust the sprayer (Novafl ow);

Filling the sprayer’s main tank via an intermediate tank to avoid any risk of contamination (O’Clear);

Developing GPS use to record sprayed areas and avoid double spraying in these areas;

Electric weeder that destroys weeds by creating a thermal shock (Green Power).

Materials protection Increased “transfer effi ciency” (proportion of paint applied to the target).

Reduced use of solvents for cleaning paint-application equipment.

France

Europe outside

France

North America

Australia

Asia

CIS

South America

Africa

Breakdown of workforce by geographical area in %

A positive trend in the area of safety

20122013

20132014

20142015

19.32

25.07

24.47

30

25

20

15

0.42

0.45

0.39

0.5

0.4

0.3

Frequency rate

Severity rate

Slight increase in absenteeism

20122013

20132014

20142015

2.9% 3.0%3.3%

Annual consumption of water and energy Water usage in m3

20122013

20132014

20142015

98,904

84,51789,922

Greenhouse gas emissions downConverted into CO2 emissions(in m3)

20122013

20132014

20142015

27,641,436

32,050,298 32,121,081

2012 2013 2014

Yearly total hours of training per employee continually rising

France scope

For 2014, we recognized hours of training

across all the Group’s international businesses:

40,914 hours of training, or 10.8 hours

per employee

17,645 h 17,699 h

24,011 h

10.5hours per employee



47.6

39.5

5.22.6 2.7 1.8

0.5 0.2


EXEL Industries Group Societal and Environmental Responsibility

Fiscal Year 2014-2015


Group revenues were €725.2 million, vs. €775.4 million

last year. Growth in international revenues, which rose from

68% to 73% of sales.

Current Operating Income (COI) rose steadily from

2010 to 2014. In 2015, COI tracked revenue and went from

€54.6 million to €50.9 million, remaining at 7% of revenue. January 12, 2016:

Annual General Meeting

March 17, 2016:

Second-quarter sales

April 21, 2016:

First-half results

June 23, 2016:

Third-quarter sales

September 30, 2016 *:

Fourth-quarter sales

November 22, 2016 *:

Full-year results

2016 SCHEDULE

NYSE-Euronext Paris, compartiment B

Indices: CAC Mid&Small CAC Small 190

EnterNext© PEA-PME 150 index

ISIN/MNEMO/Reuters/Bloomberg: FR0004527638/EXE/EXEP.PA/EXE:FP

Close of financial year: August 31

Number of shares: 6,787,900

Par Value: €2.50

SHARE ID CARD

Arkéon Finance

Aurel-BGC

Crédit Agricole Cheuvreux

Gilbert Dupont

ID Midcap

Oddo Securities

Portzamparc

ANALYST COVERAGE

BALLU family: 76%

Floating: 24%

SHAREHOLDER BASE

20112012

20112012

20102011

20102011

20122013

20122013

20132014

20132014

20142015

20142015

Sales (in m€)

525.3

430.1

775.4725.2740.2

Current operatingIncome (in m€)

33.1

20.2

48.554.6

50.9

4.7%

6.3% 6.5%7.0% 7.0%

Assets liabilities

Simplified balanceSheet

33%Non-current

assets

31%Inventories

and work-in-progress

37%Other current

assets

44%Shareholders’ equity

21%Non-currentliabilities

35%Current liabilities

20112012

20122013

20132014

20142015

Shareholders’ equityand net debt (in m€)

212.3229.4

250.7

279.6

-4.7(-2.2% of gearing)

59.6(25.9% of gearing)

95.7(38.2% of gearing) 74.9

(26.8% of gearing)

Shareholders’ equity

Net debt

Current Operating Income

Current Operating Incomeas a % of sales

20112012

20102011

20122013

20132014

20142015

Net income(in m€)

26.1

13.1

3431.6

28.3

0.49

0.961.00

1.171.07

Dividends

Net financial debt(in m€)

160

-20F F F F F F FA A A A A A A

2008 2009 2010 2011 2012 2013 2014

0

20

40

60

80

100

120

140

62.6

36.3

60.3

12.5

24.2 23.4

12.5

35.8

-4.7

101.9

59.6

86.6

95.7

145.1

74.9

Key figures Share Valueat 12/15/2015:€63

Performanceof the stock, 1-year:+35.2%

Market capitalizationat 12/15/2015:€427.6m

Average number of shares traded per day:3,414

2014-2015 Dividend:€1.07

2010 2011 2012 2013 2014 2015

EXEL Industries on the Stock Market

70

60

50

40

30

20

10

0

EXEL Industries CAC Mid & Small

-4.7

*The new closing date of September 30 to be submitted for approval to the Shareholders’ Annual General Meeting of January 12, 2016, in case of approbation the publication will be release one month after.

3636

EXEL Industries Group Financial data

Headquarters: 54, rue Marcel Paul - BP 195 - 51206 ÉPERNAY - France

Administrative Headquarters: 52, rue de la Victoire - 75009 Paris - France

Tel.: + 33 (0)1 71 70 49 50 - Fax: +33 (0)1 71 70 49 53

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www.exel-industries.com

SAMES Technologies13, chemin de MalacherCS 70086, Inovallée - 38243 Meylan Cedex - France

Tel.: +33 (0)4 76 41 60 60Fax: +33 (0)4 76 41 60 90www.sames.com

KREMLIN REXSON150, av. de Stalingrad 93245 Stains CedexFrance

Tel.: +33 (0)1 49 40 25 25Fax: +33 (0)1 48 26 07 16www.kremlin-rexson.com

TRICOFLEX17, avenue Jean Juif51300 Vitry Le FrançoisFrance

Tel.: +33 (0)3 26 73 67 67Fax: +33 (0)3 26 73 67 50www.tricofl ex.com

RAM Environnement2, rue de l'Industrie - BP 245550 Saint-Denis de l'Hôtel France

Tel.: +33 (0)2 38 46 31 10Fax: +33 (0)2 38 59 15 28www.ramenvironnement.com

INDUSTRIAL SPRAYING

UK Head Office : HOZELOCK LtdMidpoint ParkBirmingham B76 1ABUK

Tel.: +44 (0) 121 313 4242

www.hozelock.com

HOZELOCK EXELZI Arnas Nord - BP 3042469653 Villefranche CedexFrance

Tel.: +33 (0)4 74 62 48 48 Fax: +33 (0)4 74 62 37 51www.exelgsa.fr

GARDEN SPRAYING AND WATERING

CAPAGRIRue Pasteur 59159 Noyelles-sur-Escaut France

Tel.: +33 (0)3 27 72 52 72Fax: +33 (0)3 27 79 52 61www.capagri.com

HOLMER Maschinenbau GmbHRegensburger Str. 20D- 84069 Schierling/EggmühlGermany

Tel.: +49 (0) 9451 9303Fax: +49 (0) 9451 3370www.holmer-maschinenbau.de

SUGAR BEET HARVESTERS

BERTHOUD Agricole1, rue de l’Industrie69220 BellevilleFrance

Tel.: +33 (0)4 74 06 50 50Fax: +33 (0)4 74 06 50 77www.berthoud.com

HARDI INTERNATIONAL A/SHelgeshoj Allé 38DK-2630 Taastrup Denmark

Tel.: +45 4358 8300Fax: +45 4371 3355www.hardi-international.com

TECNOMA Technologies54, rue Marcel Paul BP 195 51206 Épernay France

Tel.: +33 (0)3 26 51 99 99Fax: +33 (0)3 26 51 83 51www.tecnoma.com

VERMOREL3, Strada Pompelor - CP 100411Ploiesti, Jud. PrahovaRoumania

Tel.: +40 344 104 178Fax: +40 244 522 152www.vermorel.eu

CARUELLE NICOLAS2, rue de l’Industrie - BP 245550 Saint-Denis de l’Hôtel Cedex - France

Tel.: +33 (0)2 38 46 31 31Fax: +33 (0)2 38 46 31 00www.caruelle-nicolas.com

FISCHEREn Bovery A - Case Postale 184 CH-1868 Collombey-le-Grand Switzerland

Tel.: + 41 (24) 473 50 80Fax: + 41 (24) 473 50 81www.fi scher-sarl.ch

C.M.C1, rue Vincent Ballu 51200 ÉpernayFrance

Tel.: +33 (0)3 26 51 18 88Fax: +33 (0)3 26 51 83 51www.cmc51.com

MATROT Équipements116, rue des Pommiers60480 Noyers-Saint-MartinFrance

Tel.: +33 (0)3 44 80 66 33Fax: +33 (0)3 44 80 66 30www.matrot.fr

PRÉCICULTURE165, rue des Verriers51230 Fère ChampenoiseFrance

Tel.: +33 (0)3 26 42 40 51Fax: +33 (0)3 26 42 04 96www.preciculture.fr

AGRIFAC MACHINERY B.V.Eesveenseweg 158332 JA SteenwijkNetherland

Tel.: +31 (0) 521 527 210Fax: +31 (0) 521 517 328www.agrifac.eu

AGRICULTURAL SPRAYING

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ANNUAL REPORT 2015 - EXEL Industries€¦ · Patrick BALLU passes the baton to his son, Guerric...

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