Ricoma Insights Quarter 1 2021

1st QUARTER • 2021 EDITION RICOMA LAUNCHES FIRST 20-NEEDLE EMBROIDERY MACHINE IN U.S. THE MT-8S IS FINALLY UNVEILED AT DECOSUMMIT FEATURING RICOMA! DISCOVER WHERE RICOMA HAS RECENTLY BEEN FEATURED The Future of Machine embroidery RICOMA INSIGHTS PUBLICATION • ISSUE 00012

As we make our way through 2021, I am pleased to announce that our customers are reporting top notch success thanks to the innovative technology and support offered at Ricoma. We continue to lead the textile and garment decoration industry with the first and only 20-needle embroidery machine, available in single and multi-heads. Along with a successful showing at DecoSummit in March, I am proud to say that Ricoma has contributed towards a recent increase in small businesses across more than 160 countries. Over the last few months, we have seen record-breaking sales among our commercial and semi-commercial embroidery machines, high-quality heat presses and so much more. Future business owners continue to take full advantage of Ricoma’s innovative technology and unbeatable customer service and support. Each and every day, we work to fulfill our mission to help custom apparel business owners achieve success within their first year of business. I strongly believe that as 2021 progresses we will continue to see record growth as we strive towards ultimate technological optimization and innovative products to shape the future of the textile and garment decoration industry. With each new advancement, upcoming product release and engaging community event, we are able to stay miles ahead of our competition and one step closer to becoming the go-to brand for business owners looking to start or expand their custom apparel and accessories businesses. Sincerely, FRANK MA Founder & President

1st QUARTER • 2021 EDITION In This Issue... You can read through the News and Events section to get the latest updates on the embroidery industry and Ricoma. Check out the Features section to get professional machine embroidery tips and insights. Finally, dive into the Profiles section to read exclusive interviews with Ricoma staff. FEATUREs News + Events 2 DECOSUMMIT 2021 RECAP Learn why Ricoma's second annual custom apparel conference was a huge success! 4 RICOMA LAUNCHES NEW ONLINE SHOP Explore the new user-friendly interface 5 RICOMA UNVEILS INDUSTRY'S FIRST 20-NEEDLE EMBROIDERY MACHINE Discover the new MT-8S 20-needle embroidery machine series 6 RICOMA ATTRACTS NEW CUSTOMERS AT CONFERENCE IN CHINA Learn how we inspire buyers to start their own custom apparel businesses 10 FEATURING RICOMA! Discover where Ricoma’s content has recently been featured 7 THE FUTURE OF MACHINE EMBROIDERY Find out what new machine trends are leading the embroidery industry 10 YOUTUBE ROUND UP Check out Ricoma’s best videos to kick-off 2021! PROFILES 12 DISTRIBUTOR SPOTLIGHT Meet Alex Yakymovych from Ricoma-Ukraine 13 EMPLOYEE SPOTLIGHT Meet Mr. Wang Qiangguo, Ricoma’s Production Supervisor 14 UPCOMING EVENTS

DecoSummit 2021 Recap Learn why Ricoma's second annual custom apparel conference was a huge success! From March 25-27, guests were able to get hands on Day 2 and 3 were held at the Hilton Miami Airport Blue experience with Ricoma machines and receive advice Lagoon Hotel located in Miami, Florida. On these days, from industry experts at Ricoma’s highly-anticipated attendees could choose from different workshops or custom apparel conference, DecoSummit. interactive activities such as heat-pressing their very own Day 1 started at Ricoma’s Miami headquarters, where guests DecoSummit t-shirts. Guests could also spend their time attended training sessions with our onboarding trainers to in our digitizing room to learn how to use our Chroma get hands on experience with our machines. Product demos software, or choose to attend a cap embroidery or t-shirt also took place so that guests who wished to invest in a printing class. Ricoma embroidery machine could see what the machines were capable of first hand and make an informed purchase. In addition to the many workshops, there were also guest panels held by industry experts. Prominent figures like Ricoma’s very own CEO, Henry Ma, the embroidery coach, Joyce Jagger, and t-shirt business expert, Gary Ajene shared their knowledge about embroidery and their success in the custom apparel industry. 2

Attendees were also excited to learn about Ricoma’s U.S. One of our VIP guests, Rolando, who is a small business release of the 20-needle MT-8S series. Now, the U.S. owner, said that “DecoSummit proves Ricoma excels at market will have access to the 1-head, 2-head and 3-head customer service.” This is thanks to all the staff on site MT-8S models. during the event who made sure our guests were well taken The best part for our guests was being able to speak with care of and had a positive experience over the weekend. others in the industry and network with the broader At the close of the event, Ricoma raffled a HoopMaster Ricoma community. starter kit, an all-in-one hooper and a Ricoma heat press to three lucky guests. 3

RICOMA LAUNCHES NEW ONLINE SHOP Explore the new user-friendly interface To kick off 2021, Ricoma launched its new online Customers have also used our new website to purchase or shop. The new user-friendly interface has been upgrade Chroma, our in-house digitizing software, which is well-received by our customers. Using the site’s designed to allow both the novice and experienced digitizer simple and categorized navigation tools, our customers are to create intricate, custom designs with ease and speed. finding it easier than ever to grow their businesses with With easy access to written and video content, it’s easier industry-leading products. than ever for our customers to learn new skills and expand The update comes with new detailed information, including their businesses. descriptions, specifications and customer reviews, for all of Experience the new and improved shop now at our products. Since the website’s launch in January, we have shop.ricoma.com. seen a huge increase in sales for our heat presses, sewing machines and embroidery accessories. 4

RICOMA UNVEILS INDUSTRY'S FIRST 20-NEEDLE EMBROIDERY MACHINE Ricoma continues to lead the custom apparel and 270-degree cap rotation, a new needle path key and network decorated garment industry with its release of and Wi-Fi capabilities, this machine has optimized the first and only 20-needle embroidery machine. embroidery production. The MT-8S, available in one, two and three heads, hit Other notable features include the machine’s high- U.S. markets earlier this year and was met with extreme definition, true-color 8” LCD touchscreen control panel. enthusiasm from business owners looking to cut their Business owners are loving the panel’s brand-new 3D design production time in half. function. While other embroidery machines require laptop With 20 needles at their disposal, MT-8S owners can not connectivity, Ricoma’s 8S panel comes standard with a only embroider caps, flats, bags and more at speeds of up built-in file management system capable of storing up to 20 to 1,200 stitches per minute, but can also calibrate specific million stitches, or approximately 200 designs. Unlike its needles for cap embroidery, small lettering and knits to competition, this state-of-the-art machine also boasts Wi-Fi reduce setup time, increase profitability and maximize connectivity and advanced network technology, offering our productivity—all without compromising quality. customers the ability to link together stand-alone Ricoma The revolutionary three-head model, the MT-2003-8S, is machines to increase on-demand flexibility and versatility. the first of its kind and has helped decorators to expand Complementing these features is the MT-8S' large work their custom apparel businesses across the U.S. Thanks to area, complete with extra-wide clearance, perfect for new features, including better thread break detection, embroidering large and bulky items, including bags, totes, towels and drapery. This high-quality machine is also equipped with a small sewing arm capable of embroidering on small surfaces like caps, shirt cuffs and other tight areas. With the addition of the MT-8S to our inventory, it’s no wonder why Ricoma is viewed as one of the top manufacturers of high-quality embroidery machines in the U.S. For more information on Ricoma’s lineup of commercial and semi-commercial embroidery machines, visit www.ricoma.com. 5

RICOMA ATTRACTS NEW CUSTOMERS AT CONFERENCE IN CHINA Learn how we inspire buyers to start their own custom apparel businesses From March 17-20, Ricoma attended the 2021 South Ricoma continues to make every effort to ensure product China International Sewing Machinery & Accessories quality, exemplary customer training and support, customer Show at the Shenzhen International Convention and satisfaction and business success. Driven by innovative Exhibition Center in Bao’an District. technology, Ricoma’s ultimate goal is to create the best value Our state-of-the-art products, ranging from single-head for customers all around the world! and multi-head embroidery machines to heat presses, attracted customers from across the textile and personalized garment industries. Future customers were introduced to our friendly staff and experienced the capabilities of our products first-hand. Using deep industry knowledge, our team provided troubleshooting solutions and conducted on-site demonstrations to instill a lasting impression on those looking to start or expand their custom apparel businesses. After four successful days, we deepened the recognition of the Ricoma brand by solidifying existing customer and distributor relationships and discovered a huge number of interested buyers. 6

The Future Of Machine Embroidery Find out what new machine trends are leading the embroidery industry Are you ready to take a glimpse into the future of Why Multi-Needle Machines are Taking Over machine embroidery? As embroidery experts, we’re able to identify the latest trends and foresee the new technology that will undoubtedly change the industry as we know it. We’re excited to share our insights on how these trends mold the embroidery industry and the machines we create. Machines of the Future Over the years, the limitations of single-needle machines in running a business have become apparent, and more and more small business owners have realized this. You can even see what Ricoma CEO, Henry Ma, has to say about the topic in this episode of Apparel Academy. More Heads are Better Than One To start, what types of machines actually encompass the Multi-head machines have become the best way of scaling future of machine embroidery? even home-based embroidery businesses because of how The machines with the latest advancements in the efficient they are at increasing productivity. embroidery industry are multi-needle machines and Even though multi-needle and multi-head machines are multi-head machines. These types of machines help bring definitely influential trends in the embroidery industry, in the most profit, increase productivity and enhance there’s still one big aspect left to cover: panel features. user experience. 7

Features, Features and More Features The 8S high-definition touch screen panel has higher graphics that enhance the 3D design view so you can see your design preview in more detail. Built-in File Management System The number of needles and heads are not the only things on The file management system lets you sort and organize the rise in the embroidery industry; the number of features all the embroidery files you have saved on your machine’s and functions a machine can perform has also increased. memory. This makes it easier to access your most popular In fact, Ricoma control panels are becoming more advanced embroidery designs without having to transfer them via year after year, but none are more advanced than the 8” USB every time. high-definition touch screen panel, or 8S for short. Compatible with Optional Laser Trace Device The 8S panel is the greatest innovation in panel technology because of these features below. Compatible with Optional Camera Positioning Device The 8S panel makes it possible to use an optional camera The 8S panel also makes it possible to use a laser trace positioning device with your machine. This helps place your device on your machine, which is helpful for pinpointing project perfectly by making it easier to see it from all angles exactly where your needle will land. even under the head of your machine. Portrait Embroidery 3D Design View for Better Visibility 8

Perhaps one of the most impressive features of the 8S The 8S panel is the only panel that allows you to use a panel is that it can auto digitize any jpeg or jpg file. This Wi-Fi connection to send embroidery files directly to your means you can send a high-resolution image of a person machine from the Chroma digitizing software without to your machine and your panel will digitize it for you into needing a USB and vice versa. the perfect piece of portrait embroidery. To see how that works, you can watch our Portrait Embroidery episode on Bottom Line Embroidery Hub. Networkable and Wi-Fi Capable So, what do you get when you combine all these industry trends and high-tech features? You get the MT-8S, Ricoma’s newest machine series! With the release of the MT-8S in the US, Ricoma intends to provide more of its customers with access to this incredible machine and all its benefits. However, this is only the beginning. Ricoma will continue to innovate and adapt to the trends and needs of the industry and create even more machines of the future. 9

Featuring Ricoma! Discover where Ricoma’s content has recently been featured Want more from Ricoma? In addition to our blog In addition to Henry’s appearance on T-Shirt Millionaires, and YouTube series, you can also find us in other the release of Ricoma’s MT-8S series in the United States prominent industry shows and publications. was featured in the February 2021 issue of Nippon This quarter, Ricoma CEO, Henry Ma, was interviewed by Magazine. Nippon Magazine’s February issue was full of the the host of T-Shirt Millionaires, Charles Smith III. most recent advancements in the embroidery and custom T-Shirt Millionaires is a popular YouTube series that focuses apparel industry around the world and Ricoma was able to on how entrepreneurs can succeed in the custom apparel secure a full feature on its pages. industry. Charles hosts a variety of guests on his show on In the article, we discuss the MT-8S models that will now be a weekly basis and they’re all prominent figures in custom available in the United States and what new and innovative apparel. All his guests share their knowledge and experience features they have to offer. We cover our latest 8-inch to help those who are new to the industry. high-definition control panel, our advanced thread-break In the interview, Henry talks all about how Ricoma helps detection module and the machine’s greatest selling point – t-shirt brand owners start businesses. From customer being the first true 20-needle machine. support that is available seven days a week and after-hours You can read the full article about the MT 8S in the Nippon to free training, Henry discusses how Ricoma helps new Magazine PDF here. embroiderers become successful in mastering their craft. You can watch the entire interview where Henry talks about embroidery secrets, business tips and all the resources Ricoma has to offer here. YOUTUBE ROUND UP Check out Ricoma’s best videos to kick-off 2021! In our previous issue of Ricoma Insights, we announced We continue to provide quality videos that help both novice that our YouTube channel had reached 50K subscribers. and expert embroidery business owners. Our ultimate goal Since then, we have seen even more growth with an is to equip aspiring and current business owners with the additional 10K subscribers in just four months! best machinery and support to meet the growing demand 10

for custom apparel. 4 Tips to Master Small Letters on Caps | Digitizing The videos below are just a small selection of those that & Embroidery have helped make this possible! Apparel Academy: All-Things Embroidery with Henry Ma (3-part series) Part 1: In this three-part series of Apparel Academy, Ricoma CEO, You asked for it and we answered! In this episode of Henry Ma, sits down with content creator Anthony Schmitt Embroidery Hub, Willy shared four expert tips to help our to discuss the current state and future of the embroidery viewers master those tiny hard-to-embroider letters! Using industry. From discussions on technological advancements Ricoma’s digitizing software, Chroma Luxe, Willy taught and cultural shifts to commonly seen characteristics of viewers to digitize and embroider a design that has small embroidery business owners, this series offers something letters on a Richardson cap. for everyone. How to DIGITIZE 3D Puff Without Any Hassles Embroidery Hub: Embroidery Design Critique (2-part series) Learning to digitize is easy thanks to another recent Embroidery Hub episode, in which Willy goes through the steps of digitizing 3D puff embroidery on a structured cap. But that's not all, because once he finished that, he embroiders the cap using the MT-1501 in order to share the entire process from start to finish! For more expert videos and tutorials like these, be sure to subscribe to our YouTube channel. In our first Embroidery Hub episode of 2021, followed by a second installment in March, pro embroiderer Willy critiqued embroidery work from our Facebook group, Embroidery and Custom Apparel Mastery. While rating each design, he also offered expert advice on how to make these designs even better! We encourage you to join ECAM if you love embroidery and want to benefit from a network of crafters looking to master new techniques. 11

Distributor spotlight Meet Alex Yakymovych from Ricoma-Ukraine Alex (left) and his business partner Serhii (right).  year, but recently the CHT2-1206 model has become the most popular. In 1999, Alex Yakymovych and his business partner, Serhii Tormin, started TSI, a company that sells What are some of your favorite Ricoma domestic sewing machines. In 2005, they expanded their machine features? business to sell embroidery machines as well. Then, in 2010, We like innovations in the control panels the most, like they took on selling Ricoma machines and found huge the 10.4-inch panel for the CHT models and the 8-inch success as Ukraine’s Ricoma distributor. panel for our single-head models. These panels are very comfortable to use and look modern. We also like the wide How did you learn about Ricoma and what made you assortment of accessories that come with the machines, like want to sell Ricoma machines? the hoops, spare parts and so on. I got my hands on a magazine with a Ricoma machine How has your experience with Ricoma been so far? advertisement in it. The advertisement was very interesting Ricoma’s support is very good and we feel comfortable and had good pictures of the machines. Shortly after, one of talking to the support team. We worked with many different my colleagues who worked at a Brother office in Germany, companies over the years and we can safely say that Ricoma told me about a good embroidery machine company. When has given us the best support. We value Ricoma’s honesty he said that the company produced its machines in China and willingness to cooperate with us. We also like that and had its headquarters in the USA, I realized he was the quality of Ricoma’s machines is high and that they talking about Ricoma because of the advertisement I continuously improve their technology. had seen. Any goals you want your company to accomplish in 2021? We contacted Ricoma and found out they were attending All these years, our main goal has been to make Ricoma the Texprocess exhibition in Cologne, so we visited the a best-selling embroidery machine brand in Ukraine at Ricoma booth and were pleasantly surprised at the high the same level as Tajima and ZSK. We want the words quality of their machines and services. After that, we \"embroidery machine\" to be associated with Riсoma in decided to partner with Ricoma. Ukraine so that when a person thinks about an embroidery machine, only Riсoma comes to mind. In 2021, we will do What Ricoma machines do you currently sell and which our best to increase sales and continue our efforts to reach is your best seller? this goal. We sell many Ricoma machines from single-heads to 15-heads. The best-selling single-head machine for many years was the 1501 TC-7S, but the SWD 1501-8S is now becoming our best seller. For multi-head machines, the FHS 1206 flatbed model was the most popular last 12

Employee Spotlight Meet Mr. Wang Qiangguo, Ricoma’s Production Supervisor This quarter, we caught up with Ricoma’s production they will be rewarded for their efforts. If there is something supervisor Mr. Wang Qiangguo, who works in wrong with the machine that they produced, they will also Ricoma’s factory in China. During our interview, we take responsibility for it. found out why he decided to work for Ricoma and learned We also meet with our staff regularly to make sure about some of the experiences he has had with the company everyone is up to date on company policies and production over the last 11 years. standards. These policies help us make sure that every machine is produced as it should be. When did you join Ricoma and why did you choose to work for the company? Can you share one of the best experiences you’ve had working with Ricoma? I joined Ricoma in 2010. I chose Ricoma because I noticed One time, one of our workers was seriously sick and needed the brand’s potential in the apparel and embroidery surgery. He was short on money and could not afford it. The industry. As the economy developed, more and more company found out and organized a fund with all the staff individuals started to pursue fashion and other forms of to raise money and my colleague was able to get the surgery personalizing apparel. Because of that, I thought it would he needed. He is now fully recovered and I am grateful for be the perfect time to join the apparel decoration field, so the love and generosity of the Ricoma staff. I decided to quit my job in LED advertising and joined Ricoma without hesitation. Talk about your views on the company First of all, I am very grateful to Ricoma for giving me the As a production supervisor, how do you control the opportunity to learn. When I first started, I did not know quality of Ricoma’s products? If any issue occurs during anything about embroidery machines and they were patient the process, how do you solve it? with me and helped me develop my skills from a general laborer to a production supervisor. I found a real interest We have strict quality control procedures that help keep and passion working here. As my abilities improved and our quality standards high. From testing the mechanisms in my work was recognized by everyone, my sense of personal the machine head to testing if the packaging will keep the value was increased. machine safe, we monitor each step of the process closely to Secondly, Ricoma makes me feel like I am part of a big ensure the best quality. family because they respect and care for their employees. In turn, the employees are honest and treat each other fairly. It To prevent issues, we do our best to keep our employees is very harmonious and makes me feel happy to work with accountable using a reward and penalty system. This everyone here. inspires employees to do better, as they are assigned to each machine that is produced and if the customer is satisfied, Do you have any goals or wishes for the new year? In the New Year, I hope the company will be full of peace and prosperity. I also hope the COVID-19 issue will be resolved in the near future so that our friends and families will be healthy, and I hope life will continue to improve until we are all safe again. I am grateful that despite the pandemic hurting the global market, Ricoma was able to continue prospering and we were even able to move into a new facility with spacious and bright workshops and a comfortable office building. The new building really lifted our spirits, so our goal for this year is to break even more records and continue to supply our customers with excellent products. 13

Upcoming events To see our machines in action at one of our upcoming events, come visit us at the following dates below. Please be aware, due to COVID-19, events are subject to change. ISS BATON ROUGE 2021 Baton Rouge, Louisiana June 24-26, 2021 ISS ATLANTIC CITY 2021 Atlantic City, New Jersey August 26-28, 2021 ISS FORT WORTH 2021 Fort Worth, Texas September 10-12, 2021 ISS LONG BEACH 2022 Long Beach, California January 21-23, 2022 14

ABOUT THE AUTHORs 1st QUARTER • 2021 EDITION Gelsey Brizo is a content specialist at Ricoma. She graduated from the University of Florida with a degree in English and has been working as a writer ever since. When she isn’t writing, she can be found reading or creating new costumes. Gelsey is lucky to be able to combine her passion for words and crafting into one career at Ricoma. If you have any questions about the articles featured in this issue of Insights, you can contact Gelsey at [email protected]. Valerie Gordon is an enthusiastic, focused and passionate writer and video journalist with more than six years of experience producing content for an array of different mediums and audiences. Currently, as a content specialist with Ricoma International, she is able to combine her passion for writing with a strong love of all things crafty to help inspire her fellow crafters to take the steps towards starting their own businesses. To connect with Valerie about the articles that appear in this publication or to chat with her about your next embroidery project, you can email her at [email protected]. ABOUt THE EDITOR Jesse Botella is the content manager at Ricoma. A wordsmith and storyteller, Jesse has been copywriting and editing content for nearly a decade. His passion for content marketing has lead him to Ricoma, where he works with the creative team to deliver fresh, new content on a daily basis. He holds a bachelor’s degree from Florida International University and a master’s degree from Barry University. When he’s not working on content for Ricoma, you can find him relaxing at home with his family, which includes his cat, two dogs, two geckos and pet rat. If you’d like to chat with Jesse about Ricoma’s content, you can reach him via email at [email protected]. helpful links Join Group WATCH Embroidery & Custom Apparel Mastery Facebook Group Join our Facebook community to connect with other embroiderers, ask questions ricoma.COM and share knowledge. WATCH Embroidery Hub YouTube Series Scroll through this playlist to see our how-to videos such as best practices for embroidery on knitwear, 3D puff embroidery and more. Ricoma Blog Visit our blog for more machine embroidery insights. Apparel Academy YouTube Series Watch Henry Ma, CEO of Ricoma, give embroidery and custom apparel businesses the advice they need to start and grow their businesses. 15