controlled energy Å V^

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controlled energy Å V^ Interview with Ralf Schwarzkopf, CEO of Hotset GmbH What are the reasons for these changes? And this has changed hotset s self-perception? hotset is presenting itself with a new logo and a new appearance. Is this a visible expression of a fundamental transition within the company? Ralf Schwarzkopf: The increased presence of our company in important international markets, our experience gathered from intensive collaboration with many new customers and with partners in our technology networks. Ralf Schwarzkopf: That is correct. Over many decades, the corporate brand»hotset«has primarily stood for hot runner technology, and for the production of industrial heating elements predominantly for plastics processing. However, for a long time now, this image has ceased to correspond with reality. Over the past years, we have not only expanded geographically, but we have also developed beyond the boundaries of plastics technology. And in the course of this, our systems expertise and our engineering competencies have ILLU ZPNUPÄ JHU[S` L_[LUKLK Ralf Schwarzkopf: I would say that this is a part of a consistent development. Over the past years, hotset has increasingly developed from being a manufacturer for electrical heating elements to become a provider of complete thermodynamic systems and an engineering partner for sophisticated, individual customer projects. 2

Ralf Schwarzkopf: For some time now, we have been realizing interdisciplinary and strongly internationally-orientated customized thermodynamic problem solutions in the form of complete systems. And in the project business, we provide our customers with individual solutions which can also be of great complexity. As a result, we cover all services: From actual state analyses via engineering and prototype construction, right up to serial production. Both of these business areas are developing extremely dynamically. Will hotset still continue to be a component manufacturer? Ralf Schwarzkopf: Of course, we are and continue to be one of the leading manufacturers of heating elements, thermal sensors and control technology. These products, in their endless variations, play an essential role both in our project business and in As an experienced manufacturer, we have all the options to provide our heating and cooling system customers with great savings, to optimize production processes and to improve the quality of their products. During this process, we also focus on the environment for example, through modern control technology. We deliver the right temperature at the right time to the right place. Ralf Schwarzkopf: Exactly! We have our development process:»controlled our aspiration to develop, manufacture and provide the best thermodynamic solutions for the processes of our our ability to process completely new ideas and projects on-schedule in an intercultural team around the globe. and ourselves is»controlled energy«. 3

Components Systems Projects Components We provide our customers with an extensive portfolio of technically mature elements, thermal sensors and control technology. Since 1973, we have manufactured heating elements in Germany, and since 2002, we have been continuously developing our production location in Malta. The manufactured products are usually individually-tailored to the customer in extremely small unit numbers or in large quantities, at an attractive price. Our core process is organized highly and we provide customer storage work with our own specialists in order to select the best product for our customers. Systems The whole is more than the sum of its constituent parts. This applies in particular to thermodynamics. The right heating element requires the appropriate thermal sensor and a suitable control unit. Is protective insulation needed? The matching plugs? A box around it? What about active cooling? If our customers pose these questions, then they need not only a component from us, but a whole, suitable system. Projects Industrie 4.0 (Fourth industrial revolution initiative of the German Government), high-tech materials, regenerative energies we live out our advancements. New thinking, new processes, new solutions which pave innovative ways for our customers to a successful future. In the course of this, we accompany them with sound technological expertise and a solid basis of many years of experience in almost all production disciplines. And we always keep an eye on the bigger picture, because wearing blinders is obsolete; today 3D glasses and augmented reality characterize current perspectives. We analyze the thermal processes of our customers and are ideally able to develop a completely new solution. We not only wish to become a little quicker or hotter, but rather we have the aspiration of»the other«solution not only on the technical aspects of the task, but also on the human factors in the project phase. Using agile project methods, we provide interconnected, 4

So that you can see what we are talking about A little technology has never hurt anyone. Here are several current examples for innovative product development from the»complete systems«and»customer- Example 1: The challenge: improvements for thermal forming. The solution: hotset develops which is used as a replacement for the previous usual standard products. The result: A pronounced and homogenous temperature distribution with the products manufactured through thermal forming. This concept can also be transferred to hot presses Example 2: The challenge: Optimization of the process procedure with simultaneous improvement of the product quality. The solution: The patented hotcast ZD sprue nozzle for zinc die casting, which replaces the conventional cold sprue bushing, keeps the molten mass at the melting temperature until just prior to entry into the cavity. The melting point is located directly at the separating plane. The result: The now-shortened sprue reduces the cycle time and re-melting costs. Thanks to the molten mass contours in the casting are formed visually improved and the porosity and the shrinkage cavity formation are reduced. Example 3: The challenge: Holistic quality improvements in the injection molding process. The solution: Conception and development of the new Z system for targeted partial and dynamic temperature control of molding tools in injection molding. The result: excellent molding of microstructures, extremely thin wall thicknesses and the possibility to selectively heat or cool cavities extremely quickly. As a result, cycle times for injection molding can be reduced, which ultimately leads to an increase in productivity. Example 4: The challenge: Improvement of the (»white goods«sector). The solution: Conception and implementation of a joint development The result: A particularly energy- environmentally-friendly appliance solution. Example 5: The challenge: Logistical optimization in the assembly process of control cabinets. The solution: Development of a completely new assembly line for a renowned control cabinet manufacturer. The result: Relief for the customer through the takeover of responsibility for chain. Further examples: Further projects are currently opening up many doors for hotset in new markets for example, in the area of fuel cell technology. Heating is usually not the sole issue here, but rather complex thermodynamic solutions which focus on intelligent temperature control. 5

Global Constancy Constant economic success is not something regarding which you can rest on your laurels. Not only technologies, but also markets are permanently changing, and this at a breath-taking speed; in constant transition. Those wishing to be successful, have to be quick, through the adaptation of production processes and through process optimization, quality improvement or innovations. How does it work? Simple: Increase reduce production costs; optimize to show you what is possible and how it works. We will help you to make wishes become reality through sound analysis of your processes and procedures and intelligent changes so that you can concentrate on your future success. A second constant is the family. We are a family-run company which thinks and plans in generations. We do not take any risks, and are independent and reliable. We place great value on continuity and trust. relationships with our suppliers, employees and customers. 6

The principle of proximity in a global sense Customer proximity is a virtue. Things company when they wish to internationalize this principle. hotset realized at an early stage that customer proximity in global dimensions can only function through expedientlypositioned subsidiaries. This is how direct dialogue with our customers can be successful. Regardless of whether in Singapore, New York or New Delhi we understand your language and we are familiar with your cultures, religions and markets. The initial step was taken through the formation of Hotset Malta Ltd. in 2002 as a production location for heating elements and temperature sensors. In 2008, the establishment of Hotset Singapur Pte Ltd. followed, intended to supply the Asian market. Hotset America Corporation, with its headquarters in Georgia, USA, started in 2010, designed to supervise customers in Canada, the United States and Mexico. One year later, Hotset Heating Elements (Suzhou) Co. Ltd. in China opened its doors. The most recent subsidiary, established in 2014, is HIPL India Pvt. Ltd. with its headquarters in Bidadi. This branch is located around 30 kilometers from Bangalore, the third-largest city in India. These are the best prerequisites for global thinking and for obtaining valuable international markets. At hotset, these prerequisites are ingeniously coupled with German thoroughness and the ingenuity of a medium-sized company. 7

Hotset GmbH Hueckstraße 16 58511 Lüdenscheid /Germany Telephone: +49 2351 43 02-0 Fax: +49 2351 43 02-25 Email: info@hotset.com www.hotset.com