Company Profile January 2015

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Introduction

BCUBE is a major Global Player in Integrated Logistic Services for Supply Chain management. Activities started in 1952, initially in wood packaging, with progressive enlargement to the full range of Contract Logistics Services. Innovation, investments, partnerships and acquisitions have allowed BCUBE to become one of the main Logistics groups, with a Turnover of €550 million in 2014 and 4,300 employees. In more than 60 years of activity, the Group has developed strong competences in all services of Integrated Logistics: Warehouse and Platform Management, Factory Logistics, Transport and Freight, Air Cargo, Packaging, Value Added Operations, Engineering and ICT Services. In 2012, the merger of Argol and Villanova enabled the creation of a unique, integrated and competitive reality on a global scale – the Argol Villanova Group. Argol Villanova with its strong historical background and plans for further expansion, has developed a new coordinated and innovative image and has decided to adopt a new name, BCUBE, in order to express the modern and international vision of the Group.

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International Presence of BCUBE

Geographical breakdown 88 operational sites

22% 28%

33 of them in Italy © All Rights Reserved

50%

Managed areas 2.767.000 mq BCUBE’s property 1.144.245 sqm

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Sites in Italy

Group’s HQ 33 Sites

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Casale Monferrato Villanova d’Asti Bari Cremona Cameri Castrocielo Cesena Dalmine Firenze Genova Gioia del Colle Grottaglie Livorno Marostica Massa Melfi Milano

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Monselice Mozzagrogna Rivoli Pisa Ragusa Reggio Calabria Ricengo Roma Serra Riccò Torino Treviso Udine Vibo Valentia Vittorio Veneto Voghera Venezia 3

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Whole Supply Chain services coverage

SUPPLY CHAIN MANAGEMENT END TO END ENGINEERING AND ICT

INBOUND MANAGEMENT

WAREHOUSING AND LOGISTIC PLATFORM

FACTORY LOGISTCS AND SPECIAL PROCESSES

PACKAGING

27%

INTERNATIONAL TRANSPORT AND SHIPMENT

Logistics & Packaging

Services breakdown 73%

Transport & Shipment

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Main services and key sectors Automotive

FACTORY LOGISTICS LOGISTIC PLATFORMS CKD MANAGEMENT VALUE-ADDED OPERATIONS INDUSTRIAL PACKAGING

Energy

Industrial

Aerospace & Defence

Consumer

In-plant warehousing and line feeding Dedicated and multi-customer warehouses

CKD and Part by Part preparation and international flows Customized solutions, painting, sandblasting, mechanical assembly, welding Engineering and production of wood, plastic, metal and thermo shrinkable packaging Airport cargo management

AIR CARGO EQUIPMENT SERVICES HEAVY LOAD TRANSPORT MULTI MODAL TRANSPORTATION FREIGHT FORWARDING ENGINEERING AND ICT SERVICES © All Rights Reserved

Air Cargo

Complete management of forklifts and other material handling equipment Exceptional transportation solutions, disassembly/reassembly of industrial plants Design and implementation of road and rail transportation solutions International sea and air freight forwarding

Solutions design, customized engineering, IT integration and flows management

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Automotive Services:

Facts and Figures:

 Factory Logistics: sequencing, line feeding, internal movement

 260,000 items managed

 Warehousing

 1,600 Part Number managed in JIT and 1,900 in JIS

 Packaging of CKD and parts

 4 per 66 Km Internal Rail

 Car compound

 34,800 container/year delivered

 Transport & Shipment  Milk run

Villanova d’Asti Logistic Platform (340.000 sqm)

Customers Sites:  Bielsko Biala e Tychy (Poland)  Mirafiori, Melfi (Italy)  Betim e Sete Lagoas (Brazil)  Wuppertal (Germany)  Chongquing (China)

Car compound in Tychy (Poland)

 Kragujevac (Serbia)

BCUBE Logistic Platforms:  Villanova/Mozzagrogna/Castrocielo  Sete Lagoas (Brazil)  Tychy (Poland)  Nanjing (China)  Saltillo (Mexico)

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JIS equipment for line feeding

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Energy Services:

Facts and Figures:

 Factory Logistics: line feeding, internal movement, warehousing management

 214,000 m3/year packed

 Quarantine Area

 30,000 wood packaging/ year

 Packaging engineering and production: thermoshrinkable, wood, metal, plastic, carton

 Lifting capacity up to 800 tons

 Heavy lifting and stowage

 65,000 tons/year handling volume

 Heavy load movement capacity up to 2,500 tons

 Sandblasting, painting, customization, mechanical assembly Livorno Logistic Platform (285.000 sqm)

 Heavy load transport  FOB Delivery  Document Management and Shipment

Customers Sites:  Firenze  Massa

Industrial Packaging

 Bari  Vibo Valentia  Recife – Brazil

BCUBE Logistic Platforms: Gorgon Project: Quarantine Area (30.000 sqm)

 Livorno  Belo Horizonte (Contagem) - Brazil

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Heavy lift and load transport

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Industrial Services:  Feasibility study and design of custom-made packaging for any kind of goods and transport  Structural calculation, lifting points and fixing definition for oversized packaging  Integrated design for storage, handling and transport  Management of national and international provisions for legal and sanitary requirements  Packaging supply (wood, plastic, cardboard, metal, thermo-shrinkable) Ricengo Logistic Platform (52.000 sqm)

 Heavy lifting and stowage

Customers Sites:  Danieli

(Buttrio, Pradamano, S.G.Natisone, India -Chennai)

 ABB

(Dalmine, Monselice, Genova)

 Cameron (Voghera)  Ansaldo (Genova, Reggio Calabria) Voghera Logistic Platform (50.000 sqm)

 Ingersoll (Ricengo)

BCUBE Logistic Platforms:  Ricengo logistic platform  Voghera logistic platform  France (Nantes, Le Creusot, Le Havre, Meyzieu, Grenoble)  China (Tianjin, Nanjing)

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Aerospace & Defense Services:  Receiving process  Storage and packaging of materials for production line servicing  Storage and packaging of spare parts  Maintenance room distribution services  Inbound logistic processes  Outbound delivery of finished products or spare parts to be transported by road, rail, sea, or air (including specific or customized procedures)

Facts and Figures:  150 employees  110,000 codes and 620,000 lines managed per year  30,000 sqm/area managed

 Value added services such as: welding, sandblasting and painting support facilities

Customers Sites:  Military bases (AMX, Tornado, C27J, C130, EFA)  Boeing’s plant – Grottaglie (Italy)  Brazilian Air Force - Rio de Janeiro (Brazil)  Agusta PZL Swidnik plant (Poland)  Agusta Westland plant – Vergiate (Italy)

BCUBE Logistic Platforms:  Coniolo (Italy)

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Consumer Services:  Products collection from production lines  Shuttling  WMS stocking  Pick & Pack  Shipment (air /ocean)  Distribution Custom clearance procedures

Customers Sites:  Osram (Treviso-I)  Heineken (Zywiec-PL)

BCUBE Logistic Platforms:  Villanova d’Asti, Treviso, Cesena, Milano (Italy)  Amsterdam (Netherlands)  Argentina  Bierun, Lodz (Poland)

Facts and Figures:  350 employees  11 mln € turnover  92.000 sqm of managed area

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Air cargo Services  Cargo physical handling (build-up and break-down)  Cargo document handling  Ramp handling for freighter flights  Mail handling (in cooperation with Poste Italiane)  Security services  Temperature Control System  Customs operations General / Special cargo  Tracing services  Trucking services (RFS)  IATA IT messaging 38% GENERAL

Airports  Rome Fiumicino (FCO)  Milan Malpensa (MXP)  Milan Linate (LIN)  Venice Tessera (VCE)

62%

SPECIALS

Import / export cargo

Volumes  230.000 cargo tons per year 57%  15.000 mail tons per year  400 staff  100 scheduled airlines handled  Nr. 25 box trailers equipped by TMS satellite system

43% IMPORT EXPORT

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Transport

Services

Key numbers:

Design and management of rational and efficient logistics network:  Material collection: milk-run, FTL, LTL, groupage  Line haul  Intermodal solutions  Urgent services and “door to door” distribution  Reverse Logistics  ADR material transportation  Temperature controlled transportation

DISEGN/ NETWORK MANAGEMENT

VALUE ADDED SERVICES

OPERATIONS AND EXPEDITING

 Over 260 trucks, about 800 including partners

 66 Km internal rail  Rail: ≈ 160 wagons/ week  Road: ≈ 300 FTL equal/day  Track rail > 25.000 km/week

Mode of Transport Choice Route Planning Milk Run Engineering Partnership / Optimisation Optimal load calculation Saturation Tracking on line – Prove of Delivery Help Desk Transport Program Elaboration Management of Load Orders Follow-up and trip closure

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Heavy load transport

Services Design and execution of any type of heavy load transport.:  Transport organization in Italy and abroad  Definition of handling and anchoring techniques of the cargo  Authorizations and permits requests  Constant monitoring of the journey between departure and arrival

 Custom made packaging. BCUBE and TCT by joining their know-how and resources have created an innovative company in the field of oversize transports.

Vehicles



Tractors

25

Trailers

20

35 ton / axle

Semitrailers

63

From 25 to 32 ton

Hydronic for steering

4

Total

Payload

112

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International freight

Services Management of Air & Sea Freight activities in main countries cooperating with the biggest shipping companies:  Import & export to worldwide destinations  Consolidation material from local suppliers  Door to door shipments  Special equipments  FCL & LCL  Possibility to use containers stocked in our terminal  Booking and management customs practices  Management of tax warehouses, VAT deposit

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Airports Cargo Handling

200.000 cargo tons per year

42.000 sq.m. airport warehouses

15.000 mail tons per year

100 scheduled airlines handled

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Airport Warehouses

VCE LIN MXP FCO

VCE new operations (from summer ’13) © All Rights Reserved

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Airport Warehouses

Rome FCO     

15.000 sq.m. warehouse 1.200 sq.m. perishable center 1.000 sq.m. offices 22 loading docks pharma cool room (the only one at FCO) Milan LIN & MXP

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27.000 sq.m. warehouses 2.000 sq.m. perishable centers 5.500 sq.m. offices 45 loading docks caveau for art works (the only one in Italy) Venice VCE

 Renovation works in progress, warehouse of 1.000 sq.m. (first step) with further extension up to 4.000 sq.m. (second step)

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Summary of services

BCUBE provides airlines and forwarding agents with a full range of handling services for any kind of cargo: • cargo physical handling (build-up and break-down); • document handling import and export; • security services; • customs operations; • tracing services; • trucking services (RFS).

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Type of goods Capability to handle any type of air cargo:

GENERAL CARGO PERISHABLE & PHARMA LIVE ANIMALS ART WORKS & VALUABLES DANGEROUS & RADIOACTIVE GOODS

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Perishable goods Pharma and perishable center: BCUBE

has

Fiumicino,

dedicated Malpensa

facilities and

in

Linate

airports for the storage and handling of pharmaceutics

and

temperature

controlled goods.

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Competitive Edges 1. 2. 3. 4. 5. 6.

Docs/freight conformity check; Freight security controls; Shipment input in HCS info system; ULD build up; Cargo manifest issuing; Destination airport alert;

CLIENT Destination airport To MXP airport (no 2nd level handling)

1. Immediate pick-up; 2. Confirm blocked space to the airlines; 3. Processing documents received by e-mail: a) AWB issuing; b) Export custom clearance; c) Pre-alert to destination agent; 4. Airport cargo handler (MLE) referring; © All Rights Reserved

Local handling agent makes available shipment to consignee

Delivery

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Focus Project Cargo

FOCUS PROJECT CARGO © All Rights Tutti iReserved Diritti Riservati

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- Know-how in the project cargo BCUBE has experience in the management of qualified shipments called project cargo (provision of integrated logistics services to transfer heavy & oversized materials and equipments, from different places to one destination) for companies who are dealing with:  Mining and quarrying of Petroleum and Natural Gas  Production of plants generating electricity  Production of industrial installations

for treatment of metal

materials or steel.  Transmission and distribution of electricity  Production and distribution of construction equipment and agricultural often oversized or of exceptional weights  Railway construction We provide solutions tailored to the needs of each individual customer inside our proprietary areas as well as outside of them and we provide the entire logistics process including:

 Picking, packaging and stowage of the goods and transport to the wharf or under aircraft board  Loading on board and securing of the goods on ships or on aircrafts

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 Customs operations in departure and in arrival  All steps in the delivery of the goods at destination including any freight transportation and lifting.  Transport of the goods : shipping and air freight

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- Our competitive advantage

BCUBE combines the experience gained in shipments and the lifting of heavy material, the provision of logistics services packaging and transport, overseeing all preparation procedures and customs clearance of goods with qualified staff, located at the points of departure and arrival .

The services offered include:

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Warehousing



Industrial packaging



Engineering with tailored solutions



Delivery of final goods



Consolidation of components from suppliers



Transportation / shipment to final customers



Value-added services



Exceptional transport of heavy loads

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Case study GENERAL ELECTRIC - Description The skills acquired in the packaging industry and the experience gained with the thermo shrinkable packaging have enabled us to become over the years one of the world's leading suppliers of the giant in the field of energy, GENERAL ELECTRIC. BCUBE has extensive experience in logistics management in the energy sector, with particular attention to equipments suppliers for the extraction of oil and gas, as well as to manufacturers of power plants (moving of transformers, insulators and wiring.)

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Engineering & ICT services – our distinctive asset ENGINEERING

ICT SERVICES

Know How

Know How

 Structural packaging planning  Packaging design for volume’s optimization  Warehousing technologies  World Class Manufacturing  Layout-Flow modeling  Items identification technologies  Transport network planning

 WPS (Wood Packaging Suite)  OPS (Optimized Packaging Suite)  WMS – Warehouse Management System (Shape)  Logistics Information Technologies Systems  ERP  Integration Data

Services

 Functional analysis  Architectural network  Custom solutions implementation  Integration of logistic systems with ERP packages

 Logistic Survey  Re-engineering Design  Economics evaluation  KPI identification All these activities are performed by a joint group of Logistic Engineers, Process Analysts and ICT Specialists.

Services

The Group has developed its own informative system for the integrated supply chain management that can be interfaced with popular ERP packages in the market and that has been successfully used in major industries.

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Certifications and awards

Certifications are a guarantee of an ongoing commitment by BCUBE to ensure customer satisfaction and safety.  Quality Certification: UNI EN ISO 9001:2008  Quality Certification Aerospace Sector: UNI EN ISO 9120:2010  Environment Certification : UNI EN ISO 14001:2004  Occupational Health and Safety Assessment Series: OHSAS 18001:2007  Management system for self-hygiene Certification (HACCP): UNI 10854  FITOK: in charge of the IPPC/FAO in Italy on the use of Phytosanitary Mark  IATA: International Air Transport Association  FIATA: International Federation of Freight Forwarders Associations  ENAC: Italian Civil Aviation Authority

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BCUBE World Class Logistics - WCL BCUBE Operating System BCUBE WCL is a cultural and methodological approach based on the standard of excellence of the entire operational-logistics cycle. Coming from WCM, WCL specializes the methods applying the principles of the Toyota Production System (TPS) to the specific business of our company. The WCL enable and starts a sustainable continuous improvement leading performance at World Class level.

WCL Mission The mission of the WCL is: individuate, measure and eliminate all waste and losses from all the operational and logistics in order to offer the customer only and exclusively the pure added value with the highest quality ensuring its workers with a100% safe working environment at 100% and operating with a sustainable impact on the earth ecosystem

BCUBE is a Member of : GOLD medal a Bielsko-Biala GOLD medal a Tychy BRONZE medal a FPT Sete Lagoas

 World Class Manufacturing Association International affiliation requiring the commitment of its members in constantly guaranteeing the highest levels of efficiency, safety and quality control at production sites. 28

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Key strengths

FULL INTEGRATED LOGISTICS SERVICES Wide set of services offered, to guarantee the Group as the right partner in Supply Chain management INTERNATIONAL PRESENCE Operative presence in the main international markets and continuous expansion, with selected local partnerships INDUSTRY’S PORTFOLIO High skills and experience with a wide customers portfolio in different and highly complex industrial areas EXCELLENCE OF SERVICE Excellence oriented, both in internal processes and in the services offered to the customers through the structured approach of World Class Logistics FLEXIBILITY AND CUSTOMIZATION The Group guarantees customized services, through Engineering and ICT own solutions FAMILY OWNED AND MANAGERIAL Historical ownership of the Bonzano Family, linked to managerial structure and growth 29 © All Rights Reserved

Main references

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