N°0

2 As our plant spreads its wings -

Benvic Europe and its three major objectives.

4 France, Spain, Italy, subsidiaries -

all you need to know about

the Benvic Europe Group.

10 Strategy -

the strategy for Benvic Europe.

I N F O R M / A T T R A C T / U N D E R S T A N D Y O U mage u r o p e

As our plant spreAds its wings

Benvic Europe left the Solvay Group on 1 June 2014. The separation will be permanently and entirely completed early in 2015. While we were part of the Solvay Group, we were already working as an SME but were supervised by Solvay.

Our new owner, OpenGate Capital, does not intend directly supervising our activities as Solvay did OpenGate Capital is bringing us its financial and strategic support, while leaving us autonomy for managing our company.

In the short term, Benvic Europe now has three major objectives:

• Firstly, we need to ensure the continuity of the business so that customers are not affected by these changes. We are currently on track to achieve this objective. In a still unfavourable economic environment, the overall results for 2014 should be better than 2013.

• We also have to finalize our exit from the Solvay Group. Some activities were taken back immediately (human resources, purchasing, cash, etc.), while others require more time (IT, security, vendors, accounting, etc.). The transition will be effective as from 1 January 2015.

• Finally, we have to establish a business plan for Benvic Europe that will develop our positioning and our operating methods.

While still keeping the spirit of an SME, we want to grow and increase our business, in particular by selling to countries where we do not yet have a foothold, and by producing innovative new products. Satisfaction and customer focus are naturally a priority in our New Benvic - it is respecting our staff who we hope will be motivated and committed to achieving all these projects!

Luc Mertens Managing Director

Editorial

As our plant spreAds its wings

France

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setting an example for the group

Chevigny plant

Since June 2014, Chevigny-Saint-Sauveur is the new Benvic Europe head office.

The activity on the Chevigny site represents almost half of Benvic Europe’s total business. Chevigny therefore has to set an example for all the projects, and work in close collaboration with its 2 sister plants.

Continuing along the path of growth by remaining a market leader in France and the Benelux countries – in addition to developing our strengths in England, Ireland and Germany - is a priority for the Chevigny plant.

A new production line will be set up for Premix and will be in operation no later than next summer.

In addition, it will also be essential to ensure that our employees are really able to participate in the growth of the site, which is another priority for this year 2015.

we’ve done a great job!

Montornès del Vallès plant

The Benvic plant in Spain, opened in 1974 and headed by Marc Farràs, is located just a few kilometres from Barcelona in Montornès del Vallès. It is a medium sized plant that employs 67 people.

It produces various products:

• Rigid PVC compounds mainly for the construction industry: used for windows, piping, etc.

• Flexible PVC compounds for cables, gaskets, hoses, etc.

• Premix for frames or window casements (construction industry in general)

• The One Pack product, a mixture of PVC stabilizers, used as the raw material for producing compounds (automotive, construction, piping, etc.).

70% of sales are made in Spain and 30% in export.

Benvic in Spain is the market leader because it is a company that produces both rigid and flexible PVC compounds as well as Premix and One Pack. None of the competition has expertise in all these areas at once. The new One Pack market is also a very promising. Our customers therefore enjoy a comprehensive range of services. Benvic has total coverage on the Spanish market and is present in almost all sectors. It has high quality technical and commercial resources, with well-qualified sales representatives and technicians who go out to meet clients. Teamwork and adaptability are Benvic Spain’s strengths.

Spain

Marc Farràs,Montornès Site Manager

Member of the European Management Team

«From last June,

the Montornès team worked

hard and enthusiastically to

set up a new organization

that would be transparent

for our customers. The team

has adapted really well to

this new situation. We’ve

done a great job!»

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Italy

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Ferrara plant

The Ferrara production unit, set up in the 1930s and located in northern Italy between Bologna and Venice, needs to be particularly competitive.

In fact, the Italian market is a highly competitive one. Despite the difficult context, 70% of sales are still domestic, with only 30% going for export.

At the Ferrara plant, 44 people work directly and there are 24 working as outside contractors - around 1/3 of the total staff. This is because historically some tasks that required expertise and equipment that Benvic did not have in-house (packaging finished products, materials handling to feed production lines, warehouse management, industrial cleaning, maintenance, etc.) were outsourced to maximize flexibility.

Ferrara employees, whose main goal is customer satisfaction, produce a number of products in accordance with the regulations established by Luca Lussetich, the Site Manager:

• Fluid transmission products (flexible hoses, convoluted hoses)

• Technical shaped products (electrotechnical)

• Cabling, particularly for the energy and automotive sectors

• Flexible products for general use (extrusion of small parts for furniture, bumpers)

• Flexible and rigid products for contact with food (caps, flasks)

The plant is generalist and is present in all markets except the medical market.

Luca Lussetich,Ferrara Site ManagerMember of the European

Management Team

«Our plant has a very

challenging history in

terms of its economic

performance. It is not

easy for the staff to

work hard and achieve

negative results. It is due

to the high competitive

nature of the Italian

market as well as the

high cost of overheads

when we were part of

the Solvay Group. In

2015, the results should

just fall into positive

territory – which is our

basic objective. I think

with lower fixed costs,

we should achieve

better results. I have

confidence in my team!”

«i have confidence in my team!

Frédérique Lefloch,Head of Human Resources Member of the European Management Team

Philippe BalconChie Financial Officer Member of the European Management Team

Commerce

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Belgium & Germany

Benvic subsidiaries in Belgium and Germany were established on 1 June 2014 when Benvic left the Solvay Group. Rather than offering expatriation contracts, Benvic preferred to set up subsidiaries, which was the most comfortable solution for employees. Two people work in Belgium and one person in Germany - all three as teleworkers.

The employees in Belgium and Germany are responsible for:

• Finding new customers and taking care of the existing customers

• Developing the export market for the Belgian subsidiary

• Developing a new product, One Pack, throughout Europe for the German subsidiary

• Being present in Benvic plants in order to be close to the grassroots

Belgian market: Benvic’s relationship with the Belgian market is longstanding and deeply rooted. There is a large plant in Belgium owned by Solvay. When part of the plant was closed in 2008, the production of compounds was transferred to Chevigny. Benvic therefore has a strong historical position with customers in this country (4th largest European market). Products for the Benelux market mainly come from the Chevigny plant.

The products for export mainly come from the plant in Spain.

German market: the German market is relatively new, dating from around a decade ago. However, it is the second largest market in Europe. Benvic is trying to grow and establish a greater presence there. The products sold locally are produced by the Chevigny or Ferrara plants, but One Pack is sent from Spain

the subsidiary solution

Philippe Balcon,Chief Financial Officer

«The two subsidiaries on the

Belgian and German markets

exist for the following

reasons:

• to ensure the continuation

of the Belgian market,

• to develop the German

market and thus meet local

expectations.”

Focus on sales

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The name «Benvic Europe» demonstrates our strong determination to be a European player with European prospects. Because it focuses on all European countries Benvic has a very pronounced European culture that differentiates it from its competitors.

Growth is a response to the constantly changing competitive environment. It will increase our bargaining power with both customers and suppliers, create economies of scale, and diversify risk.

According to Luca Pierini, Sales and Supply Chain Manager for Benvic Europe, Benvic’s growth strategy is twofold:

• Support the growth of key customers, focusing not only on the quality of products and services but also on innovation (thermal bridge breakages, dynamic seals, special cables and One Pack)

• Grow with new customers in sectors / markets where growth is highest, making a coherent selection of sectors and basic areas of expertise.

A five-year roadmap sets the time line and the strategy. In 2015, Benvic will continue its strategy of innovation and supporting existing customers and continue its efforts to build up the sales network, particularly as regards Germany, Eastern European countries and large-scale export.

what is Benvic europe’s strategy?

Luca PieriniSales and Supply

Chain EuropeMember of the European

Management Team

«Europe has experienced

very low growth over the last

few years. In this challenging

economic environment, it

is even more difficult to

establish a growth strategy.

But I am convinced that we

will still win through because

of our professionalism,

knowledge of the market and

European leadership.

The involvement of each

one of us has allowed us to

increase sales despite the

complex economic situation.

I would like to encourage

every member of the Benvic

team to keep up

their good work!.”

Outlook

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Editor: Luc MertensEditorial board: L. Mertens, M. Farràs,

L. Lussetich, F. Le Floch, P. Balcon, L. PerriniGraphic design: Bilboquet

Photos: P.GuyonIssue 0 - March 2015