Dear readers,

Another year has passed since our last

December summit. Despite some several crisis and minor

slowdowns that we have witnessed throughout this year,

today the Pettinaroli family is very proud to announce

excellent results and very good performances of our

group!!

Notwithstanding the fluctuations of both the Euro and the

American dollar, our turnover keeps increasing: so far, we

are reporting a double-digits growth, overcoming even

the best expectations we made at the beginning of 2016.

To do so, we passed through many challenges: in some

mature markets we had to face a weak demand, but also

in a few emerging countries the gas & oil price dropped

consistently and caused a significant reduction of our

sales.

In view to strengthen our market position, we have

invested a lot as a group in terms of new products and

new market-segments, as well as new machines, and we

are ready to invest even more in 2017. All our sister-

companies have expanded their personnel in the sales

and service organization. In our Italian headquarters, we

have decided to increase considerably the number of

young workers in order to support the production and

reach the goal of a total turnover whose growth is now

close to 14%, whereas our valves-sector in Europe is

increasing only around 1.5% yearly.

Such excellent global results, obtained so far, come

mainly from new market-segments we entered thanks to

the proficiency of our RD and sales teams to create some

hybrid solutions which are based on existing traditional

products, like our FILTERBALL®, integrated in the new

tailor-made PCS kits for HVAC applications. These

innovative product ranges will represent a new core

business for the Pettinaroli Group in the upcoming

months and years. A very innovative patented project is

under study right now: in fact, we are working to interlink

a new smart valve with new sensors and actuators, to

better control the water flow. This project will be possible

thanks to a new generation of very innovative machines

controlled via internet and linked to a direct data entry

from the main markets , following the logic of the 4th

Industrial Revolution: the so-called Industry 4.0. The

results of these innovative projects and efforts will be

seen in late 2017 and 2018.

Today, the brand Pettinaroli has a strong reputation and a

very flexible production capacity. Hence, the challenge to

open new markets is still quite high, but all these results

would not be possible without a very dedicated and

complete commitment of our staff at all levels, the same

they have demonstrated throughout the last twelve

months, for which our family is deeply grateful. We would

also like to thank all our customers worldwide, for their

loyalty and trust motivate us to do our very best in order

to keep satisfying their needs in the best way possible.

Finally we would like to express our gratitude to all our

supporters, suppliers and shareholders who continue to

believe in our mission, supporting our vision day after

day.

Our very best wishes for a Merry Christmas and a Happy

New Year 2017!!

Ugo Pettinaroli – CEO

On behalf of the whole Pettinaroli family

- 1 -

The American eagle at

MOSTRA CONVEGNO 2016

In March 2016, from Tuesday 15th to Friday 18th, MOSTRA CONVEGNO

EXPOCOMFORT took place in Fieramilano (Italy), as it usually occurs

every two years. Pettinaroli exhibited with a large stand of 200 square

meters, located centrally in Pavilion 18 (C19 - D12), among other

national and international important brands of our industry.

The design of the booth was completely renewed in comparison with the

previous years. For the first time, in fact, the exhibiting area stood over a

pearl-white raised floor. A blue-cubic covered section placed in the

middle (with three internal meeting rooms, a kitchen and a cloakroom)

divided the total surface into two separate areas. On the left side there

were three large blue-painted panels illuminated with LED light, which

were displaying on both sides our six main product-families, respectively:

radiator valves and thermostatic heads, water and gas valves, manifolds

and underfoor heating’s systems, PICVs and kits, a balancing demo kit,

and finally the EvoSix system, exposed right on the frontal panel, as the

news of Pettinaroli 2016. Opposite, the right side was used as a

refreshment area for the visitors, with another display located at the

entrance. Unlike the others, such panel was fully red-varnished and it

was dedicated to our American colleagues, on the occasion of Jomar’s 50

Year Anniversary: the American valve-range was displayed on the back,

while the front side of the panel had a grey canvas in the middle, that

was initially empty at our arrival at the beginning of the show on

Tuesday morning. A local artist, Giovanni Magnoli (who came with us on

our bus the first day at the fair) worked tirelessly at the painting from 9

AM to 5 PM on Tuesday 15th

, right in

THE 8 SHOWS

OF PETTINAROLI GROUP IN 2016

ASHRAE SHOW – Orlando (USA)

January 25th - 27th – JOMAR GROUP

VSK – Utrecht (The Netherlands)

February 2nd - 5th – VEDOTEC

MOSTRA CONVEGNO EXPO COMFORT – Milan (Italy)

March 15th - 18th – Fratelli Pettinaroli S.p.A.

NPGA SHOW – Nashville (USA)

April 8th - 10th – JOMAR GROUP

The American crew with the painting. From left to right:

Wes Gossan (area manager of Jomar), Adam Stier (vice president of Jomar),

Noah Dinger (sales manager of Jomar) and Giovanni Magnoli, the painter.

- 2 -

front of hundreds of curious eyes, catching the attention of the visitors

and bystanders. At the end of the day, a bold American eagle stood

there, at the entrance of our Pettinaroli booth at the MCE, with a Jomar

T-100 valve, painted in translucence onto its breast. This was clearly a

great surprise for our American colleagues, Adam, Noah, Wes, Rich and

Eric, who came the first day at the Milano show with a few important

customers.

The painting was kept there until the end of the show. A week later, the

red panel with the “American T-100 Eagle” was shipped to the head-

quarter of Jomar in Warren (Michigan), where it is still kept today, at the

entrance of the main offices.

At MOSTRA CONVEGNO EXPOCOMFORT 2016 the realization of the

painting on Tuesday, March 15th

was wholly filmed with a fixed camera.

The full speed-up movie is available on YouTube at the following link:

Pettinaroli live painting @ MCE 2016 - Jomar 50th anniversary

ISH Beijing – Beijing (China)

May 30th - June 1st

HEITZ (Pettinaroli - Möhlenhoff - Maincor)

Feria Internacional de Bogotá – Bogotá (Colombia)

September 26th - 30th – THERMOANDINA Colombia

CHILLVENTA – Nuremberg (Germany)

October 11th - 13th – Pettinaroli A/S

ASPE SHOW - Phoenix (USA)

October 28th - November 1st – JOMAR GROUP

See you at our next shows in 2017!!

- ASHRAE SHOW – Las Vegas (USA)

January 30th - February 1st – JOMAR GROUP

- CLIMATIZACIÓN Y REFRIGERACIÓN – Madrid (Spain)

February 28th - March 3rd – Eurocobil

- ISH Frankfurt – Frankfurt (Germany)

March 14th - 18th – Fratelli Pettinaroli S.p.A.

- NPGA Show – Nashville (USA)

April 21st - 23rd – JOMAR GROUP

- VVS 17 – Odense (Denmark)

April 26th - 28th – Pettinaroli A/S

- ISH Beijing – Beijing (China)

May 18th - 20th HEITZ (Pettinaroli - Möhlenhoff - Maincor)

- REFRIAMERICAS – Panama (Panama)

June 1st - 2nd – Fratelli Pettinaroli S.p.A.

- FEBRAVA – San Paulo (Brazil)

September 12th – 15th – Fratelli Pettinaroli S.p.A.

- 3 -

The first

“Pettinaroli Middle East Convention”

One year has passed since the official opening of our Pettinaroli Middle

East desk-office, located at the 10th floor of a skyscraper along Sheikh

Zayed Road, in the heart of downtown Dubai.

In the last few years, in fact, our brand has been progressively

penetrating the Gulf markets, after the launch of our balancing product-

lines in 2009, thanks to the jointed efforts of our engineers and sales

team traveling to these territories. Besides persevering year after year

dealing with the distributors, the OEM’s customers, consultants and

contractors, we stated every year our presence in the Gulf by exhibiting

at the Big Five Show, the most important constructing fair in Middle East.

Hence, after having developed a certain know-how of such markets, at

the beginning of 2015 Pettinaroli family began nurturing the idea of

opening an office in Dubai, with the ambition to expand our business

throughout the spiral of many projects, mainly linked to the World Expo

which will be held in Dubai in 2020. The two major challenges at that

time were to find the right location and of course the right person. We

coped with the first issue after a few months, when Fratelli Pettinaroli

S.p.A. hosted a delegation of a few important operators (sheiks,

managing directors and purchasing manager of our industry) from the

UAE. Such incoming was organized by our “Italian Association of Taps

and Valves Producers” AVR together with IICUAE: the Italian Industry and

Commerce Office in the UAE. In Spring 2015, in fact, IICUAE had just

purchased a whole floor at 48 Burj Gate Downtown Dubai and was

willing to rent a few desks to any potential trustworthy Italian company

that aimed to invest in the UAE. The deal with Mr. Mauro Marzocchi

(Secretary General of IICUAE) for the desk-office was later signed in

autumn 2015. Moreover, Pettinaroli family identify in Mr. Umesh Nair

the right key-person to run our business in Middle East. Umesh is an

Indian HVAC Engineer, who had already worked with Pettinaroli before

2015, since he was employed for 8 years at Mustafa Sultan, our

distributor with exclusivity in Oman.

Throughout the last 12 months, many results have raised thanks to

Umesh and Pettinaroli Middle East. Recently, during our latest visit in

Dubai, Pettinaroli family have extended the contract for the desk-office

in IICUAE for the next two years.

OUR CURRENT BEST

REFERENCES IN THE GULF AREA

Project Name: AL HABTOOR CITY (3 HOTELS)

City: DUBAI (UAE)

Client: AL HABTOOR GROUP

Consultant: KHATIB & ALAMI

MEP Contractor: HABTOOR LEIGHTON

SPECON – DRAKE AND SCULL

Number of FILTERBALLs installed: 2008

Project Name: WINDSOR TOWER

City: DUBAI (UAE)

Client: AL SHAFAR PROPERTIES

Consultant: ARENCO

MEP Contractor: AL SHAFAR UNITED

Number of PICVs installed: 1400

Project Name: GLORIE MUTTAWAR

City: MUSCAT (OMAN)

Client: GLOBAL OMANI DEVELOPMENT &

INVESTMENT COMPPANY SAOC

Consultant: ATKINS

MEP Contractor: LARSEN & TOUBRO OMAN

Number of PICVs installed: 1512

- 4 -

Our desk-office in downtown Dubai. Wednesday, November 23rd 2016 when Pettinaroli extended the

agreement with IICUAE for two more years. From left to right: Giuseppe Ronchi (IICUAE), Mauro

Marzocchi (IICUAE), Ugo Pettinaroli, Luca Pettinaroli and Umesh Nair.

Having a foothold in Dubai thanks to this desk, for the first time this year

Pettinaroli decided not to exhibit at the Big Five Show. By the way, on

Tuesday, November 22nd

2016, we organized our first Pettinaroli Middle

East Convention, held in Conrad Hotel (Dubai World Trade Center), in

parallel with the fair. With this general summit we took couple of hours

to share the latest news, results and goals of the Pettinaroli Group, with

our best customers, not only from the UAE but also from other nearby

countries of Middle East; almost 20 people attended. The meeting room

was filled up with brochures, gadgets and a demo kit for the technical

demonstration. The convention was focused on both

commercial/strategical and technical issues, with special attention for

the Gulf area. It was certainly a successful event, which ended up with a

dinner in a nearby Indian-buffet restaurant.

Project Name: LANDMARK TOWER

City: DUBAI (UAE)

Client: LANDMARK GROUP

Consultant: ARCH GROUP

MEP Contractor: TRANSGULF

ELECTROMECHANICAL

Number of PICVs installed: 676

Finally, here below, a list of the best 10

ongoing projects in Middle East.

- 5 -

Our first DN15 prototype

Drafted in May 2015

EVOSIX: the history of our

six-way valve from 2010 to date

Paris, autumn 2010: complete renovation of the “Tour Decarts”, a tower

of 44 floors, that was built in the early 70s. For this project, 4.000 six-way

valves from Belimo ( ½" F) were installed. It was the testing ground for

the launch of our accompanying package, consisting of ball valves (about

8.000 pcs), ball valves with long neck (8.000 pcs), transition fittings

(24.000 pcs), flexible hoses from MRG ¾" M x ¾" M (16.000 pcs), flexible

hoses from MRG ¾" M x J.Guest fast-fit (16.000 pcs); all the articles had

spheroconical connections.

Moreover, in the same period we carried on the collaboration with

Belimo France, that was becoming step by step the market leader, trying

to promote complete packages with our fittings and their valves. In this

way we entered many projects, not only in France but also in

Switzerland.

Besides Belimo, our first contact with another six-way valve took place in

October 2014, when we heard the news that Giacomini was placing on

the market an alternative solution: a 1" M body, with the possibility to

reduce the Kv value by means of a ¾" M or ½" M unions. Hence, in

January 2015, we made in Pettinaroli an internal comparative analysis,

studying both Belimo and Giacomini’s six-ways, on the basis of the

availability in terms of technical documentation and actual products. A

few important points clearly emerged:

- The complexity of Belimo’s codes: for each single size (for

example DN15), Belimo had to manage 25 different codes to

control the Kv value.

- Giacomini’s idea to use different reductions to manage the Kv.

- Belimo’s idea of placing two O-Rings on the upper stem, one in

the intermediate part of the stem and two O-Rings also behind

the lateral seats, with the aim to reduce the operating torques.

Such case-study was put a bit on the sidelines

for a few months. Only during ISH Show 2015

(Frankfurt, March 2015) we developed a

stimulating contact with a potential OEM

customers which was interested in developing

with us a DN15 six-way valve. The management

and technical team of SAUTER Basel came on

our booth and gave us the possibility to initiate

a project for such a new product. During spring

and summer 2015, four important meetings

followed, which were held both in Pettinaroli

and SAUTER’s headquarters. During these meeting we officialized the

projects, carrying out the first tests, the costs’ analysis and developing

WELCOME!!

PETTINAROLI TRAINING ROOM

Precisely one year ago, in late Autumn 2015,

in our Italian headquarters we opened an

internal showroom, next to the production

offices, right at the entrance of our

assembling department. We decided to

name it PETTINAROLI TRAINING ROOM since

it is meant to “train” our personnel

worldwide (engineers, reps, consultants,

distributors, partners, etc.), thanks to a

direct contact with the products and with

the installations.

In fact, besides being equipped with a

projector, a screen, some school-benches

and all that is needed for frontal lessons, on

the plasterboard walls of the Training Room

we have installed our cooling and heating

systems. Such complete packages actually

simulates the behavior of our products in

real systems (except for the Immergas boiler

prototype that does not heat up the water,

although it really circulates in the

installation).

More specifically the total space of the

Training Room can be divided in three areas:

- PICV and PCS kits actually operating on a

series of fictional fancoil units;

- Radiator valves and thermostatic heads

operating on the radiators;

- Underfloor heating systems, whose coiling

pipes are visible through the glass on the

floor.

- 6 -

the first spheroconical prototypes. We soon introduced a brand-new

idea: the creation of a full set of interchangeable plastic rings to be sold

with the valve, in order to control the Kv value and to avoid the use of 25

different codes as Belimo does. Within the end of the year we had

everything ready in order to launch a mass production of our Pettinaroli

six-way valve, which was later named EvoSix, being included in our HVAC

product-range. The technical data sheet was prepared for all the versions

we developed in Pettinaroli during the previous months, together with

our 3 OEMs customers for such products: SAUTER, IMI-TA and Johnson

Controls.

The official launch of the Pettinaroli EvoSix on the market took place at

the MCE Show 2016 in Milan (March 2016), where we displayed the four

versions available right at the entrance of our booth:

63/2S - DN15 - kv. 1.25 - connections ¾" M cone 60th BS5200.

63/2F - DN15 - kv. 1.25 - connections ¾" M flat seat (chosen by

IMI-TA, SAUTER, Johnson Control, in which also Honeywell

seems to be interested.

63/2E - DN15 - kv. 1.25 - ¾" M euroconus connections (chosen

by IMI-TA).

63 - DN15 - kv. 1.25 - connections ½" female.

During that same period, we carried out the first deliveries to our OEM

customers, SAUTER and IMI-TA. However, the need for higher flow rates

arose soon. Also in this case, SAUTER supported Pettinaroli to undertake

the development of a DN20 valve, from spring 2016 onwards. We

developed a new kit of interchangeable plastic rings (green for the DN20,

while they were yellow for the DN15) and we managed to forge the first

batch of bodies and fittings before August shutdown. Conversely, at the

beginning, we had some problems with the spheres and the stems.

The new range of Pettinaroli EvoSix DN20 is now ready, as well as the

relative data-sheets. To keep pace with the market developments, we

provide a Kv = 2.8, reaching a Kv = 4 on a special female version. The

achievement of such a goal was not an easy task both for our technical

team and for our production. Anyway, today Pettinaroli is one of the few

producers which is able to offer to its customers (OEMs and end users) a

complete package and a wide range of solutions in terms of six-way

valves. For our DN15 version (Kv = 1.25) we provide 4 different technical

solutions (one female and three male versions: spheroconical, flat seat,

euroconus), both as a Pettinaroli standard or personalized for OEMs

(packaging, labeling, laser branding). The same thing goes for the DN20

version (Kv = 2.8). Moreover, for special applications requiring a Kv = 4,

Pettinaroli rigorously pushes the version ¾" F.

Our next goal in order to 100% complete our range of six-way valves, is

to develop a DN15 and DN20 with NPT-thread versions, for US/Canada

and for some South American markets. Work in progress… stay tuned…

crossing fingers!!!

FOR A STRONGER

TECHNICAL TEAM

We inaugurated our new Pettinaroli Training

Room at the beginning of 2016, soon after

the Christmas holidays, with a full-immersion

lasting a whole week. From Monday, January

11th

to Friday, January 15th

, in fact, our

partners from UK, France, Holland, Spain,

India and Dubai joined us, attending a two-

day class with focus on our “traditional

product-range”, plus three full days

dedicated to the HVAC systems (project

design, the features of our PICV and PCS kits’

range, the competition benchmark, how to

specify a product in the market, but also

some lab-tests and a simulation of the

commissioning on site).

Everything ended with a convivial dinner

with music in a local restaurant, where our

unique professor Eng. Martin Lowe was

awarded with a special dedicated song,

whose lyrics talked about…. PIVCs!!

Moreover, on Friday morning we ended the

week of trainings with a final test: all the

smart attendees successfully passed the test

and were awarded with a certificate.

- 7 -

Jomar Valve

CELEBRATING 50 YEARS

In July 2016, Jomar celebrated its golden anniversary with a party held at

the Detroit Yacht Club, the largest and one of the oldest most prestigious

private clubs in North America, located on a private island along the

banks of the Belle Isle Park in Detroit.

The attendees included the office/warehouse staff at Jomar and their

spouses or significant others: 51 people totally attended. Mrs. Elizabeth

Martin (vice-chairman of the board) was there, too. The evening

featured outdoor games, food, drinks, and was capped off by

entertainment from Go Comedy! Improv., a local sketch comedy theater.

SOME MARKETING UPDATES

Enjoying some yard games custom made by our very own Bryce Mainville.

Employees and significant others gathered to celebrate Jomar’s 50th Anniversary.

- 8 -

Paul Craig presents an award for 25 years of service to

employee Mike Moore

Employees and their significant others were also able to enjoy

spectacular views from the island along the banks of the Detroit river.

In addition, each employee

was honored for their hard

work and dedication, with a

special award presented to

Michael Moore for his 25

years of service in Jomar’s

warehouse. This great

milestone also gave us an

opportunity to reflect,

commemorate, and be

inspired to make an even

greater impact for years to

come. As we move forward,

we are determined to

continue the legacy that the

founder Joseph Martin left

behind.

Here’s to the next 50 years of Jomar Group!

ARRIVEDERCI DEAR DAN

Pettinaroli Group ends this year 2016 in

mourning. Dan Albert Blake (1950-2016),

senior vice-president of Jomar Valve, passed

away suddenly on Saturday June 25th. Dan

left an indelible mark on everyone he

touched during his long career at Jomar and

he will be forever missed.

- 9 -

40 years of Pettinaroli Denmark

with A BRAND NEW TEAM!!

This year Pettinaroli Group celebrates another important anniversary.

Our Danish colleagues are proud to ceremonialize 40 years of

unstoppable activity in the plumbing industry. A lot of things have

happened over the past four decades, since when the company was

founded in 1976 as Jørgen Pedersen VVS, later becoming part of the

Italian group Fratelli Pettinaroli S.p.A. in the year 2000.

Today, Mr. Jørgen Pedersen has passed on the responsibility of the

company to his son, Kim Pedersen, the actual Managing Director and

CEO of the Pettinaroli Group’s Danish division. But long before Kim took

the helm, he was already acting as an active part of the business. When

he was only 12 years old, in fact, he got his first paycheck from the

company; 100 Danish crowns were the initial amount of young Kim’s

monthly salary, a period during which he had the chance to develop a

deep insight into the plumbing industry.

Here below, there is Kim’s own report, telling about the first 10 years of

activity (1976-1986):

"The forbear of Pettinaroli

A/S started in a garage, in

Bellinge near Odense,

where my father, Jørgen

Pedersen, was approached

by two companies: Mora

Armatur AB and Fratelli

Pettinaroli S.p.A. In that

period, both groups were

expanding their commercial web and were looking for new, potential

export markets. Having started his career as Sales Director at Damixa for

the export, Jørgen Pedersen bravely embarked onto the entrepreneurial

dream of his life, becoming independent. On April 30th 1976 the firm

THE NEW ORGANIZATION CHART

OF PETTINAROLI A/S

- 10 -

Paul Craig presents an award for 25 years of service to

employee Mike Moore

Jørgen Pedersen VVS ApS Bellinge was born, with an agreement to

represent Mora Armatur AB in all the markets outside Sweden, as well as

representing Fratelli Pettinaroli S.p.A. throughout the whole

Scandinavian region. Like many other companies, Jørgen soon created a

consisted staff to be active and efficient on his territories. In the

beginning, the taps business from Mora occupied most of his time and

helped him raising the profile of the company, mainly because it was by

far a consumer-oriented product range and Jørgen’s marketing

campaigns were mainly focused on taps. Conversely, Pettinaroli products

lived a quieter start-up in Scandinavia: besides the technical issues, the

name "Pettinaroli" was simply too hard to pronounce for us Danes!! By

the way, also the technical side of my father’s industry was soon

established, mainly thanks to our flagship product: the ball valve with

the red handle. Such ball valve was just the first of many product ranges

which, step by step, allowed Pettinaroli to deeply penetrate and later

dominate the Scandinavian market. We have recently had a look at our

old catalogues, so surprisingly realizing how our products have been

evolved throughout these four decades: in those years, we had mainly

gate valves, check valves and ball valves marketed, but also unions and

radiator valves were already in our program. There were totally 48

products in the catalogue and, thanks to them, our sales grew steadily

over the years. Our location was just as dynamic as our products: in fact,

the company address was moved three times in 10 years. The garage of

almost 18 sqm in Bellinge was held until 1980. When the fifth employee

came in, our location was too small for everybody, so that we moved

soon to Vestergade 13 in Odense. It was the oldest building of the city

and the ground floor housed a restaurant. Jørgen Pedersen VVS lived on

the first floor and had archives on the third. Lastly, in 1986, the location

was moved in Holkebjergvej (Odense), where we had the opportunity to

become modern, entering into the IT era, which proved to play an

essential role for our business. In this way, we began the second part of

our story…”

Today Pettinaroli A/S is still investing and believing in people’s potential.

Only in 2016, 6 new “fresh and young minds” joined our team!!

- 11 -

The new Pettinaroli HVAC Products’ Catalogue 2016/2017

is now available in four languages

with a whole extended range

comprehensive of six-way valve, flexible hoses and new PCS kits’ configurations.

Pettinaroli Group – The Chronicles, Issue Nr. 2 will be available in March 2017.

Merry Christmas and a Happy New Year!!

- 12 -