Dear readers,

We are now past the first half of 2017. Despite

the complexity of the global macroeconomic scenario,

with fluctuations in exchange rates, raw materials and the

crisis of the oil-based countries, so far we are continuing

with the positive trend of the last few years.

As you may know, in 2016 we broke all previous records,

both in terms of turnover and results. In particular, the

US, China, the Spanish-speaking countries, the UAE and

Gulf area had outstanding performances. This was

possible thanks to the strengthening of our internal and

global sales force and to the continuous efforts in

research and development of new products, in order to

become more and more a provider of complete solutions

for building projects. These excellent results were recently

recognized by CERVED, a leading Italian and European

rating and information provider company, which

presented us with the prestigious award “Company to

Watch 2017”.

It will not be easy to maintain the same level of results.

Still, these first few months allow us to be cautiously

optimistic on being able to consolidate the global market

shares acquired in 2016 and to have a reasonable and

sustainable growth.

Of course, keeping up with the dynamic trend in sales,

with more and more complex products and tighter and

tighter delivery times, is a demanding challenge for our

factory. The project-based sales, in particular, create

unexpected peaks in demand, followed by sudden ebbs.

In order to improve our lead times and to give faster

responses and a better level of service to the customers,

we are continuing with the implementation of the new

production software. After completing the data collection,

we are almost done with setting up the production

scheduling system. Due to the thousands and thousands

of production codes we have, this has been a difficult,

delicate and time-consuming project. We should start to

see the first results in 2018, with a continuous and

gradual improvement, once the rules and the data get

more and more refined.

Great efforts have been made and are being made in

2017 to increase our control on our distribution process. I

am happy to announce that Hydronic Components Inc.

(HCi), the Detroit-based company that sells our HVAC

range in North America, is now 100% owned by

Pettinaroli.

I take the occasion of this newsletter to wish you pleasant

summer holidays and I am looking forward to working

together with all of you in the months to come.

Let us make this 2017 another year to remember for our

Pettinaroli Group!!

Maria Pia Pettinaroli – Executive Officer

On behalf of the whole Pettinaroli family

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CEIR Past-President Pascal Vinzio and New President Ugo Pettinaroli.

Ugo Pettinaroli guiding the European

manufacturers of taps and valves

Our CEO Ugo Pettinaroli, current

president of AVR (the National

Association of Italian Valves and

Fittings’ Manufacturers, federated

to ANIMA) was elected President of

CEIR, the European Association for

the Taps and Valves Industry, representing the main national

associations based in Europe and other major groups of the sanitary and

HVAC industry. He will remain in charge until June 2019.

The association CEIR represents indeed

the manufacturers of taps and valves

based in Europe towards the European

institutions and standardization

organisations. It gathers 13 national

associations plus 14 direct member-

companies. Established in 1959 and based

in Brussels, on the EU decision-making

scene, today CEIR is very well known to

the European institutions. Associate member of ORGALIME, the

European association of the engineering industry, CEIR is registered

under the “European Union Transparency Register” (number 54018122087-60). More information are available at: www.ceir.eu

The association CEIR is currently made of 13

national associations based in Europe.

French Profluid, together with Italian AVR

(Associazione italiana costruttori Valvole e

Rubinetti) are by far the largest, most active

and contributive players within CEIR.

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CEIR plays a big role in Europe. Only considering the EU countries, the

total industrial valves production in 2015 was estimated of roughly 3.3

billion euros. Italy is the first country with 717 million euros of

production, followed by Germany and United Kingdom.

Elected new President during the latest yearly congress of CEIR

association, which took place in Brussels on the 8th

and 9th

of June 2017,

in the next two years Ugo Pettinaroli will be sided by Vice-President

Carlos Velazquez from the Spanish group Roca. Moreover the CEIR

Board will see also the presence of Past President Pascal Vinzio from KSB

(France), Alexey Babichev from EMEK (Russia), Marco Caleffi from

Caleffi S.p.A. (Italy), Michael Huck from Georg Fischer Group JRG

(Switzerland), Antonio Pardal from Presto Iberica SA (Spain), Benoit

Smagghe from COMAP Group (France), Rui Veloso from the Portuguese

group Metalúrgica Central Da Trofa Lda, and Nurgan Yucel from Samsun

Makina Sanayi (Turkey). Last but not least, new charges guiding the

three major working groups of the association have been established in

Brussels: Holger Fehrholz was confirmed at the presidency of the

Sanitary Valves Technical Committee, as well as Pascal Vinzio at the

Industrial & Building Valves Technical Committee and Ugo Pettinaroli at

the Marketing and Communications Committee.

On Friday June 9th, during the CEIR Congress’ closing speech, Ugo

confirmed his will to collaborate with the various representatives of the

European countries, all seated at the same table, in order to improve the

presence and importance of CEIR in the European scene, with the help of

the 13 national associations and the 14 private companies determined to

represent and defend the interests of the taps and valves’ manufacturers all over Europe. CEIR has already disclosed that next year Italy will be the

country hosting the annual congress of the European association: in fact,

AVR will coordinate and organize the event, which will take place by

Garda Lake on the 6th

, 7th

and 8th

of June 2018.

Also 14 direct members are part of CEIR

today. Such private corporate companies are

large European Groups that do not have a

formal representation in their country by a

national association.

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- 3 -

Pettinaroli Suisse:

the Riviera Chablais Hospital

Since June 2017, Pettinaroli Suisse has started the deliveries for an

important and prestigious project in Villeneuve (Switzerland): the

Hôpital Riviera Chablais (HRC).

The plot of such realization reflects all the difficulties, but also the deep

satisfactions, related to the world of projects. It is indeed a relatively

long story, starting from the specific knowledge we developed

throughout 2009 and 2010 in Paris. At that time, we started providing a

complete range of products focused on the kind of installations called

“Genie Climatique” in France (HVAC for the rest of the world).

Practically, it is like a “Lego System”, combining PICVs, ball valves,

flexible hoses and connections. The idea behind this project was to study

a tailor-made solution for each building, optimizing the time of

installation and providing also a “friendly user” solution with the aid of

our renowned Pettinaroli spheroconical connection, by means of an O-

ring that is waterproof even if it is hand-tightened. Hence, in those years

we were asked to develop and introduce the aforementioned solution in

Paris, driven by the need to reduce the terribly long installation times in

certain projects. It is, in fact, a common opinion in Europe that any job

lasting more than one month and involving at least 10 people will finally

end up making you lose money: workers get distracted, the operations

become repetitive, mistakes are easily to occur. By pairing flexible hoses

to the valves with our spheroconical solution, even large buildings with

thousands of connections proved to be safe!

This solution was immediately appreciated in Switzerland too, not only

for the safety aspect (workers are normally professionals coming from 4

Our references with

Weinmann Energies

Project name: MERCK-SERONO

Site: administrative building

City: Geneva

Year: 2004-2006

Pettinaroli products:

1.100 manifolds + actuators

Project name: NEMACO A1 BUSINESS PARK

“TERRE BONNE”

Site: administrative building

City: Eysins

Year: 2009-2010

Pettinaroli products: 480 PICVs + Kits

Project name: TOUR TSR

Site: administrative building

City: Geneva

Year: 2009-2010

Pettinaroli products: 380 PICVs + Kits

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The progress of the works of the HRC in June and July 2017.

years of schooling at least), but also and most importantly for the great

flexibility and fast implementation offered by such systems. Time saving

is a critical issue in Switzerland, where a working hour costs in excess of

€ 100. So, we did organize a visit to Paris with one of the most

prestigious engineering offices in Switzerland, Weinmann Energies

(www.weinmann-energies.ch). They were immediately convinced by the

concept related to our idea and the result was a large number of objects

where Pettinaroli products were listed in the specs (some of the most

important buildings are shown here on the side).

Therefore, there was satisfaction from one side but also many troubles,

like with all projects. In the specific case of the HRC, we did discuss a first

draft in 2013 with the goal to start working in 2015. The project was

subsequently interrupted because of an appeal by one of the

undertakings which took part in the tendering procedure. We had to

reopen the files in 2016 and, again, we started over the discussions

before arriving to a final version at the beginning of 2017.

Now we are finally delivering and many other projects are pending. The

positive and most interesting thing is that we are bringing to the Swiss

market almost all the new products developed by Pettinaroli in the last

recent years: from the EvoSix to our PCS kits. On the other hand, the

negative side is that, like elsewhere, prices are under pressure. By the

way, Pettinaroli is now very well-known in the Swiss market and the

collaborations with good friends such as Weinmann continue and

enlarge day after day.

Project name: JAPAN TOBACCO

INTERNATIONAL

Site: administrative building

City: Geneva

Year: 2012

Pettinaroli products: 2.100 PICVs + Kits

Project name: GEMS WORLD ACADEMY

Site: school

City: Etoy

Year: 2012-2013

Pettinaroli products: 280 PICVs + Kits

Project name: L’ATELIER

Site: administrative building

City: Plan Les Ouates

Year: 2017

Pettinaroli products: 1.188 PICVs + actuators

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From left to right: Marcos Valladares, Bryce Mainville,

Elizabeth Martin, Ugo Pettinaroli, Adam Stier.

NPGA Southeastern Convention 2017

in the Music City Center of Nashville

Last year, in April 2016, NPGA Southeastern Convention & International

Propane Expo was moved to Nashville (Tennessee), after being held for a

long time in Atlanta (Georgia). The statistics published a few months

later by the NPGA organization showed great numbers. Attracting more

than 4.100 individuals and breaking the attendance record set 10 years

earlier, the largest American Liquid Propane Show hosted indeed 270

exhibiting organizations (compared with 230 in 2015), including over 50

propane trucks. Participants came from all 50 U.S. States, along with the

District of Columbia, Guam, Puerto Rico, and 37 foreign countries and

territories, mainly from Central America and the Caribbean area.

For all such reasons, this year NPGA was eager to return to the Music

City Center of Nashville (Tennessee) for the 70th year of the Expo.

Running from Friday evening, April 21st

, to Sunday afternoon, April 23rd

2017, the world city of country music shed its lights again on the

propane gas industry. As always, JOMAR stated its presence with a wide

set of products, ranging from our T-100 family and brass gas-cocks,

stainless steel and carbon steel ball valves, thread sealant and various

gadgets for visitors. Senior President of Jomar Group Paul Craig and Vice

President Adam Stier were there, together with our sales team. Also Mr.

Ugo Pettinaroli (Chairman of the Board) and Mrs. Elizabeth Martin

(Vice-Chairman of the Board) joined the show. The Propane Expo will be

shifted back to Atlanta in 2018 and 2019. The show will rotate between

Nashville and Atlanta in 2020 and 2021, respectively.

VVS Odense (Denmark)

April 2017

Taking place every two years, VVS Show is

definitively the national largest and most

important show in Denmark for our

colleagues from Pettinaroli A/S. This year,

the Odense Congress Center opened its

doors to 9.373 people from the Scandinavian

plumbing world, thus registering its historic

record.

Besides the sales team from Pettinaroli A/S,

also our technical and marketing experts

came from Italy to give their support and

contribution during the three days at the

show (April 26th

-28th

). The great news

launched by Pettinaroli Group in Odense was

the DW Valve (Drinking Water), a lead-free

corrosion-resistant ball valve with ball and

stem made of stainless steel. More info

about such product are available on our

website: www.pettinaroli.dk.

- 6 -

ISH Beijing 2017:

a window on the Far Est markets

ISH China & CIHE, the China International Trade Fair for Heating,

Ventilation, Air-Conditioning, Sanitation & Home Comfort Systems, is

one of the most well-known exhibition platforms under the ISH brand. It

has a stellar track record in gathering the world’s leading brands within the HVAC and plumbing industry. ISH China & CIHE also fosters industry

development in China, currently the world’s biggest emerging market.

At ISH Beijing 2017 (May 18th

-20th

), Pettinaroli confirmed its annual

presence thanks to our Chinese partners Yang Xuesong and Wang

Quianwu from HEITZ, who made a tremendous job with a booth of more

than 70 square meters, constantly assisted by a personnel of almost 20

people. Our stand was shared with our German friends from Möhlenhoff

(regulation) and Maincor (pipes).

REFRIAMERICAS - Panama

June 2017

For the first time in its history, Pettinaroli

Group made a show in Central America,

precisely in Panama, a country which is now

more and more focused on the

environmental issues related to the HVAC/R

systems. Taking place on 1st

and 2nd

of June

for the second time in Panama City,

Refriamericas 2017 revealed itself as a key

fair for ventilation and refrigeration systems

of the Latin American world.

Two intense and fruitful days in Panama for

Alberto Calderano and Luca Pettinaroli; an

occasion to meet our friends and partners

from Colombia, Venezuela, Costa Rica and

Panama. Next year Pettinaroli Group is eager

to come back to Panama City attending

Refriamericas 2018.

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See you at our next show of 2017!!

FEBRAVA – Sao Paulo (Brazil) September 12

th

- 15th

– Fratelli Pettinaroli S.p.A. Single Hall. Stand: I170

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100% acquisition of

Hydronic Components Inc. (HCi)

We are proud to announce that Fratelli Pettinaroli S.p.A. now owns

100% of HCi, the North American hydronic division of Jomar Group

dealing with HVAC systems and coil piping packages for projects.

Hydronic Components Inc (HCi) has led the balancing and coil piping

package industry for over 20 years. HCi's coil piping packages has

revolutionized hydronic installations by using quality engineered

combination valves to minimize the time and space required to install

hydronic terminal units.

In addition to the preassembled packages we offer manual and

automatic balancing solutions, Pressure Independent Control Valves

(PICV), flexible hoses and our patented FILTERBALL® design incorporates

JOMAR GROUP:

the current organization chart

Our team in Jomar Group (including HCì) is

currently made of 43 units of working and

selling force.

- 8 -

an intergraded back flush feature. HCi components are 100% leak tested

and bagged & tagged into a single package for easy installation.

With its assembling division located within Jomar Group’s building in Warren (Michigan - United States), HCi can fabricate 2 way or 3 way,

manual or automatic packages, PICV valves and stainless steel braided

hose kits. Our packaging software allows customers to create an

interactive drawing, quotation, and spec submittal with one application.

We carry automatic and manual balancing valves as well as isolation and

ball valves. A full range of accessories is also available. More information

are available on our webpage: www.hciterminator.com.

The team of Hydronic Components Inc.:

Joseph Martin - Founder

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From left to right: Ugo Pettinaroli (CEO), Florence Fernandes (Sales Assistant), Jean-Charles Giovannini

(Warehouse Manager), Bernard James (Warehouse), Sebastien Blondel (Operation Manager), Veronique

Santoul (Account Manager), Cyril Vianelli (Warehouse), Maria Pia Pettinaroli (CEO).

The General Assembly of

Pettinaroli France

Our yearly Assemblée Générale of Pettinaroli S.A.S. took place in

Carmaux on Wednesday, May 3rd

and Thursday, May 4th

. Our two CEOs

Ugo and Maria Pia Pettinaroli spent two intense and fruitful working

days in France, together with our new smart French team.

Nowadays France is still the third largest market of Pettinaroli,

representing almost 12% of our total turnover as a group. Pettinaroli

S.A.S. manages the distribution of our products all over the French

territory, thanks to a

commercial web of reps

operating in each region

(almost 15 people totally). A

new field of activity is

represented by supplying

directly to large builders and

plumbers active in the Paris

area, not only with

traditional products but also

with an innovative range,

taking care of the approvals

and technical support.

Fratelli Pettinaroli S.p.A.

awarded as “Company to Watch”

Fratelli Pettinaroli has been awarded by

CERVED with the prestigious award

"Company to Watch" for the year 2017,

within the databank analysis of the Italian

building valves’ industry.

CERVED is the leading Information Provider

in Italy and one of the major rating agencies

in Europe. Founded in 1974 as a computer

company management, nowadays it offers

the most comprehensive range of products

and information services for financial

institutions, businesses, insurance

companies, public authorities, professionals

and private individuals. Its databases offer a

wealth of information that is unique in Italy

in terms of data quality, completeness and

historical depth. A depth that shows the

trend of phenomena over time and tells the

story of companies, groups and natural

persons.

In 2008, CERVED obtained “ECAI recognition”

(external agency for evaluation of

creditworthiness) from the Bank of Italy,

becoming the first Italian credit rating

agency whose credit ratings can be used for

the calculation, based on standard methods,

of prudential capital ratios of banks based on

the Basel II Accord.

- 10 -

COMFORT IP: the floor heating system

of the future - by Pettinaroli Denmark

The new advanced control-system for underfloor heating, COMFORT IP,

has been launched by Pettinaroli A/S: a technology that can be used

both as a simple stand-alone device without connections, but at the

same time it can be expanded to be one of the market's most advanced

Smart House Systems.

It consists of two wireless 230V actuators, making respectively 6 and 10

zones. The package comes also with a digital or analogue room

thermostat, plus an efficient telecommunication station with only 1W of

energy consumption. COMFORT IP is a simple and smart solution, that

will meet the requirements of the customers for floor heating controls

everywhere. A system that will always provide the optimum comfort in

the easiest way possible in our everyday life. To read more about

COMFORT IP, you can visit our website www.pettinaroli.dk or click here:

COMFORT IP.

For such award, the main distinctive factors

of Pettinaroli’s performances throughout 2016 were:

- Efficient direct presence in the major

foreign markets and strong business

expansion into new market-segments.

- Constant ongoing R&D of new

products, but also added value services

(like BIM).

- An offer characterized by amplitude

and depth, thanks to a large range of

products.

According to the Marketing Solutions Area of

CERVED, “Company to Watch” is any company standing out both for the economic

and financial performance and for the

business execution, compared to its main

competitors in the market of reference.

By means of a comparative analysis of the

results in its industry, the databank experts

provide an assessment of the company's

scope of action by integrating both

quantitative and qualitative aspects.

For all such things, this is indeed another

important and prestigious goal for

Pettinaroli, but also a significant challenge

for the future of our group.

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The new NPT Catalog 2017 is now available!!

A revision of our NPT Pettinaroli/Jomar Catalog for the Latin American markets

is available in double language (Spanish and English).

Pettinaroli Group – The Chronicles, Issue Nr. 4 will be available in December 2017.

We would like to rem ind you that Fratelli Pet t inaroli S.p.A. will be closed from

August 5 th to 27 th 2017. We wish you and your family a pleasant summer vacation!!

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