How to grow Asian business for European customers Presented by Gauthier Siau, 19 November 2016

Group Structure (Commercial) Who is Alsico? Group Structure (Commercial) Alsico Belgium Alsico France Alsico UK Altreva (Czech Republic) Alsico High Tech (EU + USA) Cindico (Morocco) Alsico Asia-Pacific (Thailand) Diep Vu (Laos) Union Micronclean (Thailand) Priontex (South Africa) General Information Start = 1934. Family-owned Group of companies: FAMINATIONAL Supplier in Europe, Asia, Africa and USA of industrial workwear and professional garment. T/O = € 230 millions FTE: 8.000 Production facilities in Morocco, Tunesia, Thailand, Laos, Ukraine, Bulgaria, USA, Madagascar… ----- Meeting Notes (26/03/15 11:05) ----- Mission & Vision To be a provider of professional workwear and cleanroom clothing worldwide.

(Aelvoet Siau Confection) Family history 1934 - 1947: First generation Mr. L. Aelvoet 1947 - 1982: Second generation Mr. G. Siau 1982 - today: Third generation Mr. P. Siau & Mr. B. Siau 2015 - today: Fourth generation Mr. V. Siau & Mr. G. Siau (Aelvoet Siau Confection) 3

Expansion history 1934 Alsico NV - Belgium 140 FTE 2005 UTE - Thailand 1975 Inter Coupe - Tunesia 500 FTE 2007 Manorvos - France 7 FTE 1992 Altreva – Czech Republic 200 FTE 2007 MDH - France 70 FTE 1993 Halbout - France 65 FTE 2007 PMC – South - Africa 70 FTE 1993 MC Worldwide – Taiwan, Thailand, Singapore 200 FTE 2008 Alsico UK - UK 60 FTE 1995 Cindico - Marocco 2200 FTE 2010 Diep Vu - Laos 830 FTE 1996 La Vie en Pro - France 5 FTE 2010 Alsico Duitsland - Germany 3 FTE 2000 Ukrakov - Ukaine 550 FTE 2011 Vestilab - Spain 45 FTE 2001 Beltex - Bulgaria 220 FTE 2013 Molinel - France 77 FTE 2001 Mamo/Proabi - Tunesia 150 FTE 2013 Meltemi - UK 60 FTE 2004 Gruson - France 10 FTE 2014 E-toile – Madagascar 300 FTE 2004 S.V.S. – France 20 FTE 2015 Euclid Vidaro – USA 80 FTE

Our products PPE garment: Hi Viz, FR, Chemical Protection, ESD, Military Workwear: Coats, Shirts, Coveralls, Trousers Basics: T-shirts, Polos, Socks, Caps Image garment: For professionals in Horeca and service sector. Made to measure service. Medical Garment: For all services of medical sector or Operating theater Cleanroom and cleanarea garments: For pharmaceutical, micro-electronic companies 5

WE CARE FOR YOUR CLEANLINESS

Our Customers Split by Type Split by Continent Laundries = 60% Distributors = 30% Direct customers = 10% Split by Continent EU = 70% Asia – Pacific = 20% Africa = 7% USA = 3%

Our Core Strategy Type Basic garment Technical garment Corporate Identity Main key to success? Cost Technical Know-How Creativity How to excell? Supply Chain Human Capital

Our Supply Chain Proposal to our Customers Sampling and express deliveries (repairs): in country Quick and small runs: close-by delocalisation. Max 1 to 2 weeks transport Magreb countries/Eastern Europe for EU Wages = medium Flexibility Leadtimes: 5-8 weeks Bulk volume : far-away delocalisation. 5- 6 weeks transport Asia and Madagascar for EU Wages = low Less flexible Leadtimes: 11-17 weeks

From defensive to offensive delocalisation Defensive delocalisation: MUST Need for cheaper production Tunesia in 1975, then Eastern-Europe, Morocco, Thailand, Laos, Vietnam and Madagascar. Next one is Mexico for USA How to choose a good country?: Duty regime for import back to EU Labor wage Logistical flow, easy access of raw material and easy exit of finished goods. Offensive delocalisation: Selling into the localLY Production company must be mature Rising wages in country, but ALSO RISING MIDDLE CLASS!! --> Opportunities! NO choice : Czech Republic and Thailand

Case study Thailand 1996: start Thailand as defensive delocalisation. Production of workwear and cleanroom garments. 700 FTE 2012: big problem Minimum salary from 167 THB/day to 300 THB/day Strong THB vs EUR TOO EXPENSIVE 2013: start offensive delocalisation Start looking for local sales in Asia Pacific Start build up sales team + backoffice Work closely with fabric suppliers to find customers 2017: Cleanroom garments sales in India, China, Thailand, Malaysia, Singapore, Australia Workwear and PPE garment sales in Thailand, Malaysia, Australia and Middle East. FTE = 1200 Sales Asia Pacific = 35 million USD.

Our last 6 years have been challenging but great!! Number of employees of Alsico

Our last 6 years have been challenging but great!! Number of pieces produced per week

Our last 6 years have been challenging but great!! Turnover of Alsico

Lean Management and JUST DO IT! Our key filosophy Lean Management and JUST DO IT!

Thank you!