Grupopikolin, S.L

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

GRUPOPIKOLIN, S.L. (Limited liability company established and incorporated in Spain pursuant to the Corporate Enterprises Act) GRUPOPIKOLIN COMMERCIAL PAPER PROGRAMME 2019 Maximum outstanding balance €50.000.000 BASE INFORMATIVE DOCUMENT (DOCUMENTO BASE INFORMATIVO) OF THE ADMISSION OF COMMERCIAL PAPER NOTES (PAGARÉS) ON THE ALTERNATIVE FIXED-INCOME MARKET (“MARF”) GRUPOPIKOLIN, S.L. (“Grupo Pikolin” or the “Issuer”), a limited liability company incorporated under the laws of Spain with registered office in Zaragoza, Ronda del Ferrocarril, 24 - Plataforma Logística Zaragoza, registered at the Commercial Register of Zaragoza in Volume 2.929, Section 47, Sheet Z-33424, with Tax Identification Number B50966654 and LEI code 95980020140005834436, will request the admission (incorporación) of the commercial paper notes (the “Commercial Paper”) issued in accordance with the provisions of this base informative document (the “Base Informative Document” ) for the admission of the Commercial Paper on the Alternative Fixed-Income Market (“MARF”).

MARF is a Multilateral Trading System (“MTS”) and not a regulated market, pursuant to the provisions of Royal Decree Law 21/2017 of December 29 2017, on urgent measures to adapt Spanish law to the European Union securities market legislation. This Base Informative Document is that required by Circular 2/2018 of December 4, on the inclusion and exclusion of securities on the Alternative Fixed-Income Market (“Circular 2/2018”).

The Commercial Paper will be represented through book entries at Sociedad de Gestión de los Sistemas de Registro, Compensación y Liquidación de Valores, S.A.U. (“IBERCLEAR”) together with its participating entities.

An investment in Commercial Paper brings with it certain risks. Read section 1 of the risk factors of the Base Informative Document.

The competent body of the MARF has not made any kind of verification or check with regard to this Base Informative Document or with regard to the content of the documentation and information supplied by the Issuer in compliance with Circular 2/2018.

The Commercial Paper issued under the programme is targeted exclusively at qualified investors and professional clients pursuant to the provisions set out in article 205 of the Revised Securities Market Law approved by Royal Legislative Decree 4/2015, of October 23, approving the revised Securities Market Law, in the wording currently in force (the “Securities Market Law”) and article 39 of Royal Decree 1310/2005, of 4 November, which partially implements Securities Market Law 24/1988 of July 28, 1988, as regards acceptance of securities for trading on official secondary markets, public offerings for sale or subscription and the prospectus required to this end (“RD 1310/2005”), respectively , or any provision which may replace or supplement it in the future.

No action has been carried out in any jurisdiction to enable a public offering of the Commercial Paper or permit the possession or distribution of the Base Informative Document or of any other offer material where a specific action is required for said purpose. This Base Informative Document must not be distributed, directly or indirectly, in any jurisdiction in which such distribution represents a public offering of securities. This Base Informative Document is not a public offering for the sale of securities nor a request for a public offering to purchase securities, and no offering of securities shall be made in any jurisdiction in which such offering or sale would be considered in breach of the applicable legislation. In particular, this Base Informative Document does not represent a prospectus approved and registered with the National Securities Market Commission (the “CNMV”) and the subscription of the Commercial Paper issued under the programme does not represent a public offering pursuant to the provisions set out in article 35 of the Securities Market Law, which removes the obligation to approve, register and publish a prospectus at the CNMV. MANAGER ENTITIES AND LEAD ARRANGERS Banco Santander Bankia Beka Finance Norbolsa

PAYING AGENT Bankia REGISTERED ADVISOR PKF Attest The date of this Base Informative Document is April 2, 2019. 1

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

IMPORTANT INFORMATION

The potential investor should not base his investment decision on information other than the information contained in this Base Informative Document.

The manager entities accept no liability for the content of this Base Informative Document. Each of the manager entities has signed a collaboration agreement with the Issuer for placement of the Commercial Paper, without assuming any underwriting commitment in relation to the Commercial Paper, although the manager entities shall be able to acquire Commercial Paper in their own name.

PRODUCT GOVERNANCE RULES UNDER MiFID II THE TARGET MARKET SHALL CONSIST EXCLUSIVELY OF ELIGIBLE COUNTERPARTIES AND PROFESSIONAL CLIENTS

Exclusively for the purposes of the process of approval of the product which is to be carried out by each manufacturer, the conclusion has been reached, having assessed the target market for the Commercial Paper, that: (i) the target market for the Commercial Paper consists solely of “eligible counterparties” and “professional clients”, in accordance with the meaning attributed to each of these expressions in Directive 2014/65/EU of the European Parliament and of the Council of May 15, 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (“MiFID II”) and its implementing regulations (in particular, in Spain, the Securities Market Law and its implementing regulations); and that (ii) all channels for the distribution of the Commercial Paper to eligible counterparties and professional clients are appropriate.

Any person who, following the initial placement of the Commercial Paper, offers the Commercial Paper, sells it, makes it available in any other way or recommends it (the “Distributor”) shall be required to take into account the assessment of the target market made by the manufacturer. Any Distributor subject to the provisions of MiFID II shall nevertheless be responsible for making its own assessment of the target market for the Commercial Paper (whether by applying the target market assessment made by the manufacturer or by perfecting such assessment), and for determining the appropriate distribution channels.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

BAN ON SELLING TO RETAIL INVESTORS IN THE EUROPEAN ECONOMIC AREA

The Commercial Paper Notes are not intended to be offered, sold or made available in any other way, nor should they be offered, sold or made available, to retail investors in the European Economic Area (“EEA”). “Retail investor” shall be understood for these purposes to refer to any person to whom either or both of the following definitions is/are applicable: (i) ‘retail client’ within the meaning of point (11) of article 4(1) of MiFID II; (ii) client within the meaning of Directive 2002/92/EC, provided that they cannot be classed as a professional client based on the definition contained in point (10) of article 4(1) of MiFID II; or (iii) retail client according to the implementing legislation of MIFID in any Member State of the EEA (in particular, in Spain, according to the definition of article 204 of the Securities Market Law and its implementing legislation). For this reason, none of the key information documents required by Regulation (EU) No. 1286/2014 of the European Parliament and of the Council of November 26, 2014 on key information documents for packaged retail and insurance-based investment products (“Regulation 1286/2014”) has been prepared for the purposes of the offering or sale of the Commercial Paper, or to make it available to retail investors in the EEA, and therefore, any of such activities could be unlawful pursuant to the provisions of Regulation 1286/2014.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

TABLE OF CONTENTS

1. Risk factors ...... 5 1.1 Risks specific to the Issuer or to its business sector...... 5 1.2 Basic information on the specific risks related to the Commercial Paper ...... 15 2. Full name of the Issuer, address and its corporate tax code ...... 17 2.1 Issuer’s general information ...... 17 2.2 Brief description of the Issuer’s activity ...... 17 3. Full name of the securities issue ...... 44 4. Persons responsible ...... 44 5. Duties of the Registered Advisor of the MARF ...... 45 6. Maximum outstanding balance ...... 47 7. Description of the type and class of securities. Nominal value ...... 47 8. Applicable legislation and jurisdiction governing the securities ...... 47 9. Representation of the securities through book entries ...... 47 10. Currency of the issue ...... 48 11. Classification of the securities: order of priority ...... 48 12. Descriptions of the rights inherent to the securities and the procedure for executing these rights. Methods and deadlines for payment of the securities and handover of the same 48 13. Date of issue. Commercial Paper Programme validity...... 49 14. Nominal interest rate. Indication of the yield and calculation method ...... 49 15. Lead arrangers, paying agent and depositary entities ...... 53 16. Redemption price and provisions concerning maturity of the securities. Date and methods of redemption ...... 54 17. Valid deadline within which reimbursement of the principal may be claimed ...... 54 18. Minimum and maximum issue period ...... 54 19. Early settlement ...... 55 20. Restrictions on the free transferability of the securities ...... 55 21. Taxation of the securities ...... 55 22. Publication of the base informative document ...... 60 23. Description of the placement system and, where appropriate, subscription and admission of the issue ...... 61 24. Costs for legal, financial and auditing services and other services provided to the Issuer in relation to the formalization of the Commercial Paper Programme...... 61 25. Admission ...... 62 25.1 Application for admission (incorporación) of these securities into the Alternative Fixed-Income Market (MARF). Deadline for admission (incorporación) ...... 62 25.2 Publication of the admission (incorporación) of the issues of the Commercial Paper .63 26. Liquidity agreement ...... 63 APPENDIX 1 CONSOLIDATED ANNUAL ACCOUNTS FOR THE YEAR ENDED DECEMBER 31, 2016 APPENDIX 2 CONSOLIDATED ANNUAL ACCOUNTS FOR THE YEAR ENDED DECEMBER 31, 2017

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

BASE INFORMATIVE DOCUMENT FOR ADMISSION (INCORPORACIÓN) OF COMMERCIAL PAPER ON THE ALTERNATIVE FIXED-INCOME MARKET

1. Risk factors

Investment in the Commercial Paper entails certain risks. Potential investors should analyze carefully the risks described in this section, along with all other information contained this Base Informative Document, before investing in the Commercial Paper. Were any of these risks, or any others not described herein, to materialize, the activity, business, financial position and results of the Issuer and/or of the companies of the Issuer's group, and/or the Issuer's capacity to make the repayments corresponding to the Commercial Paper upon maturity, could be adversely affected, in which case the market price of the Commercial Paper could fall, resulting in the total or partial loss of any investment made in it.

The Issuer's understanding is that the risk factors described below in this section are the main or material risks inherent in investment in the Commercial Paper. The order in which these risks are described does not necessarily reflect a greater probability of their materialization. The Issuer, moreover, gives no assurance that the account of risk factors provided below in this section is exhaustive; it is possible that the risks described in this Base Informative Document may not be the only ones which the Issuer and/or the Issuer's group are exposed to and there may be other risks, currently unknown or which, at this point in time, are not considered significant, which in themselves or in conjunction with others (whether identified in this Base Informative Document or not) could potentially have a material adverse effect on the activity, the business, the financial position and the results of the Issuer and/or of the companies of the Issuer's group, and/or the Issuer's capacity to make the repayments corresponding to the Commercial Paper upon maturity, in which case the market price of the Commercial Paper could decrease as a result and/or any investment made in it could be totally or partially lost.

In most cases, the risk factors described represent contingencies, which may or may not materialize. The Issuer cannot express an opinion as to the probability of such contingencies materializing.

1.1 Risks specific to the Issuer or to its business sector

The main risks specific of the Issuer or of its business sector are the following:

A. Risks associated with the business sector

Exposure to the bedding industry

Grupo Pikolin is dedicated mainly to the bedding products. The level of exposure to a mature market such as the bedding products sector could weaken the Grupo Pikolin's competitive positioning and have an adverse

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

impact on the activity, the business, the financial position and the results of the Issuer and/or of the Issuer’s group.

However, Grupo Pikolin's mapping comprises of a broad spectrum of brands, offering a full product mix within the bedding sector and covering all segments. Furthermore, the positioning obtained by the Issuer group’s brands, leaders in their core markets, is valued positively, in a sector whose performance is deemed to be ‘brand conscious’, representing the main entry barrier for potential competitors in the sector. Besides the ownership of these brands, Grupo Pikolin supplements its commercial activity through the acquisition of licenses from other leading international companies, which permits it to exploit those brands in certain regions.

Connection to the economic cycle and GDP fluctuations

The bedding industry is highly correlated to the economic cycle and the GDP growth. Since the Issuer operates primarily in markets in Europe, Asia and Latin America, it is affected in particular by the economic cycles and GDPs of these markets.

According to the International Monetary Fund’s (“IMF”) report of October, 2017, worldwide growth in 2016 was at its lowest since the international financial crisis, with an annual growth rate of 3.2%. This trend changed in 2017, for which annual growth amounted to 3.6%, and the change is being consolidated in 2018, for which annual growth of 3.7% is estimated. According to the data of the IMF report of January 21, 2019, the world economy is expected to grow by 3.5% in 2019 and by 3.6% in 2020. In accordance with IMF projections, in emerging and developing economies, growth has begun to intensify, supported by a favorable financial environment at global level and the recovery of developed economies. In China and other emerging Asian economies, growth has remained strong, with an estimated growth of 6.5% in 2018, 6.3% in 2019 and 6.4% in 2020. In Latin America, growth is expected to pick up in the next two years, increasing from 1.1% in 2018 to 2.0% in 2019 and 2.5% in 2020. These forecasts take into account prospects of lower growth in Mexico in 2019 and 2020, due to a decrease in private investment, and an even more severe economic downturn in Venezuela. In that context, these reductions are neutralized only by the growth forecast for Brazil, a country in which Grupo Pikolin operates, where the gradual recovery after the recession of 2015-2016 is expected to continue.

Moreover, regarding the euro zone, growth is expected to go from 1.8% in 2018 to 1.6% in 2019 and 1.7% in 2020.

IMF’s estimates envisage an uneven growth in economic activity. For advanced economies, it is projecting an approximate growth of 2.3% in 2018, 2.0% in 2019 and 1.7% in 2020, whereas for emerging and developing

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

economies it estimates that there will be 4.6% growth in 2018, 4.5% in 2019, and 4.9% in 2020.

To be able to benefit from this uneven growth and from geographic diversification, Grupo Pikolin, in addition to its presence in Europe, has commercial units in Latin America, Asia and Africa. Historically, the most important markets at income statement level, for the Issuer’s group, have been Spain and France, although the expectation is that emerging countries, supported by growth estimates, will come to feature more prominently in the income statement of the Issuer’s group in the forthcoming years.

Additionally, this connection to the economic cycle has been lessened since Grupo Pikolin entered the sector of manufacturing and sale of products for the hospital and geriatrics industry, a market niche that is not as connected to the economic cycle and has a high potential for exportation.

Grupo Pikolin obtains a significant portion of its sales from a limited number of distributors

Grupo Pikolin sells its products through establishments specializing in bedding products (of its own or operated under a franchise), and independent distributors.

The risk of exposure to its main customers is different in the Iberian and French markets. According to the company’s data, at December 31, 20181, in the Iberian Peninsula, the 10 main customers represent 46.5% of total sales in that area (the two largest representing 27.0% of total billings), while in France the 10 main customers represent 74.5% of total sales in the region (with the two largest customers representing 54.3% of total billings).

This level of exposure to the risk of customer concentration, which is particularly high in France, is closely linked to the way in which products are distributed in the bedding sector. The Iberian market is fragmented while the French market is considerably more concentrated, what is the main reason why retail sales are not channeled through dedicated stores and franchises, as is the case in the Iberian Peninsula and in Asia.

However, despite the higher exposure to customer concentration risk in the French market, in comparison with the Iberian market, the differences in the ways of distribution in these two markets generate synergies for both parties, bearing in mind that the average payment period for customers in France is shorter than for Spanish customers.

1 Data as at December 31, 2018. It is placed on record that the financial statements for the year ended December 31, 2018 have been neither issued nor audited at the date of this Base Informative Document.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

Volatility in the prices of key raw materials could have an effect on the operating margins of Grupo Pikolin

Because it designs, manufactures and markets its products, Grupo Pikolin consumes raw materials whose availability may be limited and which prices can be volatile.

Grupo Pikolin's main raw materials are petroleum based and steel products. The price and availability of such raw materials have fluctuated in the past and may fluctuate in the future. Moreover, an adverse evolution in oil prices could also affect the distribution costs of the Issuer’s group, and its activity, its business, financial position and results.

On June 22, 2018, the Organization of Oil Exporting Countries (“OPEC”) resolved to increase the oil production of its members by 0.7 million barrels per day (mbd) to compensate for the drop in production in Angola and Venezuela. However, the record level of production registered in the US, the conditions of scarcity of offer and a strong economic activity in the first half of 2018 reduced oil stocks, pushing prices to more than USD 76 per barrel in June. In July, however, oil prices dropped, and, in August, the price was around USD 71 per barrel, due to the larger production in Saudi Arabia and Russia, which offset the effects of the unexpected interruptions in supply in Canada and Libya, and the stricter position taken by the US regarding the application of sanctions on Iran.

Although risks are balanced, the risk of an oil price hike in the short term include a faster deterioration than expected in production in Venezuela and a larger reduction than forecast in exports of crude oil from Iran. The risks of a drop in oil prices include a higher production in the OPEC and a more abundant production than expected in Canada and the US, even though, in the short term, the US faces bottlenecks caused by the lack of labor and of infrastructure of oil pipelines. Moreover, commercial tensions and other risks for world growth could affect business worldwide and prospects, in turn reducing the demand for oil.

The International Energy Agency forecasts that oil demand will grow by 1.4 mbd in 2018 and 1.5 mbd in 2019, due to the strong growth of the world economy. At the start of January 2019, the prices of crude oil were around 55 USD and that level is expected to remain constant in the next 4-5 years.

If these forecasts, according to which prices will remain stable, are not met, both the production costs and the distribution costs of Grupo Pikolin could be affected, which could have an adverse impact on the activity, business, financial situation and results of the Issuer and/or of the Issuer's Group.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

Moreover, a variation in energy prices could affect the price of polyurethane foam, polyethylene foam and steel innerspring component parts, having a significant impact on Grupo Pikolin’s costs and reducing its profit margins, which could have a negative effect on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

However, in markets such as Spain and Portugal, the vertical integration policy carried out by Grupo Pikolin lessens the impact of raw material prices on the Group’s margins in those markets. In this regard, Grupo Pikolin is working to lower its overhead costs.

Grupo Pikolin's success depends upon its ability to design, manufacture and market new products that satisfy evolving market demand

Grupo Pikolin primarily designs, manufactures and commercializes mattresses and other sleep products.

Grupo Pikolin’s competitors may introduce new products and technologies that are more efficient or affordable than Grupo Pikolin’s or that render its existing or new products obsolete or uncompetitive, and this could have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

In addition, Grupo Pikolin may be unable to develop and manufacture new products and technologies in a timely and profitable manner, or to obtain the necessary certificates or patents to meet market requirements, or it may not have the capacity to deliver new products and technologies, which could have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

Failure to keep up with new products and technological advances in the market could have a material adverse effect on the ability of Grupo Pikolin to compete effectively in its industry and sector, which could have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

Notwithstanding the above, Grupo Pikolin has a good track record in the ability to continuously improve their products to offer new and enhanced consumer benefits, by strongly and continuously investing in R&D. Innovation entails 1% of Grupo Pikolin’s billings, with an investment amounting to 4.5 million euros in the last two years, 2016 and 2017.

Intellectual property

Grupo Pikolin holds certain trademarks and patents that enable it to protect a portion of its intellectual property. Grupo Pikolin's ability to compete effectively partly depends on the maintenance and protection of its intellectual property, including the know-how required for its day-to-day operations in

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

relation to the products it designs, manufactures, markets and sells and the services it offers. Grupo Pikolin could, however, fail to adequately protect its intellectual property, and this could have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

Grupo Pikolin may be exposed to the risk of occurrence of: (i) a delay in obtaining the relevant approvals for trademarks, patents or other industrial property rights, (ii) failure to obtain them and/or (iii) the fact that even if they are approved, they are insufficient to protect the brand, which could have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

In addition, Grupo Pikolin may have to assume certain costs that could have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group, as a result of potential claims by third parties in connection with the intellectual and industrial property rights of Grupo Pikolin, which could also affect its patents or trademarks.

Potential claims

Grupo Pikolin's activities could expose the Issuer and/or the Issuer’s group to potentially warranty, product liability, accident or other claims and cause Grupo Pikolin to be a party to litigation, which could have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

Grupo Pikolin normally offers general limited warranties to its customers for many of its products, and so could be subject to warranty or contractual claims in the event any of its products and services not complying with contractual specifications. This type of claim could result in product recalls, customers seeking monetary damages and damage to Grupo Pikolin's reputation, which could have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

There can be no assurance that Grupo Pikolin will not have to pay penalties in the future as a result of an increase in failures attributable to Pikolin, which could have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

Worsening of economic and political conditions worldwide, and those of Spain and France in particular

The results of Grupo Pikolin could be affected by the macro-economic and political situation in the countries in which it pursues its business, and in Spain and France in particular, as well as by levels of sovereign debt and fiscal deficit, liquidity and credit availability, unemployment, real disposable incomes, salaries, and inflation.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

The profitability and growth of Grupo Pikolin are linked in part to the evolution of the economic situation in Spain and France. Therefore, if these two economies do not continue to improve, become stagnated or contract, this could have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

The possible political uncertainty in the countries in which Grupo Pikolin pursues its business activity, particularly in France, with the impact of protests in the streets and industrial measures, and in Spain, where general elections will be held in the near future, could also have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

Legislation could be introduced which limits Grupo Pikolin's capacity to extend its business through acquisitions or business alliances

Grupo Pikolin is subject to the legislations of different jurisdictions, which may contain stipulations whereby the acquisition of holdings in companies or formation of business alliances are required to be authorized. In this respect, Grupo Pikolin's capacity to extend its business through acquisitions or business alliances could be restricted or delayed as a result, which could have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

B. Risks relating to the Issuer

Credit risk

Grupo Pikolin is exposed to its customers’ credit risk. However, Grupo Pikolin's main clients are reputable companies with guaranteed solvency, situation that greatly reduces the probability of default. Grupo Pikolin has hired insurance credit guarantees operations for 90%2 of the billed volume at December 31, 2018. At the same time, in markets such as Spain or France, where Grupo Pikolin operates, the law affects especially to this aspect, to ensure compliance with the maximum period of collection.

Market risk

Grupo Pikolin is exposed to various types of market risk in the course of its business, including the impact of variations in interest rates and exchange rate fluctuations.

▪ Interest rate risk

2 Data as at December 31, 2018. It is placed on record that the financial statements for the year ended December 31, 2018 have been neither issued nor audited at the date of this Base Informative Document

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

Fluctuations in interest rates may have an adverse effect on Grupo Pikolin’s business, financial position and results. Some of the borrowings of the Issuer’s group are indexed to a variable rate, which in general is linked to interest rates such as the EURIBOR. Any rise in interest rates would increase the Issuer’s group’s financial expenses related to its variable rate borrowings, as well as the costs of refinancing existing debt of the Issuer’s group and the issuance of new debt.

Grupo Pikolin uses derivative financial instruments to hedge the risks to which its activity, operations and future cash flows are exposed. Accordingly, in the context of debt transactions, Pikolin has contracted interest rate hedging instruments (interest rate swaps).

▪ Foreign exchange risk

Exchange rate fluctuations may have a material adverse effect on the business, the financial condition and the results of operations of Grupo Pikolin. Grupo Pikolin's reporting currency is the euro. However, some contracts entered into by Grupo Pikolin are determined in other currencies or in euros but allowing the customer to pay in its local currency, using market exchange rates in effect at the time of payment, forcing Grupo Pikolin to bear any foreign exchange risk arising between the invoice date and the effective date of payment. This risk is mainly found in the Issuer’s strategic operations whereby it purchases different subsidiaries abroad.

Approximately 18% of Grupo Pikolin's exports were generated outside of the European Union as of December 31, 20183. To be able to manage part of the risk associated with its exposure to fluctuations in foreign exchange rates, Grupo Pikolin uses foreign exchange forward contracts in respect of net cash inflows and outflows resulting from foreign currency denominated transactions between their subsidiaries and their customers and suppliers, as well as among certain subsidiaries.

Grupo Pikolin follows a conservative interest hedging policy, having contracted low-risk hedging products considered “plain vanilla”.

Liquidity risk

In recent years, Grupo Pikolin's has had weak liquidity levels due to the loss of operating profitability resulting from the fall in business during the early years of the crisis, and to the major investments associated with the construction of new manufacturing plants in France and Spain and the move to them. . As of December 31, 2017, Grupo Pikolin had the capacity to meet

3 Data as at December 31, 2018. It is placed on record that the financial statements for the year ended December 31, 2018 have been neither issued nor audited at the date of this Base Informative Document.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

short-term payment commitments with a working capital of 7.3 million in 2017 and of 40.7 million in 2018.

Funding risk

Grupo Pikolin makes regular capital investments for maintenance purposes and, occasionally, for the acquisition of new lines of business or to start operations in a new country.

In the event that Grupo Pikolin is unable to attract capital for its business and operations when so required, its activity, its business, its financial situation and its results could be adversely affected.

In addition, the possibility of obtaining external financing depends on a number of factors that are beyond the control of Grupo Pikolin, such as the situation in the capital market, the availability of credit, interest rates and its business results.

The Grupo Pikolin's difficulty in obtaining additional financing when so required and in satisfactory conditions could have a significant adverse effect on its expansion plans and on its activity, business, financial position, and results.

The interest of the controlling shareholders of Grupo Pikolin may differ from the interest of the holders of Commercial Paper

Grupo Pikolin’s interest or the interest of the controlling shareholders may differ from the interest of the holders of Commercial Paper

Seasonality

Seasonality has an impact on the operating results of Grupo Pikolin and this could mean that comparisons between consecutive quarters cannot be regarded as an accurate indicator of its results.

A significant part of the growth in the Grupo Pikolin's net sales is attributable to the increase in retail sales. Sales of sleep and other products to furniture stores are subject to the seasonality typical of this sector, in which sales generally increase in the second and third quarters. In this respect, any event having an adverse effect on the activity, distribution and sales of Grupo Pikolin during that period of time would negatively impact its results to a greater extent than if they occurred in other quarters, in which sales do not involve such a high percentage of the Grupo Pikolin's total operating results and revenue.

Importance of Grupo Pikolin employees

Grupo Pikolin will need to attract, recruit or retain qualified employees in the

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different jurisdictions in which it operates and to manage successfully the relationship with its employees. Otherwise, its business and ability to manage the day-to-day aspects of its business will be adversely affected.

Grupo Pikolin also believes its success depends to a significant degree on the continued contribution of its executive officers and key employees, both individually and as a group. The loss of one or more members of its management team, as they have many years of experience in its business and industry, would be difficult to replace without adversely affecting its business.

Product liability insurance

Grupo Pikolin purchases and maintains the product liability insurance coverage believed to be consistent with industry practice and sufficient to insure Grupo Pikolin against the immediate financial risk of successful claims based on product liability. Its ability to insure its businesses, facilities and assets is an important feature of its ability to manage risk. However, Grupo Pikolin could be unable to procure adequate insurance, or at terms which are not cost-effective that could be harmful to its results and brand image.

Force Majeure

Accidents, natural disasters, terrorism, power loss or other catastrophes may also result in significant property damage, disruption of operations, personal injury or fatalities and reputational damage, which could have a negative impact on the activity, business, financial position and results of the Issuer and/or of the Issuer’s Group.

In the event of uninsured loss or a loss in excess of the insured limits, Grupo Pikolin could suffer damage to its reputation and lose all or a part of its manufacturing capacity, as well as future net turnover expected from the relevant facilities. Any material loss not fully covered by insurance could adversely affect the activity, business, financial position and results of the Issuer and/or of the Issuer’s group.

C. Risk derived from Grupo Pikolin borrowings

In order to carry out its activities, Grupo Pikolin, in recent years, has received financing from credit institutions and institutional investors through the bond issuances carried out during the fiscal years 2015, 2016 and 2018, and the issues of commercial paper carried out in 2016, 2017 and 2018. Therefore, Grupo Pikolin is exposed to the risk of non-compliance with the obligations arising from its borrowings.

In particular, under the commitments assumed by reason of the bond issuances, Grupo Pikolin is currently subject to the fulfilment of various financial covenants (indebtedness limitation, negative pledge, dividend payments restrictions, restrictions on sales of assets and mandatory tender

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offers of the bonds, investments restrictions, among others). Grupo Pikolin regularly monitors compliance with these financial covenants in order to anticipate any risk of non-compliance and to take corrective measures.

1.2 Basic information on the specific risks related to the Commercial Paper

The main risks of the Commercial Paper are as follows:

Market risk

These are short-term fixed-income securities and their market price is subject to possible fluctuations, mainly concerning the interest rate. Consequently, the Issuer cannot guarantee that the Commercial Paper will be traded at a market price that is equal to or higher than the subscription price of the same.

Credit risk

The Issuer is liable with its assets for the payment of the Commercial Paper. The credit risk of the Commercial Paper arises due to the potential inability of the Issuer to comply with commitments assumed, and this can generate a possible economic loss for the counterparty.

Risk of change in the Issuer's credit rating

The Issuer's credit rating could be deteriorated as a result of an increase in borrowings or due to deterioration in its financial ratios, which would represent a decrease in the Issuer's capacity to meet its debt commitments.

On December 21, 2018, Axesor Risk Management S.L.U. ("Axesor") issued a report on the corporate credit rating assigned to the Issuer.

Axesor’s report assigned the Issuer a credit rating of BB. This rating focuses on an assessment of solvency and the associated credit risk in the medium and long term. However, there is no guarantee that this rating by Axesor will be maintained over the entire term of the issue, as the maintenance of the rating is conditional on the improvement of Grupo Pikolin in financial terms during the fiscal year 2019, mainly as regards operating margins and debt ratios. The credit rating could be revised upwards or downwards, suspended or even withdrawn by the rating agency. A downward revision, suspension or withdrawal of the credit rating by Axesor could hamper the Issuer's access to debt markets and impact its financing capacity.

Liquidity risk

This is the risk whereby investors are unable to find counterparty for the securities when they want to sell the Commercial Paper prior to maturity. Even though we will apply for admission (incorporación) of the Commercial Paper to be issued under the aegis of this Base Informative Document on the MARF in order to

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mitigate this risk, we cannot guarantee there will be active trading thereof on the market.

In this regard, we point out that the Issuer has not signed any liquidity contract and consequently there is no entity obliged to list put and call prices. Consequently, investors may not find counterparty for the Commercial Paper.

Risks derived from the classification and order of priority of debt claims

According to the classification and order of priority of debt claims laid down in Law 22/2003 of 9 July, in its current wording (“Insolvency Law”), in the event of insolvency of the Issuer, the debt claims of the investors by virtue of the Commercial Paper are generally to be ranked as ordinary claims (ordinary creditors), being placed behind preference claims and ahead of subordinated claims (unless they can be classed as such under Article 92 of the Insolvency Act). Since the Commercial Paper notes are classed as ordinary claims, there would be no order of preference between their holders.

According to article 92 of the Insolvency Law, the following, among others, are classed as subordinated claims:

- Claims which, having been communicated late, are included by the insolvency management team in the list of creditors, and those which, having not been communicated or having been communicated late, are included in such list as a result of subsequent communications, or by the judge when resolving on an action contesting the list.

- Claims for surcharges and interest of any kind, including late-payment interest, except for interest relating to secured loans up to the amount of that security.

- Claims held by any of the persons specially related to the debtor, as referred to in article 93 of the Insolvency Law.

Risks associated with MIFID II and MIFIR

The European regulatory framework deriving from MIFID II and Regulation 600/2014/EU of the European Parliament and of the Council of May 15, 2014 on markets in financial instruments and amending Regulation 658/2012/EU (“MIFIR”) has not yet been fully implemented, although there are already different delegated regulations and delegated directives, which can affect the trading and the market of the Commercial Paper.

According to the above, as the rules contained in MIFID II and MIFIR are in force since January 3, 2018, MTSs, such as MARF, among other securities markets participants, are in the process of adapting to the above mentioned regulatory changes. The adaptation to such changes could increase the transaction costs for

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

potential investors in the Commercial Paper or result in changes in the listing thereof. In light of the above, potential investors in the Commercial Paper should carry out their own analysis of the risks and costs that MIFID II and MIFIR or their future technical standards may entail in relation to an investment in Commercial Paper.

2. Full name of the Issuer, address and its corporate tax code

2.1 Issuer’s general information

The full name of the Issuer is GRUPOPIKOLIN, S.L.

Its registered office is at Zaragoza, at Ronda del Ferrocarril, 24 - Plataforma Logística Zaragoza.

The Issuer is a limited liability company, incorporated and for an open-ended period, through a deed authorized by the notary public of Zaragoza Mr. Jesús Martínez Cortés, on April 24, 2003, under number 1.812 of his official records, and duly filed with the Commercial Register of Zaragoza in Volume 2.929, Section 47, Sheet Z-33424.

The share capital stock of Grupo Pikolin is represented by 5,803,708,000 shares, of the same class, each with a par value of €0.01, meaning a total nominal value of €58,037,080. The shares are fully subscribed and paid in.

The Issuer’s group engages in the design, manufacture and sale of high-quality mattresses, bed bases and pillows.

The Issuer's corporate tax code is B-50966654 and its LEI code is 95980020140005834436.

The website of the Issuer’s group is www.grupopikolin.com.

2.2 Brief description of the Issuer’s activity

Grupo Pikolin is one of the main players in the mattresses market at European level (occupying a position of leadership in Spain, Portugal and France).

As of December 31, 2018, the group had ten production factories in Europe (five in France and three in Spain, which are the main markets in which Grupo Pikolin operates) and two in South-East Asia (China and Vietnam, future growth markets for Grupo Pikolin), which employed around 3,092 workers.

a) Milestones of the Issuer

The Issuer began its activity in 1948, producing beds and metal bedsteads in a small location in Zaragoza. It is currently one of the main manufacturers of sleep products in Europe.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

The main milestones achieved along the years of history of Grupo Pikolin are as follows:

1948: Alfonso Soláns Serrano founds the business with seven workers producing beds and metal bedsteads in a small factory in Zaragoza.

1959: The company grows, and moves to larger premises. The Pikolin brand is created, with a commercial network of 18 branches.

1973: Pikolin celebrates its 25th anniversary with the inauguration of its current factory, one the largest in the world. Its commercial network grows and reaches 35 branch offices.

1985: Creation of “BEDS” the largest sleep store franchise which currently has more than 270 stores in Spain and Portugal.

1995: Pikolin is awarded registered company certification (ISO 9002) by AENOR.

1999: Grupo Pikolin enters into a distribution agreement for the “SERTA” brand in the European market. SERTA is one of the most important sleep product companies in the United States.

2004: Grupo Pikolin acquires the “SEMA” brand, which is the oldest sleep product brand in Spain, created in 1939.

2006: Grupo Pikolin takes control of SMATTEX, S.A., the company that manufactures sleep products under the “Dunlopillo” and “Mediterráneo” brands in Spain and Portugal.

2007: Grupo Pikolin opens its representative office in China.

2009: Grupo Pikolin completely took over COFEL, S.A.S., the largest French manufacturer of sleep products, thus strengthening its leadership position in the European Bedding market and went on to control the Bultex, Epeda and Merinos brands, French market leaders. With this milestone, Grupo Pikolin became the second leading bedding manufacturer group in Europe.

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2011: In 2011 it purchases Dunlopillo Holdings B.H.D., a mattress manufacturer belonging to the SimeDarby Group headquartered in Malaysia, and with business operations in more than fifteen Southeast Asian countries.

Grupo Pikolin also inaugurated the PLAZA Logistics Centre in 2011. This new logistics center is one of the largest and most modern sleep product logistics centers in Europe It occupies 32,000 m2, and uses the most innovative and advanced technological resources available. It has 21 loading and unloading bays. It has storage capacity of 50,000 m3, and generates traffic of 22,000 lorries a year.

2012: Grupo Pikolin acquires Industrias Hidráulicas Pardo thus consolidating its leadership position in the hospital and geriatric sleep market. Also that year, Grupo Pikolin entered the Italian market with Literie Italia, forming a joint venture with the leading manufacturer in the Italian market: B&T.

2015: Grupo Pikolin starts the construction of its new “state of the art” factory in Zaragoza (Spain), with a total industrial site of 225,000 m2. It started operating in 2017, and by early March 2017 was working at 100% of its production capacity. Construction also begins of a new plant in France, which was completed and began operating at full capacity in September 2016.

2016: Grupo Pikolin signs three major international agreements: (i) a joint venture with Sleep House Brazil whereby Grupo Pikolin acquired 51% of a specialist chain which is a leader in the Brazilian market, (ii) an agreement for the transfer of 50% of COFEL, S.A.S. to Steinhoff International Holdings N.V., an integrated retailer which manufactures, supplies and sells furniture, household articles and goods in general in Europe, Australasia, the United States and Africa, and owner of Conforama France, one of the main mattress distributors in the French market and (iii) a joint venture agreement with B&T to launch the Literie Italia brand, to reinforce its position in Europe and facilitate the entry of two of its brands into the Italian market.

This same year, Grupo Pikolin also acquired Literie Prestige, a distribution chain with 14 own stores in Belgium.

2017: The strategic alliance with Steinhoff International Holdings N.V., with the transfer of 50% of COFEL, S.A.S., was formalized on January 12, 2017, following authorization from the antitrust authority.

Grupo Pikolin inaugurated a new industrial-logistics complex in Zaragoza in which it has invested more than 50 million euros. The new installations at PLAZA have approximately 225,000 m2.

2018: On August 27, Grupo Pikolin acquired the remaining 49% of Sleep House Brasil, raising its stake to 100% of the specialized chain.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

b) Current situation and performance of the Issuer

With revenue in excess of €337 million in 20184, Grupo Pikolin is the leader of the Spanish, French and Portuguese markets for 20178 (source: Xerfi Report entitled “La fabrication de matelas et sommiers” dated November 2018 and according to GFK). Moreover, in the last fiscal years, it has commenced an international diversification process outside Europe, mainly with a presence in Asia and Brazil.

Grupo Pikolin currently has 10 factories: eight in Europe and two in Southeast Asia, with over 3,000 employees as at December 31, 2018, a portfolio of well- known trademarks that provide them with a wide range of products.

c) Main Shareholders

The main shareholder is Mr. Alfonso Soláns Soláns, with 98% of Grupopikolin, S.L.’s shares.

His sons, Mr. Álvaro Soláns García and Mr. Alfonso Borja Soláns García, hold approximately the remaining 2%.

d) Organization Structure

Grupo Pikolin is the parent company of five subsidiaries: Pikolin S.L., Dunlopillo Holdings B.H.D., Sleep House Colchões e Accessórios, LTDA Brasil and Industrias Hidráulicas Pardo, S.L.

The following organization chart summarizes the Grupo Pikolin's structural organization and its main subsidiaries at the date of this Base Informative Document:

4 Data on billings as at the 2018 year end. It is placed on record that the financial statements for the year ended December 31, 2018 have been neither issued nor audited as at the date of this Base Informative Document.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

e) Corporate purpose

In accordance with article 2 of Grupo Pikolin's Articles of Association the corporate purpose of Grupo Pikolin comprises the following activities:

a) "Acquisition, holding, use, management, operation and administration of securities issued by companies or entities of any kind.

b) Financial and property investments and to this end, the purchase, sale and pledging of all kinds of securities, whether or not traded on a stock market, for its own account, expressly excluding activities reserved for collective investment undertakings, those included in the Securities Market Law and, as appropriate, those reserved for certain entities under special laws.

c) Promotion, development and investment in other lawful companies and businesses, providing, among others, investment analysis services and services involving the search for new business opportunities of any kind.

d) Provision of advisory, management and support services in commercial, financial, administrative, accounting and tax matters and in the organization of trading and industrial undertakings, whatever their nature.

e) Acquisition, promotion, operation, either directly or under non-

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finance leases, and sale of real estate.

f) Study, design and development of projects related to shopping centers and retail parks, sports and leisure parks, residential areas, hotels, community and social facilities.

g) Provision of financial services and granting of loans and credit to other companies in the same corporate or family group and which are therefore related to this company for the purposes of Article 18 of Law 27/2014 of 27 November on Corporate Income Tax, expressly excluding, in any event, all financial activities reserved for collection investment undertakings, operations covered by the Securities Market Law and, as appropriate, activities reserved for certain entities under special laws.”

f) Administrative and management bodies

Board of Directors

The administration of Grupo Pikolin is entrusted to a Board of Directors whose composition, as of the date of preparation of this Base Informative Document, is as follows:

Name Position

Mr. Alfonso Soláns Soláns Chairman

Mr. Álvaro Soláns García Vice-President

Mr. Alfonso Borja Soláns García Vice-President

Mr. Enrique Ocejo Marín Board’s Secretary

▪ Mr. Alfonso Soláns Soláns: Chairman of the Board of Directors

The Chairman of Grupo Pikolin is the only son of the founder Mr. Alfonso Soláns Serrano, who transformed the small factory of iron beds and a mattress in what it is today, an international Group with over 3,000 employees as at December 31, 2018.

▪ Mr. Alfonso Borja Soláns García: Vice-President and Vocal of the Board of Directors

Mr. Alfonso Borja Soláns García, third generation of Grupo Pikolin and eldest son of Mr. Alfonso Soláns Soláns is leading the expansion in Asia from Kuala Lumpur, where he lives at the moment.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

▪ Mr. Álvaro Soláns García: Vice-President and Vocal of the Board of Directors

Mr. Álvaro Soláns García, third generation of the Group and youngest son of Mr. Alfonso Soláns Soláns, is leading the South European operations.

Senior Management

Grupo Pikolin's senior management is structured as follows as of the date of this Base Informative Document:

▪ Mr. José Antonio González García: CEO of Grupo Pikolin

With a law Degree in Law by the University of Zaragoza and MBA by ESADE Business School, he joined Grupo Pikolin in 1990 as a Product Manager, developing his career within the group in different positions.

In 2005 he took the lead of the French subsidiary, COFEL S.A.S., as General Manager, and finally in 2012 he promoted to CEO of Grupo Pikolin. He has more than 28 years of experience in the bedding sector.

▪ Mr. Luis Barcelona Escartín: CFO of Grupo Pikolin

With a Degree in Law by the University of Zaragoza and MBA by Fundación Universidad Empresa, he joined Grupo Pikolin in 2003 as a CFO of Grupo Pikolin and General Manager of Grupo Iberebro. He had worked over 13 years in the banking industry as Manager of Retail Banking for Spain and Portugal in Deutsche Bank. He has more than 15 years of experience in the bedding sector.

▪ Mr. José María Cerezo Porroche: Director of Administration and Finance of Grupo Pikolin

He is “perito mercantil” by Escuela Universitaria de Ciencias Empresariales de Zaragoza and holds a postgraduate of Economic and Financial Management of International Business and MBA by Escuela Europea de Negocios. He joined Grupo Pikolin in 1989 as Assistant to the Head of Economic Management, dedicating his career to the financial management of Grupo Pikolin. He has more than 29 years of experience in the bedding sector.

g) Industry

(i) Industry introduction

According to the projections drawn up by Transparency Market Research (“TMR”) in April 2018, the global mattresses market will reach 43.43

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billion US dollars in 2024. The main factors which point towards growth in the sector are the increase in the construction of residential properties derived from the reactivation of the economy in both Europe and North America, and the growing activity of home refurbishment and growth in the hotel industry worldwide.

The Asia-Pacific region is the broadest market, in addition to being the most dynamic, with compound annual growth of 11% between 2018 and 2025, according to Global Industry Analysts (“GIA”). There are a number of factors which result in its being the most active market, such as: increase in living standards, increased urbanization and a high level of activity in the construction sector, an increase in rates of ownership of homes - larger in size and with more bedrooms - among the growing middle classes, growth of the hotel sector, a broader offer of services, improved consumer experience, and improved promotion of services focusing on sleep.

According to the 2017 Mattress Industry Report published by the International Sleep Products Association (“ISPA”), the total mattress consumption amongst the 44 major countries reached USD 25 billion in 2017. In the United States alone, mattress manufacturers sold 39.7 million units (41 million units in 2016) (3% less than in 2016), although the average unit price of mattresses grew by 3.3% with respect to the preceding year.

According to this ISPA report, the main manufacturers of mattresses were China and the United States, which are a long way ahead of the other manufacturing countries. China increased its production by almost 7%, up to a figure of 8.7 billion US dollars in 2017.

According to the CSIL World Mattress Industry report of 2017, international trade in mattresses in the 60 largest markets grew by 9% in 2018, up to more than 4.6 billion dollars, in part favored by the improvements in the vacuum-packing of mattresses and in transport logistics.

The United States is the leader in mattress consumption with around 8.2 billion dollars, followed very closely by China with 7.9 billion dollars. They are followed by Brazil, India, Germany and Canada. The following chart shows the evolution of the mattress consumption in the six largest markets for 2008-2017:

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Some Central and Eastern countries, including Russia, Poland and Romania, are still small mattress consuming markets, with significant growth potential.

(ii) Mattress sector by country

France

France is the second European country in terms of mattress consumption according to CSIL. After increasing by 5.5% in 2016 and by 3.0% in 2017, sales in the mattress sector remained stable in 2018, showing improved performance than the furniture sector, where sales went down by 2.7% in 2018, according to the l’Institut de prospectives et d’études de l’ameublement (“IPEA”).

Following 20% growth over the last 12 years, mainly due to the important growth registered in 2015 and 2016. The French mattress sector continues to perform well, and, in 2018, it went up by 1%, reaching 2.4 billion euros. This surge is explained in particular by the ageing of the population, by the interest that the French have in “good sleep”, and back problems, which are encouraging them to renew their bedding materials more often.

Due to the slowdown in the furniture sector, the number of mattresses sold was affected, but this fact was countered by the growth in value. In 2018,

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broad mattress sales had a strong growth due to the demand for greater sleep comfort. At present, 140 cm mattresses represent only 50% of sales, compared to 67% three years ago (according to the Xerfi report of November 2018). The increase in sales of 160 cm and 180 cm mattresses not only helped maintain the average sale price of mattresses but also caused an increase in the sale of bed bases to fit this type of mattresses.

According to the Xerfi report, in 2017, 53% of the French mattress market was distributed through large department stores, whereas 28% is distributed through franchises of bedding specialists, 8% through furniture stores and 1% through other distributors such as hypermarkets.

In recent years, owing to the surge in Internet purchases, this channel has become more important, accounting for 10% of distribution in 2017. Despite this new trend, in 2018 and for the forthcoming years, mattress manufacturers plan to increase their sale perimeters, investing in opening new stores, which will enable sales to continue to grow throughout the specialized mattress channel.

France is a highly concentrated market in which COFEL (Pikolin France) and Adova represent more than 53% of the market, with COFEL being the market leader with a market share of 28% (source: Xerfi report).

In addition, despite the performance of revenues in this market in 20185 (- 1% compared to 2017), as a result of reactive measures established to prevent a loss of market share, the company expects a recovery of revenues in 2019 consistent with market performance, largely due to a general upward trend in rates, rather than to an increase in units sold.

With respect to manufacturing technologies, sales in the French market are led by foam and latex mattresses, followed by spring mattresses.

5 Data on billings obtained at the 2018 year end. It is placed on record that the financial statements for the year ended December 31, 2018 have been neither issued nor audited as at the date of this Base Informative Document,

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Spain

The economic crisis affected very strongly the Spanish market. There has as yet been no recovery of the maximum levels recorded in 2007 (3.5 million units), with sales for 2018 amounting to 1.7 million units, although the average price of mattresses has increased by 9% over the period 2009 to 2018, according to the GFK report.) Thanks to this price rebound, the mattresses sector in Spain recorded billings of approximately 828 million Euros in 2018, as can be seen from the table set out below. The recovery of sales is expected to continue in the coming years thanks to the improvement in the Spanish economy, reflected in indicators such as GDP growth (2.5% in 2018) and unemployment figures (14.3% in December 2018).

Units sold (Thousands) 2018 % vs. 2017

Mattresses 1,802 -4.63% Pillows 3,746 -2.31% Bases 1,201 0.92% Sales € million 828,1 -3.83% Source: GFK Although in 2018 the Spanish market went down slightly in unit sales, sales of Grupo Pikolin grew by more than 5%. Despite that performance in 2018, the Spanish market is expected to grow by between 5% and 7% in 2019 and 2020 respectively, reaching 2.4 million units per year in 2024, according to Grupo Pikolin estimates.

As we can see in the following graph, Grupo Pikolin is one of the main competitors in Spain and Portugal. In 2018, it has maintained its leadership position with a 23% share of the Spanish mattresses market.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

It is noteworthy that the GFK report, for its composition, covers a spectrum of products broader than that offered by Pikolin, which includes textiles, bed bases, mattresses and other accessories related to the sleep sector. According to internal data of Grupo Pikolin, and taking into account only the range of products and services in which the group competes, Grupo Pikolin reaches a market share of 28% in 2018.

In the Spanish market, furniture shops were the leading distributors of mattresses to households in 2018 in terms of both value and volume, followed by specialists and hypermarkets.

In Spain, mattress production was traditionally concentrated on the innerspring segment. Over the last ten years, the innerspring mattresses production decreased in comparison with production of foam mattresses. The share in the production of innerspring mattresses declined from 90%

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in 1997 to the 47.8% recorded for 2018, according to GFK’s data.

The distribution system of the sleep sector in Spain involves a limited number of participants, with 57.8% of the market being centered on just three players. The remaining 42.2% is divided up between international retailers, local distributors and the emerging Internet distributors. New consumer habits have favored the emergence of these new market players.

China

China’s mattress production capacity continues to increase very rapidly in recent years due to the fast growth of the domestic property market and the expansion of exports.

Mattress production in China has experienced double-digit growth rates in the last five years, with an average growth rate for the period 2013-2018 of 10% (source: IbisWorld “Mattress Manufacturing in China Report”). Thanks to the 8.7 billion dollars in sales generated by the mattresses industry in China, it has been, since 2011, the second country in terms of mattress production.

Considering the enormous capacity of the local market, mattress consumption continued to increase in 2017 by 9.7% (1% in 2016) (in US dollars), making China the second largest consumer of mattresses in the world, behind the US (source: ISPA).

Besides local consumption, China is the largest exporter of mattresses in the world. In 2017, it exported mattresses valued at USD 1.1 billion million, followed by Poland, Denmark and Belgium.

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Brazil

Brazil is a market which has seen major growth in sales of bedding products in recent years and the economic expectation is that there will be further accelerated growth in sales. In 2018, the economy has been consolidated with a growth of 1.2% and is expected to grow by 2.4% in 2019 and 2.5% in 2020 (according to data of the Brazilian Institute of Geography and Statistics), stimulated by factors like the expansive tone of the monetary policy and the increase in confidence.

In 2017, mattress sales in Brazil amounted to 1 billion dollars, making it the third largest consumer of mattresses in the world (according to CSIL). The Brazilian market is dominated by foam mattresses, which account for 83% of the total market (source: Grupo Pikolin internal estimates).

In terms of distribution channels, it is to be noted that a large proportion of sales are made through department stores.

(iii) Industry trends

According to the World Mattress Industry (CSIL 2017), over the last decade, the most significant growth rates were registered by Asian countries, particularly China and Indonesia. Also some Central and Eastern European countries, including Russia, Poland and Romania, also recorded significant growth figures although they are still low mattress consumption markets, but with significant growth potential.

According to CSIL data, international trade in mattresses amounted to 4.3 billion dollars in 2017, and is expected to reach 4.6 billion dollars in 2018, with a ratio of exports to production of 14.6%, as compared with 12.7% in 2008.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

The reasons behind the future growth in mattress exports are as follows:

- The opening-up of new mattress markets as well as the increasing role of emerging markets, not only in terms of production localization through mattress factories but also in terms of mattress consumption.

- Advances in vacuum packing and transport logistics have facilitated distribution, with the consequential increase in international trade in mattresses.

- New trends which reflect a greater awareness of the importance of sleep, linked to an increase in empirical evidence which relates sleep quality to a healthy lifestyle, are bringing about a shortening of the life cycle of bedding furniture.

The production of mattresses at the 29 largest manufacturers in 2017 was 25 billion dollars, 63% of which were spring mattresses. The top exporting countries were China and Poland, followed by Denmark and Belgium.

(iv) Business units

Grupo Pikolin is a vertically integrated company that manufactures, distributes and commercializes all of its products.

Manufacturing

Grupo Pikolin manufactures all its products at 10 factories, 8 of which are located in Europe (Spain and France) and 2 in Asia (China and Vietnam).

▪ Spain: Grupo Pikolin’s headquarters is located in Zaragoza. The Issuer's group has three factories in Spain, with a total surface area of 255,000 m2.

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▪ France: The Issuer's group has five factories in France, with a total surface area of 130,010 m2.

▪ Asia: The Issuer's group has one factory in Vietnam and another in China, with a total surface area of 17,600 m2.

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Distribution

Grupo Pikolin distributes all its products through a logistics park in Zaragoza and an external company in France, and from Malaysia to all Asia and Africa.

Commercialization

Grupo Pikolin sells all its products through specialized sleep product outlets (owned and franchised) and through independent distributors:

- Grupo Pikolin has a network of specialized stores (owned and franchised) in Spain and Portugal, namely BEDS stores, the main specialized network for sleep products in Spain. BEDS is one of the largest and most important specialized sleep product operators in Spain and Portugal, behind El Corte Inglés. BEDS sells high and medium range sleep products, including mattresses, bed bases, pillows and complements. The gradual expansion of the network of stores is one of the main growth levers, with 29 new openings in 2018 (dedicated stores), reaching a total of 149 dedicated stores, and including 270 franchises.

- In France, the distribution market is heavily concentrated in a reduced number of specialists in sleep products.

- In Asia, Grupo Pikolin has dedicated stores and franchises in China. It also has open distribution channels in five countries (Vietnam, Malaysia, United Arab Emirates, Hong Kong and Singapore), and it engages in commercial operations in over fifteen countries in South- east Asia.

- In Brazil, Grupo Pikolin markets its products through Sleep House Brazil, a Brazilian family company set up in November 2000 with

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billings of approximately 30 million Euros in 20186. It is present in Sao Paulo and cities in the area and, in 2018, had 382 direct employees. It currently has 59 dedicated stores in Sao Paulo, and aims to reach 100 sales points in 2020.

- In Italy, its Epeda and Bultex brands are marketed through the Literie Italia joint venture.

(v) Products and brands

Grupo Pikolin has a portfolio of thirteen well-known brands through which it offers a wide range of products. The following table has a detailed description on the different brands, market position and countries in which Grupo Pikolin operates.

Brand Description • Worldwide brand owner • Leading brand in Spain and Portugal. Also present in China • No.1 in brand awareness (96% of suggest awareness) • Strong reputation for being a high-quality luxury product • Brand owner in the following countries: Angola, Bangladesh, Bahrain, Brunei, Cambodia, China, R.D. Congo, Egypt, Ghana, Hong Kong, Iran, Iraq, Japan, Jordan, Kenya, Kuwait, Laos, Lebanon, Liberia, Libya, Macau, Malaysia, Malawi, Mauritius,

Myanmar, Nigeria, North Korea, Oman, Pakistan, Philippines, Portugal, Qatar, Saudi Arabia, Seychelles, Singapore, South Korea, Spain, Sri Lanka, Syria, Tanzania, Taiwan, United Arab Emirates, Uganda, Vietnam, Yemen, Zambia, Zimbabwe • It does not have a distribution license for France • Worldwide brand owner (except Brazil) • One of the most widely recognized brands in France, (No.3 in recognition, IPSOS) • High-quality mattresses and complements • Worldwide brand owner • One of the most widely recognized brands in France, (No.4 in recognition, IPSOS) • Multi-technology products portfolio

• Brand owner in France, Italy, Portugal and Spain • Leading brand in France (No. 1 in recognition, IPSOS) • High-quality polyurethane mattresses (BULTEX material)

6 Data on billings obtained at the 2018 year end. It is placed on record that the financial statements for the year ended December 31, 2018 have been neither issued nor audited as at the date of this Base Informative Document.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

• Worldwide brand owner • Specialists in hospital beds and products for geriatric centers • Worldwide brand owner • Historical Spanish brand, positioned in the medium-low product range

• Worldwide brand owner

• Medium-low range products for the Iberian market

• Worldwide brand owner • Second brand in Asia for a second range products

• Licensing in Spain and Portugal • High-end products brand

• Licensing in Morocco, Portugal and Spain • High range product brand • Licensing in Morocco, Portugal and Spain • High range product brand • Licensing in France, Portugal and Spain • Worldwide leading bedding company

Grupo Pikolin manufactures all bedding product ranges incorporating all existing technologies and making a continued effort in R&D. It has the largest number of patents in its category and manufactures multiple bedding-related products, thereby securing the brand’s leadership position. The group manufactures mattresses, bed bases, pillows and bedding accessories.

There are four product divisions within Grupo Pikolin7:

- Mattress division: represents approximately 71% of Group’ sales as at December 31, 2018. Grupo Pikolin sells three categories of mattress: springs, springs and foam, and foam and latex.

- Bed bases division: represents approximately 21% of Group’ sales as at December 31, 2018. Grupo Pikolin sells slatted and upholstered bases, and bed frames.

7 Data as at the 2018 year end. It is placed on record that the financial statements for the year ended December 31, 2018 have been neither issued nor audited as at the date of this Base Informative Document.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

- Hospital and geriatric division: represents approximately 4% of Group Pikolin’ sales as at December 31, 2018.

- Pillow and other product division: represents approximately 4% of Group Pikolin’ sales as at December 31, 2018.

Grupo Pikolin continually invests in new technologies in order to develop high quality products. Many of these technologies have been developed internally. Grupo Pikolin has also developed a number of exclusive patents which make its products more comfortable and help to distinguish them from competitors.

According to the consulting firm TNS, Grupo Pikolin is the seventh in innovation among Spanish companies, due to its registration of more than 100 patents. Moreover, in 2018, the study carried out by this same consulting firm, which surveyed more than 10,000 people, named Lattoflex’s Air Balance mattress “Product of the Year”.

(vi) International expansion

From a position of leadership in the Iberian Peninsula, Grupo Pikolin decided to expand into the French market in 2001 in order to achieve a leadership position in the south of Europe. Through the acquisition of the French company COFEL S.A.S. in 2009, Grupo Pikolin became the second largest player in the European market.

As market leader in Spain, Portugal and France, Grupo Pikolin decided to expand in 2011 its operations into the Asian market through the acquisition of Dunlopillo Holdings, with headquarters in Malaysia and with commercial operations in more than fifteen countries in Southeast Asia.

In 2012 Grupo Pikolin entered into a joint venture with B&T, the leading manufacturer in the Italian market.

In 2016, Grupo Pikolin, in a continued effort to reinforce its international presence, speed up its expansion and increase its billings, entered into a joint venture with Sleep House Brazil. Under the terms of the joint venture agreement with Sleep House Brazil, Grupo Pikolin acquired 51% of a specialist chain, which was a leader in the Brazilian market and had 41 multi-brand stores in Sao Paulo.

In 2017, it executed the transfer of 50% of COFEL, S.A.S. to Steinhoff International Holdings N.V.

In 2018, it completed the acquisition of the Sleep House Brasil chain, purchasing the remaining 49% and thus consolidating its 100% stake in the company.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

In 20188, Grupo Pikolin generated most of its consolidated sales in the Iberian Peninsula (51%; 49% in 2017) and in France (32%; 33% in 2017,). Brazil’s contribution decreased (9%; 11% in 2017), and there was a slight increase in the participation of Asia (8%; 7% in 2017).

With regard to the sales distribution by product, Grupo Pikolin has a highly diversified product portfolio including three different types of mattress (springs, springs and foam, and foam and latex) that represented, in 20189, 71% (67% in 2017) of sales in value terms and 4% (5% in 2017) of pillows.

Grupo Pikolin’s strategy focuses on strengthening its position in those markets that constitute the basis of its operations, continuing with its international expansion process at the same time.

(vii) Main strengths of Grupo Pikolin

The main strengths of Grupo Pikolin are as follows:

1. Market Leader in the Iberian Peninsula and in France. Number one in brand awareness in both markets.

Grupo Pikolin leads the bedding industry in the Iberian Peninsula and in France. The French market is highly concentrated: Grupo Pikolin and its main competitor (Adova) represented 53% of this market in terms of sales.

8 Data as at the 2018 year end. It is placed on record that the financial statements for the year ended December 31, 2018 have been neither issued nor audited as at the date of this Base Informative Document 9 Data as at the 2018 year end. It is placed on record that the financial statements for the year ended December 31, 2018 have been neither issued nor audited as at the date of this Base Informative Document

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

Grupo Pikolin is also the leader as concerns brand awareness in Spain and France (in France, brand is a key decision-making factor for customers).

2. Vertical integration enables Grupo Pikolin to control production and prices.

Grupo Pikolin is vertically integrated which enables it to control the production, distribution and marketing of its products.

Grupo Pikolin operates with 10 factories: 5 in France, 3 in Spain, 1 in China and 1 in Vietnam and has modern and efficient logistic platforms that have won the 2014 Pilot Award (regional level), the 2014 and 2015 CEL Business Awards (Spanish level) and the 2016 ASSET Prize for Financial Excellence-.

In 2017, for the third consecutive year, consumers awarded the “Best Product of the Year 2018” prize in the sleep products category to the smart mattress SmartPik!, the first “intelligent” mattress developed in Spain.

Vertical integration allows Grupo Pikolin to adapt to changes in market conditions and economic cycles, through the implementation of efficiency and cost control measures. This also enables Grupo Pikolin to have a very good knowledge of the market, to predict cycles and consumer trends and to adapt production accordingly.

With the recent opening of its two new factories in Spain and France, Grupo Pikolin has increased significantly its production capacity and levels of quality and productivity. In addition, the new foaming unit at its Zaragoza factory is making significant savings in terms of procurement costs.

3. Geographical diversification

Grupo Pikolin is geographically diversified, with most of its sales being generated in the European market. Spain and France are the principal markets in which the Issuer’s group operates, although diversification and international sales to both the Brazilian and the Asian markets are gaining importance.

France is the second most important country at European level in terms of mattress consumption according to CSIL 2017 and Grupo Pikolin is the leader in that market. Similarly, Brazil is the world’s third largest consumer of mattresses (source: CSIL). Through geographical diversification and an increase of international sales, Grupo Pikolin has been able manage its business in periods of uncertainty and has become a more efficient and stronger player.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

4. Consolidated player with more than 70 years’ experience

Grupo Pikolin the second largest bedding group in Europe. Founded in 1948, Grupo Pikolin has succeeded in consolidating its position in the European market through both acquisitions and organic growth and has become a key player in this market.

Its track record and brand awareness place Grupo Pikolin in a leading position in the French and Iberian markets and consumers identify Grupo Pikolin with a “high-quality product”.

5. World mattress market with strong growth perspectives

According to CSIL, total mattress consumption in the 50 main markets reached USD 27.4 billion in 2017. The United States is the leader in mattress consumption, followed by China, Brazil, India, Germany and Canada.

According to CSIL, in 2017, in the United States alone, mattress manufacturers sold 39.7 million units, meaning revenues of approximately USD 8.4 million. The average price per unit rose by 3.3%.

International trade in mattresses has grown significantly since 2007, when the market amounted to USD 2.4 billion, as compared with USD 4.67 billion in 2018 (USD 4.3 billion in 2017). Initially, mattresses were manufactured to be sold in local and neighboring markets. However, advances in vacuum packing of mattresses and in transport logistics have contributed to improve international trade in this type of products.

According to Xerfi, billings of 1.4 billion Euros are forecast for the sleep sector in France in 2019. The Spanish mattress market has been severely affected during the economic crisis: in 2018, its sales amounted to 1.8 million mattresses, against 3.5 million in 2007. The Spanish market decreased slightly by unit sales, and was able to maintain the average price in 2018. Despite the slowdown of 2018, the sleep market is expected to resume its growth in the coming years to reach 2.4 million units in 2024.

6. Brands and exclusive patented technologies as a competitive advantage

Grupo Pikolin invested more than EUR 1.0 million in R&D in 2018 (1.7 million in 2017). The Issuer has continuously improved its products to offer new and stronger benefits to consumers and higher- quality products.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

Grupo Pikolin has brands and patented technologies that differentiate it from its current competitors and act as a barrier to entry for new competitors. Worth mentioning are the 76 industrial designs and 178 inventions registered with the Spanish Office of Patents and Trademarks in the name of Pikolin.

(viii) Agreements and strategic partnerships

Grupo Pikolin has several strategic partnerships in countries in which it does not currently enjoy a consolidated position, such as:

(i) the joint venture with B&T in Italy for the distribution of two of its brands through Literia Italia;

(ii) a contract with a local manufacturer in Brazil which produces Pikolin’s mattresses in accordance with Grupo Pikolin specifications; and

(iii) the strategic alliance with Steinhoff International – COFEL in France.

With regard to distribution agreements, Grupo Pikolin has held the rights to the Serta brand in Europe since 1999. The Serta brand is owned by Serta Simmons, the leading sleep product group in the USA.

(ix) Declaration on the absence of significant changes in the Issuer's prospects

Since the publication of the latest audited annual accounts as of and for the year ended December 31, 2017 and until the date of this Base Informative Document, there has been no material adverse change in the prospects of the Pikolin Group.

(x) Subsidiaries and associates

Grupo Pikolin's subsidiaries and associates as of December 31, 2018 are as follows:

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

Company Name/ Address Direct Share Indirect Share Book Value Activity PIKOLIN, S.L. 99.99% 127,575,647 Manufacture and sale of mattresses, bed Ronda del Ferrocarril 24 (PLAZA), Zaragoza bases, furniture and others PIKOLIN LUSITANA, LTDA 99.20% 855,377 Commercialization of mattresses and Zona Industrial Vila Amelia. Palmela, Lisboa (Portugal) (1) bases PIKOLIN BRASIL COMERCIO, LTDA. 97.54% 1,670,189 Manufacture and commercialization of Brazil (2) mattresses and others SLEEP HOUSE COLCHÕES 100.00% Commercialization of sleep products E ACCESSÓRIOS, LTDA. (3) Brazil COMPAGNIE FINANCIERE 50.00% 33,216,292 Holding of securities EUROPEENNE LITERIE, SAS. (COFEL) (1) 27 Rue du Coronel Pierre Avia, Paris (France) COPIREL, SAS. 100.00% Manufacture and sale of mattresses, bed 26 Rue du Coronel Pierre Avia, Paris (France) (4) bases, beds, furniture and others. EUROVENTES, SPRL. 100.00% Manufacture and sale of mattresses, bed Bulevar Tirou 17, 50, Charleroi (Bruselas) (4) bases, beds, furniture and others. SPACIO REPOS, S.L. 50.00% 2,000,000 Commercialization of textile products C/ Rey Pastor nº 7, Leganés (Madrid) (1) CONFORDES, S.L. 99.99% 4,278,426 Commercialization of sleep products Calle Coso nº 55, 3º, Zaragoza COMPAÑÍA EUROPEA DE ARTICULOS 99.50% 4,013,671 Commercialization of sleep products DEL DESCANSO, S.L. (CEADESA) Ronda del Ferrocarril 24 (PLAZA), Zaragoza ESPADESA RETAIL, S.L. 99.99% 9,890,100 Commercialization and distribution of Ronda del Ferrocarril 24 (PLAZA), Zaragoza sleep products through franchises ESPAÇO DESCANSO, LTDA. 98.99% 1 Commercializarion of mattresses and Rodrigo de Beires, 57. Aldeia de Paio Pires (Portugal) (5) bases. INDUSTRIAS HIDRÁULICAS PARDO, S.L. 99.99% 19,498,674 Manufacturing and sale of beds, furniture Calle Los Ángeles 5, Pol. Ind. Centrovía, La Muela (Zaragoza) and mechanical and hidraulic accessories for healthcare purposes. ASTABURUAGA HEALTHCARE, S.L.U. 99.97% 3,600 Commercializarion of beds, furniture, and Calle Coso nº 55, 3º , Zaragoza (6) accessories for hospital care and SMATTEX, S.L. 85.00% 5,502,417 Manufacture and sale of mattresses, bed Avenida L´Estatut 1. Miramar (Valencia) bases, furniture and others SEIVIRIBER, S.A. 99.93% 95 Surveillance and security services Ronda del Ferrocarril 24 (PLAZA), Zaragoza DUNLOPILLO HOLDINGS, SDN BHD 100.00% 17,602,204 Holding of securities SubangJaya Selangor , Malaysia DUNLOPILLO (MALAYSIA), SDN BHD 100.00% Commercialization of sleep products Malaysia (7) DUNLOPILLO (SINGAPORE), PTE LTD 100.00% Commercialization of sleep products Singapore (7) DUNLOPILLO (VIETNAM), LTD 100.00% Manufacture and commercialization of Vietnam (8) sleep products DUNLOPILLO (SHENZHEN), LTD 100.00% Manufacture and commercialization of Shenzhen, Province of Canton, People’s Republic of China (7) sleep products DUNLOPILLO (HONG KONG), LTD 100.00% Commercialization of sleep products Hong Kong (7) DUNLOPILLO (MIDDLE EAST), LTD 100.00% Commercialization of sleep products United Arab Emirates (7)

1) Share through PIKOLIN, S.L. 2) Share through PIKOLIN LUSITANA, LTDA., and in turn through PIKOLIN, S.L. 3) Share through PIKOLIN BRASIL COMERCIO, LTDA.,in turn through PIKOLIN LUSITANA, LTDA.,and in turn throughPIKOLIN, S.L. 4) Share through COFEL, SAS., and in turn through PIKOLIN, S.L. 5) Share through ESPADESA RETAIL, S.L. 6) Share through INDUSTRIAS HIDRAULICAS PARDO, S.L. 7) Share through DUNLOPILLO HOLDINGS, SDN BHD 8)Share through DUNLOPILLO (SINGAPORE) PTE LTD., and in turn through DUNLOPILLO HOLDINGS, SDN BHD

h) Financial information

The table set out below provides the main financial aggregates of the Issuer’s Group as at December 31, 2016, 2017 and 2018. The data as at December 31, 2018 has been neither audited nor issued as at the date of this Base Informative Document.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

Main Financial Figures (millones de euros) 2016A 2017A 2018 (1) Var 17 vs 18

Revenue 429.3 337.3 337.2 -0% Recurrent EBITDA 26.5 16.7 16.0 -4% Recurrent EBITDA Margin 6.17% 4.95% 4.74% -0.2% EBITDA 26.5 63.4 13.6 -79% EBITDA Margin 6.17% 18.80% 4.03% -14.8% Total Equity 232.5 270.0 252.3 -6.57% Gross Financial Debt 193.4 163.5 175.0 +7% Gross Financial Debt (2) 100.4 53.1 60.0 +13% Net Financial Debt(2)/ Recurrent EBITDA 3.79x 3.76x 3.78x +1% Working Capital 5.8 7.3 40.7 +460% FCF (10.5) (23.5) (9.4) +60% (1) Unaudited financial statements as of December 31, 2018 (2) Calculated in the context of bond issuance without commercial discount or leasing

(i) Income statement

As of 2017, the main economic aggregates of the Issuer have been affected by the sale of 50% of the holding in COFEL, on January 12, 2017. The figures presented for sales and EBITDA in 2016 have therefore been adjusted to make them comparable. EBITDA for 2017 has also been adjusted to eliminate the extraordinary effect of the sale of COFEL, S.A.S.

In 2018, the group’s consolidated sales remained stable. EBITDA has fallen moderately, mainly due to (i) the rise in prices of raw materials, which has had an impact of 4.1 million euros, (ii) the impact of 3 million euros derived from the strength of the euro, and (iii) the impact on margins of the intense commercial aggressiveness of the main competitor in the French market, Adova.

Regarding equity, it has gone down by 6%, largely due to (i) the impact on results of the accounting change, which led to the amortization of both goodwill and brands, (ii) the effect of the evolution of the exchange rate on the consolidation of the foreign subsidiaries, and (iii) the negative effect of the purchase of 49% of Sleep House.

Activity per Geographical Area 2016 2017A 2018(1) Var 17 vs 18 (million euros) Sales EBITDA Sales EBITDA Sales EBITDA Sales EBITDA Iberia 140.5 8.7 166.3 9.3 171.1 9.8 3% 5% France 236.2 18.5 111.0 7.7 110.2 6.3 -1% -18% France (2) 118.1 9.27 Brasil 25.5 -0.1 36.9 0.5 29.8 0.0 -19% - Asia 27.1 -0.6 23.1 -0.7 26.1 0.0 13% - (1) Unaudited financial statements as of December 31, 2018 (2) Comparable data after having adjusted the 50% of the business in France due to the disinvestment in Cofel.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

Analysis of activity:

- Iberia: Sales have grown by 3%, despite the poor performance of the Spanish sleep products market. In 2018, a substantial increase of EBITDA (+5%) has been achieved, due more to the increases of productivity and improvements of excess consumptions, which have more than compensated for the increase in the cost of raw materials.

- France: Slight drop in sales and to a greater extent in profit, mainly due to the impact on the margin of the effort to keep market share in view of the commercial aggressiveness of the main local competitor, Adova; and to the bigger impact in France of the rise in the cost of raw materials, due to the lower vertical integration with respect to Spain. In 2019, improvements in profit are expected as a result of cost adjustments, for example, the closure of the Langeac factory.

- Brazil: In 2018, Grupo Pikolin had a decrease in sales and profit due to the economic downturn derived from the political uncertainty prior to the elections of October 2018 and the important effect of the increase in the exchange rate of the euro to the Brazilian real. Throughout 2019, and after taking up 100% of Sleep House, results are expected to improve as a result of the organizational restructuring already carried out.

- Asia: This is a market with enormous growth potential for Grupo Pikolin, accounting in 2018 for 8% of group sales. Sales in 2018 have grown to double digits and the negative EBITDA has been reversed in the last years. For the next fiscal years, an improvement of results is forecast due to the positive performance of the online channel in China and to the growth in exports to Myanmar, Korea and the Philippines.

(ii) Financial structure

Grupo Pikolin increased its gross financial debt by 11 million euros (+7%) due to a new issue of bonds in the MARF for the same amount, ending 2018 with leverage of 3.75 times the net financial debt over EBITDA, in line with the previous year.

Grupo Pikolin’s diversification of funding sources is optimum, with a notable presence of non-bank debt (MARF bonds and commercial paper). The Issuer has a high degree of financial flexibility and autonomy, supported by its high capacity to access external financing sources.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

(iii)Cash Flow

CASH FLOW STATEMENTS (million euros) 2016A 2017A 2018 (1) Var 17 vs 18 EBITDA 26.5 16.7 16.0 -4% CASH FLOW FROM OPERATING ACTIVITIES (12.3) (24.6) (18.1) +26% CASH FLOW FROM INVESTING ACTIVITIES (48.5) (3.0) (15.9) -434% CASH FLOW FROM FINANCING ACTIVITIES 50.1 (8.1) 11.9 +246% NET INCREASE OF CASH AND EQUIVALENTS 15.7 (19.0) (6.1) -68% FREE CASH FLOW (10.5) (23.5) (9.4) +60% Net Financial Debt (2)/ Recurrent EBITDA 3.79x 3.76x 3.78x +1% (1) Unaudited financial statements as of December 31, 2018 (2) Calculated in the context of bond issuance without commercial discount or leasing In 2018, cash flow from operating activities has increased, in comparable terms, with respect to 2017, due to the increased level of activity. The flow from investment activities includes both an investment in capital goods of 7.3 million euros and the investment in financial assets.

Moreover, in 2018, the working capital increased significantly due to the renotclassification of financial investments from long to short term, for a value of 35 million euros.

(iv) Issuer's audited consolidated annual accounts for the years ended December 31, 2016 and December 31, 2017

The Issuer's consolidated annual accounts for the years ended December 31, 2016 (Appendix 1) and December 31, 2017 (Appendix 2) are attached hereto.

The Issuer's consolidated annual accounts for the year ended December 31, 2016 and 2017 have been audited by Deloitte, S.L. without any qualifications or emphasis paragraphs.

3. Full name of the securities issue

GRUPOPIKOLIN Commercial Paper Programme 2019.

4. Persons responsible

Mr. Luis Barcelona Escartín, Finance Director of the Issuer, on behalf of the

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

Issuer, hereby assumes responsibility for the content of this Base Informative Document for admission (incorporación) of securities, pursuant to the authorization given by the Issuer’s Board of Directors at its meeting held on March 1, 2019.

Mr. Luis Barcelona Escartín, hereby declares that the information contained in this Base Informative Document is, to the best of his knowledge and after executing the reasonable diligence to ensure that it is as stated, compliant with the facts and does not suffer from any omission that could affect the content.

5. Duties of the Registered Advisor of the MARF

PKF Attest, Servicios Empresariales, S.L. is a limited liability company (sociedad de responsabilidad limitada) with taxpayer identification code B-95221271, registered at the Commercial Register of Bizkaia in Volume 4205, Page 122, Sheet BI-34713, with registered office at Bilbao, Alameda de Recalde 36, 48009, admitted as registered advisor company of MARF according to the resolutions of the board of directors of AIAF Fixed-Income Market published by means the Operating Statement 14/2014 of 12 November on the admission of registered advisers to the Alternative Fixed Income Market (“PKF Attest” or the “Registered Advisor”).

PKF Attest has been designated as registered advisor of the Issuer. As a consequence of such designation, PKF Attest shall enable the Issuer to comply with the obligations and responsibilities to be assumed on incorporating its issues into the multilateral trading system, MARF, acting as specialist liaison between MARF and the Issuer, and as a means to facilitate the insertion and development of the same under the new securities trading regime.

PKF Attest must provide the MARF with periodic information required by this party and the MARF, to its term, may obtain whatever information it requires from this party with regard to the actions it carries out and with its corresponding obligations. To this end, it may perform as many actions as required, where appropriate, to check the information that has been provided.

The Issuer shall have, at any moment, a designated registered advisor filed with the “MARF Registered Advisors Registry” (Registro de Asesores Registrados del Mercado).

PKF Attest, as the entity designated as Registered Advisor of the Issuer, will provide advisory services to the Issuer (i) on the admission (incorporación) to the MARF of the Commercial Paper to be issued under the aegis of the Commercial Paper Programme, (ii) on compliance with whatsoever obligations and responsibilities that correspond to the Issuer for taking part on the MARF, (iii) on compiling and presenting the financial and business information required by the same, and (iv) in order to ensure that the information complies with such regulatory requirements.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

In its status as Registered Advisor of the Issuer, PKF Attest, in relation to the admission (incorporación) of the Commercial Paper request into MARF:

(i) has verified that the Issuer complies with the requirements of the MARF regulations for admission (incorporación) of the Commercial Paper into this market; and

(ii) has assisted the Issuer in drawing up the Base Informative Document, has revised all of the information that the Issuer has given to the MARF in accordance with the application for admission (incorporación) of the Commercial Paper on said Market, and has checked that the information provided complies with the regulatory requirements and does not leave out any relevant information that could lead to confusion among potential investors.

Once the Commercial Papers are admitted into the Market, the Registered Advisor:

(i) will check the information that the Issuer prepares and send this information to the MARF on a periodic or one-off basis and will check that this information complies with the requirements concerning content and deadlines set out in the regulations;

(ii) will advise the Issuer on any events that could affect compliance with the obligations assumed by this party at including its Commercial Paper on the MARF. It will also provide advice on the best way of treating these events to avoid breach of such obligations;

(iii) will report any events to the MARF that could represent a breach by the Issuer of its obligations, in case it notices any potential and relevant breach that had not been rectified following notification; and

(iv) will manage, deal with and respond to inquiries and requests for information from the MARF with regard to the Issuer's situation, progress of the activity, the level of compliance with its obligations and any other data that the MARF deems relevant.

For the foregoing purposes, the Registered Advisor will perform the following actions:

(i) it will maintain regular and necessary contact with the Issuer and will analyse any exceptional situations that could arise concerning the price trend, trading volumes and other relevant circumstances surrounding the trading of the Issuer's Commercial Paper;

(ii) it will sign the declarations which, in general, have been set out in the regulations, as a consequence of including the Commercial Paper on the MARF, as well as with regard to the information required from companies

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

that have securities on this Market; and

(iii) as expeditiously as possible, it will forward the communications received in response to inquiries and requests for information to the MARF.

6. Maximum outstanding balance

The maximum amount of the commercial paper programme will be a nominal of fifty million euros (€50,000,000) (the “Commercial Paper Programme”).

This amount is understood to be the maximum outstanding amount to which the aggregate nominal value of the Commercial Paper in circulation—issued under this Commercial Paper Programme and admitted to the MARF by virtue of this Base Informative Document—shall be limited at any given point in time.

7. Description of the type and class of securities. Nominal value

The Commercial Paper is discounted securities that represent a debt for the Issuer, it accrues interest and is reimbursable for its nominal value on maturity.

An ISIN code will be assigned to each issue of Commercial Paper with the same maturity.

Each Commercial Paper will have a nominal value of one hundred thousand euros (€100,000), meaning that the maximum number of securities in circulation at any given time cannot exceed five hundred (500).

8. Applicable legislation and jurisdiction governing the securities

The Commercial Paper will be issued in accordance with Spanish legislation applicable to the Issuer or to the Commercial Paper. More specifically, it is issued in accordance with Royal Legislative Decree 1/2010, of 2 July, which approves the consolidated Corporate Enterprises Act, the Securities Market Act, and their respective implementing or concordant regulations.

Jurisdiction over any dispute which may arise in relation to the Commercial Paper shall correspond exclusively to the Courts and Tribunals of the city of Zaragoza.

9. Representation of the securities through book entries

The Commercial Paper to be issued under the Commercial Paper Programme will be represented by book entries, as set out in the mechanisms for trading on the MARF to which admission of the securities will be sought. The party in charge of the accounting records will be IBERCLEAR, with registered office in Madrid, Plaza de la Lealtad, 1, together with its participating entities, pursuant to the provisions of article 8.3 of the Securities Market Law and Royal Decree 878/2015 of October 2, 2015 on the clearing, settlement and registration of marketable securities represented by book entries, on the legal regime governing central

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

securities depositories and central counterparties and on transparency requirements of issuers of securities admitted to trading on an official secondary market, as amended by Royal Decree 827/2017 of September 1.

10. Currency of the issue

The Commercial Paper to be issued under the aegis of the Commercial Paper Programme will be in euros.

11. Classification of the securities: order of priority

The Commercial Paper is secured by no in rem guarantees or third parties. The capital and interest of the Commercial Paper are secured on the Issuer's entire assets.

According to the seniority of debt-claims laid down in the Insolvency Law, in the event of the insolvency of the Issuer the Commercial Paper holders would be ranked behind preference creditors and on the same level as other common creditors, ahead of subordinated creditors (unless they can be classed as such under Article 92 of the Insolvency Act) and would not have any preference among themselves.

12. Descriptions of the rights inherent to the securities and the procedure for executing these rights. Methods and deadlines for payment of the securities and handover of the same

Pursuant to the currently applicable legislation, the Commercial Paper will afford the investor by which it is acquired no present and/or future voting rights over the Issuer.

The economic and financial rights of the investor associated to the acquisition and holding of the Commercial Paper will be those arising from the conditions of the interest rate, yields and redemption prices with which they are issued and which are set out in sections 13, 14, and 16.

The date of payment for the Commercial Paper to be issued under the aegis of the Commercial Paper Programme will be the same date as the issue itself, and the effective value of the Commercial Paper will be paid to the Issuer by the Manager Entities (as defined in section 15) or by the investors, as the case may be, through the Paying Agent (as defined in section 15), (as paying agent) into the account specified by this party on each date of issue.

The Manager Entities or the Issuer, as appropriate, could issue a nominative and non-negotiable certificate of acquisition. This document will provisionally substantiate the subscription of the Commercial Paper until the appropriate book entry is made, and will grant the holder the right to request the pertinent certificate of legitimation.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

Similarly, the Issuer will notify the payment to MARF and to IBERCLEAR through the corresponding certificate.

13. Date of issue. Commercial Paper Programme validity

The Commercial Paper Programme will be in force for one (1) year from the date of approval of this Base Informative Document by the competent body of the MARF.

As this is a continuous type of Commercial Paper Programme, the Commercial Paper may be issued, subscribed and admitted on any day during the validity period of the same. However, the Issuer reserves the right not to issue new securities when it deems such action appropriate, pursuant to the cash needs of the Issuer or because it has found more advantageous conditions of funding.

The issue date and disbursement date of the Commercial Paper will be stipulated in the complementary certificates corresponding to each issue. The date of issue, disbursement and admission of the Commercial Paper may not be subsequent to the expiry date of this Base Informative Document.

14. Nominal interest rate. Indication of the yield and calculation method

The annual nominal interest rate for the Commercial Paper will be set in each issue. The Commercial Paper will be issued under the aegis of the Commercial Paper Programme at the interest rate agreed by and between the Manager Entities (as defined under point 15 below) or the investors and the Issuer. The yield will be implicit in the nominal value of the Commercial paper, to be reimbursed on the maturity date.

The interest rate at which the Manager Entities transfers the Commercial Paper to third parties will be the rate freely agreed with the interested investors.

As these are discounted securities with an implicit rate of return, the cash amount to be paid out by the investor varies in accordance with the issue interest rate and period agreed.

Thus the cash amount of the Commercial Paper may be calculated by applying the following formulas:

When securities are issued for a maximum term of 365 days:

N E = n 1 + i 365 When securities are issued for more than 365 days:

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

N E = (1 + i)n/365

Whereby:

N= nominal amount of the commercial paper

E = cash amount of the commercial paper

n = number of days of the period to maturity

i = nominal interest rate, expressed as an integer value

A table is included to help the investor, specifying the cash value tables for different rates of interest and redemption periods, and there is also a column showing the variation of the effective value of the commercial paper by increasing the period of this by 10 days.

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

EFFECTIVE VALUE OF A €100.000 NOTIONAL NOTE (Less than one year term) 7 DAYS 14 DAYS 30 DAYS 60 DAYS Suscription Suscription Suscription Nominal IRR/AE +10 days Suscription IRR/AER +10 days IRR/AER +10 days IRR/AER +10 days price price price rate (%) R (%) (euros) price (euros) (%) (euros) (%) (euros) (%) (euros) (euros) (euros) (euros) 0,25 99.995,21 0,25 -6,85 99.990,41 0,25 -6,85 99.979,46 0,25 -6,85 99.958,92 0,25 -6,84 0,50 99.990,41 0,50 -13,69 99.980,83 0,50 -13,69 99.958,92 0,50 -13,69 99.917,88 0,50 -13,67 0,75 99.985,62 0,75 -20,54 99.971,24 0,75 -20,53 99.938,39 0,75 -20,52 99.876,86 0,75 -20,49 1,00 99.980,83 1,00 -27,38 99.961,66 1,00 -27,37 99.917,88 1,00 -27,34 99.835,89 1,00 -27,30 1,25 99.976,03 1,26 -34,22 99.952,08 1,26 -34,20 99.897,37 1,26 -34,16 99.794,94 1,26 -34,09 1,50 99.971,24 1,51 -41,06 99.942,50 1,51 -41,03 99.876,86 1,51 -40,98 99.754,03 1,51 -40,88 1,75 99.966,45 1,77 -47,89 99.932,92 1,76 -47,86 99.856,37 1,76 -47,78 99.713,15 1,76 -47,65 2,00 99.961,66 2,02 -54,72 99.923,35 2,02 -54,68 99.835,89 2,02 -54,58 99.672,31 2,02 -54,41 2,25 99.956,87 2,28 -61,55 99.913,77 2,27 -61,50 99.815,41 2,27 -61,38 99.631,50 2,27 -61,15 2,50 99.952,08 2,53 -68,38 99.904,20 2,53 -68,32 99.794,94 2,53 -68,17 99.590,72 2,53 -67,89 2,75 99.947,29 2,79 -75,21 99.894,63 2,79 -75,13 99.774,48 2,78 -74,95 99.549,98 2,78 -74,61 3,00 99.942,50 3,04 -82,03 99.885,06 3,04 -81,94 99.754,03 3,04 -81,72 99.509,27 3,04 -81,32 3,25 99.937,71 3,30 -88,85 99.875,50 3,30 -88,74 99.733,59 3,30 -88,49 99.468,59 3,29 -88,02 3,50 99.932,92 3,56 -95,67 99.865,93 3,56 -95,54 99.713,15 3,56 -95,25 99.427,95 3,55 -94,71 3,75 99.928,13 3,82 -102,49 99.856,37 3,82 -102,34 99.692,73 3,82 -102,00 99.387,34 3,81 -101,38 4,00 99.923,35 4,08 -109,30 99.846,81 4,08 -109,13 99.672,31 4,07 -108,75 99.346,76 4,07 -108,04 4,25 99.918,56 4,34 -116,11 99.837,25 4,34 -115,92 99.651,90 4,33 -115,50 99.306,22 4,33 -114,70 4,50 99.913,77 4,60 -122,92 99.827,69 4,60 -122,71 99.631,50 4,59 -122,23 99.265,71 4,59 -121,34

This is an English version for informative purposes only of a document drafted in Spanish. In the event of discrepancy, the Spanish version shall prevail.

EFFECTIVE VALUE OF A €100.000 NOTIONAL NOTE (Less than one year term) (Equal to one year term) (More than one year term) 90 DAYS 180 DAYS 365 DAYS 731 DAYS Suscription Suscription Suscription Suscription Nominal IRR/AER +10 days IRR/AER +10 days IRR/AER +10 days IRR/AER +10 days price price price price rate (%) (%) (euros) (%) (euros) (%) (euros) (%) (euros) (euros) (euros) (euros) (euros) 0,25 99.938,39 0,25 -6,84 99.876,86 0,25 -6,83 99.750,62 0,25 -6,81 99.501,19 0,25 -6,81 0,50 99.876,86 0,50 -13,66 99.754,03 0,50 -13,63 99.502,49 0,50 -13,56 99.006,10 0,50 -13,53 0,75 99.815,41 0,75 -20,47 99.631,50 0,75 -20,39 99.255,58 0,75 -20,24 98.514,69 0,75 -20,17 1,00 99.754,03 1,00 -27,26 99.509,27 1,00 -27,12 99.009,90 1,00 -26,85 98.026,93 1,00 -26,72 1,25 99.692,73 1,26 -34,02 99.387,34 1,25 -33,82 98.765,43 1,25 -33,39 97.542,79 1,25 -33,19 1,50 99.631,50 1,51 -40,78 99.265,71 1,51 -40,48 98.522,17 1,50 -39,87 97.062,22 1,50 -39,58 1,75 99.570,35 1,76 -47,51 99.144,37 1,76 -47,11 98.280,10 1,75 -46,29 96.585,19 1,75 -45,90 2,00 99.509,27 2,02 -54,23 99.023,33 2,01 -53,70 98.039,22 2,00 -52,64 96.111,66 2,00 -52,13 2,25 99.448,27 2,27 -60,93 98.902,59 2,26 -60,26 97.799,51 2,25 -58,93 95.641,61 2,25 -58,29 2,50 99.387,34 2,52 -67,61 98.782,14 2,52 -66,79 97.560,98 2,50 -65,15 95.175,00 2,50 -64,37 2,75 99.326,48 2,78 -74,28 98.661,98 2,77 -73,29 97.323,60 2,75 -71,31 94.711,79 2,75 -70,37 3,00 99.265,71 3,03 -80,92 98.542,12 3,02 -79,75 97.087,38 3,00 -77,41 94.251,96 3,00 -76,30 3,25 99.205,00 3,29 -87,55 98.422,54 3,28 -86,18 96.852,30 3,25 -83,45 93.795,46 3,25 -82,15 3,50 99.144,37 3,55 -94,17 98.303,26 3,53 -92,58 96.618,36 3,50 -89,43 93.342,27 3,50 -87,93 3,75 99.083,81 3,80 -100,76 98.184,26 3,79 -98,94 96.385,54 3,75 -95,35 92.892,36 3,75 -93,64 4,00 99.023,33 4,06 -107,34 98.065,56 4,04 -105,28 96.153,85 4,00 -101,21 92.445,69 4,00 -99,28 4,25 98.962,92 4,32 -113,90 97.947,14 4,30 -111,58 95.923,26 4,25 -107,02 92.002,23 4,25 -104,85 4,50 98.902,59 4,58 -120,45 97.829,00 4,55 -117,85 95.693,78 4,50 -112,77 91.561,95 4,50 -110,35

Given the diversity of the issue rates that are forecast to be applied throughout the term of the Commercial Paper Programme, we cannot predetermine the resultant return for the investor (IRR). In any case, it will be determined, for Commercial Paper up to 365 days, with the formula detailed below:

365 푁 푑 퐼푅푅 = [( ) − 1] 퐸

in which:

IRR= Effective annual interest rate, expressed as an integer value

N= Nominal amount of the commercial paper

E = Cash amount at the time of subscription or acquisition

d = Number of calendar days between the date of issue (inclusive) and the date of maturity (exclusive)

IRR will be the annual interest of the commercial paper described in this section for periods of time longer than 365 days.

15. Lead arrangers, paying agent and depositary entities

The Manager Entities collaborating in the Commercial Paper Programme (“Lead Arrangers”) are as follows:

Banco Santander, S.A. Employer identification code: A-39000013 Registered office: Paseo de Pereda, 9 - 12, 39004 Santander

Bankia, S.A. Employer identification code: A-14010342 Registered office: Calle Pintor Sorolla, 8, 46002 Valencia

Beka Finance, Sociedad de Valores, S.A. Employer identification code: A-79203717 Registered office: Calle Marqués de Villamagna, 3, 28001 Madrid

Norbolsa, Sociedad de Valores, S.A. Employer identification code: A-48403927 Registered office: Plaza Euskadi nº5 – Planta 26, 48009 Bilbao

The Issuer and the Manager Entities have executed respective placement agreements for the Commercial Paper Programme for placement of the

Commercial Paper, which includes the possibility of selling to third parties

The Issuer may enter into collaborating agreements with third parties for the placement of the Commercial Paper issues which shall be reported to MARF by means of the requisite notice or statement of a relevant fact.

Bankia, S.A. will also act as paying agent (the “Paying Agent”).

Although IBERCLEAR will be the entity entrusted with the book-keeping of the Commercial Paper, the Issuer has not designated a depository entity for the Commercial Paper. Each subscriber will designate, from among the participants in IBERCLEAR, which entity to deposit the securities with.

16. Redemption price and provisions concerning maturity of the securities. Date and methods of redemption

The Commercial Paper to be issued under the aegis of the Commercial Paper Programme will be redeemed for their nominal value on the date given in the document proving acquisition. Where appropriate, the corresponding withholding at source will be applicable.

As they are expected to be included for trading on the MARF, the redemption of the Commercial Paper will take place pursuant to the operating rules of the clearance system of said market. To this end, on the maturity date, the nominal amount of the Commercial Paper will be paid to the legitimate holder of the same. The delegated paying agent is Ahorro Corporación Financiera, S.V., S.A., which accepts no liability whatsoever vis-à-vis reimbursement by the Issuer of the Commercial Paper on the maturity thereof.

If reimbursement falls on a non-business day in accordance with the TARGET 2 calendar (Trans European Automated Real-Time Gross Settlement Express Transfer System), reimbursement will be deferred to the first subsequent business day unless said day falls in the following month, in which case reimbursement of the Commercial Paper will take place on the first business day immediately prior. Neither of the aforementioned cases will have any effect whatsoever on the amount to be paid.

17. Valid deadline within which reimbursement of the principal may be claimed

Pursuant to the provisions set out in article 1964 of the Civil Code, reimbursement of the nominal value of these securities will no longer be callable five years after maturity thereof.

18. Minimum and maximum issue period

During the validity of this Base Informative Document Commercial Paper

may be issued with a redemption period of between three business days and seven hundred and thirty calendar days (that is, twenty (24) four months).

19. Early settlement

The Commercial Paper will not include an early redemption option either for the Issuer (call) or for the holder of the Commercial Paper (put). Notwithstanding the foregoing, Commercial Paper may be redeemed early providing that, on whatsoever grounds; they are in the legitimate possession of the Issuer.

20. Restrictions on the free transferability of the securities

In accordance with current legislation, there are no specific or general restrictions on the free transferability of the Commercial Paper to be issued.

21. Taxation of the securities

In accordance with the provisions set out in current legislation, the Commercial Paper is rated as financial assets with implicit returns. Income from the Commercial Paper is considered to be capital gains and subject to Personal Income-tax (“IRPF”), Corporate Tax (“IS”) and Non-residents Income-tax (“IRNR”). The tax is collected through interim withholdings at source, under the terms and conditions set out in the respective regulatory laws and other standards that implement said laws.

For illustrative purposes only, the applicable regulations will be:

- Law 35/2006, of 28 November, governing Personal Income-tax and partial amendment of the laws on Corporate Tax, Non-residents Income- tax and Wealth Tax (“IRPF Law”), as well as those contained in articles 74 et seq of Royal Decree 439/2007, of 30 March, which approves the Regulation on Personal Income-tax and modifies the Regulations on Pension Funds and Plans approved through Royal Decree 304/2004, of 20 February (“IRPF Regulation”).

- Law 27/2014, of 27 November, of the Corporate Tax Law (“LIS”) as well as articles 60 et seq of the Corporate Tax Regulations approved through Royal Decree 634/2015, of 10 July (“IS Regulation”).

- Royal Legislative Decree 5/2004, of 5 March, which approves the consolidated text of the Non-residents Income Tax Law (“IRNR Law”) and those contained in Royal Decree 1776/2004 of July 30, 2004 which approves the regulations in respect of Non-residents Income Tax (“IRNR Regulation”).

All this is without prejudice to any provincial tax regimes which may be applicable, particularly those corresponding to the historic territories of the

Basque Country and of the Regional Community of Navarre, or any other regimes that could be applicable due to the specific characteristics of the investor.

As a general rule, in order to dispose of or obtain reimbursement of financial assets with capital gains that are subject to a withholding at source at the time of transfer, redemption or reimbursement, prior acquisition of the same must be substantiated through a notary public or by financial institutions obliged to perform withholdings. The price of the transaction must also be certified. The financial institutions through which the payment of interest is made or which intervene in the transfer, redemption or reimbursement of securities are obliged to calculate the returns attributable to the securities holder and notify this to both the holder of the security as well as to the Tax Authorities. The Tax Authorities must also be notified of those persons taking part in the aforementioned transactions.

Ownership of the Commercial Paper will likewise be subject to Wealth Tax and the Inheritance and Gift Tax on the date of accrual of said taxes, by virtue of the provisions set out in current regulations in each case.

In any case, given that this summary is not a thorough description of all tax considerations, we recommend that investors interested in acquiring the Commercial Paper to be issued check with their tax advisors or lawyers who could give them personalized advice in view of their specific circumstances. Likewise, investors and potential investors should take into consideration potential changes in legislation or its criteria of interpretation.

Investors that are individuals with tax residence on Spanish territory

Personal Income-tax

In general, capital gains obtained from investments in commercial paper by individuals that are resident on Spanish territory are subject to a withholding at source, as interim payment of personal income-tax, at the current rate of 19%. The withholding carried out will be deductible from the personal income-tax amount, giving rise, where appropriate, to the tax rebates provided for in current legislation.

Furthermore, the difference between the value of subscription or acquisition of the asset and its transfer, redemption, swap or reimbursement value will be considered as an implicit capital gains return and will be added to the taxable base for the financial year in which the sale, redemption or reimbursement takes place. Tax will be paid at the rate in force at any given time, which is currently 19% up to €6,000, 21% from €6,000.01 to €50,000 euros and 23% from €50,000.01 upwards.

In order to carry out the transfer or reimbursement of the assets, the prior acquisition of the same must be certified by notaries public or financial

institutions obliged to perform the withholding, and the price at which the transaction was carried out must be evidenced. The issuer cannot perform reimbursement when the holder fails to substantiate such status through the opportune certificate of acquisition.

In the case of returns obtained through transfer, the financial institution acting on behalf of the transferring party will be obliged to make the withholding at source.

In the case of returns obtained through reimbursement, the entity obliged to make the withholding will be the issuer or the financial institution responsible for the transaction.

Similarly, to the extent that the securities are subject to application of the tax regime set out in Additional Provision One of Law 10/2014, of 26 June, governing the legal system, supervision and solvency of credit institutions (“Law 10/2014”) the reporting regime set out in article 44 of Royal Decree 1065/2007, of 27 July, will apply pursuant to the wording given in Royal Decree 1145/2011, of 29 July.

Wealth Tax

Investors who are individuals resident in Spanish territory and hold securities representing the transfer to third parties of own capital traded on organized markets are liable for Wealth Tax ("IP") on their total net assets as at December 31 of each calendar year, irrespective of where their properties are located or where their rights can be exercised.

This tax is levied in accordance with the provisions of the IP Law which, for these purposes, establishes a minimum exempt amount per taxpayer of EUR 700,000 and a scale of marginal tax rates which range from 0.2 percent to 2,5 percent, without prejudice to the specific legislation approved, where appropriate, by each Autonomous Community.

Inheritance and Gift Tax

Individuals resident in Spain that acquire the securities or rights over these securities through inheritance, bequest or gift will be subject to the tax in accordance with state, regional and local regulations that apply according to the usual place of residence of the testator or recipient, if he was resident in Spain, or of the acquirer, if the testator did not reside in Spain, in acquisitions mortis causa, and according to the place of residence of the recipient, in the case of inter vivos acquisitions.

Investors that are entities with tax residence on Spanish territory

Corporation Tax

The profits obtained by Corporate Tax taxpayers when said profits arise from these financial assets are exempt from the obligation of making the withholding providing that the commercial paper (i) are represented by book entries and (ii) are traded on a Spanish official secondary market of securities, or on the MARF. Nonetheless, credit institutions and other financial institutions that formalize contracts with their clients for accounts based on financial asset transactions will be obligated to withhold on the income obtained by the institutions that hold those accounts. In case of being subject to withholding at source performed as an interim payment of Corporation Tax, the withholding will be made at the current rate of 19%. The interim withholding carried out will be deductible from the Corporate Tax amount payable.

The procedure to introduce the exemption described in the previous paragraph will be the one set out in the Order of 22 December 1999.

The financial institutions that take part in the transfer or reimbursement operations will be obliged to calculate the capital gains attributable to the securities holder and to notify this to both the holder as well as the Tax Authorities.

Notwithstanding the foregoing, to the extent that the securities are subject to application of the regime set out in Additional Provision One of Law 10/2014, the procedure set out in article 44 of Royal Decree 1065/2007, of 27 July, will be applicable in accordance with the wording given through Royal Decree 1145/2011, of 29 July.

Wealth Tax

Legal entities are not subject to Wealth Tax.

Inheritance and Gift Tax

Legal entities do not pay Inheritance and Gift Tax.

Investors that are not resident on Spanish territory

Non-residents income-tax for investors not resident in Spain with a permanent establishment

Non-resident investors with a permanent establishment in Spain will be subject to a tax regime similar to the one described for investors that are legal entities resident in Spain.

Non-residents income-tax for investors not resident in Spain without permanent establishment

To the extent that the provisions set out in Additional Provision One of Law

10/2014 are met and that the non-resident investor without permanent establishment grants its condition, the returns of its Commercial Paper will be exempt from Non-residents Income-tax (IRNR).

In the Commercial Paper issued with a redemption period of 12 months or less, in order for that exemption to apply, the procedure set forth in article 44 of Royal Decree 1065/2007, of July 27, according to the wording given to it by Royal Decree 1145/2011, of July 29, must be followed.

In any case, the interest and other income derived from the transfer to third parties of own capital, obtained other than through a permanent establishment, by residents of another Member State of the European Union or by permanent establishments of those residents located in another Member State of the European Union, will be exempt.

If no exemption applies, the income resulting from the difference between the value of redemption, transfer, and reimbursement or swap of the Commercial Paper issued under the aegis of the Commercial Paper Programme and their subscription or acquisition value, obtained by investors without tax residence in Spain, these will be subject to a tax rate of 19%, without prejudice to what is established in the tax treaties signed by Spain.

Wealth Tax

Without prejudice to the provisions set out in the treaties to avoid double taxation, in general those individuals that do not have a usual place of residence in Spain pursuant to the provisions set out in article 9 of the IRPF Law and who, at 31 December of each calendar year, own properties that are either situated in Spain or with executable rights over the same, are subject to Wealth Tax, without prejudice to any applicable exemptions.

Notwithstanding the above, following the judgment of the Court of Justice of the European Union of 3 September 2014 (Case C-127/12), non-resident taxpayers that are resident in a Member State of the European Union or the European Economic Area will be entitled to the application of the regulations approved by the Autonomous Region in which their most valuable assets and rights, on which the tax is imposed, are situated, because they are located, may be exercised or must be fulfilled in Spanish territory.

Inheritance and Gift Tax

Pursuant to Law 29/1987, of 18 December, governing Inheritance and Gift Tax, individuals non-resident in Spain that acquire the securities or rights over the securities through inheritance, bequest or gift and who are resident in a country with which Spain has a treaty to avoid double taxation vis-à-vis this tax will be subject to taxation pursuant to the provisions set out in the respective treaty. In order to apply the provisions set out in this treaty, it will be necessary to prove tax residence through the corresponding certificate

validly issued by the tax authorities in the investor’s country of residence, expressly placing on record their residence for the purposes set out in the treaty.

If a treaty to avoid double taxation is not applicable, individuals not resident in Spain will be subject to Inheritance and Gift Tax pursuant to state laws. The tax rate will range between 0 and 81.6%.

Notwithstanding the above, the judgment of the Court of Justice of the European Union of 3 September 2014 (Case C-127/12) found that the Kingdom of Spain had breached Community law by allowing differences to be established in the tax treatment of donations and inheritances involving parties not resident in Spain. In order to eliminate cases of discrimination, the law on this tax was amended to introduce a number of rules that would allow the full equality of tax treatment in the discriminatory situations described by the Court. Accordingly, the application of the tax benefits approved by certain Autonomous Regions to residents of the European Union or the European Economic Area will be possible.

Moreover, the Supreme Court has handed down various judgments (the first of them being dated February 19, 2018, appeal number 62/2017) determining that persons resident outside the European Union and the European Economic Area can also benefit from the autonomous community inheritance and gift tax reductions just as any Spanish citizen or resident in the European Union and the European Economic Area. The Court held that the contrary would constitute an infringement of the free circulation of capital which, as the Court of Justice of the European Union has repeatedly stated, applies to third countries. The Directorate-General of Taxes has recently made the same interpretation in its binding rulings V3151-18 and V3193-18.

Indirect taxation in the acquisition and transfer of the securities issued

The acquisition and, where appropriate, subsequent transfer of the Commercial Paper is exempt from the Tax on Onerous Property Transfers and Documented Legal Acts (Stamp Duty) and VAT under the terms set out in article 314 of the Securities Market Act and concordant articles of the laws that regulate the aforementioned taxes.

22. Publication of the base informative document

This Base Informative Document will be published on the MARF website (www.bmerf.es).

23. Description of the placement system and, where appropriate, subscription and admission of the issue

Placement by the Lead Arrangers

The Lead Arrangers may act as intermediaries in the placement of the Commercial Paper, notwithstanding which the Lead Arrangers may subscribe Commercial Paper on their own behalf.

For these purposes, the Lead Arrangers may ask the Issuer on any working day from 10:00h to 14:00h (CET) for quotes of volume and interest rates for potential issuances of Commercial Paper in order to carry out the relevant prospection processes concerning demand among qualified investors and professional clients.

The amount, interest rate, date of issuance and payment, due date and other terms for each issuance thus placed shall be determined by agreement between the Issuer and the Lead Arranger(s) concerned. The terms of these agreements will be confirmed by sending a document setting out the terms of the issue to be remitted by the Issuer to the relevant Lead Arranger.

In the event that an issuance of Commercial Paper is initially subscribed by the Lead Arrangers to be subsequently passed on to the final investors, it is stated that the price shall be freely agreed between the interested parties and might not coincide with the issue price (i.e. with the cash amount).

Issue and subscription of the Commercial Paper directly by investors

It is also possible that final investors having the status of qualified investors and/or professional clients (pursuant to the provisions of article 205.1 of the Securities Market Law and article 39 of Royal Decree 1310/2005) may subscribe the Commercial Paper directly from the Issuer, providing they comply with all current legal requirements.

In such cases, the amount, interest rate, date of issuance and payment, due date and other terms of each issuance so arranged shall be as agreed by the Issuer and the final investors concerned in each specific issuance.

24. Costs for legal, financial and auditing services and other services provided to the Issuer in relation to the formalization of the Commercial Paper Programme

The costs for all legal, financial and audit services and other services provided to the Issuer in relation to the formalization of the Commercial Paper Programme total approximately forty three thousand and two hundred ninety six euros (€43,296) euros, not including taxes but including the fees of MARF and IBERCLEAR.

25. Admission

25.1 Application for admission (incorporación) of these securities into the Alternative Fixed-Income Market (MARF). Deadline for admission (incorporación)

An application will be filed for the admission of the securities described in this Base Informative Document to the multi-lateral trading system known as the Alternative Fixed-Income Market (MARF). The Issuer hereby undertakes to carry out all of the formalities required so that the Commercial Paper is listed on the aforementioned market within a deadline of seven business days from the date the securities are issued under the aegis of the Commercial Paper Programme. For these purposes, we remind you that, as set out under previous headings, the issue date is the same as the payment date.

The date of admission of the Commercial Paper to the MARF must in any event be a date falling within the period for which this Base Informative Document is valid, and which precedes the respective Commercial Paper maturity date.

Under no circumstances will the deadline exceed the maturity of the Commercial Paper. In the event of breach of the aforementioned deadline, the reasons for the delay will be notified to MARF and will be published in a national newspaper. This is without prejudice to any possible contractual liability that may be incurred by the Issuer.

MARF has the legal structure of a multilateral trading system (SMN), under the terms set out in article 26 and article 44 et seq. of Royal Decree-law 21/2017 of December 29, 2017 on urgent measures to adapt Spanish law to European Union securities market legislation, and is an unofficial alternative market for the trading of fixed-income securities.

This Base Informative Document is that required by the Circular 2/2018, and the procedures applicable to the inclusion and exclusion on the MARF set out in its own Regulations and other applicable regulations.

Neither the competent body of the MARF nor the CNMV nor the Manager Entities have approved or carried out any kind of check or verification with regard to the content of this Base Informative Document, the audited annual accounts submitted by the Issuer, or of the Axesor corporate rating report. The intervention of the competent body of the MARF does not represent a statement or recognition of the full, comprehensible and consistent nature of the information set out in the documentation provided by the Issuer.

We recommend that the investor carefully read this Base Informative Document in full prior to taking any investment decision concerning marketable securities.

The Issuer hereby expressly states that it is aware of the requirements and conditions demanded for the acceptance, permanence and exclusion of the securities on the MARF, according to current legislation and the requirements of its governing body, and hereby agrees to comply with them.

The Issuer hereby expressly places on record that it is aware of the requirements for registration and settlement on IBERCLEAR. The settlements of transactions will be performed through IBERCLEAR.

25.2 Publication of the admission (incorporación) of the issues of the Commercial Paper

The admission of the issues of the Commercial Paper will be reported on the MARF website http://www.bmerf.es.

26. Liquidity agreement

The Issuer has not signed any liquidity undertaking whatsoever with any entity vis-à-vis the Commercial Paper to be issued under the aegis of the Commercial Paper Programme.

In Zaragoza, April 2, 2019.

As the person responsible for the Base Informative Document:

______Mr. Luis Barcelona Escartín GRUPOPIKOLIN, S.L.

ISSUER

GrupoPikolin, S.L. Ronda del Ferrocarril, 24 – Plataforma Logística Zaragoza 50197 Zaragoza

LEAD ARRANGERS

Bankia, S.A. Banco Santander, S.A. Calle Pintor Sorolla, 8 Paseo de Pereda, 9 – 12 46002 Valencia 39004 Santander

Beka Finance, Sociedad de Valores, S.A. Norbolsa, Sociedad de Valores, S.A. Calle Marqués de Villamagna, 3 Plaza Euskadi nº5 – Planta 26 28001 Madrid 48009 Bilbao

REGISTERED ADVISOR

PKF Attest, Servicios Empresariales, S.L. Calle Alameda de Recalde, 36 48009, Bilbao

PAYING AGENT

Bankia, S.A. Calle Pintor Sorolla, 8 46002 Valencia

ISSUER’S LEGAL ADVISOR

J&A Garrigues, S.L.P. Calle Hermosilla, 3 28001 Madrid

APPENDIX 1

CONSOLIDATED ACCOUNTS OF THE ISSUER FOR THE FINANCIAL YEAR ENDED ON DECEMBER 31, 2016

APPENDIX 2

CONSOLIDATED ACCOUNTS OF THE ISSUER FOR THE FINANCIAL YEAR ENDED ON DECEMBER 31, 2017