2018 Corp Brochure ENG E-version - Esquel Group

1 About EsquelA Vertically Integrated Textile and Apparel CompanyCotton Farming& ResearchGinning & SpinningKnitting & WeavingApparelMakingAccessories &PackagingBrands & DistributionFounded in 1978, Esquel made its debut to the world as a shirt-maker with the vision of making a di erence. Today, Esquel has taken upon itself to open up a window for the world to look into the realms of industrial renaissance, where factories of the future are designed to set new industry benchmarks. Built on the foundation of an eco-oriented model, the company is on a mission to tell an authentic textile and apparel story, where themes of ethics, environment, and exploration are intricately woven into its fabric of Esquel started out, we were just making shirts. Over the years, we realized we could do much more. Today, our goal is to make a di erence, to our employees, to the local communities, and to the environment.

2 Vision and MissionOur VisionMaking a Di erenceFun People Serving Happy CustomersOur MissionColumbusNew YorkSeattleLondon, UKLindau, GermanyUSAV ietnam+Malaysia^Sri Lanka#Mauritius GuilinGaomingShanghaiNingboFenghuaGuangz houHong KongTaizhouChangzhouTokyo, JapanBeijingFXinjiang*ChinaWith multiple state-of-the-art facilities and strategically located merchandising o ces, Esquel is positioned to serve business partners around the globe. Esquel Group has grown to become a total services and solutions provider of textiles and apparels. With an annual sales of US$ billion, Esquel applies advanced technology in its production lines. The company is therefore able to o er innovative solutions to and create over 110 million shirts for leading brands and retailers across the globe each year.* Akesu, Changji, Kashi, Turpan, Urumqi # Jaela, Kegalle, Koggala, Yakkala+ Hanoi, Ho Chi Minh City^ Kelantan, Penang Beau Bassin, Flacq, Goodlands, Grand Bois SSpecialty Yarn SpinningBrands & DistributionBAApparel MakingCorporate HeadquartersHPAccessories & PackagingMerchandising O ceMFKnitting & WeavingCCotton Farming, Ginning & SpinningGlobal PresenceAnnual Sales Revenue of US$ BillionThe Brand Behind BrandsBusiness in 2017 USA 41%Europe 27%China 13%Japan 5%Others 14%Garment Salesby RegionNike Material Sustainability Index AwardNike*since 2015 Excellence in Training & DevelopmentThe Hong Kong Management AssociationFoshan Patent TycoonFoshan Intellectual Property Association*since 2014 Member and LicenseeSUPIMA*since 2005*since 2007 Organic Content Standard (OCS)

3 Control Union CertificationsBrooks BrothersEnlightened Manufacturer of the YearCertificatesAwards and Certificates2017 Best in ClassCorporate Social Responsibility AwardTommy Hilfiger5+ Years Caring CompanyThe Hong Kong Council of Social Service*since 2009 Sustainable Textile Production (STeP)OEKO-TEX*since 2014 Global Organic Textile Standard (GOTS)Control Union Certifications*since 2007 Global Recycle Standard (GRS)Control Union Certifications*since 201120152016*since 2015 Platinum/Gold Certificate of ComplianceWorldwide Responsible Accredited Production(WRAP)Asia Best Employer Brand AwardsEmployer Branding Institute and World HRD Congress & Stars of the Industry GroupGold Supplier AwardFILAHR Innovation AwardsHuman Resources MagazineAwardsEthics Be a Good Citizen and a Good EmployerEnvironment Cherish the EnvironmentExcellence Reduce Wastage through Functional ExcellenceExploration Explore and Embrace Innovative Solutions Education Dare to Err but Quick to LearnE-CultureEsquelE-Culture The solid foundation that guides the thought and behavior of our employeesPeople and DiversityPeople are our greatest asset and we pride ourselves on our cultural diversity.

4 With a global workforce of 57,000 people, we recognize that people from di erent backgrounds can bring in fresh perspectives. A working and learning environment rich in creativity and innovation helps improve our competitive edge and connection with stakeholders. We know that every product, every invention, and every breakthroughis powered by our people; not just ordinary people, but people whose personal values drive them to make a difference in the world. Brands that communicate our belief in quality and sustainabilityOur mission at PYE is to create the perfect shirt. One that is timeless, appropriate, of the highest quality, and most importantly, made with integrity. We achieve this with state-of-the-art engineering, a wholly-owned vertical supply chain, and generations of knowledge and expertise. Dedicated to providing the Chinese gentlemen with a fitting shirt for all occasions, DETERMINANT uses outstanding fabrics to create exquisite shirts of minimalist aesthetics.

5 Retail BrandsIntegral ConversationIntegral Conversation, an annual sustainability conference established by Esquel in 2014, is the platform for like-minded people to discuss and exchange ideas. Through collective thinking and discussion, the conference aims at exploring new and viable social and environmental practices and Integral in Jiumeiqiao, Guilin, will showcase a new model that strives for a balance between production facilities and eco-tourism elements in a harmonious way. Factory of the FutureSearching for the Next Development ModelEsquel established its Sustainability Council in 2013 to formalize and oversee our sustainable development. Our sustainability strategy focuses on the four pillars of Planet, People, Product and Community. Since 2005, we have invested over US$150 million into managing our water and energy consumption. We have achieved significant reduction over the last decade through technical innovations and e ective management.

6 *Statistics reflect our achievements from 2005 to 2017E orts in SustainabilityGlobal energy consumption*reduced per unit of productionGlobal water consumption*reduced per unit of productionTreats 5,000 tons of wastewater daily in which3,000 tons are reusedin production processesReduced ~121,077 kg ofCO2 emission from 2H 2016 to Feb 2018 by launching the self-developed mobile app Esquel Carpool 67%Planet3000tons121077KG 49%ProductWe devote substantial e orts from seed to shirt to minimize the impact to the environment. By instituting innovative solutions, we strive to be a green player along the entire supply regard employees health and safety, job satisfaction and quality of life as our priority. We groom people from within by o eringa future in skills and career We create a strong local relationship with the communities in which we operate. Through the Esquel - Yang Education Foundation, we provide a caring response to those in need in the area of education, as well as to facilitate and enhance learning for children and Group Esquel Group Website