Quality and Innovation combined in a five-letter name: PROEL.

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2 IDENTITY Quality and Innovation combined in a five-letter name: PROEL. PROEL is one of the leading benchmark companies in the design, manufacturing and distribution of audio, video and lighting systems for the world of entertainment and events as well as for fixed installations. Established in 1991 in Sant Omero, Italy, by Fabrizio Sorbi, over the years the company has witnessed a steady development. Today PROEL encompasses over 120 world countries with a staff of more than 100 people and a turnover of about 50 million dollars. A passion for Quality and Innovation which is also shown in the intense Research & Development activities carried out in the facilities of Cattolica and London, positioning PROEL at the forefront of the creation of new Solutions.

3 PROEL GROUP COMPANY PROEL SPA CONSTITUTION: 1991 HEADQUARTER: Sant Omero (TE - Italy) PROEL U.K. CONSTITUTION: 1992 HEADQUARTER: London (U.K.) PROEL KOREA CONSTITUTION: 2000 HEADQUARTER: Seoul (South Korea) PROEL MALAYSIA CONSTITUTION: 2013 HEADQUARTER: Petaling Jaya - Kuala Lumpur (Malaysia)

4 OUR HISTORY Proel s history began in 1991 when Fabrizio Sorbi, current Chairman of the company, set up a group of 6 people operating in the field of connectivity. This founding nucleus has developed to the present team of 100 employees and collaborators. 1997: Creation of the R&D department, responsible for the research, design and prototyping of MADE IN ITALY Sound Reinforcement products witnessed the acquisition of Tamburo, historic brand of drums and percussions, and the creation of a highly specialized manufacturing unit. In 2003 the Proel brand directly took on the challenge of the Lighting & LED sector, resulting in the acquisition of Sagitter. In the same year the Private Equity enters into Proel s capital with a minority stake (30%): an important boost to the group s development. In 2007 Proel acquired Turbosound Ltd., the English company leader in Sound Reinforcement, whose name is associated to world-famous music groups and top international tours: Pink Floyd, Iron Maiden, Dire Straits, The Shadows, Robbie Williams, Jamiroquai, Nine Inch Nails, Natasha Bedingfield, David Gilmour... Other significant chapters of this history are the launch of the Die Hard branded Esoteric line of music instrument accessories, result of the cooperation with the Physics Department of the University of L Aquila, and the successful startup in Public Address with specific products for permanent installations in airports, hotels, shopping centers, railway stations and places of worship. These are the most significant steps of a development which has led Proel to be a leading benchmark in the production and marketing of audio-video and lighting systems for the world of entertainment and events and in fixed installations.

5 OUR GOALS Maximum and constant commitment to Quality & Innovation Huge investment in Research & Development: design and engineering carried out directly and in cooperation with technologically leading partners and universities. Development of a whole range of Products, Services and Brands. Expansion of the distribution network through international markets Attention and care to Pre and Post Sales Services

6 OUR VISION Design, Made in Italy and Internationalization are PROEL s main aims for the future. DESIGN. DESIGN. DESIGN. This is the new motto chosen by Fabrizio Sorbi to look toward the future. They key to the creation of leading products explains Proel s Chairman is starting from the design, because, as Steve Jobs used to say, design is not just what it looks like and feels like. Design is how it works. Proel s future will be therefore characterized by performing and nice to see and touch products and by a strong customer and market oriented policy. Or, to be more specific, an orientation towards the various markets, being PROEL a MORE AND MORE INTERNATIONAL BRAND, with an established presence in 120 countries all over the world. Something that goes hand in hand with MADE IN ITALY. That s why the company has decided to support its R&D Division with the collaboration of an established Italian Total Product Design Studio with clients of the calibre of Ferrari and Ducati.

7 PROEL DIVISIONS STAGE EQUIPMENT SOUND & MICROPHONES PRO AUDIO LIGHTING & TRUSSING PUBLIC ADDRESS MUSICAL INSTRUMENTS

8 RESEARCH AND DEVELOPMENT A strong and well defined STRATEGY is behind the creation of any Proel product. All products must be uniquely designed and engineered in Italy using the very latest research and development techniques. All products must feature an exclusive Italian design. All products must offer a unique combination of sound quality, intelligent features and design enabling them to be positioned within the top of their categories: best in class. All outsourced products must be manufactured using the most advanced production processes and materials, under strict quality controls operated by Proel people. In order to support this strategy, Proel has created a RESEARCH & DEVELOPEMENT team able to provide highly skilled activities and services. Design and development of new products for expanding the range. Constant optimisation of the products already in the portfolio in terms of costs, technical performance, appearance and ease of use. Maximum care to the design, developed in cooperation with established Italian Studios and using the most advanced 2D and 3D CAD softwares. Research, development and implementation of new technological solutions, also in cooperation with specialized university divisions. Technical support to production facilities in terms of Product Engineering and Quality Control.

9 MANUFACTURING AND INTEGRATED LOGISTICS Attention to detail and service is an integral part of Proel s culture : the whole manufacturing and integrated logistics structure has been built around this concept. The human resources in charge of manufacturing benefit from continuous training aimed at progressively raising competence standards and providing each single product with the essential Made in Italy imprinting which is characteristic of Proel. Lean thinking, production, quality control and testing are the key elements that make the difference, being able to control the whole production process. The same approach has led to the development of Proel s logistic department which can currently boast a 15,000 sqm facility, near the headquarters in Sant Omero, fully dedicated to product stocking and distribution thanks to the most advanced logistic technologies. The attention to material handling, dropshipping, SAP WM, THS, EDI, track&tracing, domestic customs ensures a complete service and added value for our customers.

10 EVENTS DIVISION Proel designs, manufactures and distributes on the international market audio, video and lighting systems for the world of entertainment and events. Throughout these years, by means of relevant acquisitions, the company has provided sound to great live events featuring internationally renowned bands and artists. One of the most recent and prestigious projects carried out is the installation of sound systems in the meeting rooms of MLV, the first 7-star hotel of South Korea. STAGE EQUIPMENT - Audio System - Cases - Electric Distribution - Metal System - Professional Assembled Cables - Professional Bulk Cables SOUND & MICROPHONES - Mixers - Power amplifiers - Loudspeakers - Microphones and wireless - Headphones LIGHTING & VIDEO - Moving heads - Scanners - Architectural line - Follow spot - Theatre Projectors & accessories - Laser - Lighting effects - Led Projectors PRO AUDIO - Line Array - Compact Loudspeakers - Sound Processors

11 PUBLIC ADDRESS Our experience in the industry of entertainment has allowed us to develop a complete range of systems for fixed installations (Public Address), providing the relevant market with audio, conference and safety systems (Evacuation Systems, regulation EN54-16) boasting huge technological know-how and high competitiveness. With its Public Address Division Proel wants to be a leading player also in the industry of fixed installations of audio systems, safety systems for broadcasting evacuation messages and conference systems. We can create and market a whole range of products covering any market requirement. Our continuous research and development activity allows us to create easy-to-install products. Our strengths are: Direct contact with the company and in-house designers Qualified technical staff Design of dedicated systems High competitiveness

12 PORTFOLIO We have created and implemented numerous Systems, Projects and Solutions. Sectors SOUND VIDEO PRO AUDIO Ala-Too Club Biskek, Kirghizistan Audiocentro Medellin, Colombia Hyupsung University Seoul, South Korea DELPINO Golf & Resort Goseong-Gun, South Korea Family Foundation Abu Dhabi, United Arab Emirates The Nartist Youth Center Temse, Belgium MVL Hotel, Yeosu, South Korea Olympic Residence Limisso, Cipro Cattedrale CFT London, UK Old Fashion Club Milano, Italy Lido Di Bellagio Como, Italy Area di servizio la Pioppa Bologna, Italy Beautyfarm Villaggio Garden Club S. Vincenzo, Italy

13 MARKETING Proel s Marketing Team coordinates, in an integrated manner, all corporate communication and promotion from press office activities to the release of news and newsletters; from the organization of workshops to the preparation of all information and commercial materials; the inhouse graphic office, in particular, designs product catalogues and advertising pages. Proel s real communication hub is its website www. proel.com. It is characterized by a new essential graphic design with intuitive surfing guided by images, orientation to product with new product sheets rich in descriptions, pictures, key features and downloads and extreme usability because - as Fabrizio Sorbi underlines - today users want to be protagonists of the Net and Proel s website offers them full freedom of movement and a mine of information. The customer has complete autonomy in realtime in order handling, shipping, sales statistics and credit through the integrated online Proel B2B.

14 INTERNATIONAL TRADE SHOWS AND EXHIBITIONS Proel takes part in the industry s main international trade shows and exhibitions, directly or through its distributors. EVENT NAMM SHOW I.S.E. PROLIGHT + SOUND PALME - Middle East KOBA PALM EXPO CHINA INFOCOMM PLASA SHOW BRAZIL EXPOMUSIC MUSIC MOSCOW PROLIGHT + SOUND SIEL SATIS PALME - INDIA PLACE Los Angeles Amsterdam Francoforte Dubai Korea Beijing Orlando Londra San Paolo Mosca Shanghai Parigi India

15 PROEL QUALITY SYSTEM PROEL s main goal has always been the design and the manufacturing of high-quality reliable solutions: manufacturing processes follow Proel s strict quality certification procedures, with specific controls and tests on all production lines, with certified test report. PROEL is ISO 9001/2008 certified to provide maximum quality standards in any corporate activity such as research & development, manufacturing, sales and services. All the equipment manufactured and sold are subject to CE European Directives in compliance with regulations on electrical safety, electromagnetic compatibility and radio-electrical emissions. Specific manufacturing processes have recently been introduced to ensure full compliance with ROHS and WEEE European Directives on environment compatibility, as well as specific certifications for each product and region.

16 RESPONSIBILITY Education to beauty and respect for the environment: The bases of our Policy. Our commitment is not limited to mere profit making and, within our competence and ability, we wish to improve the quality of life in different ways. We particularly care about two areas: education and environment. As to education, we care about pointing out that our products and services are child labour free. We purposely support a nonprofit organization which promotes long distance adoptions. As far as the environment is concerned, we are constantly working to find more environmentally friendly ways to manufacture our products.

17 TURNOVER 1991 (FIRST FINANCIAL YEAR) TURNOVER $ 907,000 6 staff members mainly on the Italian market CONSOLIDATED TURNOVER 2013 ITALY: $ % ABROAD: $ % TOTAL: $ %

18 WORLD WIDE SALES Proel operates in different geographical areas with its own commercial structure. In Italy it has a network of sales agents (mainly sole agents) distributed all over the territory. Outside Italy Proel s sales structure is made up by branches, distributors, agents and dealers. North America 2 Western Europe 58 Eastern Europe Middle-East and Africa 23 3 Far East and Oceania 17 Distributors Dealer Agents Central and South America 15

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