tesa SE Facts – Figures – Background Information

• One of the world’s leading manufacturers of self-adhesive product and system solutions

• More than 125 years of experience in coating technology and development of adhesives • Headquarters with research and technology center at a single site • 1,342.8 million euros in sales in 2018 (previous year: 1,257.8 million euros) • Strategic alignment toward establishing and developing high-tech fields of application, environmentally friendly production technologies, and business structures in growth regions

With name recognition of 98 percent and a degree of popularity of 76 percent (GfK, 2012), tesa is among the strongest brands in its home market of . The brand’s name has even made it into the Duden, the authoritative dictionary of the German language. But tesa is more than just the celebrated classic adhesive tape: Now a European stock corporation and wholly owned affiliate of AG (whose other brands include , Eucerin, and la prairie), the company of- fers more than 7,000 product and system solutions aimed at ensuring, among other things, that state-of-the-art electronics can become ever more multifunc- tional, with increasingly higher performance. tesa speeds up flying splices in newspaper printing, partners with the automotive industry on a range of different applications, optimizes energy efficiency in private households and prevents product piracy with clever security concepts. In addition, the international group of companies develops and produces medicated adhesive patch products for the pharmaceuticals industry and extremely high-performance adhesive tapes for the construction sector.

HISTORY There’s a story behind the name

The name tesa® dates back to secretary Elsa Tesmer, who worked at Beiersdorf from April 1903 to the end of October 1908. During that period, the secretarial office was assigned to create names. Her suggestion, a combination of the first syllable of her last name (Te-) and the last syllable of her first name (-sa), was indeed used, but the first products to carry the tesa name were unsuccessful. That changed in 1936. The first technical adhesive tape tesa’s success story begins with the unsuccessful development of an adhesive bandage. Paul C. Beiersdorf, a pharmacist, was at work on the bandage when Dr. Oscar Troplowitz took over the lab from the company’s founder, in 1890. The bandage adhered excellently, but was irritating to skin. Troplowitz made a virtue of necessity and, in 1896, launched the world’s first technical adhesive tape – to patch bicycle inner tubes. The product was marketed under the name Cito-Sport­ heftpflaster. It underwent further development over the years, and among other things, went on to be used as the basis for transparent “Beiersdorfs-Kautschuk-­ Klebefilm” rubber adhesive tape, launched in 1935 – the precursor to tesafilm®. tesa conquers the office The triumphant advance of tesafilm® transparent adhesive tape is closely linked to the history of industrial businessman Hugo Kirchberg (1908–1999), who was tasked in 1934 with developing and systematically expanding the company’s ad- hesive tape business. Kirchberg believed in the “unlimited possibilities of self- adhesive technology” – not just at home and at work, but also in industrial fields. When the time came to choose a brand name, Kirchberg selected Elsa Tesmer’s suggestion, tesa®, which the company had already trademarked – first using the name in 1936, as tesa®-Klebefilm, and later as tesafilm®. Kirchberg was quick to note that the transparent adhesive tape was extremely difficult to sell unless a combined dispensing and cutting device was offered along with it. With that in mind, the industrious businessman invented the tesa dispenser in his spare time – a device that is still a fixture on practically every desktop to this day, albeit with a different design.

Umbrella brand and product family Since 1941, the name tesa® has been the umbrella brand used for all self-adhesive products manufactured by the group of companies. The name covers a wide range of different system solutions for industrial and professional applications, as well as about 300 products for consumers. tesa AG becomes tesa SE When tesa AG was founded in 2001, tesa, originally a division of the Beiersdorf group of companies, became independent – as a wholly owned affiliate, but with autonomous structures. In March 2009, the company made the switch to a new, international corporate form: The company is now doing business as a European stock corporation – tesa SE (Societas Europaea).

PRESENT AND FUTURE tesa around the world

As of September 2015, the tesa SE group of companies is headquartered in Nor- derstedt, near , where the company built a new complex to accommo- date more than 1,100 employees. At 160 million euros, the move marks the largest investment in the history of tesa, combining the company’s headquarters and a research and technology center at a single site. Streamlined communication channels and close physical proximity will now allow the technology group to respond even faster to customers’ requirements – a big plus in the international competition to develop innovative products. 64 affiliates and 14 production sites, along with an efficient logistics structure and high-performance service network, ensure that the product and system solutions from tesa maintain their global pres- ence, and that the company can reach customers in over 100 countries. Today, tesa is the world market leader in many fields of application. The company contin- uously strives to expand this success further – including by focusing on the growth markets in Eastern Europe and Asia. tesa plans to drive the business in the Greater China region with investments totaling 35 million euros over the next few years. As an initial milestone, a state- of-the-art new cleanroom unit has been constructed at the Suzhou location. It will be used to manufacture precision tapes for the electronics industry. Production is scheduled to start in the first quarter of 2020. In all, the tesa grounds in the Su- zhou industrial park will be home to five new buildings with total area of 15,000 square meters.

The tesa Digital Development Office, founded in mid-2017, will pool together and prioritize company-wide digital activities. In late October 2018, for example, tesa opened a B2B shop for industrial adhesive tapes in China, on the Alibaba plat- form “1688.com.” As the second e-commerce pilot project, a flagship store has also been created on the “TMall Global” online platform, which also belongs to Alibaba (more than 580 million registered users). Consumer products are also sold directly to end customers there.

Business development, 2018 The tesa Group closed the 2018 fiscal year with great success. Sales revenue rose by 85.0 million euros, up from 1,257.8 million euros in 2017 to stand at 1,342.8 million euros. In 2018, tesa’s operating result (EBIT) was up 2.7 million euros, to 210.2 million euros (2017: 207.5 million euros). Compared with the previ- ous year, the return on sales led to a lower EBIT margin of 15.7 percent (2017: 16.5 percent). Economic development in the divisions: Direct Industries account- ed for about 60 percent of total sales in 2018 (2017: 58 percent). The Trade Mar- kets division, which encompasses not only the business in products for consum- ers and craftsmen, but also those industrial markets that are reached via the technical trade, accounted for 40 percent of total sales during the year under review (2017: 42 percent). Breakdown by region: In 2018, tesa earned 54.4 per- cent of its sales in Europe (2017: 56.2 percent), 29.4 percent in Africa/Asia/Aus- tralia (2017: 28.6 percent) and 16.1 percent in the Americas (2017: 15.2 percent).

Growth through acquisitions With four corporate acquisitions in four countries since March 2017, tesa is pursu- ing its strategy of increasingly growing by acquiring expertise and technology from outside. The companies acquired are nie wieder bohren ag (Germany), the Twinlock division of Polymount International BV (Netherlands), FormFormForm Ltd. (United Kingdom), and Functional Coatings, Inc. (U.S.A.).

Solutions for many industrial sectors System solutions from tesa optimize production processes, provide enhanced speed, dependability, and efficiency in numerous industrial sectors, and can be used to upgrade finished products. The company is a capable partner to a range of industries, including electrical engineering and electronics, automotive, print and paper, pharmaceuticals, building supply, solar and wind energy, retail, and the technical trade. In addition, tesa supports many companies, such as produc- ers of name-brand items in the fashion industry and the automotive replacement parts market, with extensive safety and security applications and concepts that provide protection against counterfeiting (including the PrioSpot®).

Solutions for consumers In many countries all around the world, tesa® is part of consumers’ day-to-day lives – at work, in DIY projects, and when doing creative work at home and in the garden: tesa® helps people affi x and mount items, do renovations and repairs, install insulation, and protect themselves from insects, dust, and drafts. Innovative Sugru® adhesive putty was added to the range in 2018. It is a contemporary prod- uct that embodies the idea of encouraging more and more people to “do it your- self.” The kneadable, moldable specialty adhesive is based on silicone and is highly temperature-resistant. It off ers a fi rm hold while still retaining its fl exibility, even under extreme conditions.

Alongside the end consumer business, the company also off ers tailored product ranges for professional craftsmen, such as painters and fi nishers, in the Crafts- men segment.

RESEARCH AND DEVELOPMENT New developments as the basis Innovations are the basis for tesa’s success and dynamic growth. The company’s laboratories in Germany, the United States, and China employ about 500 re- searchers. tesa applies for patents on many of the approximately 100 new devel- opments it produces each year.

Cleanroom unit and LabFactory The tesa research center, completed in 2015 as part of the integrated new build- ing complex, off ers outstanding conditions for future innovations and sustainable growth. A cleanroom unit at the Hamburg-Hausbruch plant is enabling tesa to tap into new markets, especially in the sectors of consumer electronics (e.g. optically clear adhesive tapes and fi lms and ultrathin double-sided tapes used in the assembly of tablet PCs) and pharmaceuticals (pharmaceutical patches and oral fi lms). A pilot unit (LabFactory) began operating in Langenfeld in 2014, off ering top-quality services, such as products for clinical trials, to customers in the phar- maceutical industry even before the development phase is complete.

MARKETS OF THE FUTURE Market of the future I: consumer electronics tesa SE’s strategic focus on attractive markets of the future is geared to various fi elds, including consumer electronics. The trend toward increasingly high-perfor- mance electronic devices off ers tesa excellent growth prospects. Special adhe- sive tapes are progressively taking on additional functions as well. As one exam- ple, ultrathin double-sided adhesive tapes provide support for heat management in smartphones, an extremely important factor. The thinnest tape produced by tesa worldwide is just 5 μm thick (1 μm = 1/1000 mm) – ten times thinner than a single strand of hair. Solutions from the tesa product range now cover more than 45 adhesive applications. In early 2017, tesa launched a completely redesigned adhesive tape product range for OEMs and suppliers in the booming market for “wearables” (e.g. smartwatches, fitness trackers, smart glasses). These tapes are highly resistant to shocks and potentially disruptive or corrosive substances such as sweat, sunscreen, and soap.

Market of the future II: automotive electronics tesa is excellently positioned for the shift that is taking cars into the electric and digital age. Thanks to close cooperation between two of its “traditional” business segments, automotive and electronics, the tesa Group already has a product port- folio that combines forward-looking applications from two different industrial spheres for customers. The international adhesive tape manufacturer has Appli- cation Solution Centers at its research facilities at the German headquarters, in China, and in the United States, which act as a kind of flywheel that drives innova- tion. When developing new tapes for automotive electronics, tesa focuses on four major fields of application: comfort and infotainment, components for driver assis- tance systems (such as parking and lane change assistant features), batteries for electric mobility, and light management. A car equipped with state-of-the-art elec- tronics can now include as many as 100 different adhesive applications, ranging in thickness between 5 and 1500 µm, from wire harnessing to adhesive bonding of high-tech displays.

Market of the future III: pharmaceutical patches and oral films In 2008, tesa acquired Labtec GmbH, which specializes in the development of pharmaceutical patches and oral films. In 2011, the newly constructed cleanroom unit at the tesa plant in Hamburg’s Hausbruch district received official authoriza- tion to manufacture pharmaceutical products. At the same time, the company in- tensified its work with international pharmaceutical groups. In 2016, the renamed tesa Labtec GmbH company passed an audit by the U.S. Food and Drug Admin- istration (FDA). Its seal of approval gives the tesa affiliate access to one of the world’s largest pharmaceutical markets.

Market of the future IV: solutions for the building supply industry The ultra-high-performance tesa® ACXplus product range is based on a patented method used for solvent-free coating of double-sided acrylate adhesive tapes. The secret of these tapes, which have coating thicknesses of up to 4,000 micro­ meters, lies in a specialized term: viscoelasticity. This term is used to describe material behavior characterized equally by elastic and fluid, or viscous, proper- ties. The positive effects are excellent adhesion, dissipation of stress, and resist- ance to temperature and weather conditions. With this product range, tesa is pro- gressively tapping into new and attractive market segments. Alongside various applications in the automotive industry, the building supply sector is a particular area of focus for tesa® ACXplus. Fields of application range from doors and win- dows to partitions, illuminated signs and elevators and even façade elements.

Market of the future V: affixing without dirt and noise Adhesive bonding is right on trend as a substitute for drilling. No dust and dirt, no noise, no holes in the wall: All of these are persuasive arguments, making do-it- yourself projects around the home much easier. Following the April 2017 acquisi- tion of nie wieder bohren ag, the company has been successfully integrated into tesa SE, and along with the patented tesa® POWER KIT technology, supplements the development of innovative new solutions for consumers. The tesa® adhesive screw with the POWER KIT success formula is part of the extensive tesa® Smart Mounting System product series. There are already 48 self-adhesive bonding solutions in all to help consumers in more than ten European countries turn their creative ideas for decorating around the home into reality, all without traditional tools like hammers and drills. The versatile product range is perfectly comple- mented by the high-quality new tesa® POWER KIT bath accessory lines, a stylish addition to any bathroom setting.

SUSTAINABILITY UN Global Compact Against the background of global challenges, tesa feels an obligation as an inter- national company to balance social, ecological, and economic concerns and gear its business processes toward a sustainable way of doing business. To express this understanding, tesa has been a member of the UN Global Compact since 2006, expressly endorsing the compact’s ten principles in the areas of the envi- ronment, human rights, labor standards and the fi ght against corruption.

Environment As a chemical group and a manufacturing company, tesa has great responsibility in the area of the environment in particular. In this context, the company focuses on eff ective climate protection and on reducing CO2 emissions. tesa now uses ISO 14001-certifi ed environmental management systems at eight locations. The company headquarters and the locations with the highest CO2 emissions (Ham- burg and Off enburg) have this kind of environmental management system along with an energy management system certifi ed under ISO 50001. Using technolo- gies that conserve resources is the strategic starting point for boosting energy effi ciency while lowering 2CO emissions. This includes procuring electricity from renewable sources and effi ciently generating the company’s own power through cogeneration. In this process, not only is electricity produced, but the heat gener- ated is also utilized for things like heating and production processes. The compa- ny’s two cogeneration plants, one in Off enburg and one in Hamburg, supplied about 41 percent of all of the electricity tesa needed worldwide in 2018.

No matter what the fi eld of application, tesa focuses on resource effi ciency, dura- bility and environmental compatibility for all its products. That means that along- side boosting energy effi ciency, key elements of the tesa strategy include reduc- ing the use of solvents to produce adhesives and using as high a percentage as possible of renewable or recyclable raw materials. Among other factors in this approach, the company considers the environmental footprint of selected prod- ucts and analyzes environmental impact over the entire product lifecycle.

Employees Worldwide, 4,917 people work for tesa (as of December 2018), 2,566 of them in Germany. Highly qualifi ed people who actively help to shape the company’s growth and development and drive innovation in the area of products and pro- cesses are the key to the successful implementation of the tesa corporate strategy. As a result, important goals include bringing in well-trained, engaged employees and earning their loyalty to tesa and maintaining the company’s high appeal as an employer through programs to that end.

tesa also takes comprehensive measures to prevent occupational accidents, occupational health risks, and the occupational illnesses they can cause before they have a chance to occur. The company’s occupational health and safety man- agement activities focus on the production plants, where the risks of accidents and adverse health effects are greater than at the office locations. The goal is to lower the number of accidents with one or more lost work days on an ongoing basis. This is especially true of accidents involving longer periods of inability to work, when the employee affected is absent for more than three days. The frequency of reportable accidents (> 3 days) at tesa stood at 1.9 per million hours worked in 2018, slightly above the previous year’s figure (2017: 1.3), but signifi- cantly below the German industry average (BG RCI, the statutory accident insur- ance and prevention institution for the raw materials and chemicals industries) of 11.6. The group views this as an affirmation of the quality of its management system in the area of occupational safety and health.

Social commitment and involvement Voluntarily assuming social responsibility is an integral part of the tesa corporate philosophy and firmly rooted in the company’s values through the corporate citi- zenship strategy. To implement this strategy, tesa has defined three key areas that all of the projects the company supports fall into: social commitment and in- volvement, support for education, and environmental protection. Under the um- brella of the “tesa verbindet” (“tesa connects”) initiative, the company groups its activities into four categories: “tesa hilft” (“tesa helps”) and “tesa spendet” (“tesa donates”), which are both aimed at social activities, “tesa fördert” (“tesa sup- ports”), for education, and “tesa schützt” (“tesa protects”), for the environment.

As part of the company’s social commitment and involvement, tesa teams on all of the continents where the company operates provide active assistance to neighbors through local projects, get involved to support education for children and teens, and provide monetary and product donations to support the day-to- day operations of selected institutions.

We are planning to expand our business in various parts of Pakistan. Our regional office for smooth execution of orders and to provide swift and effective service to our customers in Pakistan is located in Dubai. For further details please contact the undersigned.

Contact tesa Middle East Narendran Govinda Rao Sales Assistant Phone: +97 15 6548 4903 [email protected] tesa.com