SAPELMECA LEISTER FRANCE PRSENTATION SAPELMECA LEISTER FRANCE Pages

SAPELMECA LEISTER FRANCE PRÉSENTATION SAPELMECA LEISTER FRANCE Pages 1 & 2 Good morning/afternoon everyone. So I'll introduce you to the Sapelmeca company. At first, the company itself, and then, we will explain how we manage the new brand Leister : Weldy 14. 01. 2022 1

SAPELMECA LEISTER FRANCE PRÉSENTATION SAPELMECA LEISTER FRANCE Pages 3 Today I represent the Sapelmeca Society. I'm the general manager. Christophe Dubaut is the sales manager. He will present you later the management of Weldy products. 14. 01. 2022 2

SAPELMECA LEISTER FRANCE PRÉSENTATION SAPELMECA LEISTER FRANCE Pages 4 So a short presentation of Sapelmeca. ► Yves Rabu and Karl Leister founded Leister France in 1971. Leister France took the name of Sapelmeca a few years later. For more than 45 years, Sapelmeca has been specialized in the import and distribution of materials and machines for the processing of plastics in all their forms : plates, tubes, sheets, films, membranes, etc. . . for welding, retraction, drying, folding, polishing, etching, thermoforming, etc. Sapelmeca also offers specialized services (technical advices, demonstrations), ensures after-sales service within 48 hours and deliveries within 24 hours. The turnover of Sapelmeca in 2016 : 5. 2 millions € (92% of Leister products) One head office, three offices with stock and repair service Four showrooms in Paris, Lyon and Montpellier present the machines in operation, allowing you to carry out tests and tests on site with your own materials. Sapelmeca Team : 3 technicals demonstrator sales, 4 technical services repair aggree Leister, 3 commercial assistants 14. 01. 2022 3

SAPELMECA LEISTER FRANCE PRÉSENTATION SAPELMECA LEISTER FRANCE Pages 5 Some important dates : 1999: opening of the second agency, in Lyon, with showroom, and repair service 2014: opening of the third agency, in Montpellier, with showroom, repair service and sales department 2016: opening of the fourth agency in Lorient with showroom and repair service 2017: Start of Weldystore, our new online sales site page 6 And now… Welcome to Weldy-Store. com just choose, click and buy ! Christophe, can you tell us a little more about Weldystore ? For example, why did we choose Weldy products for the French market ? What kind of business problem we can have and of course what are our implementation and success factor ? 14. 01. 2022 4

SAPELMECA LEISTER FRANCE WELDY-STORE. COM Pages 7 1) Why Weldy for the french market ? ►competition from French physical companies but also and mainly from international companies via the web Weldy products have its place because first of all, most of physical french competitors (such as MDC not to mention them) use those chinese products (and say to customers that these are Leister products ! ) but also because there are many competitors in the webmarket (aliexpress, alibaba, amazon…) and chinese company such as Pages 8 NEICO TOOL one of the leader in manufacturing and suppliers of professional roofing products in china, Pages 9 or also FUZHOU LESITE, which by its name alone can be confused visually with the name of LEISTER … ! Pages 10 Today we can find all these products very easily on website wich are cheap but with low quality. For example you can find a hot air gun between 50 and 90 US Dollars, or a heating element at 9 US dollars only ! 14. 01. 2022 5

SAPELMECA LEISTER FRANCE WELDY-STORE. COM 1) Why Weldy for the french market ? ►business problem for sapelmeca Pages 11 But anyway, if our chance is that we can propose today an alternative to Leister products for a certain clientele and a certain market, our problem is to make the difference between Leister and Weldy (price, market, the way to sale…) So it is therefore essential and fundamental to remain attentive to the customer and to understand his request in order to be able to direct them towards Leister products or Weldy. Ø Leister brand is reserved for professional customers in the usual markets and an intensive use Ø Weldy brand is reserved for the small budget, low usage and occasional users or handymen 14. 01. 2022 6

SAPELMECA LEISTER FRANCE WELDY-STORE. COM Pages 12 2) Weldy : Implement & Success factor Well, it would be pretty pretentious to say that we found the recipe for success but we are trying to put in place three factors that we consider essential and indispensable : web site, web store ans stock. Besides Pages 13 we try to have good advices from our technical team Pages 14 and a nice presentation within our 4 showrooms. The markets targeted first are tarpaulin, roofing, swimming pool and flooring markets. These are known markets in which this type of material is simple to use and of course so the most competitive. The most prominent and sold products to date for this type of market are the Energy 1600 and the complete kits more specifically, the tarpaulin kit. 14. 01. 2022 7

SAPELMECA LEISTER FRANCE WELDY-STORE. COM Page 15 3) Sales platform Today, to differentiate ourselves from the sale of the Leister hardware, we decided to privilege the sale of Weldy equipment exclusively by e-commerce. Indeed, in this way we seek a new clientele in this same sector (tarpaulin roofing flooring and swimming pool) but not coming to encroach on the market Leister. We created in-house an online sales site, exclusively dedicated to the Weldy brand : Weldy-Store. com. In order to highlight this new site, we have set up an advertising campaign through the purchase of keywords on different platforms like Google Ads. On our site, resellers and major accounts have access to a special page through which they can make their request directly by mail. They can thus benefit from special conditions and their usual discounts without these appearing on the site. Their requests are therefore managed directly by Bruno and a sales assistant. We also display on the site a hotline number (mobile phone) so that customers can be informed. This phone is specially dedicated to Weldystore to avoid confusion with Leister. Today we have to go to the obvious, the majority of customers Weldy (98%) do not know the Leister products and have never even heard of the brand ! The main types of this new clientele are essentially occasional users such as small artisans, road transporters, handymen, up to the individual wanting to repair his swimming pool. Page 16 14. 01. 2022 8

SAPELMECA LEISTER FRANCE WELDY-STORE. COM 3) Sales platform On the other hand, our company Sapelmeca manage a Leister equipment rental fleet. We compete with professional rental companies ! But it takes a lot of time, mobilize an commercial assistant… So for each rental request, we offer for sale the equivalent of the Weldy range. Page 17 So that you realize our process of sale, here is a small shema. Sapelmeca buys lots of keywords. A customer who’s looking for hot air welding product, makes his research on the web and see us among others. Thanks to the advertising, Weldystore appears at the top of the list ! he goes to Weldy-Store. com and can be informed either by telephone or by the technical sheets directly on thesite. He chooses his products and put them in thebasket. He makes his payment by credit card. The sales assistant receives at the same time his order and processes it directly (=> time saving for the customer and for the sales assistant !). The delivery is made the same day for an order placed before 2 pm. => fast purchase for the customer => fast delivery => the customer issatisfied and will most certainly return to the site 14. 01. 2022 9

SAPELMECA LEISTER FRANCE WELDY-STORE. COM Page 18 4) Keys Figures The CA Weldy Store is currently sold for € 35, 000 mainly consisting of the sale of Kit Energy but also 2 booster, 3 foiler and 1 roofer. It should be noted that the PIC PRO and PLUS ranges on sale on Weldy. Store absolutely unsuccessful (too much competition on the market). 5) After 6 month… Well today our main fear is that the Weldy turnover increases to the detriment of Leister turnover (we don’t want the products leister that Sapelmeca sells to be cannibalized by Weldy products). To avoid this, we think that Leister and Weldy sales must be managed by one and the same entity. For example, on Weldy. Store, the hotline for the technical and commercial information is managed by the same person, Bruno for the moment. In this way, he can directs and advises him on one brand or the other according to their demands and needs. 14. 01. 2022 10

SAPELMECA LEISTER FRANCE WELDY-STORE. COM Pages 19 To finish: We do believe there is a new Weldy customer base in already existing markets. We must try to enter the circuit too ! Because if we don’t, tomorrow other brands, copies and competitors will enter the market without us being able to do anything. And we are pretty confident because our strength is that Weldy is part of a group known and recognized throughout the world for many years (LEISTER) and that these two brands, Leister and Weldy, are in France for example, distributed by one and the same company (SAPELMECA). So that we are therefore in a position to control the flows. 14. 01. 2022 11