MANUFACTURER OF

FUNCTIONALGARMENTS

2

SPECTRE COMPANY

PROFILE

3

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

high-performance sports

› Two-string production platform – Latvia (Eastern Europe) and Vietnam

› Advanced production technology and Continuous Improvement methodology

› Sustainable and responsible production

› High quality garments ensured via professional quality management systems

› Entering into strategic partnership with our customers

› Innovation and R&D are part of our DNA

› 100% family owned

MISSION STATEMENTSpectre wants to be known as a trustworthy and innovative partner delivering on time in a high and consistent quality. We want to be on the front edge with new technologies and production methods in the search of the best product solutions.

The customers are to experience 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 production. Further, a close day-to-day communication as well as short, speedy and precise answers on customer enquiries and a proactive conduct are important ele-ments of our customer service.

Spectre is a Scandinavian company with a positive view on human nature. This is reflected through a marked CSR profile regardless of the geographical location of our activities. In short we believe that people are to be treated with dignity irrespective of nationality, age, gender and race. We want to create an attractive working place because satisfied employees create better results for the benefit of the working place, the employees and the customers.

› SPECTRE VIETNAM JSC Production unit Vietnam 55%

› SIA SPECTRE LATVIA Production unit Latvia 100%

› SPECTRE A/S Head office, Denmark

› SPECTRE GARMENT TECHNOLOGIES Production unit Vietnam 100%

› SIA EK AUCE Production unit Latvia 81%

Thecontinuous

improvementcycle

Process

PLANHow can the current

process be improved?

REVIEWHow are changes

working for the team?

IDENTIFYOpportunities in

the processor workflow?

EXECUTEImplement changes

4

CSR

5

Spectre wants to be the preferred partner for international outdoor brands with a high level of social responsibility.

Our CSR strategy consists of four corner stones:

› Environment

› People

› Anti-Corruption

› Reporting

ENVIRONMENTAs a manufacturer of products used by people enjoying nature, we do our best to reduce the environmental impact.

Resulting from being a garment manufacturer we leave environmental footprints. Therefore, we look into our value chain and production processes to identify how we can make the most out of our efforts in terms of reducing the environmental footprints.All our factories will be ISO14001 certified by end of 2016.

We have interesting long-term projects going on for recy-cling our fabric waste. Preferably the fabric waste should be recycled into our own production; alternatively supplying other production companies. We work with various part-ners and customers to find new solutions to the challenges faced by the garment industry. We wish to play an active and relevant role in transforming the outdoor garment industry into the mindset of circular economy.

PEOPLEAs a company we believe that employees spending a large part of their life working for the company are to be treated with respect and dignity. Further, a sustainable workforce is central to our business due to the labour intensive industry we are in.All our factories are SA8000 certified.

ANTI-CORRUPTIONIt is Spectre’s policy to conduct all our business in an honest and ethical manner. We have a zero-toleranceapproach to bribery and corruption. During 2014 we developed and implemented an anti-corruption policy.

REPORTINGWe wish to map and follow our environmental impact. From 2015 we are including a CSR report into our annual report. Further since 2010 we have been members of UN’s Global Compact and are reporting annually on our CSR activities.

6 7

RESOURCES

ADDED VALUE

HUMAN› 800+ employees

› Internal and external educational programs: Management training Quality management systems Social standards and H&S Technical/vocational Communication and customer service English IT Company values

From our viewpoint the perfect partnership is one that allows both parties to focus on their core competences:

› The customer’s competences are: brand building, design and distribution

› Spectre’s core competences are: production and quality management, services and technical product development

Besides the core product – the garment – we offer a number of services that add value to the cooperation.

› Sourcing: through our extensive, international sourcing network we actively suggest ideas for fabrics and accessories

› Timeline planning: we offer a professional dialogue and follow up closely on the project planning

› Communication and personal presence: we believe in close communication and face-to-face meetings in order to strengthen the cooperation. The better you know each other the better you understand each other’s needs

› KAM function & team setup to secure a good partnership and high performance

› Innovation: Own development of products, technical solutions and machines as well as OEM production and development

MACHINERY AND TECHNOLOGY› Pattern making› Cutting masters› Automatic cutting› Embroidering› Ultrasonic cutting› Laser cutting› Heat transfer printing› Pocket, zipper and gasket lamination as well as laminated

reinforced patches› Seam taping› Embossed motifs› High frequency welded motifs› Sewing (many special machines incl. flatseam and automated

sewing for quilt designs)› Sample making› Barcode design and printing› Steam pressing› Finishing and packing› Fabric inspection machinery› Quality audit inspection facilities

Our annual production capacity is >1,2 mio garments

› SAMPLE SEWING › PATTERN MAKING › MARKER MAKING

› LASER CUTTING › CUTTING › EMBROIDERING

› ULTRASONIC CUTTING › LAMINATION AND HEAT TRANSFER › SEWING

› FINISHING AND PACKING › WAREHOUSE › QUALITY AUDIT REPORTING

8 9

HISTORY1947Company established by Thomas Poulsen, former mayor of the textile town, Ikast.

1982Generational change: Company taken over by Anny and Evald Klausen.

1989Company receives award from the Danish Textile Industry:Export Pioneer of the year “Humlebien” (the bumble bee).Product strategy changes gradually from fashion and leisure wear to leisure wear and functional garments.Production of polyester fleece begins.

1991Subsidiary established - Kabooki A/S: Children’s clothing collection based on licence agreement with LEGO Company.

1992Production outsourced to Latvia.

1994Kabooki A/S sold to Brandtex Holding - focus on core business.

2002Production of technical t-shirts and underwear begins.

2003Generational change: 2nd generation of Klausen family,Jacob Klausen and Jesper Klausen.

2004Production of softshell jackets begins. Lamination depart-ment established including heat pressing machinery, punch press and ultrasonic cutting.

2005Third Latvian production unit established.Pattern making office established in Latvia.

2008Automatic cutter system implemented.Substantial increase of flatseam capacity.

2009Latvia: Laser cutting machine implemented.Vietnam: Cooperation with Vietnamese partner started.

2010Latvia: Hot air bonding technology for innovative garment solutions implemented.New flatlock seams developed.Ground-breaking technology for new laminated details developed.Vietnam: Joint venture company established.Lamination department established including heat pressing machinery, punch press and ultrasonic cutting.Laser cutting machine implemented.Fully automatic cutter system implemented.

2011Latvia: Factory renovated and expanded with improved energy profile.Vietnam: Introducing new technologies in the lamination department.Large increase of flatlock capacity and expansion of lamination department.

2012Vietnam: Implementing LEAN system in the production.

2013Latvia: Social certification according to SA8000 standardImplementing LEAN system in the production.

2014New product segment: 3-layer hybrid jacketsLatvia: Quality certification according to ISO9001:2008 standard.Introducing high-frequency welding technology.Vietnam: Social certification according to SA8000 standard.

2015Establishing 2nd production unit in Vietnam.

2016Vietnam: Construction begin new production building to expand capacity.All factories will be certified according to ISO14001 Standard.

10 11

PRODUCTS1ST LAYER: NEXT-TO-SKINNext-to-skin garments actively pull moisture away from the body, dry quickly, breathe and are comfortable on the skin. No matter what season, weather condition or activity, this is the most critical layer for comfort and performance.

The fabrics applied are available in a wide range of weights and styles for everything from extremely lightweight to lofted weight. Further, 4-way stretch garments offer a degree of stretch ranging from moderate for casual wear to supportive for performance. The 4-way stretch garments also cover all seasons with many different weights and finishes.

The fabrics are knitted in synthetic and natural fibers like poly-ester, polyester/wool mixes and natural functional fibers like 100% merino wool etc.

We have a large capacity of flatlock machines that are particu-larly relevant for this category of garments. We have developed several sub-variants of flatseams for differentiating the look and to ensure maximum wearing comfort. Lamination tech-nology can be applied for additional features.

12 13

PRODUCTS

2ND LAYER: INSULATIONThe purpose of the insulation layer is to ensure the body stays warm. The products are widely used for everything from mountain expeditions to jackets with more moder-ate user purposes. We develop a large variety of styles for visual differentiation and technical performance. This is achieved via the use of many different insulation fabrics with a variety of weights, finishes, looks and functiona-lity, eg. micro fleece, standard fleece, sweater look fleece, blended fleece (polyester/wool), high loft fleece, 4-way stretch fabrics with a smooth surface and fleece inside, 3-layer insulation w/woven face fabric and hybrids where fabrics are combined.

Insulation garments are trapping warm air pockets inside the fibers which keep the body warm. High loft garments trap more air than garments with less loft. We use high quality fabrics with low pilling to ensure the garments look nice when wearing them. Some of the fabrics we use are available with DWR (Durable Water Repellent).

We have a large range of special machinery allowing us to create many different seam types. Lamination technology can also be applied.

14 15

INSULATION

16 17

PRODUCTS

3RD LAYER: WEATHER PROTECTIONDifferent weather conditions require different garments with a varying degree of weather protection. The garments are water resistant and windproof or wind resistant.

Wind-proof softshell jackets and wind resistant pants often have knitted/woven nylon or polyester outer surface that provides excellent protection from snow and light rain, yet remains highly breathable. Other categories include 3-layer jackets with water resistant face fabric, a comfortable lining and a heat insulation as the intermediate layer. The weather protection garments can keep the body dry and comfortable in even the toughest weather conditions.

We are able to apply all garment categories with a variety of special features such as laminated pockets, zippers and gaskets and many different seam types for enhanced wearing comfort or a special look. In addition, we work with many different zipper and thread types depending on the functionality of the garment.

18 19

WEATHER PROTECTION

20 21

QUALITY MANAGEMENT

PRODUCT QUALITYOur product quality management includes all stages of the production process:

› Random inspection of raw materials

› All garments are trimmed and checked in the end control

› Systematic quality audit inspection (AQL) before shipment

› Operator responsibility

› Inline inspection

PROCESS QUALITYThe latest step within our quality management is the certification of our largest factory in Latvia according to the ISO9001:2008 standard July 2014. All remaining factories will be ISO9001 certified in 2016.

COMPANY VALUESEven more important is the quality consciousness of each individual staff member. Our aim is ensuring a clear communication and implementation of our company values throughout the entire organization.

In today’s competitive market quality management is a key parameter.Our Quality management is divided in three key elements: Product quality, process quality and company values.

Productquality

Processquality

Companyvalues

22 23

CONTACT

Denmark Latvia

Vietnam

PRODUCTIONThe production includes all processes from cutting to embroidering, special technologies, packing and quality control. Purchasing, sourcing, product development, technical documentation (BOM), invoicing and various administrative functions are handled locally by specialists at the factories.Further, a specialized and fully equipped sample department is developing patterns, prototypes, size sets and mock-ups.

PRODUCTION EUROPE: LATVIAFrom basic to highest technical level garments, great flexibility, small to large order volumes and short lead times are the main characteristics of our Latvian platform. The production is based on the latest developments in the fabric industry in EU and USA. In 2011 we invested in the construction of a new state-of-the-art factory and the renovation of existing buildings. Key benefits of this investment were an improved internal workflow, improved working conditions and a substantial reduction of the energy consumption. The transportation time from Latvia to any European country is 1-4 working days by truck.

PRODUCTION ASIA: VIETNAMFrom basic to highest technical level garments, great flexibility, medium to large volumes characterizes our production platform in Vietnam. The majority of the readymade garments are based on raw materials of a good standard sourced mainly from suppliers in Asia (China, Taiwan, Korea, Japan). Spectre Vietnam is located in the Northern part of Vietnam with Hai Phong as the main harbour. In 2015 we have established a new production unit and in 2016 we will begin the construction of a new production building. The transportation time door-to-door from Vietnam to Europe is approx 6 weeks by boat.

HEAD OFFICESPECTRE A/SOrionvej 1-37430 IkastDenmark

SALES AND PRODUCT DEVELOPMENTJacob KlausenP: +45 9715 6422M: +45 4021 9878S: jacob.klausen2E: jacob@spectre.dk

PRODUCTIONJesper KlausenP: +45 9715 6422M: +45 4129 2681S: jesperklausen1E: jesper@spectre.dk

SPECTRE A/SOrionvej 1-3 · 7430 Ikast · Denmark · Phone +45 9715 6422 · mail@spectre.dk · www.spectre.dk