a global icon Discover the potential of Benefit from the brand that drives consumers to retailers Discover the possibilities

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1 Discover the potential of a global icon Discover the possibilities Phone: damon.gardner@hunterdouglas.com.au Benefit from the brand that drives consumers to retailers

2 The Hunter Douglas story An overview of the window coverings industry Hunter Douglas Headquarters, Rydalmere Hunter Douglas is a world market leader in window coverings and a major manufacturer of architectural products. The Hunter Douglas Group has its head office in Rotterdam, The Netherlands and a management office in Lucerne, Switzerland. The Group is made up of 126 companies with 50 manufacturing, 76 assembly operations and marketing organisations in more than 100 countries. The Group s origins go back to 1919, when Henry Sonnenberg established the Hunter Douglas Corporation in association with Joe Hunter, a gifted inventor. They developed a revolutionary continuous casting process for aluminium and developed novel aluminium strip processing equipment. Based on this technology, they produced and commercialised the modern metal Venetian Blind, which quickly gained leadership in the Australian and American markets. In 1956 the company moved its headquarters to Montreal in Canada and in 1971 the Group s headquarters were transferred to Rotterdam in The Netherlands. Its management office opened in Switzerland in the 1990s. The Hunter Douglas Group has a worldwide reputation for innovative products that are technically superior and aesthetically unique. During the 90s Hunter Douglas revolutionised the window coverings industry with significant research and development projects leading to the introduction of the Duette Product or honeycomb blind as it is generically referred to. Further development in the soft shades category of products saw a continuous stream of new product innovations, new operating systems, products for the more environmentally conscious home, easy operating systems for child safety and convenience. A beautiful arrangement of textures, colours, styles and finishes are regularly updated to lead the industry in fashion, function and style. Hunter Douglas Limited which is an Australian incorporated wholly owned subsidiary of the international Hunter Douglas Group commenced manufacturing in Australia in Hunter Douglas Limited has its headquarters at Rydalmere NSW and distributes a large range of window covering components and finished blinds across Australia. Our flagship brand Luxaflex Window Fashions, is marketed primarily through small independant specialist stores sold under licence and through selected David Jones stores. Luxaflex Duette Architella Ménage Shades Luxaflex Pirouette Shadings PowerView Motorisation It is estimated that the Window Coverings Industry in Australia is worth $900m p.a. and is currently serviced by more than 2000 businesses. These vary from major retailers like David Jones, public companies like Kresta, as well as outlets supplying directly from manufacturer to the public. In addition home improvement chains like Spotlight and Bunnings specialise in pre-packaged blinds, and very small operators working from home who have no retail presence. Products vary from pre-packaged blinds through to traditional blinds like Venetians and Verticals, to premium made to measure patented products like our Luxaflex Duette Architella Shades and Luxaflex Luminette Privacy Sheers. Supply and service also varies from the packaged blinds available in hardware stores to a personalised design, manufacture and installation service provided by specialists. It is important in such a disparate and fragmented industry to choose a segment of the market and target it effectively. The Luxaflex Window Fashions brand has traditionally sought to service the upper middle market segment through its range of innovative products supported by exceptional service. Our marketing programs are designed to meet the needs of a more discerning buyer and our stores are designed to provide them with a true retail experience. This sets us apart from much of our industry. It is estimated that the Window Coverings Industry in Australia is worth $900m p.a. The iconic Luxaflex Window Fashions Brand Luxaflex Window Fashions is Australia s only window covering Superbrand, with over 60 Years brand history and the highest level of unprompted brand awareness in the category. Consumers voted Luxaflex Window Fashions as one of the best known and trusted brands in Australia earning it the illustrious title of one of Australia s Superbrands. Luxaflex Window Fashions is known for quality, innovative and durable window coverings for inside and outside the home.

3 Creating a customer for life Refined product series with greater choice The Luxaflex Window Fashions brand is one of the most widely known and respected window covering brands in the world. With over 62%* consumer brand awareness in Australia, it is a leading brand known and trusted by Australian families. Luxaflex Window Fashions has a reputation for delivering innovative internal and external shading solutions that are technically sound, aesthetically pleasing and meet the needs of consumers. Research shows consumers who have purchased Luxaflex Window Fashions rate the brand higher than others for value for money and for post-purchase satisfaction*. The research also found consumers associated the Luxaflex brand with expertise, high quality, energy efficient products and a premium brand synonymous with innovation. The Luxaflex range in Australia is unique, drawing on the best of the worldwide group s range in addition to designing and developing local products. Our products have been customised over the years to suit the climate and architectural styles unique to Australia. Research also shows that a consumer s main reason for purchasing Luxaflex Window Fashions was that the products were the most suitable for their needs. It is the most trusted brand in Australia providing value for money and the broadest range of product. Luxaflex Window Fashions is one of only a few brands of window coverings available nationally, and has distribution in all states and territories. It provides a great benefit for small to medium businesses who want to have access to a known and highly respected brand that drives consumers to their stores. *ACA Research 2012 Luxaflex Window Fashions continue to develop Australian window coverings for inside and outside the home with the Luxaflex Product Series. Each product type offers styles, fabrics and finishes from the Designer, Classic and Living Series. The broad range ensures Australian home owners now have even more choice from the brand they know and trust. The Designer Series is our exclusive top-of-the-range collection providing unique features and premium solutions. The Classic Series is our core range of Luxaflex Products that Australian home owners have loved for generations. Demographic Profile of the Luxaflex Customer The Luxaflex target market is segmented into 5 key audience groups: Primary Market Secondary Market Luxaflex Woman Female between years old AB Combined household income over $130,000 who own or mortgage their home Older or no children in the household Empty Nester Female and Male between years old Married/defacto No children in household Mum & Bub Pregnant woman and new mother with child or children between 0-5 years old Techie Man Males between years old AB Household income over $100,000 Tech-savvy Early Entrant Woman Female between years old AB Household income of $70,000-$150,000 Own or mortgage their first/second home The Living Series is our refreshingly affordable range of blinds and shutters customised to suit any lifestyle.

4 by LUXAFLEX WINDOW FASHIONS Ask our staff for details on how to enter. Promotion commences at 9.00am AEST on 1/05/2014 and final entries close at 11.59pm AEST on 31/05/2014. For terms and conditions visit Authorised under NSW Permit No LTPS/14/02337, ACT Permit No TP 14/01156, SA Permit No T14/546 and VIC Permit No 14/3816. Copyright 2014 Hunter Douglas Limited [ABN ] Registered Trade Marks of Hunter Douglas Limited C12795_ The Luxaflex Alliance Programs Becoming a Luxaflex Window Fashions retailer The Alliance programs offered are not a franchise. We offer a licence program through either our Luxaflex Gallery or Luxaflex Showcase Alliance Programs. The licence provides you access to our brands, trade marks, marketing programs and a retail program designed for small to medium businesses to distribute our products in Australia. A minimum criteria of loyalty of window covering purchases is required, as well as the requirement to offer the entire Luxaflex range of products for sale. Many retailers are exclusive window covering businesses, however, there are many that are mixed business models offering complementary products such as floor coverings, lighting, curtains, security doors & screens and more. What we offer Advertising and marketing Australian Window Furnishings strives to provide you with marketing support and communication tools that work for your business on a national and local level. Different levels of support are provided to each Alliance level. Opportunities include: Television Magazines Digital Advertising Integration Public Relations Local Area Marketing Resources Catalogues / Brochures Point of Sale Direct Mail Radio Social Media Directories Merchandising Website Mobile Website ipad App and much more... No franchise turnover fees. A marketing fee is required to contribute towards brand and lead generation advertising to drive leads to your business. Low working capital. All products are made to measure so there is no stock. The collection of a deposit on order provides a positive cash flow. Easy set-up. We provide the retail showroom environment which is customised to your space, with competitive payment terms. For on-going effectiveness we train you and provide continuous business & marketing support. Market leading retail programs. There are two distinct programs depending on the size and scale of the business and investment. The Luxaflex Gallery program is the premium retailer, with access to the entire range of Designer, Classic & Living products and business programs offered by Hunter Douglas. Luxaflex Showcase is a smaller retailer with access to the Classic & Living product range and selected business programs. The Luxaflex Alliance programs are based on five key elements: 1. Effective presentation and merchandising The Showroom 2. Advertising and marketing 3. Digital engagement 4. Training 5. Business administration & advertising support tools Discover Luxaflex Interior Solutions HELLO Discover Luxaflex Home Solutions PowerView Motorisation State of the art Showrooms Designing a retail environment in which consumers can visualise how your products will transform their home is critical to stimulating sales and creating a successful business. Our Luxaflex Next Generation Gallery and Luxaflex Showcase display systems create a showroom environment that offers a superior consumer experience for window coverings. luxaflex60.com.au years of The fit-out features exceptional attention to detail in terms of colour schemes, accessories, functionality and stunning blinds on display. Large displays replicate the consumer s home, providing a real life experience of the choice of operating systems, style and colours. The clever use of lighting enhances the shopping experience where fabric opacity mimics how consumers will see the product in their windows. When consumers visit our showrooms, they see things they had not considered. This leads them to buy higher value products which lift the average sale and conversion rates.

5 Windows to the World travel incentive A Windows to the World trip is more than just a trip... it s a rich, impeccably planned, door-to-door travel experience. And it s our years of travel incentive experience that will make your experience with Windows to the World the best it can be. Windows to the World is an exclusive travel incentive program for Australian Window Furnishings Alliance Dealers offered in addition to a host of other incentives to motivate and inspire you. Digital engagement Training Our Luxaflex, Vogue Shutters and Hunter Douglas Commercial brand websites are home to detailed product information, photo galleries, brochures, product videos, specifications, blogs and much more! As an Australian Window Furnishings Alliance Dealer you benefit from leads received via the website s Dealer Locator pages. Training Programs Marketing Automation system providing co-branded database marketing for new, repeat & referral business Our exclusive training programs give you the power to make sales and the ability to outsell your opposition. Whether you re a seasoned veteran or completely new to the industry, you can set yourself apart. Our training will make you the most knowledgeable window coverings professional in your local market. From classroom and conference settings to interactive online learning, there s a program to suit your individual needs. Digital display, native & video advertising Networking Social media marketing Blog, Facebook, Instagram, Pinterest, YouTube, Houzz, Twitter Our annual Alliance conference is an opportunity to see and learn about new products, new technology and new programmes. It is also an opportunity to network and share ideas with your colleagues from similar businesses all over Australia. Other digital marketing tools we use include: Google Adwords & SEO campaigns Gallery dealers own co-branded website ipad applications E-brochures What do our Luxaflex Alliance Retailers say about the programs? I joined the Luxaflex Showcase Alliance program because I wanted to sell a quality product. There s a lot of companies out there selling unbranded, mediocre products and I wanted to have a point of difference from my competitors. I can confidently say that the support from the Hunter Douglas team is unrivalled. It feels like you have another team of people working in your business. We re great advocates of the program. There is nothing else that compares to it. Tony Suttle, Suttle Shades Ian Waller, Rundle Blinds and Burnside Blinds & Curtains ISOL RoadtripPoster FA.indd 1 17/05/2016 9:31 am One thing that is great about my job is that every day is different. It s good to get that variation in my day, getting out on the road and meeting up with different people as well. Patrick Cummings, Shades in Hawthorn The product displays give prospective clients a genuine shopping experience, as they can come into the showroom and touch and feel each product. I pride myself on the showroom and its look and feel sets us apart from car boot sales people. Tammy Quinlan, Vogue Interiors Whitsundays Business administration & advertising support tools We have the tools for your business needs, and a dedicated team to support you. You will have access to HD Live (the interface to electronically order, and check status updates and other information regarding your order). Access to the dealer portals, where a host of resources, tools and support information is available to you. Electronic Price List app so you can easily price & quote your customers in the home, in the showroom and on the road. After we joined the Gallery Program, our sales of Luxaflex products increased by more than 30 percent. We redirected our focus from other brands into selling Luxaflex products as the quality of the brand appealed to customers. Tony and Hailey Boyd, A & B Interiors Frank Cresswell, CBD Blinds and Fab Interiors ALFI the technical resource website with short how to videos to assist you on the job. This is backed up with a Technical Help desk a phone call away to answer questions & provide support. The Sales team support you with business development & coaching. Our CRM provides them with invaluable data to share with you on your performance measures. The marketing team provide a host of marketing resource tools via the secure portal to tag with your own business details for your local area marketing. This is in addition to the large scale co-operative advertising programs run as part of the Marketing Program. Hunter Douglas training programs are excellent. We have the team come up from Sydney regularly, to keep us updated on new products and what s in the works. If they see a missed call from me, they ll ring me back to see what I need straight away. I think some franchise businesses promise you the world, help you set up and then you never see them again. It s not just like that at Luxaflex. There is ongoing support, a fantastic range of product, and I genuinely believe they do everything they can to help you. As a business owner there s nothing better than having a steady stream of customers coming in and I definitely attribute that to the strength of the Luxaflex Brand. Jonathon Pretty, Shades of Pittwater Peter Kerwan, Decorating Decor

6 Financial commitment LUXAFLEX Gallery Licensee The Luxaflex Window Fashions Gallery is a group of Independent businesses operating under a licence agreement with Hunter Douglas. A minimum criteria of loyalty of window covering purchases is required, as well as the requirement to offer the entire Luxaflex range of products for sale. There are no ongoing fees to be part of the group. There are however some costs associated with your involvement. 1. Deposit: Once you confirm your interest, we ask for a deposit of $5000. This is refundable if you choose later not to go ahead but we will deduct any costs incurred. 2. Show room fit out: The showroom fitout is done by a professional shop fitting company who operate under contract to Hunter Douglas. Typically, a showroom fitout costs between $100 and $120K and Hunter Douglas provide an interest free payment program. Site works such as electrical, floor, ceiling, painting works, external signage, vehicle signage, administration infrastructure are additional. 3. Marketing Levy: All Luxaflex Window Fashions stores contribute a levy which is used for promotion of the Luxaflex Brand in a variety of consumer facing media. This amount is indexed to the CPI and is currently $3,300pa. Hunter Douglas invoices this monthly. 4. Cooperative Advertising: The Gallery group also participate in a significant co-operative advertising program. The cost of this is shared between all stores covered by the media and the rules for this are covered in the Code of Practice. The Luxaflex Window Fashions Gallery is a group of Independent businesses operating under a licence agreement with Hunter Douglas. Capital Outlay & Advertising The Gallery Showroom Setup costs vary per store based on specific site variances. A typical showroom cost is $2,000 per square metre. As all products sold are made to measure, there is no start up inventory required, and no provision for obsolete stock or stock loss required. Ongoing costs for the showroom include the regular upgrade costs for maintenance, introduction of new products to be displayed, sampling updates and merchandising. An allowance of $5,000 per annum in most years is sufficient. Advertising costs Hunter Douglas runs a series of cooperative lead generation and brand specific advertising campaigns and the Gallery dealers contribute to this each year. The group lead generation advertising program is designed, developed and delivered by the Hunter Douglas Marketing Team in conjunction with specialist media buying, creative and public relations agencies on behalf of the Gallery dealer network. This includes a comprehensive digital, TV and print campaign in main stream media. The cost of this advertising is shared between all stores covered by the media split subject to the store territory size, and media penetration on the specific area. The Gallery dealers meet to review and agree to the marketing plan and spend annually. Hunter Douglas supports Local Area Marketing with the provision of customizable templates and tools and stores manage this locally. Conference Attendance Luxaflex Gallery dealers attend an annual conference around July / August. Travel to, accommodation and some meals are at the expense of the individual business. The conference location is usually held within Australia, however on occasions is taken to overseas destinations in the Asia Pacific region. The conference destination is made in consultation with the Luxaflex Gallery representative council. Copyright 2018 Hunter Douglas Limited [ABN ]. Registered Trade Marks of Hunter Douglas Limited. Sunrain is a registered trademark of Leiner Pty Limited. ipad is a Trade Marks of Apple Inc., registered in the U.S and other countries. [05/2018] Hunter Douglas timeline 2004 years of 2012 Marko and David Sonnenberg became Co-Presidents of the Hunter Douglas Group. Ralph Sonnenberg moved into the position of Chairman and CEO. Introduction of the Iconic Calypso Plus/Plaza Plus Fabric Range PowerView TM Motorisation was introduced in May 2016 as an intelligent and cost-effective motorisation solution. Offering smart operation for the most popular Luxaflex window coverings with the simple press of a button or tap of a mobile device - or by scheduling Scenes that will activate automatically throughout the day. Celebrating 60 Years of Luxaflex Window Fashions in Australia. The innovative Quantum Roller Blind hardware system was unveiled in Australia. The hardware system was designed and engineered by the Hunter Douglas Group, with research and development in Germany, Belgium, The Netherlands and Australia. The roller blind system brings a new generation of design engineering and excellence to the Australian product offer. Alpha/Evo Awning System - Designed and Developed by the Australian product team, this system was not only innovative but clever in design with its 5 in 1 modular design, allowing fabricators across the nation to offer straight drop awning styles to consumers, with minimal inventory The Contemporary Series of Awnings is introduced featuring the Luxaflex Sunrain Awning. WHISPER Cellular Shades Collection was introduced as an affordable quality option to the premium Luxaflex Duette range. The introduction of Luxaflex Silhouette Shadings, with the innovative Signature S-Vane raised the industry bar for versatility and light control. With its ingenious design featuring soft fabric vanes suspended between two sheer fabrics, Silhouette Shadings set a whole new standard of style and beauty. Developed in response to the energy crisis of the late 1970s, Luxaflex Duette Shades were introduced into Australia. This honeycomb design was an industry innovation and the first product of its kind Henry Sonnenberg passed his title of President of the Hunter Douglas Group after 26 years to his son Ralph Sonnenberg. The Flexalum Shelter System was a new roofing system introduced to provide a completely new approach to construction of large patios, carports and screen enclosures. Today, the innovative approach to home improvement products continues under the Shademaster Shelter Systems brand. The start of Luxalon Building Products which offered commercial systems for ceilings, soffits and facades that allowed architects to express full creativity. The basic offer consisted of ceilings, sun louvres, façade claddings and sandwich walls Late 50s With the success in the US and Canada, global expansion was inevitable. In 1953, Hunter Douglas expanded to Australia establishing in the Sydney suburb of Rydalmere, where it still stands today Henry Sonnenberg established a joint venture with Joe Hunter, a gifted inventor, which developed new technology and equipment for the continuous casting and fabrication of lightweight Aluminium.This led to the production of Venetian Blinds. Hunter Douglas, as we know it today, was born Henry then moved his entire stock of machines in a hundred and fifty railroad cars to an abandoned ship yard in Rotterdam, The Netherlands; and established a machine tool operation. The latest innovation in honeycomb shades, Luxaflex Duette Architella Shades were introduced.this revolutionary fabric range features a 38mm triple honeycomb construction with six layers of fabric and five insulating air pockets, providing the best insulation currently available for window coverings The innovative spirit of the company led to the development of revolutionary new products to meet the increasing demand for Australian window fashion, quality and functionality. The unwavering commitment to manufacturing in Australia was visibly shown when a second coating line was relocated from Hunter Douglas China to the Hunter Douglas Australia. The now fully integrated facility includes weaving, coating, finishing, slitting and packaging. The facility produces over 80 percent of the fabric ranges for the Hunter Douglas brands in Australia and exports to countries such as United States, Europe, China, Malaysia, India and the Middle East Unlike any other window covering on the market, the exclusive Luxaflex Pirouette Shadings is launched. The next generation of honeycomb shades, Luxaflex Duette Architella Shades were introduced. The patented honeycomb-within-a-honeycomb cell construction offers superior energy efficiency benefits Ultraweave Plus/Ecoview Plus and Extraview Plus Sunscreen Fabric were launched. The instant success of the PVC fiberglass ranges resulted in Hunter Douglas investing in more looms to keep up with volume An inspired, elegant alternative to traditional draperies, the introduction of Luxaflex Luminette Privacy Sheers provided consumers with soft vertical vanes that block 99% of UV rays when closed, adjust to provide varying degrees of light control and stack discretely Hunter Douglas purchased Intalite Pty Ltd and formed a new business channel Hunter Douglas Architectural Products which was a merger of Luxalon Building Products and the forma Intalite Pty Ltd. The fusion of the two businesses resulted in a more custom offer for the building industry and a larger market share. Hunter Douglas purchased Sunweave Textiles, a business that operated in NSW in the Sydney suburb of Punchbowl. Sunweave became Hunter Douglas Textiles and was moved to the Rydalmere site shortly after. It produced holland fabric, vertical fabrics and external awning fabrics. Hunter Douglas in Australia quickly achieved a predominant position in the venetian blind industry; it rapidly expanded its range to include Wall Cladding, Insect Screen Doors, Slimfold Screen, Aluminium Awnings, Sundrape Woven Aluminium Drapery and Drapery Track under several well-known brands such as Mello-Lite and Permalum Luxaflex Window Fashions was introduced in Australia offering consumers an exceptionally durable and stylish window covering solution. Hunter Douglas Aluminium Blinds quickly gained leadership in the American and Canadian market. Fabricators sold the blinds during the day and assembled them in their workrooms throughout the night Henry Sonnenberg moved to the United States where he founded the Douglas Machinery Company Henry Sonnenberg founded a machine tool distribution business and subsequent manufacturing company in Düsseldorf, Germany