Spectre Value Book

The Spectre Way

OUR JOURNEY TO THE SUMMIT – NOT JUST TO BE GOOD, BUT TO BE THE BEST

The Spectre way

OUR JOURNEY TO THE SUMMIT – NOT JUST TO BE GOOD, BUT TO BE THE BEST

Content Page

The Journey 4

The Products 5-9

Mission 10-11

Vision 12-13

Values 14-19

Heritage / History 20-25

Timeline 26-29

Spectre at a glance 30

The Spectre CSR Model 32

The Spectre Value-Adding Model 33

The Spectre Icons 35

Wall of fame 36-39

Heritage / History

- The Spectre basecampPage 20-25

Mission

- The Spectre mapPage 10-11 Vision

- The Spectre partnershipPage 12-13

Values

- The Spectre passionPage 14-19

The Journey

We have embarked on a journey where sustainable, long-term partnership is the key to the mutual success of the brands – our customers – and Spectre.

Spectre will consistently seek to be the brand’s 1 creation for the brand. Hence, our task is to help protecting and strengthening the brand value. Our value adding is based on a sustainable partnership approach with high competence in development and production. We want to be at the forefront with new technologies, digitalization and production methods in the search of the best product solutions.

Our journey is endless – we always seek the next goal!

- Specialized manufacturer of functional garments -

- We focus on developing and producing apparel for trekking, hiking, climbing, alpine skiing, cross country skiing, urban outdoor, running, mountain biking, trail running, road biking, hunting and other outdoor activities -

Skiing

Trekking

Mountain bike

Climbing

- We focus on developing and producing apparel for trekking, hiking, climbing, alpine skiing, cross country skiing, urban outdoor, running, mountain biking, trail running, road biking, hunting and other outdoor activities -

Climbing

Road biking

Our MISSION statement is a declaration of the purpose of our business:

“Strengthen the customer’s brand value by our competence in development and manufacturing of high quality functional garments in a sustainable and responsible way”

Mission

- The Spectre map -

We achieve our mission

Spectre is a manufacturer specialized in developing and producing functional garments for the international outdoor sports- and activity industry.

We fulfill our mission by being known as a reliable and innovative partner delivering on time in a high and consistent quality – with the highest possible CSR standard. We are at the forefront with new technologies and production methods to ensure the best product solutions.

We are close to our customers both in understanding customers’ needs and wishes, as well as the perceived proximity geographically and in the understanding of the value chain.

The customers are experiencing our customer service as an integrated part of our business. Our understanding of customer service is giving professional feedback in the product development phase as well as during the production process and post-delivery. Further, a close day-to-day communication as well as short, speedy and precise answers on customer enquiries and a proactive conduct are important elements of our customer service.

The key enabler for fulfilling our mission is to partner with the brand owner on the development and production of quality functional garments in a way that strengthens the brand value. The partnership approach refers to close cooperation both horizontally and vertically within the organization.

Vision

- The Spectre partnership -

Our journey to the summit

Spectre will continuously be specialized in developing and manufacturing functional garments for the international outdoor sports- and activity industry.

Understanding the needs and requirements of the brands is an essential prerequisite to achieve our vision.

Keeping focus on innovation strength and process knowledge ensures a dynamic and fast development of the desired product. Our skilled R&D and sourcing team participate actively in the development and cost engineering of unique collections for each customer.

Excellent customer care and proactive behavior in combination with high quality in product and processes, agile supply, CSR focus and efficient global manufacturing footprint enable Spectre being trusted long-term business partner for the outdoor brands.

Our VISION statement describes where we – as a company – aspire to be in the future:

“Becoming the outdoor sports & activity brands’ preferred development and manufacturing partner for functional garments”

Values

- The Spectre passion -

Spectre Company Values

Being a family owned company is an important part of our identity. By having a strong ownership with passion and daily engagement, the core values and ethics are felt by the employees, customers, suppliers and other stakeholders in the everyday life.

Being a responsible and decent company is a part of our soul. We believe that employees spending a large part of their life working for the company are to be treated with respect and dignity irrespective of nationality, age, gender and race.

We want to create an attractive working place because satisfied employees create a better atmosphere, a better culture and better results.

All business must be conducted in an honest and ethical manner. Regardless of the geographical location of our activities, Spectre has one company spirit and business philosophy.

MENTOR

Donated by Anny Klausen on the occasion of the company’s 35/70 years Anniversary in 2017.

The sculpture is a role model – also called mentor – because it reminds of a teacher. At the same time it is both forward- and backwards-looking, with a sharp eye on details.

Some of the surface is more shiny than other parts, as it is in life. Somethings are easier than others.

JacobKlausenandJesperKlausen

AnnyKlausenandEvaldKlausen

Headquarters in Ikast, Denmark

Our business philosophy has roots in following beliefs:

• We are customer centric and strive for long-term business relations with customers where our knowledge, competence and teamwork is reflected in a proactive behavior

• We aim at creating value for customers thru the highest level of customer satisfaction – which is the most important driver for loyalty and growth

• We are easy-to-do-business-with and consider ourselves as problem solvers. We want to “take away the customer’s headache”

• We strive to be the best in our niche - not the biggest

• Quality is core and a part of our company brand. The overall quality is never better than the weakest link in the value chain. Therefore we stand together as a strong team in an unbroken chain

• Sustainability and CSR is a natural way of thinking and goes well beyond compliance. We have worked with social compliance long before it was called “CSR”. Through our support of the UN’s Global Compact and its sustainable development goals (SDG’s) and via our social certification according to the SA8000 standard as well as our annual CSR report, we systematize the way we work with CSR and we demonstrate we are transparent and that we aim high

Values

- The Spectre passion -

Spectre has a core value set. The values reflect the way we work and our attitude towards colleagues, customers and other business partners. The way we work is determined by our ambition to creating the best possible results, a very good working environment and ensuring our customers are always satisfied. We believe satisfied customers are the best foundation to ensure a strong, long term partnership, stable jobs for our employees and a good working environment.

Although we have redefined and refreshed our value set, the core values remain the same as they have been for decades.

Dedication

We show passion and commitment in what we do.

We do our very best to perform the task and show loyalty to the company and our colleagues. We are always prepared walking the extra mile for the customer. Through our passion and commitment our partners clearly feel the advantage of being partners with us.

Responsible

We care for sustainability and act with honesty.

We take responsibility for our working place and the external environment and we solve our tasks responsibly with the aim to reach the best result for both company, customers and other business partners. This includes the ability to reach a balanced solution in the search for a long term sustainable business.

Integrity

We trust and help each other and live our values.

We are true to our values, company policies and guidelines when performing our job and cooperate with business partners and co-workers. We believe that by trusting and helping each other we play as a strong team to reach the goals.

Proactive

Our performance exceeds expectations “not just to be good, but to be the best” By anticipating each situation, we strive to find the best solutions and utilize the advantages of being one step ahead. We have always had the ambition “not just to be good, but to be the best” because essentially our customers are looking for the best business partners on the market and only by being the best we differ from the crowd.

Spectre Core Value Model Spectre Core Value Model

Show passion and commitment in what we do

Dedication Responsible

We trust and help each other and live our values

D R I ve

We care for sustainability and act with honesty

Integrity Proactive

Our performance exceeds expectations “not just to be good, but to be the best”

Heritage / History - The Spectre Basecamp -

Basecamp

Our Heritage

Our hometown, the small town of Ikast, along with its neighboring towns, is situated on large heath areas and has no long or historical greatness behind it. Instead, it has emerged as a product of the people’s love for their home region and in conjunction with a very diligent and careful pursuit of doing something for the future. This particular spirit and enterprising is still dominating among people in the area and has led to many success stories in both business, education and professional sports.

In 1947 Thomas Poulsen, the former mayor of Ikast (1978-89), founded a small textile company manufacturing garments, and later fabrics. The beginning of his business took place in the basement of his private home. In 1974 the current headquarters of Spectre was constructed as a small garment factory. In 1982, Thomas Poulsen decided to sell his company to focus on his mayor ministry. The assignment of selling the property ended with the realtor, Evald Klausen, buying the whole company together with his wife, Anny Klausen.

Evald and Anny were true entrepreneurs and a driving force in developing the company during more than two decades.

Heritage / History

- The Spectre Basecamp -

In the 80’s the customer portfolio was expanded to include a number of high-profile European fashion brands like Marc O’ Polo, Hugo Boss, Joop, Esprit and Sand and the company invested massively in product innovation.

The first fleece fabric from Polartec USA was purchased in 1989 for our first outdoor customer, Tenson in Sweden. We started with our first Gore Windstopper customer in the 90’s.

In 1989 Spectre was awarded “Export Pioneer of the year” by the Danish Textile Industry and 1991 the subsidiary Kabooki A/S was established to launch a children’s clothing collection based on license agreement with the LEGO Company. In 1994 Kabooki A/S was sold to Brandtex Holding A/S and Spectre’s product strategy changes gradually from fashion and leisure wear to functional garments and active wear.

In the 90s, when production costs reached an uncompetitive level in Western Europe, the production was moved to Eastern Europe after acquiring a large state-owned garment factory in Latvia in 1992 – a few months after the independency of the Baltic States. The factories then were located in Jurmala and Auce.

Also, in April 1992 Spectre founded the company DRIVE A/S together with the former All England badminton champion, Morten Frost, who spent twelve years in the top three of the world rankings. The company’s business idea was the sale of individually designed, high-quality corporate wear.

ExportPioneer oftheyear

Bookabout MortenFrost

EKAucefactory

Tenson,Polartecjacket

The focus on functional garments continued with the acquisition of iconic US Colorado outdoor brand Lowe Alpine’s machine park in 1995 after their decision to close their Irish production unit. The initial contact to Lowe Alpine was established via Polartec and for many years vast amounts of garments with fleece from Polartec were produced for Lowe Alpine. The big volume Attu fleece range boosted our production of outdoor garments. It was our first big fleece program - and Lowe Alpine remained our biggest customer for several years. The machine acquisition was a landmark event for the gradual shift from the fashion industry to the outdoor sports industry.

Since then, Spectre has built and gained industry and product specific knowledge and knowhow for for almost 25 years, adding layer after layer of competences. End of the nineties, the Auce factory was expanded and it has been gradually renovated and improved..

In 1999-2000 a garment factory was built in Latvia for the Icelandic outdoor company 66 North. The idea was to run the factory as a long-term production partner but instead Spectre ended up selling the factory to 66 North.

In 2003, the 2nd generation of the Klausen family, Jacob Klausen and Jesper Klausen, took over the company and continued the internationalization of the company and the specialization within the outdoor sports segment. Jacob started in the company year 2000 and Jesper 2001. The same year the factory in Kalnciems was established on the ruins of an old Soviet brick factory.

The heritage as a circular knit fashion manufacturer – and later functional garments – means that Spectre has a wide range of sewing machines allowing the manufacturing of all types of functional garments.

In the beginning of the 00’s the production of softshell jackets began and shortly after in 2004 we started cooperation with Mammut Sports Group in Switzerland with whom we had a thriving cooperation since then. In the same year the first special technology department was established.

Originally founded by climber Greg Lowe and his brothers Jeff Lowe, a famous alpinist, and Mike Lowe

Polar fleece originated in Massachusetts in 1979 when Malden Mills, (now Polartec LLC), and Patagonia developed Synchilla (synthetic chinchilla).[2] It was a new, light, strong pile fabric meant to mimic—and in some ways surpass—wool.

LoweAlpineAttujacket

JeffLowe

STDepartment

JacobandJesperKlausen

MammutUltimateHoodyJacket

Heritage / History - The Spectre Basecamp -

In 2005, Spectre opened it’s 3rd branch in Rezekne, Latvia, to increase production capacity and the same year Spectre developed ultrasonic cut and heat glued pockets on a softshell jacket for the German company Grip under the Tagoss brand. Shortly after, The Ultimate softshell jacket range in Gore Windstopper fabric was developed for Mammut using the same technology, and this kicked off a substantial growth with Mammut the following years. The Ultimate range still exists today in the 3rd generation.

The introduction of the softshell product marked the completion of our focus on developing and producing high quality functional garments in primarily knitted fabrics and hybrid fabrics according to the 3-layer principle: Next-to-skin (base layer), Insulation (mid layer) and weather protection (outer layer).

Since then, numerous advanced manufacturing equipment has been added and today, the machine park includes also laser cutting, ultrasonic cutting and “sewing”, hot air bonding machines, seam sealing technology, various heat pressing technologies, “fleece shaving”, automated quilting machinery etc.

In an effort to pursue a cost efficient production, Spectre has continuously invested in modern and advanced machinery. A milestone was the implementation of a fully automated cutting department in Latvia in 2008. Since then, all Spectre’s factories have been adopting this technology.

Ultrasoniccutting

Autoquilting

Autocutting

The Kalnciems factory underwent a major renovation and expansion in 2011 and the energy profile was improved substantially.

In 2010 the first Spectre garment manufacturing in Vietnam was established in a joint venture with a local business partner. After a rapid growth, a new fully owned company was established end of 2015 followed by the construction of an entirely new manufacturing facility in 2016.

The factory was built under strict consideration of occupatioinal safety of the construction workers. With insulated walls, thermo-glass and air conditioned premisis the factory is a modern and efficient workplace.

In 2017 we celebrated our 35/70 years Anniversary. 35 years since Anny & Evald Klausen took over the company and 70 years since Thomas Poulsen founded the company. At the same time, this was the year of our 25th anniversary in Latvia.

In 2019 our long time plant manager for the Auce plant, Aija Vezuka, retired, and we took over her minority share part (19%), and transferred all production activities to Spectre Latvia.

Throughout the years, vast amounts of resources have been invested in the training and education of employees on all levels of the organization.

SpectreLatvia,Kalnciems

SpectreVietnam,jointventure

Dinnerwithlongtimefactory directorAijaVezuka

I M E L I N E

Company established by Thomas Poulsen, former mayor of the textile town, Ikast. The original factory was started in the basement of Thomas Poulsen’s and his wife, Meta Poulsen’s basement.

19 91

Constructing of new factory in Ikast. Our HQ is still located here.

Spectre receives Export Pioneer Award.

Subsidiary established.

Kabooki A/S: Children’s clothing collection based on licence agreement with LEGO Company.

Generational change: Company taken over by Anny and Evald Klausen.

Subsidiary established: DRIVE A/S. Together with the former All England badminton champion, Morten Frost, (who spent twelve years in the top three of the world rankings), Spectre established a company based on the business idea of developing and selling of individually designed, high-quality corporate wear.

Product strategy changes gradually from fashion and leisure wear to leisure wear and functional garments. Production start of garments based on Polartec’s innovative polyester fleece.

Production outsourced to Latvia through the takeover of a large, state-owned garment factory. Later the Auce factory was renamed to EK Auce (Evald Klausen).

Kabooki A/S sold to Brandtex Holding - focus on core business.

Latvia: Expanding and renovating the factory in Auce.

Generational change: 2nd generation of Klausen family, Jacob Klausen and Jesper Klausen, takes over the company.

Production of softshell jackets begins.

Production of now legendary product Houdini Power Houdi Jacket in Polartec Powerstretch fabric began.

Latvia: Constructing new garment factory in Kalnciems on the ruins of an old state-owned brick factory. The factory was established under the name Pionieris 2 and later changed to Spectre Latvia

Latvia: The first jacket with ultrasonic cut and heat glued pocket was developed for Customer Grip under the Tagoss brand. Special technology department was established to support the softshell production, including heat pressing machinery, punch press and ultrasonic cutting technologies. Cooperation with Mammut begins the same year.

25 years anniversary of Klausen family company takeover + 60 years anniversary of company establishment.

Production of technical t-shirts and underwear begins.

Latvia: Third Latvian production unit established in Rezekne. Pattern making office established in Riga.

Donation of furniture and toys to local kindergartens in Latvia.

Latvia: Automatic cutter system implemented. Substantial increase of flatseam capacity.

Production output exceeds 500.000 garments.

Latvia: Laser cutting technology implemented.

Vietnam: Cooperation with Vietnamese partner started.

Spectre becomes member of UN’s Global Compact.

Latvia: Hotair bonding technology for innovative garment solutions implemented.

Ground-breaking technology for new laminated details in knitted fabrics developed.

Vietnam: Joint venture company established.

Special technology department established including heat pressing machinery, punch press and ultrasonic cutting.

Laser cutting machine implemented.

Fully automatic cutter system implemented.

Latvia: Production start of technically advanced Mammut Eiger Extreme collection.

Vietnam: Implementing LEAN system in production.

CSR reporting implemented as an integral part of the group annual report.

We started designing our first Spectre collection styles 2009 which were launched 2010. Since then it has been an important part of our product innovation strategy.

Latvia: Social certification according to SA8000 standard. Implementing LEAN system in the production.

New product segment: quilted jackets and seam sealed jackets.

Vietnam: Construction begin new production building to expand capacity. Selling shares in joint venture company to local partner.

Latvia: Environment certification according to ISO14001:2015 standard.

New product segments: 3-layer hybrid jackets and outdoor softshell pants.

Latvia: Quality certification according to ISO9001: 2008 standard.

Introducing high-frequency welding technology.

Vietnam: Social certification according to SA8000 standard.

Production output exceeds 1 million garments.

Preparation of new strategy plan including 3-year growth plan.

“Supplier of the year” award, 3 consecutive years 2016-17-18 by customer Schöffel.

Latvia: Factory renovated and expanded with improved energy profile.

Vietnam: Introducing new technologies and expansion of special technology department.

Establishing second and 100% owned production unit in Vietnam.

We started with our first Bike- and Running customer; Gore Bike & Running.

Spectre awarded Best CSR performance by customer Schöffel

Spectre awarded Gazelle by business newspaper “Børsen”

35 years anniversary of Klausen family company takeover + 70 years anniversary of company foundation. Anny Klausen donated sculpture to company.

Vietnam: Opening of new factory building and substantial increase of capacity.

Social certification according to SA8000 standard. Quality certification according to ISO9001:2015 standard.

Environment certification according to ISO14001: 2015 standard.

Latvia:

Started with our first Canadian customer; Arc’teryx.

Production output exceeds 1,5 million garments.

Launching new strategy plan: “Next-level strategy - Towards 2020-22”.

Begin of direct export to US market for high-end hunting brand Sitka.

Planning implementation of GORE-TEX technology. The journey continues: Further expansion with new custormers, new products, new technologies and new jobs.

The Spectre Way

OUR JOURNEY TO THE SUMMIT - NOT JUST TO BE GOOD, BUT TO BE THE BEST

Merger of Latvian factories under “Spectre Latvia” name.

Spectre at a glance

› Private label manufacturer of 1st layer, 2nd layer and 3rd layer garments for outdoor sports and activity

› Two-string production platform with own production set-up in Eastern Europe (Latvia) and Asia (Vietnam)

› Sustainable and certified production facilities with focus on both working environment (SA8000) and external environment (ISO14001)

› High quality garments and professional quality management system (ISO9001)

› On-time deliveries based on seasonal planning with customers

› Competitive pricing

› A creative partner offering innovative solutions, technical knowhow and extensive sourcing network

› Advanced production technology and Continuous Improvement methodology

› Strategic customer partnerships

› Close communication, personal presence and proactive behavior

› KAM function and customer team setup

› 100% family ownership

Production and business Development

Headquarters Ikast, Denmark

Production Latvia Kalnciems, Rezekne, Aizkraukle and Auce

Production Vietnam Nam Dinh City

Spectre CSR Model

Spectre CSR Model

Planet ISO14001 certification, ongoing investments in energy savings and green energy solutions, waste management, bluesign vendors

People SA8000 standard including Social Fingerprint, good physical working environment, employee satisfaction survey

Anti-Corruption Policy implemented

CSR strategy: The 4 corner stones

Reporting

Global Compact, newsletters and website, annual CSR report, transparency policy

Mission

- The Spectre map -

Our journey continues

NOT JUST TO BE GOOD, BUT TO BE THE BEST

Dedication

- The Spectre way of passion -

- The Spectre partnershipValues - The Spectre passion -

Vision

THE SPECTRE ICONS Responsible

- The Spectre way of caring -

Integrity

- The Spectre way of credibility -

Heritage / History

- The Spectre basecamp -

Proactive

- The Spectre way of being ahead -

- Specialized manufacturer of functional garments -

WALL OF FAME

2007:

2007:

2007:

2012:

Mammut 150 peaks project and Spectre present “The Mammut Route” scuplture to Mammut 150 years anniversary

2013:

2015:

Company founder Thomas Poulsen’s original Beetle on display for anniversary celebration

Annirversary wine from Serafini & Vidotto

Anny and Evald Klausen at 60/25 anniversary party

2009: Latvian president couple Valdis and Lilita Zatlers visiting Auce factory

Visit by Danish industry minister, Mogens Jensen

2014 Company Day with team building

Participation in Riga Maraton

2015:

2015

WALL OF

2018:

2017:

2017:

2017: Catherine Middleton duchess of Cambridge wearing Schöffel fleece vest produced by Spectre

2015: Daniel Craig as James Bond in Spectre movie

Company day with team building, Halong Bay, Vietnam

Spectre company celebrates lauch of James Bond movie “Spectre”

Ole Einar Björndalen and Darya Domracheva, are working for GORE® Wear as consultants and product tester of the new Gore XC (cross country) product line made by Spectre! They won 12 Olympic gold medals.

Inauguration of new Vietnam factory – visit by Danish Ambassador to Vietnam, Charlotte Laursen

Newspaper article about Spectre in connection with launch of James Bond Spectre movie

2015 Spectre 007 jacket

2016: Robbie Williams wearing Gore bike jacket produced by Spectre

OF FAME

2018: Team building event Spectre Denmark

2017 Company Day with team building

2017: R&D project. Latvian scientist on Greenland expedition wearing Spectre garments

2018: R&D project - Antarctica expedition

2018: Team building trip, Halong Bay, Vietnam

2019: Visit by Ikast-Brande major Ib Laursen

2019:: Riga marathon event, Spectre Latvia paticipation

The Spectre Way

OUR JOURNEY TO THE SUMMIT – NOT JUST TO BE GOOD, BUT TO BE THE BEST

Headquarters

Orionvej 1-3 · 7430 Ikast · Denmark +45 9715 6422 · mail@spectre.dk · www.spectre.dk