1 WHO IS SIMCO

Simco is one of the most important and independent Italian consulting companies. Since 1981, when it was established, Simco has been developing over 1.800 projects for more than 450 Customers of different sizes and sectors. Our mission is to combine expertise and technology to analyze and improve processes, motivate and qualify human resources in order to control and develop the overall performance of the company. Our method does not provide standard solutions, but offers a tailored approach, modeled on the real needs of the customer and inspired to practicality and innovation. Particular attention is given in the use of advanced tools in order to make the results of projects certified by sophisticated analysis; Simco can develop arelationship that starts from the definition of improvement and change actions, and can may come up to assistance during implementation, to facilitate and monitor the achievement of objectives.

14% Average yearly turnover 27% Warehousing projects (2001‐2011) 59% Other Logistic Projects Training € 1.600 .000 .

2 WHO IS SIMCO

SIMCO partners: Cesare Marco Diego Alberto Cernuschi Cernuschi Giometti Zampieri

Our Senior Consultant: Senior Consultants boast an experience of about 20 years in the logistics sector; their approach is innovatory and they can profit from the experience of more than 30 years of projects. Each time we tackle Customers problems, we do it as carefully as if they were ours. Simco staff is made of permanent employees and the use of Free Lance is extremely limited. This allows us to invest in the systematic and steady training of our resources and provides the Client with a point of reference in the conduct of the project and the continuation of the relationship. Simco is certified Vision 9001:2008 (certificate n° 9175 SMCO ‐ first issue 1998).

3 WHO IS SIMCO

Simco organizes inter‐company and in‐house courses and workshops (about 40 courses about logistics in the catalogue).

A shot taken at our recent WkhWorkshop entilitle d “Automation in warehousing and handling: how and when is it convenient?”

4 THOSE WHO HAVE CHOSEN SIMCO

5 BEST KNOWN COMPANIES AMONG SIMCO’S CUSTOMERS

ALSTOM, AGUSTA WESTLAND, , AUTONEUM, BAYER, BASF, BINDA, BOHLER, BTICINO, CARREFOUR, COCA‐COLA, COOP ITALIA, CORMAN, DENSO, DIESEL, DUCATI, FACET, FIAMM, FIAT AUTO, FISCHER, FLINT GROUP, FOPPAPEDRETTI, FRESENIUS M.C., G6 RETE GAS, GEFRAN, GE HEALTHCARE T., GIORGIO ARMANI, IND. CARTARIE TRONCHETTI, IVECO, JOHNSON DIVERSEY, JOHNSON & JOHNSON MEDICAL, KONICA MINOLTA, LEGRAND, LEROY MERLIN, LEVI STRAUSS, LINDT & SPRUNGLI, LEROY MERLIN, LLOREAL’OREAL,, LOTTO, LUXOTTICA, MERCK SHARP & DOHME, NOVARTIS VACCINES, PANASONIC, PIONEER, PONTI, ROCHE DIAGNOSTICS, SAMSUNG, SNAM RETE GAS, SOL, STAPLES, SUBARU, TEMPUR, TEVA, THUN, TRW, VOLKSWAGEN.

Simco has developed many projects and consultancies operang in internaonal sengs in Austria, Bulgaria, Croaa, , , Malta, , and Switzerland.

 Simco’s average revenue generated by each customer: about € 130.000

6 PRESENTLY WE ARE WORKING FOR:

• GIORGIO ARMANI • AUTONEUM Fashion – Detail desiggggn and management of logistic AtAutomo tive IdIndust ry - analilysis o ftf transpor t organi itization equipment purchasing for the hanging garments and (intra-plants haulages) accessories warehouses of Baggiovara DC. • CAME • LEROY MERLIN Engineering – Feasibility Report for Materials and DIY– assistance to new WMS implementation activities Components warehouse • DENSO THERMAL SYSTEM • L’OREAL Automotive Industry– Detailed Design and Project Cosmetics - Detail design, management of logistic Management for a New Automated Distribution Center. equipment purchasing and Construction Project • DUCATI management for a new automated warehouse. Motorcycle Industry – evaluation of 3PL performances • SEAC SUB and preparation of new Tender Documents • FACET Diving sector – Warehouse construction project Automotive Industry – executive project for • SORMA extlitifFiihdPdthternalization of Finished Product warehouse Mechanical – Feasibility Report for Distribution • FISCHER ITALIA warehouse Fixing Systems – FP Warehouse Reengineering. • SVIMA • FONTANA PELLETTERIE Pharmaceutical Distribution – Feasibilityyp Report for Luxury fashion – detailed design and coordination, for Storage and Material Handling systems for finished construction of leather and accessories warehouse products warehouse

7 OUR AREAS OF INTERVENTION

 Optimization / re‐design of distribution network  Design of new warehouses / DCs  Warehouse design  Re‐layout of existing warehouses / DCs  Support to outsourcing projects  Demand and Inventories optimization

 Dynamic simulation

 Business Intelligence solutions

 Business organization

 Training

8 WHY CHOOSING SIMCO?

Company’s structure, Consolidated end‐to‐end know‐how experience, about methods and warehousing tools and transportation Consolidated know‐how about real‐life situations (sw, 3PLs etc. )

Concrete implementations, not ideal solutions: from general conception to iilmplemen ttitation and continuous iitmprovement

9 WAREHOUSE LOGISTICS DESIGN Our approach

Audit We identify the strengths and weaknesses of the warehouse and define possible interventions highlighting the expected benefits, the prerequisites for their implementation, and any risks, time and resources required.

Feasibility Report Defines the technological and organizational strategic options, to eliminate the weaknesses and to achieve levels of excellence, with regard to efficiency, accuracy and service. Iddfentifies alternative solutions, whhhich are analldyzed and compared defining the obtainable results, investment and operating costs, ROI, “pro’s & con’s” and implementation time.

10 WAREHOUSE LOGISTICS DESIGN Our approach

Detail Project It istheanallilytical ddiesign phase of all components of thewarehouse, to issue drawings and specifications necessary and functional for the launch of tenders.

Management of construction phase In support to the Customer, it offers technical assistance to the correct management of contracts, as far as technical contents and ppjroject schedule issues are concerned. Project management is carried out for logistics supplies, as well as it may include on site supervision of the building yard, staff training and assistance in testing , start‐up and commissioning.

Periodic monitoring of the efficiency (post‐auditing) After the start‐up of the warehouse, the results actually achieved are monitored to assess any deviations from the goals that were set and to identify the reasons for the deviation. The scope is to establish new goals, by removing the problems with the logic of "continuous improvement".

11 FEASIBILITY REPORT Scope of work

SCOPE: to identify carefully and suggest the best possible option to be implemented

• Collection and analysis of current data DESIGN DATA • Analysis of current logistic processes • Definition of projection factors

• De fin ition o f a lterna tive so lu tions for:  Storage and material handling systems FEASIBILITY DEVELOPMENT OF ALTERNATIVE  Processes, procedures, organization SOLUTIONS  HW&SW architecture • Definition of the criteria for the comparison REPORT of alternatives

• Estimate of investment costs (15% RECOMMENDED accuracy) and costs/benefits analysis • Comparison of alternative solutions SOLUTION • Recommendation of the optimal solution • Final Report

12 FEASIBILITY REPORT The recommended project team

COMPANY MANAGEMENT Strategical trend – long term forecast ‐ “basic” choices

Company costs models

Project Core Team & aspects

l e ion aa Schedul Confrontation on Technic project issues Organizat LLitiogistic ClttConsultant Project Team RESULTS Company’s other staff

•process owners •IT, QA, validation, purchasing, sales, marketing, data perative

production, etc. business OO

13 FEASIBILITY REPORT Data collection and elaboration

Inventories Articles and load units •process requirements •SKU Master Data •service level requirements •cubic per SKU •load unit size and cubic •design targets •load units per SKU •packaging size and cubic •seasonality patterns •weight / fragility •trends •shelf life •ABC analysis PROJECTIONS 

Flows DE  SKUs S DATA BASE  lines and qtys out & in IGN •picking lines per SKU Not only averages!  orders profile •picked items per SKU  distribution channels

•shipped boxes D  stock management •shippe d lldoad units • Personnel (number, mansion, ATA  manufacturing •orders (by channel) qualification, costs,..) •orders profile • Productivities of main logistic  level of service •ABC analysis processes (picked lines or pz./ h)  new assortment •seasonality patterns • Time & Motion studies  new customers In & Out flows Manpower, productivity and workflows

14 FEASIBILITY REPORT Example of inventory analysis

N° Medio Comp. Descrizione N° Codici % progr Pallet in % progr pallet x cod Giac. 98 MATERIALE VARIO 59 3% 3% 2.018 21,7% 21,7% 34,2 04, 05, 10 BULK e PF per exp 251 14% 18% 1.260 13,5% 35,2% 5,0 20, 21, 22 ASTUCCI 346 20% 38% 937 10,1% 45,3% 2,7 01 ECCIPIENTI 74 4% 42% 921 9,9% 55,2% 12,4 45 CONFEZIONI MULTIPLE 57 3% 45% 797 8,6% 63,7% 14,0 97 PALLET 4 0% 45% 543 5,8% 69,6% 135,8 06, 07, 08 PRODOTTI FINITI 118 7% 52% 536 5,8% 75,3% 4,5 09, 12, 13 90, 94, 99 MISCELLANEA 45 3% 55% 434 4,7% 80,0% 9,6 60, 62, 65 ALLUMINIO 237 14% 68% 424 4,6% 84,5% 1,8 40, 41 FOGLIETTI ILLUSTRATIVI 220 13% 81% 397 43%4,3% 88,8% 181,8 23 WALLET 63 4% 85% 248 2,7% 91,5% 3,9 80 ROTOLI DI PVC 51 3% 88% 172 1,9% 93,3% 3,4 02 PRINCIPI ATTIVI 15 1% 88% 168 1,8% 95,1% 11,2 36, 38 BOLLINI PREZZO 120 7% 95% 129 1,4% 96,5% 1,1 30, 33, 37 ETICHETTE 52 3% 98% 89 1,0% 97,5% 1,7 14 LOSS REPORT 2 0% 98% 63 0,7% 98,1% 31,6 83 FUSTINI METALLICI 2 0% 99% 46 0,5% 98,6% 23,1 03 SEMILAVORATO INTERNO 9 1% 99% 42 0,5% 99,1% 4,7 84 ALVEOLI 2 0% 99% 37 0,4% 99,5% 18,6 81 POLIETILENE 6 0% 99% 29 0,3% 99,8% 4,8 87 SACCHETTI ANONIMI 4 0% 100% 12 01%0,1% 99,9% 292,9 50 CAPSULE 2 0% 100% 3 0,0% 100,0% 1,5 55 FLACONI 1 0% 100% 1 0,0% 100,0% 1,0 16 MATERIALE DI SCARTO 1 0% 100% 1 0,0% 100,0% 1,0 15 RESI A PAVIA 1 0% 100% 1 0,0% 100,0% 1,0 Totale 17421.742 9.308

15 FEASIBILITY REPORT Example of inventory analysis

2.400 2.300 OVERALL FP STOCK TREND @ 2010 2.200 (Product Family & LVP/MBG) 2.100 21.900. 000000 1.800 1.700 1.600 1.500 1.400 11.200. 300300 1.100

pallets 1.000 900 800 700600 500 400 300 200 100 - gen-10 feb-10 mar-10 apr-10 mag-10 giu-10 lug-10 ago-10 set-10 ott-10 nov-10 dic-10 gen-10 feb-10 mar-10 apr-10 mag-10 giu-10 lug-10 ago-10 set-10 ott-10 nov-10 dic-10 LIVERPOOL 15 15 15 15 15 134 372 114 15 15 15 15 PANDEMIC 436 370 ------180 278 217 253 260 16 16 16 16 174 134 170 MARBURGOmissis FLU - - - - - 708 914 176 318 86 86 86 OTHER 267 258 310 437 538 615 454 412 322 349 299 292 MEN 713 1.043 1.153 1.110 1.078 811 528 226 181 706 866 876

16 FEASIBILITY REPORT Deliverables and outputs

ROSIAOmissis COLD STORAGE YEARLY TREND 8.000

7.000

6.000

5.000

llets 4.000 aa P

3.000

2.000

1.000 123456789101112 Omissis 2-8 C STOCK TREND @ 2012 WITH OPTAFLUOmissis 2-8 C STOCK TREND @ 2013 WITH OPTAFLU Omissis 2-8 C STOCK TREND @ 2014 WITH OPTAFLUOmissis 2-8 C STOCK TREND @ 2015 WITH OPTAFLU + MENJUGATE MOVE CURRENT COLD STORAGE CAPACITY (Bld.20 + Bld.39) COLD STORAGE CAPACITY (Bld.20 + Bld.39Omissis + HBS) COLD STORAGE CAPACITY (Bld.20 + HBS) COLD STORAGE CAPACITY @ 2015 (Bld.20Omissis +2 HBS)

17 FEASIBILITY REPORT Example of flows analysis

PACKAGING TREND in 2010 (pallets) 1.700

1.600 1.500

1.400 MEN FLU OTHEROmissis MARBURGOmissis 1.300 PANDEMIC LIVERPOOL 1. 200200 1.100

1.000

900 800

700

600 500

400

300 200

100

- gen-10 feb-10 mar-10 apr-10 mag-10 giu-10 lug-10 ago-10 set-10 ott-10 nov-10 dic-10

18 FEASIBILITY REPORT Example of flows analysis

FROM TO CHART: SITUAZIONE DI PROGETTO (flussi medi giornalieri)

MISSIONI PER ORIGINE / DESTINAZIONE Mag. Mag. Pre Fraz. De/Stac Ingr. Sampl. Weigh. Assem. Manuf. Pack. Pick. Stag. Waste Ship. (HBS) (NWH) Weigh. Bulk STA Ingresso 106 54 Sampling 19 Magazzino (HBS) 24 19 45 18 89 59 96 9 37 Magazzino (NWH) 11 94 21 120 Weighing 15 1 18 Pre Weighing 36 Fraz. Bulk 22 Assembling 36 7 30 Manufacturing 7 58 24 Packaging 48 80 16 MISSIONI DA Picking 21 49 Staging 30 Waste 58 Shipping De/Stacker PT - STA11 11 32 11 Stacker 1P - STA21 19 De/Stacker 1P - STA31 3 55 TOTALE 24 19 368 263 56 50 22 144 97 190 30 30 58 157 38

19 FEASIBILITY REPORT Example of flows analysis

20 FEASIBILITY REPORT Deliverables and outputs

Each alternative solution must be characterized in terms of:

• Master Plan of the site • Warehouse layout: design of logistic equipment (storage and material handling means) according to design year requirements • Operative criteria: put‐away rules, warehouse storage mapping, picking processes (per single order, batch order picking, sorting), handling processes etc. • Manpower staffing (and relevant running costs) • Other running costs (automation maintenance etc.) • Investment costs • Project time schedule / planning of implementation stages

21 FEASIBILITY REPORT Deliverables and outputs

waste water 1

36 1

68 1 18 disabled 1 54 Truck

L Garage

ladies gents 74 1 1 48 1 1

78 1 8 MP 1 29 office Wrapping battery bay 7 1 29 7

yard and vehicle wash area LPG 52 1 storage

57 1 cashiers office for Gozo for

for Returns driver's waiting Staging Area Staging from Suppliers Receiving Area Receiving Receiving Area Receiving room 8

load for Gozo / containers bay

containers bay SOLUTION #1

Truck

L Garage

1 48 1 1

MP 1 29 office Wrapping battery bay 7 1 29 7

yard and vehicle wash area LPG storage

cashiers office for Gozo for

for Returns driver's waiting Staging Area Staging from Suppliers

Receiving Area Receiving Area Receiving room 70 1

SOLUTION #2

22 FEASIBILITY REPORT Deliverables and outputs

waste water water line

64 1

Truck

L Garage

1 48 1 1

MP 1 29 office NOT OK Wrapping 68 1 7 1 29 7 battery bay 2 45 1 yard and vehicle wash area LPG storag 1 45 1 3 cashiers office 3

45 1

45 1 for Gozo for Returns

7 driver's waiting Staging Area from Suppliers

Receiving Area Receiving Area room 3

SOLUTION #3

waste water

7

24 1 Truck

L Garage

1 48 1 1

45

MP 1 29 office Wrapping battery bay 7 1 29 7

yard and vehicle 45 wash area LPG storag

cashiers office

1 for Gozo for

for Returns driver's waiting Staging Area Staging from Suppliers

Receiving Area Receiving Area room 50 7

SOLUTION #4

23 FEASIBILITY REPORT Estimate of investment costs

Qty Total costs (€)

Unit costs Full Aut . UoM Full Aut. Sol. Cost Item (€/ each) Sol.

HBS WAREHOUSE All products Self supported racks€ 145 pp 39.600 € 5.750.000 Stacker cranes (double deep & double fork) € 330. 000 n° 11 € 36300003.630.000 Total 1 € 9.380.000 CONVEYOR SYSTEM Conveyors HBW (in & out)€ 3.500 mt 156 € 550.000 Turnatable € 15.000 n° 20 € 300.000 Total 2 € 850.000 MONORAIL SYSTEM (1st level) Rail & system € 1.500 mt 460 € 690.000 Monorail shuttles€ 35.000 n° 29 € 1.015.000 Lift e conveyors for Production€ 90.000 n° 5 € 450.000 Mezzanine for maintenance and support€ 250 sqm 600 € 150.000 Total 3 € 2.305.000 MONORAIL SYSTEM (ground level) Rail & system € 1.500 mt 430 € 645.000 Monorail shuttles€ 35.000 n° 29 € 1.015.000 I-point & conveyors€ 3.500 mt 15 € 55.000 Gravity lanes for replenish.€ 400 pp 66 € 30.000 Total 3 € 140001.745.000 SHIPPING AREA Conveyors @ shipping area (gravity roller)€ 400 pp 330 € 135.000 Total 5 € 135.000

MH & RACKS € 14. 415. 000

24 FEASIBILITY REPORT Comparison of alternative solutions

SOLUTION 1 SOLUTION 2SOLUTION 3 SOLUTION 4 SOLUTION 5

Product type [type] WATER NO WATER ALL WATER NO WATER ALL ALL

Storage pallet places [#] 3.488 3.290 6.860 3.465 3.164 6.888 6.454

Warehouse saturation [%] 95% 91% 92% 96% 95% 92% 98%

Area utilization factor [pp/sqm] 2,1 1,9 2,6 2,6 1,9 2,6 1,9

Area requirements [[qsqm] ] 4.850 4.150 4.600 4.150 4.850

Area availability [sqm] - 700 250 700 -

Workers / day (peak conditions) [#] 21 26 17 20 19

Total logistic investment costs [€] 1.200.500 1.611.000 2.187.000 1.548.500 956.500

Total running costs / year [€/y] 344.000 462.000 291.000 348.000 305.000

25 FEASIBILITY REPORT Comparison of alternative solutions

Solution 1 Solution 2 Solution 3 Solution 4 Solution 5 Factor description Weight vote score vote score vote score vote score vote score Overall costs (investment + running) in the mid term (5 1 25% 9,0 2,3 7,5 1,9 5,0 1,3 7,5 1,9 10,0 2,5 years)

2 Investment costs impact 10% 8,2 0,8 7,4 0,7 5,0 0,5 6,6 0,7 10,0 1,0

3 Safety & ergonomy 10% 6,0 0,6 9,0 0,9 9,0 0,9 8,0 0,8 7,5 0,8

4 Area savings savings 10% 505,0 050,5 10 ,0 0 101,0 686,8 070,7 10,0 0 101,0 505,0 050,5

5 Project complexity and lenght 5% 9,0 0,5 8,0 0,4 5,0 0,3 7,0 0,4 10,0 0,5

6 Process & Operations control and accuracy 10% 7,0 0,7 8,0 0,8 10,0 1,0 7,0 0,7 9,0 0,9

7 Flexibility to long term changes 5% 8,5 0,4 5,0 0,3 7,5 0,4 7,0 0,4 9,0 0,5

8 Flexibility to overtime 5% 7,0 0,4 7,0 0,4 10,0 0,5 7,0 0,4 7,0 0,4

9 Flexibility to short peaks of the workload 5% 7,0 0,4 5,0 0,3 6,0 0,3 6,5 0,3 8,0 0,4

10 Sensitivity to failures; availability 5% 10,0 0,5 9,0 0,5 8,0 0,4 7,0 0,4 10,0 0,5

11 Sensitivity to manpower costs dynamics & avaliability 5% 7,0 0,4 5,0 0,3 10,0 0,5 7,0 0,4 8,0 0,4

12 Corporate image benefits 5% 8,0 0,4 7,0 0,4 10,0 0,5 9,0 0,5 7,0 0,4

Total 100% 7,7 7,6 7,2 7,6 8,6

26 FEASIBILITY REPORT Comparison of alternative solutions

FINANCIAL & ECONOMICAL COMPARISON (interest rate = 5%)

6.000.000

5.500.000 HBW solution becomes more convenient than VNA trucks solution after about 2,5 years 5.000.000

4.500.000

4.000.000

3.500.000

s (Euro) 3.000 .000 000

2.500.000 total cost

2.000.000

1.500.000 All racks storage solution is always the most convenient one in ten years horizon 1.000.000

500.000

- 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

SOLUTION 1 1 SOLUTION 2 2 SOLUTION 3 3 SOLUTION 44 SOLUTION 5 5

27 PROJECT SCHEDULE (GANTT)

28 DYNAMIC SIMULATION – samples of 3D animation

29 DYNAMIC SIMULATION – samples of 3D animation

30 DYNAMIC SIMULATION – sample of time graph

HBS avg Utilization 100

90

80

70

60

% 50

40

30

20

10

-

,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 ,5 050 1 252 353 4 555 656 7 858 959 050 151 2 353 454 5 656 757 8 959 050 151 252 353 1 1 1 1 1 1 1 1 1 1 2 2 2 2 Hour 31 SIMCO IS… (for warehouse projects)

Below are some references for warehouse projects handled by SIMCO that, for almost all, were followed at all stages, from feasibility study to commissioning. For many of the clients listed SIMCO has also developed consulting activities in other areas of logistics (demand forecasting, inventory management, distribution networks, tttransport,outtisourcing, llitiogistics services and other surveys).

We sorted our main references according to the following criteria:

Warehouses with high level of automation (stacker cranes, sorters, LGV etc.); for the most complex of them, Simco made recourse to dynamic simulation models to refine the project.

Warehouses which, while not including full automated systems for storage, are still very interesting and innovative for their size, for the complexity of the soffftware for the management of warehouse operations ( (S)fWMS), or for the packaging lines and shipping solutions.

32 SOME REFERENCES

Warehouses with Complex high level of warehouses automation

 IVECO (TORINO) Restructuring world distribution warehouse for spare parts (about 180,000 sqm) Characterized by high technological standards (two automatic warehouses). The intervention, which has made provision for a radical transformation process, had to take account of a marked heterogeneity of stored products, ranging from small parts (mechanical and body) to truck cabins. Training of personnel.

 VOLKSWAGEN (VERONA) Creation of new Italian spare parts warehouse for all Group brands (about 55,000 sqm, with rail link) characterized by high technological standards: two automatic warehouses, one for large metal load units (h = 27 m) and one for totes (h = 14 m). Other warehouses including: valuable products, paints, printed, non-standard, etc. After completion and commissioning period, Simco was assigned new consultancy aimed at consolidating the results and continuous improvement.

 NOVARTIS VACCINES (ROSIA -SI) From Master Plan to implematation of the warehousing system (Finished Products, Packaging Materials) of the Plant dedicated to the production of vaccines. The solution includes two automated warehouses for pallets (approximately 15,000 bins) integrated with the Manufacturing Departments and with Shipping Area with monorail shuttles and AGV system. The intervention was carried out in two steps; in both phases, given the complexity of the project, Simco carried out a dynamic simulation.

 THUN (MANTOVA) Construction of the new Distribution Center (approximately 35,000 sq. m.) equipped with technologically advanced equipment for the preparation of orders: pick to belt, pick to light, voice picking, high throughput sorter (about 20,000 pieces sorted / hour), automatic forming machines, automated shipping end-of-line, automatic robots for the composition of the shipping pallet. Simco also provided for the drafting of the procedural manual and training of operating personnel.

33 SOME REFERENCES

Warehouses with Complex high level of warehouses automation

 COCA COLA (NOGARA - VR) Master Plan and Detail Design for the new finished goods warehouse (approx. 46,000 sqm) dedicated to the main Italian production Plant. The scope of work has also led to the optimization of the bottling end of the line / packaging (by dynamic simulation), the rationalization of the layout and of the process of raw materials warehouse, evaluation of payback time of automated solutions (consisting in a double deep AS/RS warehouse for the slow-moving products), and planning for implementation of the warehouse.

 L’OREAL (SETTIMO TORINESE - TO) Feasibility study, detailed design, assistance for the purchase and construction phases of the new automated warehouse for the storage of raw materials, semi-finished products and packaging materials. The warehouse (3,700 sqm over 6 long corridors 70 meters) is 12.5 meters high and served in double- deep storage by AS/RS for alletized units. The conveying system integrates the raw materials weighing area with the plant and with the existing LGV system, on its turn connecting the production departments.

 RUMMO (BENEVENTO) Site Master Plan (built in phases) and project for the construction of a new automated warehouse for finished goods, adopting self-supported racks (h = 30+ m, with capacity of 40,000 pallet bins) served by four double deep stacker cranes, direct fed from the palletizers on continuous cycle (3 shifts for 7 days).

 MERCK SHARP & DOHME (PV) For this ittimportant customer of thephtilharmaceutical sector, there have been several stditudies over the 30 years of life of Simco. The latest deal saw Simco and MSD facing together a complete design process, which has spanned a period of about two years, from an audit on the criticality of the systems of handling and storage facility, to get the full management by Simco of the detailed project of revamping the automated warehouse and its "heads". It was previously developed a program, then realized, for the expansion of storage and to feed packaging lines from the warehouse by means of automated LGV.

34 SOME REFERENCES

Warehouses with Complex high level of warehouses automation

 DENSO (CARMAGNOLA - TO) RealizationReali ation of a newne After Sales warehouseareho se based on automaticatomaticstacker cranes for both palletizedpalleti ed unitsnits and loose packages, aimed at feeding an automatic picking system. The warehouse was built about 22 meters high with self-supported racks.

 PONTI (GHEMME - NO) CttiConstruction of a new dis tr ibu tion warehouse for vinegars and preserves, consitiisting of auttitomaticstktacker cranes in multi-depth racks (served by and automated "shuttle" on board the AS/RS) connected automatically with the preserves production building and in a system of automatic un / loading of trucks for connection with vinegars production plant. Creation of a traditional picking area, managed with WMS and RF hand-held terminals.

 USAG (MONVALLE - VA) Construction of the new general distribution warehouse (loose and packaged finished products, packaging materials) and the office building. The warehouse, designed with high-tech solutions, like two automatic warehouses (one h = 27 m and another one h = 12 m feeding flow racks for picking channels), conveying systems to feed packaging stations, provides for the storage of hand tools (basically small) and cabinets and carts (basically large).

 LEVI STRAUSS ITALIA ( SETTIMO MILANESE - MI) Reorganization of Italian distribution warehouse, based on automatic receipt and palletizing of products from factories (trucks unloading and conveyance to 3 Cartesian robots for 48 automatic palletizing stations and automated evacuation of pallets there formed) and in the preparation of orders: pallet and boxes flow racks, served by a conveyor system with "decision points"; a "lock & pick" system assists the operators in the picking zones; automated manifesting line and automated loading of semi-trailers.

35 SOME REFERENCES

Warehouses with Complex high level of warehouses automation

 ARTURO SALICE (NOVEDRATE - CO) Two warehouses equipped with automatic stacker cranes: one for semi-finished products (handling of containers quadruples) and one for finished products; for the latter, based on self-supported racks, it was implemented a robotized picking station, adopting Cartesian axle equipment.

 SIEI (GERENZANO - VA) Site Master Plan, layout and design of the production departments and of an automated warehouse for components, served by stacker cranes (three load units per time) handling standard totes to replenish the assembly lines.

 FACET (COLLEGNO - TO) Site Master Plan and implementation of three automated warehouses: raw materials (stacker cranes for pallets of pellets, stored counterslope). For components, semi-finished and packaged finished products warehouse it all began with a review of the loading unit and the installation of special stacker cranes with idindepen den tpairs of fkforks for hdlihandling contitainers of differen t sizes (one titwice theother) .

 G.SACCHI (LISSONE- MI) Implementation of a distribution warehouse to deliver electrical parts and equipment to Customers and Affiliates (18). The warehouse consists of several sections depending on the nature and intensity of goods flow: cantilever racks served with a 4-way fork-lift truck for long products, order picking trucks for small parts, an automatic system (8 horizontal carousels) again for small parts, racks for palletized products, bulk floor storage for electrical cabinets, automatic self-steering stacker crane for cable reels.

36 SOME REFERENCES

Warehouses with Complex high level of warehouses automation

 COMPLASTEX (LUCCA) Implementation of a new automated warehouse equipped with double deep stacker cranes, to store pallets of finished canned products; in the head conveying system it was made a special station equipped with an automatic picking robot.

 BIGNAMI (Ala-BZ) New distribution warehouse for sporting goods, conceived using an automated warehouse in double deep for standard cassettes and other traditional systems for palletized products. The packaging activities for mixed parcels shall be assisted by an automatic conveyor line, strapping, labeling and buffer for staging.

HAFLIGER (Trezzano S.N. - MI) Implementation of a AS/RS warehouse for coils, served by automatic stacker cranes working in multi deep counterslope racks, served by shuttles.

 BORELLO & MAFFIOTTO (TORINO) New distribution center of technical articles divided into various zones depending on the nature and quantity of goods handled. The storage area was implemented making recourse to high cadence, small automatic stacker cranes (miniload).

 CF GOMMA (PASSIRANO - BS) Realization of two inter-operational automatic warehouses, for the handling of palletized products used in the machining process of the rubber-metal.

37 SOME REFERENCES

Warehouses with Complex high level of warehouses automation

 DIESEL (MOLVENA -TV) Raw materials (pieces of denim fabric and leather) and accessories warehouse, the warehousing technique is based on three horizontal carousels and automated lifting platform in the head plants.

 GD (()BOLOGNA) Master Plan and Feasibility Study for the construction of a new automated warehouse with self-supported racks, for raw and melting components.

 CONSERVE ITALIA (BOLOGNA) DiDesign and procurement assitistance for amulti deep auttdtomated warehouse (“sh u ttles ”) for fin is he d goods

 PHARMACEUTICAL DISTRIBUTION ( ITALIA – various locations) 50 distribution centers for 35 different customers, characterized by high shipping rates: 10÷50.000 lines per day in a very concentrated time window, for more, and generated by many thousand SKUs. Most projects included feasibility study and, subsequently, all activities relating to the installation of highly automated warehouses as far as put-to-storage, picking (automatic A frame machines, conveyors with a decision point) and shipping activities (automated self-closing, sealing and labeling of shipping packages / totes, automatic sorting out to the different accumulation bays).

38 SOME REFERENCES

Warehouses with Complex high level of warehouses automation

 BTICINO (OSPEDALETTO LODIGIANO) Implementation of a centralized warehouse for Legrand (Zibido S.G. - PV) and later construction of the new finished goods warehouse for Bticino (Legrand Group), dedicated to palletized goods, products in boxes, long loads (cabinets, carpentry etc.). Issuing of detailed warehouse operating procedures and staff training. First warehouse in to adopt and use the WMS software "Catalyst".

 COCA COLA CCHBC HELLENIC (EUROPE – various locations) For this customer Simco was choosed as logistics consultant at European level; in the synthesis were realized the following projects:

ANNO NAZIONE LOCALITA' TIPO DI PROGETTO 2003 ITALIA NOGARA Master plan 2004 ITALIA NOGARA Warehouse layout optimization In 2007, through a strict 2004 ITALIA NOGARA Assistance to the realization of warehouse re‐layout 2004 ITALIA GAGLIANICO Warehouse layout optimization selection process, Simco 2004 ITALIA NOGARA Raw materials warehouse + automated connection systems to Production has become an official 2005 ITALIA NOGARA Feasibility report for automated warehouse partner of CCHBC for 2005 ITALIA NOGARA Optimization of end‐of‐line buffers vs fork‐lift trucks (dynamic simulation) consultancy about 2005 ITALIA BUCCINASCO Feasibility study to assess sustainability of "Go‐to‐market" project as far as picking is concerned warehousing, 2006 ITALIA HQ Parametric model for design of warehouse layout and handling resources distribution and system 2006 ITALIA HQ Training class about warehousing issues 2007 GRECIA SCHIMATARI Master plan implementations. 2007 BULGARIA KOSTINBROD Maser plan + Warehouse layout optimization Simco since then has 2008 BULGARIA KOSTINBROD Mapping of Warehouse processes (flow charts) been involved in several 2008 GRECIA AIGIO Feasibility report for finished products warehouse international logistics 2008 CROATIA ZAGREB Feasibility report for finished products warehouse projects for CCHBC. 2009 CROATIA CROATIA Optimization of distribution network (using advanced simulation tools) 2009 ITALIA MARCIANISE Feasibility report for finished products warehouse 2009 ITALIA MARCIANISE Master plan 2010 CROAZIA ZAGREB T&M study for picking activities (making recourse to advanced specialistic software tools) 2010 ITALIA CAGLIARI Warehouse layout optimization 2011 ITALIA ORICOLA Warehouse layout optimization (on‐going) 39 2012 AUSTRIA EDELSTAL Feasibility report for finished products warehouse SOME REFERENCES

Warehouses with Complex high level of warehouses automation  COOP (TUSCANY REGION) Study on the reorganization of several distribution centers (Sesto Fiorentino, Pontedera, Castiglione del Lago, Perugia), evaluation of the opportunities of development interventions, checking the correct geographical position.

 SUBARU (ALA -TN) Re-layout and expansion of an existing warehouse. Simco first developed the Master Plan of the existing facilit y, fifocusing on the itimprovement of exitiisting functi onaliti es of thewarehouse inreltilation to thepldlanned extensions and then carried out a feasibility study, especially for the verification of the correct flow of internal movement of goods and to verifythecorrectnessofthelogistics techniques that Subaru intended to take, to implement the extension.

 FABRIZIO ING.PLINIO (ODERZO - TV) Warehouse of approximately 40,000 square meters, built from "green field", where were concentrated the three previous warehouses located in the basin of Treviso. The system, which distributes both to abroad branches and directly to regional customers, has a work organization characterized by "man to goods" approach and assisted by a WMS software customized for withdrawals of small parts from totes and from continuous shelves, from pallets on racks and bulky products stored on the floor, subject to strong seasonality. Simco has developed the feasibility study, the executive project, construction management, testing of hardware and software, management of the relocation and commissioning.

 FISCHER ITALIA (PADOVA) Warehouse for semi-finished and finished goods, organized in a first section equipped with traditional racks for palletized goods - served by great lifting height (11,2 m) reach trucks - and in a second section, dedicated to single boxes of finished products, characterized by an high productivity technique for picking activities ("pick & pack" for orders batches), consisting of flow racks and shelves for boxes and crates, served by a manifesting line for shipping packs,(mechanized end-line of pack closure and labeling.)

40 SOME REFERENCES

Warehouses with Complex high level of warehouses automation

 SNAM RETE GAS (Codogno - LO) Reorganization of the central warehouse for Materials, in the light of the need toincreaseefficiencyand to dedicate storage areas (in order to achieve synergy of Group) to Italgas. The warehouse is arranged both on covered areas and on extensive outdoor areas for bulky materials (pipes, valves, structural, etc.). The study identified new ways for picking sequences, aimed at the rationalization of transport; steps were also taken to identify a group of materials that, due to their characteristics (cost, lead time pp,rocurement, strategg,ic, etc..) canbemanaged directly by ppgassing the central warehouse.

 MATTEL (Arona - VB) Reorganization of the finished products warehouse, which is divided into two sections respectively for the storage of stocks and for the preparation of orders. The first area is developed with pallet racking served by turret trucks so as to obtain the best volumetric efficiency, the second zone provides different solutions for storage / withdrawal in relation to the intensity of the flows, e.g. for fast mover is equipped with flow racks for pallets, with stocks on the upper floors and the picking at floor level. The warehouse is managed by an advanced WMS with RF terminals.

 FRASCHETTI (CEPRANO - FR) Construction of a new distribution warehouse of diversified (small, palletized products, products with non- standard size) technical materials. Detailed study to redefine load units, organization of storage areas, activation of WMS with RF communications from/to hand-held and truck terminals and mechanized conveying lines for incoming and outgoing products

41 SOME REFERENCES

Warehouses with Complex high level of warehouses automation

SELEGIOCHI (BINASCO - MI) Renovation of Casarile warehouse and then project for a new distribution center, organized on pallets racks and flow racks for packages, aimed at optimizing routes in picking activities. Activities are supported by WMS (RF) and end of line packaging, sealing, labeling and sorting parcels with a high content of automation.

 DANZAS (GRANDATE - CO) Multiclient warehouse for the storage of bales (palletized) of raw silk, made with compactable racks served by VNA turret trucks.

 REVELLO (VERONA) Distribution warehouse for dental products, articulated in several functional areas as a function both of process type and quantity of inventories, like: area for palletized goods, area with mechanized conveying line for orders picking, to be prepared according to "pick & pack" technique.

42 SIMCO: INTERNATIONAL PROJECTS

Simco has intervened abroad on behalf both of clients based in Italy and abroad, and this represents an international qualification; some of those specific abroad projects are briefly listed hereafter:

 COCA COLA (CCHBC HELLENIC) After having developed many studies in Italy, CCHBC used Simco for different Warehousing and Network projects, namely: • AtiAustria • Bulgaria (2 projects) • Croazia (3 projects) • Grecia (2 projects)

 FIAMM AUTOMOTIVE Reorganization of the warehouse in Czech Republic

 GENERAL SOFT DRINKS Design of the new distribution warehouse in Valletta (Malta)

43 SIMCO: INTERNATIONAL PROJECTS

 INDUSTRIE CARTARIE TRONCHETTI (POLAND) Technical comparison of solutions proposed by a number of Vendors for an automatic warehouse of the Polish production plant, for storage and distribution of the finished products. Design of a newly conceived reference solution, i.e. an high intensity (approximately 50,000 load unit locations) automatic warehouse (self-supporting racks) equipped with a fully automated and integrated conveying system for transferring the goods from the production lines to the warehouse (monorail) and from the latter to the area of shipping, suitable for supporting high-intensity material handling flows (> 300 load units / h in&out).

STAPLES (EUROPE) Implementation of a training plan to be delivered in English to all European subsidiaries on inventory management with relevance to the operation of the new Oracle ERP.

TEMPUR (EUROPE) After carrying out a consultancy for Tempur Italy, Simco was appointed to carry out a study on the European distribution network for its optimization.

44 SIMCO: LOGISTIC SERVICE PROVIDERS (LPS)

Simco carried out many projects for the outsourcing of distribution and logistics activities, by performing the analysis of convenience, preparing and managgging the tender for the award of service on the basis of a technical specification, where we also defined the default tariff structure, based on main cost drivers.

Hereafter a list of some of our major Customers for outsourcing projects:

45