INTRODUCING OUR FIRST EVER INSIGHT NEWSLETTER

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1 INSIGHT Newsletter INTRODUCING OUR FIRST EVER INSIGHT NEWSLETTER Actually, that s a lie... our McGavigan employees have been reading INSIGHT for the last five years. However, we have now decided that it s time to share INSIGHT with you. We intend to make it a regular publication and to use it to keep you in touch with our news, developments & innovations from across the McGavigan Group. What better occasion for us to share INSIGHT with you than at Fakuma, one of the most noteworthy events in the International plastic and processing calendar marks our 5th Fakuma event which has always proven as an ideal opportunity to meet clients, suppliers, industry experts and representatives from influential publications alike, where we can learn and discuss the latest technologies, as well as processes and tools for efficient plastic processing. This year the show celebrates its 26th anniversary and will be welcoming exhibitors and 40,000 industry visitors from 120 counties worldwide through its doors. While Fakuma has been growing in size over the years so too has McGavigan and we are not just talking in business terms, having more than doubled our stand space from 30m 2 in 2012 to this year s sizeable 70m 2. Having such a considerably sized stand means more space for exhibits and while we will be showcasing our latest live projects including decorative interior trim, control panel assemblies, gear shifts and instrument clusters we have also been working hard in developing technological advances with particular emphasis on the incorporation of functionality into traditional passive surfaces. You will not only be able to discover our innovations on our Fakuma stand (B2-2213) but also within this publication of INSIGHT alongside our latest McGavigan news. We are sure you will find your time at this globally important trade fair informative and will demonstrate how the global plastics industry is embracing innovative means to deliver value across the spectrum of our everyday life. An aspect we at McGavigan strive towards each day of our business lives.

2 McGAVIGAN, CREATING VALUE THROUGH INNOVATION Creating value starts with listening finding out what needs to be solved, and then researching solutions that work. Sometimes radical, always methodical, but the result is today 42% of McGavigan group revenue comes from new products and processes developed within the last 2 years, and this trend is set to continue. And to support this we invested 10% of our global revenue into new technology and capability development in because driving responsive technology drives our business. One big trend is the move from conventional switches and buttons, to the use of solid surface capacitive or proximity activated surfaces with embedded illumination, and also delivering a high quality decorative and functional surface. Design profiles are also changing, and with the evolution of 3-dimensional displays the demand for constructions that can match these profiles and retain the necessary AG/AR/AF performance, McGavigan has developed smart solutions that meet the geometric demands together with the ability to incorporate touch activation and also helps reduce overall component weight. Large multi-functional surfaces are also evolving, replacing separate modules and combining them into one or two large decorative and functional surfaces which house displays, surface activation and illumination. Our investments in processes where larger surfaces alongside our collaborative relationships within the supply chain have given us the capability to work with clients at the leading edge of this trend and help guide design feasibility even at an early stage.

3 McGAVIGAN SUZHOU BUILDS FOR GROWTH In 2011 McGavigan opened the doors to a subsidiary operation in Suzhou, China, supporting our global clients and leveraging our reputation and capabilities in this major growth market. Fast forward seven years and as a direct result of strong growth we are (again) increasing our manufacturing and development capabilities, with approval to commence construction of our new purpose build 18,000sq.m building in Suzhou, close to our current facilities. McGavigan will be building our high-end specification operation in the countryside of Suzhou within a budding new industrial area. The architecture of the facility has been carefully designed around our McGavigan process ensuring a seamless flow of people, material, product and information. As a well as a full complement of our current technologies, the facility will house 10,000 class clean rooms for our printing, moulding and forming processes. This new facility will not only strengthen our competitive position by offering increased capacity, superior process control and exception levels of quality it will also offer employment security as well as job prospects for people in the Suzhou region. Targets are in place for building to commence by the end of the year and for the doors of the facility to be open by the end of 2019.

4 McGAVIGAN TOOLTECH Earlier this year McGavigan furthered its reach in the supply chain when we established our new tooling business ToolTech. ToolTech was originally established in 2003 as In-Mould Technology, a trusted McGavigan supplier. The business produced more than 2000 tools and earned an excellent reputation for design and manufacture of high quality tooling. Acquiring ToolTech we added a highly skilled and experienced team who add to the McGavigan Group s expertise and know-how in IMD & IML processes. For McGavigan ToolTech, which also specialises in automotive functional parts and 2K multiple cavity tools for the packaging industry, means that we have the in-house capacity to take our clients on the complete journey from concept to reality. While our clients will benefit from reduced cycle time and quality control they will also be pleased to know that McGavigan will not be keeping ToolTech to ourselves, and are now supporting external clients tooling projects for sectors in automotive, medical and consumer packaging. McGAVIGAN GmbH At McGavigan we have long been supporting clients across the globe, but as our client base grows so too has the need to increase our regional network of sales and technical support offices. The establishment of McGavigan GmbH in August 2018 has given the group a platform to deepen yet further its activities in the German market. Through establishing our new regional sales and technical support offices in Lüdenscheid, in the region of Sauerland, we bring another level of expert support through local staff, backed up by expert engineering, manufacturing and supply chain resources of a global business. Locating the team in the centrally located town of Lüdenscheid provides easy access by road to many of our clients across Germany and is also located next to the Kunststoff Institut who we cooperate closely with in areas of material research, testing and new process developments. We also benefit from being close to many recreational amenities including hiking and biking through the extensive hills and forests during the summer spring, summer and autumn periods, and for cross-country skiing in the winter. McGavigan GmbH Lüdenscheid, Germany

5 INSIGHT Newsletter EXPORT RECOGNITION After an award-winning streak in 2017, McGavigan was pleased to be shortlisted in two categories in this year s Scottish Export Awards- Large Exporter of the Year & Scale-up Exporter of the year. Taking place in March, the night of the awards was tinged with just the slightest of sadness as it meant giving up our title as Scottish Exporter of the Year, however, this feeling was soon forgotten when our name was called for the Scale-up Exporter of the Year Award! The Scale-up Exporter is awarded to a company that has shown significant growth as a direct result of its export activity where exporting has played a fundamental role in the scaling of the business. as a mark of recognition for our contributions to trade and investment in the year Still basking in our victory, we only had to wait until May for our export achievements to be recognised again when our Director Stephen Mathers collected the UK Board of Trade Award 2018 on behalf of the entire McGavigan team. McGavigan is a business that has made the transition from a traditional Scottish manufacturer into a truly global organisation by simply taking that first step into exporting. We are deeply proud of what our growing team has achieved in such a short time. Being recognised for these awards is a great platform to show other business that with a desire they too can achieve great things by embracing the opportunities exporting can bring both economically and to the cultural framework of their own business. Taking place at Stirling Castle, Steve was presented with the award by Dr Liam Fox MP, Secretary of State, Department for International Trade. This award has been granted to us by the Department for International Trade and the UK Board of Trade LEAN SIGMA TRAINING As a producer of a complex product that results from a multitude of manufacturing processes, McGavigan endorses the importance of quality within our overall strategy. Since 2000, McGavigan China has been offering six sigma training to all key production staff including quality, tooling and engineering. Lifeng Wang, our Suzhou Director, has embraced the program originally developed by Motorola as it equips his team in finding the right tool for the right problem ensuring that quality product is delivered to our client every time. McGavigan Scotland s new Operations Director Derek McIntyre also endorses the methodology and has begun rolling it out in the facility. Starting from the beginning we have taken a cross-section of our employees and with an accredited external consultant we are putting them through a Yellow Belt Programme our goal is to have 48 of our team through this training by 2019.

6 McGAVIGAN WORKFORCE DEVELOPMENT At McGavigan we see the importance of contributing to the future development of a skilled workforce in our local areas. Work placements are extremely beneficial opportunities for students, allowing them to put theories into practice in a real-life setting ultimately improving their academic performance as well as enhancing their employability. As a business though we are able to benefit from their enthusiasm, fresh ideas and up-to-date knowledge. Over the last 6 months McGavigan, Scotland has been benefitting from the enthusiasm of Greg Cunning an Edinburgh University Mechanical Engineering student. As part of his fourth year Greg has been undertaking his industrial placement at McGavigan as a process engineer. Here he tells us about his time with the company. Greg proves that at McGavigan students are treated with respect and by mentoring and coaching are immediately an integral part of our teams - contributing and working on real value-added work, both for the company and for Greg as he has stated. McGavigan is always on the look out for fresh talent so if you feel that you have got what it takes to work in the fast-paced technology environment for engineering with international opportunities please get in touch with our HQ in Scotland. My time spent as a process engineer has proved hugely beneficial to both my development as an engineer and an employee in a professional environment. Along with expanding my academic expertise into new areas, such as laser etching, robotics and spray-painting, I have also developed my practical capabilities considerably. Spending time with the company s senior process engineers I have been very fortunate to have access to their vast automotive manufacturing experience. Their willingness to offer me advice on my design proposals, training on complicated pieces of automation and production equipment and assistance in helping to develop my hand tool skills has been invaluable. Ultimately, the placement has really allowed me to confidently utilise the problemsolving capabilities and engineering theory that I have been developing at university in industry, leading to the rewarding satisfaction of adding value to a company. Greg Cunning Technology Through Decorative Plastics UK GERMANY CHINA JAPAN John McGavigan Ltd 111 Westernhill Road Glasgow, UK G64 2QR (+44) info@mcgavigan.com McGavigan GmbH Mathildenstr Ludenscheid Germany (+49) info.germany@mcgavigan.com McGavigan Decorative Technologies (Suzhou) Co Ltd. Unit 12, 328 SuWang Road, Wuzhong Economic Development Zone, Suzhou, JiangSu Province, PRC (+86) info.china@mcgavigan.com McGavigan (Japan) Fuji Building 28, Floor 2, Kita Aoyama, Minato-ku, Tokyo, , Japan (+81)-(0) info.japan@mcgavigan.com Bringing value through innovation mcgavigan.com

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