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ANNUAL REPORT 2016

2016


supply chain roadmap

product roadmap

PRODUCTS 4

QES-SUPPLIER MANAGEMENT

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• INTERESTING FACTS ABOUT

• QUALITY 8

OUR PRODUCTS

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• ENVIRONMENT 8

• PORTFOLIOS & NOTEBOOKS

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• SOCIAL COMPLIANCE

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• WRITING INSTRUMENTS

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• VENDOR SELECTION 2016

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• BAGS AND TRAVEL

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• DRINKWARE 5 • UMBRELLA’S 5 • MOBILE TECH

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• TOOLS AND TORCHES

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PRODUCT PACKAGING

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• PRODUCT MANUALS

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• HARD GOOD COLLECTION

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TARGET VERSUS REALISED

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• PACKAGING 7 • TOXIC SUBSTANCES

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• PVC-FREE 7

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PRINTMASTERS 9 • 2016 FACTS

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communication roadmap

company roadmap

EDUCATE AND INSPIRE

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GREEN MESSAGE

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• TRADE FAIRS, PSI 2016

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OUR ROAD TO 2020

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• MARKETING, CATALOGUE

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MARKETING 2016

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GREEN OFFICE (RIJSWIJK)

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• CARS 12 • FUEL 12

GREEN OFFICE (RIJSWIJK)

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• REDUCE CARBON EMISSION

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• SAVING ENERGY

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• AIR-CONDITION 13 • COMPUTER 13 • LIGHT 13

RESOURCE SAVING

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• RE-USE & RECYCLE

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• PAPER 14 • WATER FAUCET

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• WASTE SORTING

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COMMUNITY PROJECTS

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• ZUID AFRIKAANS WATER

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• SAFE DRINKING WATER

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• TOOLS TO WORK

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• STUDENT ENERGYRACE

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• SUNSHINE PROJECT

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P A M D A O R T C PRODU

PRODUCTS 82 new XD Eco SKU have been added to the 2016 catalogues This makes approximately 40,5% of the total catalogue XD Eco (was 39,5%!!!) • 385 SKU are XD Apparel brand (0 new 2016) • 277 SKU are XD Design brand (21 new 2016) • 1191 SKU are Open items (295 new 2016) For XD Design we design the product in a manner that makes the product easy to take apart for convenient recycling of the separate parts. The absence of paint in the design results in a lower environmental impact once the disposal of (parts of) the product has become inevitable.

INTERESTING FACTS ABOUT OUR PRODUCTS In our strategy sustainability is not only about using ecofriendly materials, but also about usability and a long lifecycle. Per category you will find some interesting facts below.

PORTFOLIOS & NOTEBOOKS • All our portfolios come with a 20 Sheet FSC eco notepad • We started to change our notebook assortment with many introductions of reusable/ durable notebook covers. This way any A5 notebook can be placed into the cover and can be used for many years.

WRITING INSTRUMENTS • All our new pens from 2016 have 1200 meter writing length in comparison to the average 300 meter in the promotional market. Our pens on average write 4 times longer than others. This means that our pens are durable and will last over 2 years writing pleasure. • All plastic pens will be packed bulk instead of individually in a polybag. In 2016 we saved 800.000 individual polybags on pens!

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BAGS AND TRAVEL • Started a trial project in reducing polybags packing per bags on 3 items. In 2016 we saved 43.000 polybags in our range of bags. • Average polybag size 45 x 30cm x 2 (top and bottom) = 0.27m2 x 43.000 = 11610 m2 plastic saved. This is as much as 2 soccer fields of plastic bags. • All our bags we recently launched have a PVC free backing or Reach (ECO) PVC backing. This means in all of our bags we don’t use any harmful or environmental unfriendly plastic.

DRINKWARE • We added many reusable plastic water bottles in order to decrease the waste of PET water bottles from the shop. • These bottles are a huge success. More and more of our customers find that these type bottles create a positive awareness with the receiver. • We have added a range of biodegradable drinking products.

UMBRELLA’S All our newly added umbrellas have a fiberglass frame and ribs. This is more durable and storm proof. Due to the fiberglass our umbrellas will have a longer lifecycle. They can be used over and over.

MOBILE TECH • For all battery related items we require our factories to use batteries with a long lifecycle. All our powerbanks are tested frequently. We test to ensure longevity of the item, unlike many promotional item batteries that only work up to 10 times. • Another very simple but effective solution: We started using shorter cables for our powerbanks and speakers. Reducing the usage of PVC by 30%.

TOOLS AND TORCHES For our new developments in tools and torches we focus on new technologies like COB and CREE making longer lasting and less power consuming products. A COB light needs less battery than a regular LED light so over the lifetime of the item fewer batteries need to be used.

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P A M D A O R T C PRODU

PRODUCT PACKAGING All new XD Design drinkware will have a new gift box. Due to the use of a new material for the box we have been able to remove the inner box, reducing the paper use by 50%. If item safety can be guaranteed with a paper or cardboard packaging, we avoid the use of plastic bags or foam inlays. All plastic pens are delivered in bulk, using 1 plastic bag opposed to a polybag per single pen.

PRODUCT MANUALS Each new product will be reviewed, deciding wether a manual is needed or not. We aim to print as little manuals as possible. While designing the manual we are looking to use more images and pictures to reduce the size of the manual. Images and pictures also eliminate the need for translations in several languages, also saving paper in the production process.

HARD GOODS COLLECTION We continued product development with sustainable materials in the collection. • We have introduced 35 SKU’s of PVC-free bags. • We have introduced 4 SKU’s of PVC-free water cooler bags. • We have introduced 6 SKU’s of new water bottles, as part of our The Battle The Bottle campaign to reduce the amount of waste as a result of the use of plastic bottles. • We have introduced 3 SKU’s made 100% out of biodegradable PLA and 0% plastic. • We have introduced 23 SKU’s writing instruments with 1200+ meter writing length which will last over 2 years of writing pleasure.

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TARGETS VERSUS REALISED MATERIALS: A Vision2020 strategy means a permanent process of improving, testing and above all being inspired by the possibilities of new launched materials. Sometimes we find a replacement for existing materials, sometimes with the result to have taken the wrong decision. A process of trial and error so to speak. Like we mentioned in our previous report: We will invest continuously in the use of sustainable materials to remain at the forefront, using recycled, biodegradable or other environmental friendly materials (i.e. bamboo). Items need to be designed to be easily dismantled for recycling and/or re-use (second life). Target for XD Design 2016 Realized for XD Design 2016

40% 46%

Target for total collection 2016 40% Realized for total collection 2016 41%

PACKAGING: Target for XD Design 2016: Realized for XD Design 2016: Target for total collection 2016: Realized for total collection 2016:

80% 60% 40% 42%

TOXIC SUBSTANCES: Target for 2016 40% (of all our products contain no hazardous materials) Realized for 2016: 44%

PVC-FREE: Target for 2016 70% of all products are PVC free. Realized for 2016: 74%

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P A M D A O R N I A SUPPLY CH QES-SUPPLIER MANAGEMENT In 2014 we started with our factory audits based on three important elements: Quality, Environment and Social. We call it a “QES” audit. We follow the high level international 3rd party audit standards when we do factory audits: ISO9001 for Quality ISO14001 for Environment and BSCI for Social Compliance We select the factory for audit according to the following priorities starting with: • New Supplier • High Purchasing Amount • Factory Location combination • Key product / customer, etc.

VENDOR SELECTION 2016 We only select BSCI and SEDEX vendors with a clear vision concerning social responsibility. All our suppliers are monitored by our audits and factory visits by our product department. We don’t tolerate any waste and push for reuse of materials during the production process. Factories respecting environmental standards will work closer with Xindao going ahead. Factories that disregarding nature and the environment will be phased out from cooperation..For instance one of our bag vendors plants trees every order we place to give something back to the environment. His entire factory his surrounded with a nice forest.

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PRINTMASTERS (Printmasters is the Xindao printing company for promotional products) 2016 was the year of introduction of Printmasters Values – 3R – Respect, Responsibility and Results. We do everything with RESPECT for the customer, the environment, our colleagues and ourselves. We act responsible and assume RESPONSIBILITY in regard to customers, environment, ourselves and by doing that we will achieve the desired results.

2016 Facts • Our investment of approximately 150.000 EUR in a complete new line of processing screens has led to lower water consumption and a lower usage of chemicals in the process. • CTP (Computer to plate) leads to less usage of fluids (developer & fixer) in developing cliché, in comparison to 2015 the use dropt down with 27%. • Paperless production was implemented in 1 department (computer to machine setup). The paper use went up with only 9%. If you take a turnover growth of 35% into consideration this is a great achievement. • The percentage of water and energy consumption decreased. • The emission of VOC’s (Volatile Organic Compounds) increased by 0.02 % compared to 2015, related to the turnover growth, also excellent. • Recently Printmasters obtained ISO certification for Quality & Environment according to the latest version of the standards (ISO 9001:2015 & ISO 14001:2015) and also 18001 OHSAS – for health & safety.

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P A M D A O R Y N COMPA EDUCATE AND INSPIRE TRADE FAIRS PSI 2016 We introduced a digital magazine What’s New, as preview for our fairs. In this way we reduce our total quantity of printed catalogues step by step.

We reorganized our stand completely, reduced the size, optimized the use of samples and reorganized our staff at the stand. To be honest these are not majors steps, but it creates full awareness in the company at all levels. What are we doing and how we can create a low carbon footprint.

MARKETING We have already been reusing our stands at fairs for the past 7 years. For our local fairs we reuse the elements of our Main stand. Our stand construction team does not travel back and forth, but stay on location and drive back after dismantling the stand.

CATALOGUE PRODUCTION In June 2016 we decided to produce our catalouges in Romania instead of Slovakia. Reducing paper was one of our goals. Our second goal was reducing transport times. We have cut them from 3 days by road to 3 hours, an enormous decrease of the carbon footprint of catalogue production. The selected printing company operates according to the Environmental Management System ISO 14001:2004 standard and the Quality Management System according to the ISO 9001:2008 standard. Additionally, in 2011 this printer received the “Process Standard Offset” certificate based on ISO 12647-2 standard, issued by FOGRA and BVDM(German Printing and Media Industries Federation).

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MARKETING 2016 B2B Main 2015: 961 gr x 206.700 = 198.638 kg Winter catalogues 2015: 307 gr x 142.700 = 43.808 kg XD Apparel magazine: 161 x 4000 = 644 kg What’s New catalogue 480 x 3500 = 1.680 kg Totaal B2B 244.770 kg Main 2016 921 gr x 178.750 = 164.628 kg Winter catalogues 2016 333 gr x 108.100 = 35.997 kg Good Stuff Magazine: 428 gr x 10.000 = 280 kg XD Apparel magazine only online 0 kg What’s New only online 0 kg Total B2B 2016 200.905 kg

WEIGHT REDUCTION 2016-> 2015

43.865 kg

XD Design Main retail 2015 373 gr x 6.000 = XD Design Winter 2015 384 gr x 7.000 = Loooqs retail 2015 127 gr x 6.000 = Loooqs winter 2015 176 gr x 5.000 = Total

2.238 kg 2.688 kg 762 kg 880 kg 6.568 kg

XD Design Main retail 2016 161 x 5.000= XD Design Winter 2016 289 x 4.000= Loooqs retail 2016 279 x 5.000= Loooqs winter 2016 265 x 4.000= Total

805 kg 1.156 kg 1.395 kg 1.060 kg 4.416 kg

Weight reduction 2016 -> 2015

2.152 kg

TOTAL WEIGHT REDUCTION 2016 -> 2015

46.017 kg

Total weight paper in 2013 310.754 Kg Total weight paper in 2014 284.185 Kg Total weight paper in 2015 251.338 Kg Total weight paper in 2016 196.489 Kg

TOTAL REDUCTION

114.265 kg

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P A M D A O R Y N COMPA GREEN OFFICE, HEAD OFFICE RIJSWIJK For 2016 there have been few projects to report on. Most initiatives have started before 2016 and are either done or ongoing. Our focus is therefore shifting to other elements were results are still to be achieved, where changes can be made that will have a big impact on realizing our VISION 2020 goals. Sustainability does not merely focus on products or energy, for us the health and wellbeing of our employees is also essential. We are looking for long-term working relations and stimulate a pleasant and healthy working environment. Our company restaurant has lived up to the challenge to come up with a daily new menu, using fresh ingredients. Preferably EKO, biological or Fair Trade, but always fresh! • • • • • • • • • • •

Sustainable bamboo furniture Cradle-to-cradle carpeting LED lights in the ceilings with square panels Energy efficient lights which work on motion sensors in the rest of the office area (rectangular panels) – because they are energy efficient, they increase in brightness. Smaller LED lights in the toilets Recycled (and recyclable) garbage bins Special bin for recycling in the pantry (Paper and regular waste) Energy efficient coffee machines No-emission, energy efficient Multi-printers Dyson hand dryers (energy efficient and hygienic) The toilets have recycled toilet paper; the hand soap from the dispenser is 100% biodegradable and not tested on animals.

CARS In 2016 the percentage of Hybrid or Plug-in Hybrid company cars reached 60%. The remaining 40% is scheduled for an update in 2017 or 2018 ensuring we achieve our goal of 100% in 2020. FUEL The use of the DKV Climate Cards has been continued for 2016 keeping our fleet on the move while driving 100% CO2-neutral. We therefore continue to compensate our CO2-₂ emissions with every fuelling service. For more information about the projects see: www. myclimate.org We think this positive eco-balance strengthens our brand and our Vision 2020 goals.

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GREEN OFFICE, SHANGHAI OFFICE REDUCE CARBON EMISSION No more company cars. We have sold our two company cars, we encourage all our employees to take the subway and public transportation to reduce carbon emissions.

SAVING ENERGY AIR-CONDITION We don’t use air-conditioning at temperatures below 25ºC We don’t use the heater at temperatures above 22ºC The systems must be turned off when the last person leaves the office. COMPUTER We always turn off our computer screens when we leave the office for periods of up to one hour. If we leave for more than one hour, we shut the computer down completely. LIGHT We always turn off unnecessary lighting during office hours. When we leave the office we always turn off the lights completely.

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P A M D A O R Y N COMPA RESOURCE SAVING RE-USE AND RECYCLE CARDBOARD BOXES (NEW) We re-use and recycle the old boxes for express shipments. PAPER • We prefer double-sided printing • One-sided printed paper is collected for reuse • Waste paper is collected for recycling WATER FAUCET • Save water by using the water faucets for short periods. • Always turn the faucet off properly. • Always report a leaking faucet to HR Department immediately WASTE SORTING • There are three kinds of waste every day • Unrecyclable Waste • Recyclable Waste • Harmful Waste COMMUNITY PROJECTS Xindao Xindao organizes the Xindao Sample Sale twice a year. The proceeds of the July sale was divided among three charity targets REFUGEE CAMP KARA TEPE ON LESBOS (GREECE) ¤ 300 EXTENSION MDUMBI SCHOOL IN SOUTH AFRICA ¤ 300 REDUCE GLOBAL WARMING BY PLANTING TREES ¤ 300 The Winter sample sale was donated to: ‘ZUIVER AFRIKAANS WATER’ (RIJSWIJK OFFICE) This is a project close to our heart, we have supported “Zuiver Afrikaans Water” for many years now. The turnover of our Xindao Sample Sale is donated twice a year (for a total amount of ¤ 2800 in 2016) and we donate gifts for Zuiver Afrikaans Water to use for their “Cadeautjesmarkt”, an activity that is similar to our Sample Sale and aims to generate as much money as possible!

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“SAFE DRINKING WATER FOR 6587 ADULTS AND CHILDREN THANKS TO OUR DONORS� Every time we install new water filtering equipment in a village, we make sure to educate the children. We teach them about rain, surface water and the actual pumping up. The water is filtered through two (carbon) filters and has magically become the healthy pure water. At every school, water managers are trained to do maintenance on the equipment. It is clear that all children are also educated on the importance of personal hygiene. Implementation, training and teaching are done by two local South African companies. Our advisors check on these projects regularly. At the moment the activities are focussed around (rural area). Up to now we have given over 6587 people access to clear drinking water, and the numbers keep going up. If you are interested in this project and like to check how it works, the website is now also in English http://www.zuiverafrikaanswater.nl/home.html

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P A M D A O R Y N COMPA TOOLS-TO-WORK (RIJSWIJK OFFICE) As part of Xindao’s 30-year celebration in 2016, we have spent an afternoon assembling bikes. Now everyone at Xindao knows how. Via this activity we provided 16 bikes and a financial donation to Tools-to-Work for their projects in various countries in Africa. The bikes will soon be shipped to various projects in Sierra Leone. An earlier shipment of bikes was sent to schoolchildren in Kenya to make their commute from home to school much quicker and easier. Tools to Work is a charitable organization which on one side helps people who have ended up ‘outside’ society (for example ex drug-addicts or people who are physically or mentally challenged which makes a regular job impossible) to re-integrate into a suitable job by repairing items such as sewing machines, tools, bicycles etc. to be re-used; on the other side they provide these repaired items to people in countries where there is great difficulty in creating an independent livelihood due to a lack of transportation or where tools are scarce.

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STUDENT ENERGY RACE (RIJSWIJK OFFICE) Xindao supports this student initiative every year with a donation of some shower coaches. This is a successful item in our XD Eco product range to help users limit their water use. The number of students participating in this Student Energy Race is growing every year, supporting the thesis: Energy saving is an important issue among students.. We are happy to support the next generation of world inhabitants in their continuous strive to reduce the use of natural resources. SUNSHINE PROJECT (SHANGHAI OFFICE) We have continued to support the “SUN SHINE PROJECT” as our social community project in 2016. A group of employees visits the “Sun Shine Home” on a monthly basis. Most of the patients here are mentally challenged, so even though they are 20-30 years old, their level of intelligence can be compared to that of small children. We teach them singing and dancing and play games with them. This is really a happy morning, not only for the patients, but also for our staff. Due to their disability they face diffculty in life; they cannot go to school or enjoy a normal life by themselves like we all do. Their parents do not have time to take care of them during working days, so they are sent to ‘Sun Shine Home’. There three teachers take care of them and we visit with a team every month to make their lives a bit more ‘fun’.

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P A M D A O R N O I T A COMMUNIC

COMMUNICATION ROADMAP GREEN MESSAGE Through our packaging, product labelling and our manuals we help our customers to bring our green message across to the consumer. These means of communication give us the unique opportunity to communicate directly with the end-consumer and to educate and inspire them to also mind the environment. Creating awareness and trying to influence environmentally friendly behavior is just one thing in which we can try and make a difference. Luckily the world is changing; one step at a time. More than ever decision makers are realizing that our environment counts. In the past sustainability was a bonus, nowadays sustainable business is a must. Xindao has always been on the forefront concerning sustainability in our industry. We strongly believe that the lifecycle of a promotional item or gift can be much longer. To achieve this, the item must be highly appreciated by the receiver. In our collection we are constantly looking for innovative products, made of new durable materials with a high perceived value. Of course our focus is not merely on our products, where we continuously try to create improvements. Also in our communications we are investing in new available techniques. We are constantly looking for new and unique digital formats to promote our items. Our online ‘What’s New’ magazine is a good example. A trendy interactive instrument for our distributor! Another good example is the QR label in all XD Apparel jackets. On the label is a QR code that leads customers to a product movie about the unique production process for these sustainable jackets. You can watch the movie via the QR code or on www.xd-apparel.com.

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ANNUAL REPORT 2016 This is the annual report 2016 (only digital of course) in which we communicate the progress made along the road to 2020.

THIS IS OUR ROAD TO 2020, AND WE ARE CONVINCED IT IS THE RIGHT ONE.

product roadmap

supply chain roadmap

company roadmap

communication roadmap

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2015

XD Vision 2020 - Annual report 2016  
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