February 2020 Strictly Confidential

Alfa, Innovation & Technology

What does Alfa offer

Alfa is the only company that owns the know-how at 360° of

chemistry of paints, color, colorimetry, in-plant

production, pumps, dispensers, automation and software.

Why Alfa was founded?

No significant innovation in the past 40 years

TintingSystemFormulate the color in function of the base

Disrupting innovation by Alfa

Master SystemFormulate the product in function of the color

What is the Master System?

Compromises of Tinting Systems

2. Space & Logistics1. Cost & quality

…among others…

Master eliminates all compromises

Space/Logistics optimizationLower cost & better quality

…among others…

TINTING SYSTEM MASTERSYSTEM

A new era in the paint sector

FillerTIO2

Filler

The Master System is a new process to produce paint that enables a new business model in the retail channel.

It completely transforms the way we traditionally sell paint using a Master base, colorants and slurries dispensed by automatic dispensers on the point of sale.

Colorants and slurries

Master

Automated and high precision equipment

Integrated high-tech system

The three pillars of the system

Final product

How does it work?

➢ Work with only one neutral paint called MASTER for each of your products.

➢ Dispense the minimum and optimized amount of TiO2 in the form of slurry.

➢ Dispense the minimum and optimized amount of colorants.

➢ Reach 100% top off with a Neutral colorant (filler).

DISPENSED BY THE MACHINE

Example of colors formulation

Enhance the quality of your products

You can set the opacity Keep quality constant

Example of client’s savings

-73% n° of bases

-50% use of colorants and TiO2

-40% store inventory

-32% working capital

-15% costs of finished product

Effects on the supply chain

• You will use the same raw materials, but reducing the use of colorants and TiO2

Raw Materials

• No quality change

• Formulate only one Master for each product and 2/4 slurries

Product Formulation •Reformulation process

starting from the existing color composition, over 80% in first formulation

Colorimetry

•Optimization of the production process (eg.color strength only on TiO2 slurry in stead of all bases)

Production•Reduce SKUs and

inventory

•Reduce out of stock issues

•Increase product rotation

Logistics

•New dispenser but same output to the final customer

•More space in store

Store

Benefits for paint producer

➢ Stand out from competition to enter new sales channels/markets

➢ Reduce working capital

➢ Fewer SKU’s to manufacture per product line

➢ The critical process of TiO2 dispersion is now a single isolated process

➢ Material cost-savings and raw material rationalization

➢ Easier and quicker to achieve a higher OTIF of finished product

➢ Easier to achieve consistency of final tinted color from batch to batch

➢ Improved Cycle Time for Manufacturing of paint batches

➢ Reduced maintenance/service costs

➢ Decrease variability in sales

Benefits for the retailer

➢ Reduce SKU’s and inventory costs

➢ Increase product rotation

➢ Increase product portfolio

➢ Reduce out of stock issues

➢ Reduce time of production at POS

➢ Sustainable project

➢ Reduced chances of mis-tints

➢ Shorter training and learning cycle for new store staff

➢ Optimize space on POS and minimize visual clutter

➢ Possibility to invest in additional assets

➢ Enhanced quality

➢ Enhanced hiding power

➢ Enhanced performance per sqm

➢ Enhanced color precision

➢ Enhanced accuracy over time

➢ Brighter, longer lasting colors

➢ Colors always available

➢ New buying experience

➢ Better color matching in store

Benefits for final consumer

The Master in factory

Master in factoryMASTER ADVANTAGES:✓ Higher productivity & flexibility✓ Less power consumption✓ Fewer mixer washing✓ Constant quality✓ Constant color✓ Constant price✓ Faster quality control ✓ Lower stock✓ Fewer out of stock issues✓ Lower working capital✓ Less cost of investment✓ Less workforce needed✓ Better service to POS

TiO2

FACTORY

Colorants

FillerDifferent Master

products

From factory to point of sale:

SAME QUALITY, COLOR & COST

Master MasterMaster

POS productionFactory production

Finished color and product Finished color and product

Master Factory

Color Lab

Prof Master

Desk Master

Thor Master

Color Tester

SAME QUALITY, COLOR AND COST FROM FACTORY TO POS

Color consistency from factory to POS

POS Equipment

Pump 0.25 lt/minMinimum drop 0.038cc

Pump 0.5 lt/minMinimum drop 0.038cc

Pump 3 lt/minMinimum drop 0.4cc

Pump 0.05 lt/minMinimum drop 0.0077cc

* Values affected by the nature of the colorants and their rehological properties

Patented pumps

➢ Variable volumes pump

➢ Minimum drop up to 0.0077cc*

➢ Flow rate 0.25 l/min

➢ Dynamic performance valve

➢ 100% product recirculation

➢ No purge needed

➢ No dripping

➢ No air bubbles

➢ No wear and tear

➢ No calibration

➢ No cleaning needed* Values affected by the nature of the colorants and their rehological properties

Patented Thor pump

The importance of the drop

What happens on the market!

Different quantities and batches dispensed with

Alfa’s dispenser

sFrom Dispensers to Smart Units

SensorsLinux PC Boards

Intelligence on board, independent from store PC and software.

No need for a PC, any device with a browser can operate the unit.

• Reserve alarms for all consumables: cans, lids, colorants, bases and semi-finished products.

• Modify circuits parameters from remote (stirring timing, recirculation, purge, etc).

• Perform a complete troubleshooting with possibility to solve issues from remote.

• Reduce service costs by predict spare parts and optimizing the number of visits on field.

• Update Software and Firmware of multiple machines with one click.

• Receive automatic updates of the status of your machines on your smartphone.

• Collect and graphically visualize data from the machines (dispensations, alarms, etc).

• Offer a better service by being proactive and not reactive when problems arise.

Smart Units Advantages

From Nokia to Apple.

From standard dispensers to Smart Units.

Direct control on your technology

LABORATORY SERVICEMARKETING

PAINT FACTORY PAINT STORE

BIDIRECTIONAL COMMUNICATION IN REAL TIME FROM REMOTE

Desk

The concept

• Ergonomic design• Surface can be used as working area• Simultaneous dispensing flow• Canisters capacity 3 and 6 litres• Pumps flow rates 0.25 and 0.5 lt/min • Dispensing head custom colors (RAL)• Automatic or manual shelf• Can operate by means of a tablet• Patented humidifier• Laser to locate centre of lids• No need to calibrate, only initial set-up• Reduced maintenance

Dispensing Head Features

Easy access to nozzle area and humidifier through hinged hatch

Predisposition to connect the Colorants Module circuits

Refilling area for humidifier

Laser can detector

Visible area for humidifier water level

Intelligence on board (PC inside)

Patented Humidifier

Ultrasonic nebulizer that causes

vaporization of water molecules by

vibration of a metal sheet:

• Water bacteria-free

• No condensation issues

• Low water consumption

• Water level sensor

Desk

Tinting

Master

Module

DeskTinting Master Module Head

Master

Module Head

Colorants

Module

Desk

Master

Desk modularity

Thor

CURRENT ISSUES➢ Calibrations needed➢ Purges needed➢ Cleaning needed➢ Product dripping➢ Product drying➢ Product with air bubbles➢ Pumps wear and tear➢ Low accuracy and repeatability➢ High maintenance costs

ALFA SOLUTION➢ No calibrations➢ No purges➢ No cleaning➢ No product dripping➢ No product drying➢ No product with air bubbles➢ No pumps wear and tear➢ Perfect accuracy and repeatability➢ Low maintenance costs

Thor changes the rules!

Colorants module technology

The concept

• Ergonomic design• Sequential for colorants• Up to 16 colorants• Simultaneous for slurries• Up to 5 slurries• Dispensing head custom colors (RAL)• Can operate by means of a tablet• Patented humidifier• Laser to locate centre of lids• No need to calibrate, only initial set-up• Reduced maintenance

THOR with samples kit

… get empty 100ml pot …

… dispense bases and colorants from THOR CT …

… lids on at the side of the THOR ...

Hybrid solution: from 100ml to 20lt in 0,5sqm!

… finally mix.

Thor Tinting

Thor Tinting

Master Module

Master Module

Master Module

Colorants Module

Thor Master

Thor modularity

Why Master?

It’s time to change! The future is notfor everyone…

Thor

The funnel of success

Integrated solution

A significant transition for the entire sector of Architectural paints

SIMPLE IMPROVED SUSTAINABLE

- Less stock inventory (-SKU’s)- Less working capital- Easier management in store

- Color more precise- More economical- Wider color space coverage

- Optimized production- Reduced use of raw materials- Generates profit

BE THE NEXT DISRUPTOR!