Fulfillment ServicesINTERNAL USE

This is our footprint today, it is always changing and the following information is

meant to be used as a reference point, but it should never be looked at as a

roadblock as we have and can adapt our capabilities for the right client ...

15 fulfillment facilities. 11 are LG property.4 are sub contractors.

Los Angeles [2x]

Seattle

Calgary

Oslo

Budapest

Toronto

Buffalo

London

Groningen

Sydney

Hong Kong

Guangzhou

Auckland

Salt LakeCity

sub contactors

LG property

Overview of our facilities abilities

Calgary – CA

Toronto – CA

Carson-LA - US

Mira Loma-LA - US

Salt Lake City - US

Seattle - US

Buffalo – US

London - UK

Groningen - NL

Oslo - NO

Budapest - HU

Guangzhou - CN

Hong-Kong

Sydney - AU

Auckland - NZ

Warehouse acreage [ft²/m²]

5.550515

41.000

3.810-

50.000

4.650-

5.200485

30.000

2.790

27.300

2.535

91.495

8.500- -

2.690250

17.000

1.580

15.050

1.400-

Total warehouse storage capacity [# of pallets]

801.00

0120

2.000

- 185 435 4003.79

0- - 100 370 220 -

AVG # pallets in stock 2025%

40040%

5042%

120060%

- 6032%

25057%

25062%

--

- - 11%

32086%

15068%

-

Overall # of FTE’s 3 19 15 5 9 5 21 8 29 1 16 5 -

Kitting service available

yes yes - yes - yes yes yes yes - - no no no -

Temperature control (airco/heating)

yes yes no no yes no yes no no - - no - no -

Refrigerated zone no no no no no no no no no - - no no no -

Protected area for sensitive goods

yes yes yes yes no no yes yes yes - - no yes no -

Duties paid on: sales value *

Taxes and duties comparison for entry into the EU

there is no sale related to your items

you register in bulk into the EU

your items become communautary goods

your stock is in your country

VAT calculated on stock value

you pay

import VAT but you deduct it afterwards

NEUTRAL

you ‘use’

VAT deferment so you don’t

prefinance VAT

NEUTRAL

VAT

DUTIES

< €22 €22< €150 > €150

NO VAT

NO DUTIES

VAT paid on: sales value * + duties

VAT

DUTIES

< €22 €22< €150 > €150

VAT on Sales Value

N/A

you moveyour stockinto the EU

VAT/dutiesseller’s impact

N/A

Ordersin

you shipthe item

fromNON-EU

you movethe iteminto yourEU stock

VAT / dutiesbuyer’s impact

* + shipping up to 1st place of entry in EU + insurance up to 1st place of entry in EU

+ clearance fee

Duties calculated on stock value *

Lexicon of Mercury abilities:All-in service supported by Mercury:

• Easy integration with your ordering system Client’s orders are transferred to Mercury in real time

• Global orders management tool Client can follow the completion of its orders by facility in real time

• Kit SKU’s management Mercury allows the creation of kits 1 SKU composed of several SKU’s

• Lot / serial number control Mercury links each SKU with its production number in order to provide full

traceability• Real time global inventory

Inventory available 24/7 by facility• Detailed reporting features

Mercury allows creation of customized reports• Returns management incl. restock & refurbish

Depending on clients expectations, Mercury will know how to handle returns• Stock movements control

Allows follow-up of stock movements between facilities• Web-based, friendly interface, accessible from any computer, in any location

Allows the tool to be very user friendly

Who is the LG Fulfillment target client ?

The optimal client:

• Has a stable product range• Has a 4 to 6 months stock turnover• Has a product range of ideally 300 (or less) SKU’s • Has an average 3 to 15 SKU’s per order• Has easy to stock is merchandise

… meaning you can sell / we can fulfill almost everything ! except:• Complex / technical / outsized material• Hazardous goods or products requiring to meet strict storage standards• Fresh / refrigerated products

Mainly food supplements-neutraceuticals sellers but also fashion clients:

Who are LG Fulfillment current clients ?

• Intending to reduce their delivery costs and shorten transit times for cross-boarder shipments

Goods are conveyed in bulk (freight) to one of our hubs

We ship locally where their clients are !

• But could also be a young starting / fast growing company for whom costs

of warehousing would represents a barrier / too big upfront investment

Any prospect in mind ?Refer to the FSQ [Fulfillment Sales Questionnaire] in order to lead your sales speech:

Your prospect does not ‘fit’ in the targeted client profile previously shown ?

refer to PPM & Pricing in order to further analyze the client requirements and see whether we could fulfill his expectations !

FSQ will guide you through a sales speech with a fulfillment prospect. It is not supposed to

be sent flat to any of your prospects !