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SUSTAINABILITY

REPORT 2022
RANDY BREAUX
PRESIDENT’S STATEMENT

At Motion, we have always prioritized


growth and customer satisfaction.
Now, we intend to put the same
efforts toward sustainability initiatives.
With our locations around the
globe, Motion aims to operate as
a responsible corporate citizen
by reducing our carbon footprint,
improving the lives of our employees
and their communities, and holding
ourselves and our partners accountable to uphold our values. Our
2022 Sustainability Report highlights our new environment, social,
and governance (ESG) strategy and our dedication to providing the
same excellent service without hurting our planet.
ESG standards are not new to us; they have always been a part of
our operations and core values. In 2022, we took this to a whole
new level. Firstly, we added a dedicated role to lead our ESG efforts,
ensuring that each decision we make regarding the company
aligns with our ESG goals. Secondly, we conducted a materiality
assessment to help direct our planning and communications
and developed an initial baseline for greenhouse gas emissions
reporting. The new global emissions calculation serves as a
guidepost as we develop a comprehensive global carbon abatement
strategy. Thirdly, we created a comprehensive structure and roadmap
for developing our ESG program to provide greater accountability at
all company levels.

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At Motion, we know the true importance of our team members
and customers. We work daily to earn our place as the premier
industrial solutions provider to our valued customers by providing
the preferred customer experience, treating our customers fairly, and
energizing our talent. We treat our workforce respectfully and invest
in them to improve their future, retaining happy Motion employees
for longer. We are also partnering with teammates at all levels across
our businesses to launch resource groups that empower them to
come together with others who share their interests and experiences
while enhancing and developing their leadership skills and networks.
In addition, we are taking action outside of Motion to support
organizations focused on advancing racial equality and helping
diverse and underserved communities worldwide.
Thank you to Genuine Parts Company for supporting, overseeing,
and directing our developing program. I’d also like to thank our
partners, suppliers, and fantastic team members who enable us to
provide unmatched service and strengthen our communities while
taking steps towards a better, healthier planet. We still have more
work to do, but I am proud of how far we have come. I look forward
to the future of Motion and seeing what new heights we can achieve
together.

RANDY BREAUX
PRESIDENT OF MOTION

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ABOUT THIS REPORT
This 2022 Sustainability Report outlines environmental, social, and governance (ESG) metrics for the
fiscal year 2021 (January 1, 2021, to December 31, 2021, unless otherwise noted). The report includes
ESG activities from January 1, 2021, to August 1, 2022.

Motion is included in parts of the Genuine Parts Company Sustainability report. This is Motion’s
first independent Sustainability Report focused on sharing more about our sustainability efforts.
Moving forward, we plan to publish annually during the month of June. We are proud to share our
Sustainability Report with our valued stakeholders. The expanded reporting and disclosure coverage
reflect our commitment to transparency, accountability, and continuous improvement.

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FORWARD-LOOKING STATEMENTS
Some statements in this presentation, as well as in materials the company files with the Securities
and Exchange Commission (SEC), release to the public, or make available on the company’s website,
constitute forward-looking statements that are subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. All statements in the future tense and all statements
accompanied by words such as “expect,” “likely,” “outlook,” “forecast,” “preliminary,” “would,” “could,”
“should,” “position,” “will,” “project,” “intend,” “plan,” “on track,” “anticipate,” “to come,” “may,”
“possible,” “assume,” or similar expressions are intended to identify such forward-looking statements.
These forward-looking statements include the company’s view of business and economic trends for
the coming year, the company’s ability to execute our strategic priorities and capitalize in light of
these business and economic trends, and the established full-year 2023 financial guidance for the
company provided above. Senior officers may also make verbal statements to analysts, investors, the
media and others that are forward-looking. The company cautions that all forward-looking statements
involve risks and uncertainties, and while the company believes that its expectations for the future are
reasonable in view of currently available information, you are cautioned not to place undue reliance
on our forward-looking statements. Actual results or events may differ materially from those indicated
as a result of various important factors. Such factors may include, among other things, changes in
general economic conditions, including unemployment, inflation (including the impact of tariffs) or
deflation and geopolitical conflicts such as the conflict between Russia and Ukraine; volatility in oil
prices; significant cost increases, such as rising fuel and freight expenses; public health emergencies
such as the COVID-19 pandemic, including the effects on the financial health of our business partners
and customers, on supply chains and our suppliers, on vehicle miles driven as well as other metrics
that affect our business, and on access to capital and liquidity provided by the financial and capital
markets; our ability to maintain compliance with our debt covenants; our ability to successfully
integrate acquired businesses into our operations and to realize the anticipated synergies and
benefits; our ability to successfully implement our business initiatives in our two business segments;
slowing demand for our products; the ability to maintain favorable supplier arrangements and
relationships; changes in national and international legislation or government regulations or policies,
including changes to import tariffs, environmental and social policy, infrastructure programs and
privacy legislation, and their impact to us, our suppliers and customers; changes in tax policies;
volatile exchange rates; our ability to successfully attract and retain employees in the current labor
market; uncertain credit markets and other macroeconomic conditions; competitive product,
service and pricing pressures; failure or weakness in our disclosure controls and procedures and
internal controls over financial reporting, including as a result of the work from home environment;
the uncertainties and costs of litigation; disruptions caused by a failure or breach of our information
systems, as well as other risks and uncertainties discussed in the company’s Annual Report on Form
10-K for 2022 and from time to time in the company’s subsequent filings with the SEC. Forward-
looking statements speak only as of the date they are made, and the company undertakes no duty to
update any forward-looking statements except as required by law. You are advised, however, to review
any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K and
other reports filed with the SEC.

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MOTION BY THE NUMBERS
OUR BUSINESS
8 650 10,000+ $6.5B
Countries Locations Employees $ 2021 Revenue

SUCCESSFUL SUSTAINABILITY IS
STRONG GOVERNANCE
We recognize that the key to a successful sustainability program
is determined by the strength of the governance that embodies
it. Motion follows the lead set by the diverse board of its
parent company, Genuine Parts Company. The talented Motion
leadership team then implements the strategy and participates in
quarterly board reviews and feedback on continued operational
improvements. We are proud to have a governing body with a
cumulative 350+ years of experience in various industries.

IMPROVING THE PLANET FOR


THE NEXT GENERATION
As a leading industrial distributor, we strive to transfer impact
and raise social, ethical, and environmental standards wherever
we do business. We are committed to delivering superior service
and value to our supply chain partners. This means creating and
sustaining a relationship of trust and transparency and a platform
for mutual benefit and growth. We value a culture of strong
ethics, continuous service improvement, collaboration, and
responsiveness in our relationships.

COMMITTING TO
DIVERSITY & INCLUSION
We have an inherently inclusive mission—empowering everyone
on the planet. Diversity and inclusion are core to our business
model, which informs our actions and can impact economies
and people worldwide. The better we represent that diversity
inside Motion, the better we can innovate for those we seek to
empower. We believe in a work environment built on respect,
dignity, and fairness towards everyone, where people feel a sense
of belonging, and all voices are welcome and valued.

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THE MOTION TEAM
SUSTAINING OUR WORKFORCE

Motion is an international industrial solutions provider comprised of a talented and diverse workforce paired with
innovative services and Tier 1 products to serve our customers all over the world. As the world changes, we rely
more now than ever on our workforce to pursue our strategic growth plans, expand our offerings and reach our
sustainability goals.

We are committed to caring for our employees and our communities. That’s why we provide significant and
ongoing job and leadership development, as well as safety training. Our various benefits targeted at promoting
comprehensive well-being include mental health coverage, traditional health coverage, and financial resources
to maximize current earning for future returns. We also survey our teams annually to determine their engagement
and satisfaction, correcting concerning trends to help us improve and stay relevant in the marketplace. This
ensures that we continue recruiting the market’s best talent.

Our employees are invested in our business and in the communities where we live. We have programs designed
to engage employees in these communities specifically around educational programs, housing development,
and wellness. There’s something for everyone as we partner with key organizations such as Junior Achievement,
Habitat for Humanity, and the American Heart Association.

MOTION GOALS
GPC conducts an SATISFIED EMPLOYEES —
annual Employee MOTION SATISFACTION SCORE 87%
Engagement Survey
across all business The satisfaction score is based off the following metrics:
units. Motion’s
teams had a 77%
participation rate in
the overall survey and 90% 87% 86% 77%
the results unique to I’m proud to work Motion is a good
My work gives me a
Motion employee
our business group feeling of personal
for Motion place to work participation rate
accomplishment
are here

2021 PHILANTHROPIC GIVING


We support more than 100 individual charities and key partnerships across the globe with resources to care for
the communities where we live. Here are a few key partners.

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DIVERSITY, EQUITY & INCLUSION

OUR VISION
Getting the right person in the right job while creating opportunities in an inclusive environment for women and
diverse employees to thrive and succeed.

OUR COMMITMENT
Motion is and has always been committed to diversity,
equity and inclusion (DE&I) throughout all levels of the
organization. Our teammates around the world reflect
the communities and cultures we serve. We believe
in a work environment built on respect, dignity and
fairness towards everyone, where people feel a sense
of belonging, and all voices are welcome and valued.
We denounce racism and bigotry wherever they exist
and support those who peacefully further the ideals of
inclusiveness, nonviolence and equal treatment.

To advance our commitment to DE&I, we established


a formal Director of DE&I position and strengthened
our equal employment opportunity policies. Going
forward, our goal is to increase diversity at all levels,
by advancing our existing team members and
encouraging the external recruitment, hiring and
retention of qualified women and minorities.

Gender Diversity by Country


120%
100%
22% 17% 24% Women in Leadership 20% People of Color (POC)
80% 32%
Self Identified (US Only) Self Identified (US Only)
60%
40% 83%
78% 76% 68%
20% 20%
0%
US AsiaPac CN MX Female
24%
% Male % Female

People of Color in Leadership


Self Identified (US Only)
120% Male
100% 76%
80% 80%
60%
40%
20% % Female % Male Caucasian People of Color
0%
Female Male

% POC % White

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DE&I ROADMAP

In 2021, Motion concluded the Mi Path pilot process, where a diverse group of high-performing employees
from our distribution centers completed a career succession program that catapulted them to the next level of
positions in other departments.

JOB POSTINGS
In addition to changing our approach to in-person
recruiting events, we have also expanded our online
presence. We are actively recruiting via Handshake
Premium. This will allow us to run targeted recruiting
campaigns and host career events attracting new
talent.

CAMPUS RECRUITING
Today, we attend 20+ recruiting events annually at
various colleges. As part of our roadmap initiatives,
we have partnered with Historically Black Colleges
and Universities to become more integral to these
institutions; we’ll attend campus recruiting events,
but have also paired with them to share our story and
case studies in the classroom. By driving awareness of
our organization with these candidates, we will move
toward our diversity goals.

MILITARY RECRUITING
Motion recognizes the great sacrifices military
members and veterans have made in support of our
great nation. We want you to be part of our team
because we deeply appreciate the service of our
veterans and guard/reserve members. Motion is always
looking to add strong leaders and talented individuals
to our growing team! Today, Motion has approximately
300 military veterans from all branches of service,
working across the United States in various roles within
the company (branches, distribution centers, repair
shops, and our corporate HQ in Birmingham, AL). If
you are interested in joining the Motion team, please
visit the Careers Page on our website to learn more.
CAREERS
Scan here to learn more

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PROGRAM OVERVIEW AND 2021 SPEND
SUPPLIER DIVERSITY

The mission of Supplier Diversity at Motion is to promote inclusiveness and economic value through the support
of diverse companies in our supply chain.

IDENTIFICATION UTILIZATION REPORTING


In 2021, Motion spent
• Reviewing existing supplier • Provide sourcing assistance
approximately:
base to document Diverse and supplier capabilities.
Supplier status. • $244 million with over
• Engage in customers’
6,000 small businesses.
• Engaging with key Diverse diverse supplier
Supplier Councils to • $71 million with requirements.
identify new Diverse disadvantaged/
Supplier opportunities. • Report and analyze diverse
underutilized businesses.
vendor spend reporting.
• Partnering with Sales • $42.5 million with veteran-
to develop strategy and owned, women-owned,
implementation with or minority-owned
measurable results. businesses.

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ENVIRONMENTAL, HEALTH, AND SAFETY REPORTING
EMPLOYEE SAFETY

Motion is committed to providing a safe work environment. Our EHS (environmental, health, and safety)
professionals work diligently to keep our team members safe. They administer the required training and oversee
the programs that keep our operations running safely and sustainably.

Our EHS program brings the topic into all areas of our business operations. By making safety top of mind,
we ensure that all team members know our proper procedures to keep our teams safe. The EHS team is also
responsible for applying applicable federal, state and local regulations and for considering proposed legislation
from the Occupational Health and Safety Administration, the U.S. Environmental Protection Agency, and the U.S.
Department of Transportation.

Total Injuries 2019–2021


200

150

100
159
50 99 106

0
2019 2020 2021

Total Recordable Incident Rate 2019–2021


2.5

1.5
2.4
1
1.7
1.5
0.5

0
2019 2020 2021

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PHYSICAL, MENTAL AND FINANCIAL HEALTH
TEAM WELL-BEING

Motion is committed to the safety and well-being of all our team members. As part of that commitment, we
provide these valued team members with various benefits including a comprehensive well-being package
designed to meet the physical needs, mental health needs, and financial goals of our employees. We accomplish
this through providing options for individual and family health care coverage, resources for mental health, and
investment opportunities through 401K programs, stock programs, and other resources.

In addition, we provide extensive training for job-related duties, safety, and leadership development. As a
member of GPC, we are also proud to offer tuition reimbursement plans and scholarship opportunities for the
children of our associates—ensuring that generations have access to advanced education opportunities.

We focus on the health and safety of our employees. Monthly training and assessments are required on various
health and safety topics. We also provide both general and advanced safety training for role-specific job
requirements.

EMPLOYEE EMPLOYEE EMPLOYEE


SATISFACTION MANAGEMENT APPRECIATION
At Motion, we are proud Motion engages in a formal Motion strives to be a preferred
to provide an environment employee management employer, and to achieve this
employees are glad to be program inclusive of semi- position, we must properly
part of. Through our annual annual reviews. While we reward and appreciate
employee satisfaction survey, believe in fostering an our team members. Team
we can say with confidence open door environment member tenure is awarded
that employees believe we with continuous feedback, with milestone recognition. In
are delivering on our values we know that providing addition, we take opportunities
of being treated fairly, dealing structured feedback is the to thank our employees
ethically, and being inclusive. key to long-term engagement wherever possible, including
and employee development. entertainment opportunities,
During these reviews, outings, celebratory meals,
our employees have the and other events to create a
opportunity to formally discuss culture of servant leadership
growth opportunities, training and inclusion.
needs, stretch goals, and
succession planning.

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LEARNING & DEVELOPMENT
Motion recognizes the world around us is changing
at every turn. To ensure our teams are prepared for
this continuing evolution, we offer various ongoing
training opportunities both virtually through our Exceed
learning platform and in person for job and leadership
development.

In 2021, we provided 275 in-person class opportunities and


served more than 3,000 employees. Our classes included:

• Motion-developed and -led


• Hands-on Technical Product Application
• Specialty classes focused on Apache Belting and
Conveyance Solutions products and applications
• Supplier-led product and product application
• Operations Management Development
• Impact Team classes: Making an Impact Personally,
Professionally & Publicly
• Samford Leadership class

PERSONALLY, PROFESSIONALLY AND PUBLICLY


MAKING AN IMPACT IN THE COMMUNITY
The Mi Impact Team program launched in 2017 and was designed to support the vision of “Energizing Our
Talent.” In 2021, our Impact Team has grown and now consists of 150 individuals across 5 geographies in 2
countries! We were able to impact our local communities with over 2,400 volunteer hours.

Impact Team members are nominated by executive management. Participating employees invest themselves in a
year-long program which includes:

• Six leadership and/or professional development classes


• Self-assessments and goal setting
• Executive-level coaching
• Team-building exercises
• Presentation opportunities
• Community service

Motion and our employees are representing our values; we are invested in employee development, employee
satisfaction, and caring for the communities in which we live and work.

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GREENHOUSE GAS, RECYCLING AND SUSTAINABLE PRACTICES
ENVIRONMENTAL RESPONSIBILITY

At Motion, we understand that caring for the world where we live and serve is vital. As such, we have started
down a more structured path with an experienced third-party provider to baseline our greenhouse gas
emissions. We are already monitoring certain elements of this, such as fuel and travel cost, as part of our daily
operations and growth strategy. But this additional insight will afford us the opportunity to create appropriate
strategies for the future.

That said, there are several areas where we are continuing to reduce overall emissions as a result of good
business practices. Some of these areas include:

• Focused programs on waste management and recycling.

• Retrofitting or designing new locations with LED lighting and building management systems.

• Replacing gas powered fork trucks with electric.

• Providing Energy Team services to our customers.

In addition, we are in the beginning phases of a new project to work collaboratively with our Tier 1 suppliers to
evaluate and reduce packaging and dunnage, and improve logistics where feasible.

CO2 CH2 N2O HFCs PFCs SF6

SCOPE 2 SCOPE 1
Indirect Direct

SCOPE 3 SCOPE 3
Indirect Indirect
PURCHASED
GOODS AND
SERVICES

TRANSPORTATION
AND DISTRIBUTION
PURCHASED ELECTRICITY, COMPANY INVESTMENTS
STEAM, HEATING & COOLING LEASED ASSETS FACILITIES
FOR OWN USE
CAPITAL
GOODS

EMPLOYEE PROCESSING OF FRANCHISES


COMMUTING SOLD PRODUCTS
FUEL- AND
ENERGY-RELATED COMPANY
ACTIVITIES VEHICLES
BUSINESS LEASED ASSETS
TRANSPORTATION TRAVEL USE OF SOLD
AND DISTRIBUTION WASTE PRODUCTS END-OF-LIFE
GENERATED IN TREATMENT OF
OPERATIONS SOLD PRODUCTS

SCOPE 2 SCOPE 1
20,343 tonCO2e 51,226 tonCO2e

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ENVIRONMENTAL
RECYCLING HIGHLIGHTS

Not Driven for One Year


1
19

MOTION ENERGY SERVICES TEAM


Motion’s Energy Services Team conducted 75 energy audits for our customers with these results:

• 126MM kWh Reduced

• > 126MM lbs. or > 57,500 Metric Tons


of CO2 Reduced

• $4.9M Energy Savings from Reductions

• $10.5M Total Savings Realized

SCAN HERE TO
LEARN MORE

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PROGRAM OVERSIGHT AND ADMINISTRATION
GOVERNANCE

Motion recognizes the key to a successful sustainability program is determined by the strength of the
governance that embodies it.

Under the leadership of Genuine Parts Company, our governance programs are tightly integrated and reflective
of strategy and planning, including corporate risk management. In addition to this, Motion is responding to
customer requests by engaging in governance projects to further evaluate and report on our Value Chain
Management. These projects will include evaluating our alignment with suppliers on topics such as: Code of
Conduct, Human Rights, and environmental responsible sourcing.

GOVERNANCE BOARD AND ENGAGEMENT


Motion follows the lead set by the diverse board of its parent company, Genuine Parts Company. The talented
Motion leadership team then implements the strategy and participates in quarterly board reviews and feedback
on continued operational improvements. We are proud to have a governing body with cumulative 350+ years of
experience in various industries.

Elizabeth Camp Richard Cox, Jr. Paul Donahue Gary Fayard P. Russell John Holder Donna Hyland
President & CEO, Senior Vice Chairman & CEO, Retired CFO, Hardin Chairman & CEO, President &
DF Management, President, Genuine Parts The Coca-Cola President, Robert Holder Properties CEO, Children’s
Inc. Reservation Sales Company Company W. Woodruff Healthcare of
& Customer Care, Foundation Atlanta
Delta Airlines

John Johns Jean-Jacques Robert Wendy Juliette Pryor E. Jenner Wood


Retired Chairman & Lafont Loudermilk, Jr. Needham General Counsel Retired Executive
CEO, Protective Life Co-Founder President & CEO, Retired Managing & Corporate Vice President,
Corporation & Executive The Loudermilk Director, Global Secretary, SunTrust Banks, Inc.
Chairman, Alliance Companies Automotive Albertsons
Automotive Research, Credit Companies
Suisse First Boston

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GPC BOARD SNAPSHOT

46% 31%
85%

DIVERSE FEMALE INDEPENDENT


6 out of 13 directors are 4 out of 13 directors are 11 out of 13 directors are
diverse women independent

65 9.5
YEARS YEARS AVERAGE
AVERAGE AGE BOARD TENURE
2 directors are in their 50s 3, 0–5 years
7 directors are in their 60s 5, 6–10 years
4 directors are in their 70s 5, 11+ years

DATA SECURITY AND PRIVACY


INFORMATION TECHNOLOGY

Motion is committed to doing everything possible to keep our data and our partners’ data safe. Following current
best practices, our data security standards and the cybersecurity program provide a framework for responsible
collection, storage, transfer, use and destruction of data.

Motion follows the ISO 27001/2 Cybersecurity Framework and utilizes NIST controls. In addition, in support
of our Department of Defense (DOD) customer base, Motion is pursuing the Cybersecurity Maturity Model
Certification (CMMC) and expects to complete this in early 2023.

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WHISTLEBLOWER INDEPENDENT PROVIDER
ETHICS REPORTING

At Motion, we strive to work with integrity and honesty in all situations.


We have institutionalized this to the level that working ethically is one of
our four core values. Integrity is the foundation of trust upon which our
reputation is built.

To that end, we provide an ethics hotline for reporting concerns, such as:

• Theft, fraud or any other form of dishonesty

• Harassment or discrimination

• Accounting of financial irregularities

• Violation of laws, regulations, policies or procedures

• Violence or threatening behavior

• Substance abuse

The system is neutral, administered by a third party, and available 24/7/365


via phone or online.

ENTERPRISE RISK MANAGEMENT


GOVERNANCE

Motion conducts an annual risk assessment to our business as part of the


complete GPC Enterprise Risk Assessment. During this evaluation, all key
functional areas conduct extensive risk assessment and provide mitigation
measures. Areas include:

• Finance

• Human Resources

• Information Technology

• Operations

• Legal

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OUR RESPONSE
COVID-19

At Motion, we have seen the impact of the COVID-19 global pandemic firsthand and are committed to the health
and well-being of our teammates. As essential workers, keeping our manufacturing customers operational and
our team members safe was paramount throughout the pandemic. The pandemic continues to impact our lives,
but our dedication to the health and safety of our employees, customers and communities has not wavered.

We continually monitor and follow guidance from the Centers for Disease Control (CDC) and enforce enhanced
cleaning procedures and screening protocols. We provide protective equipment for our teammates and regularly
employ our emergency relief fund to help those employees impacted by COVID-19. Teammates affected by
COVID-19 are eligible to receive leaves of absence, as well as other forms of aid as support.

As a result of our external outreach to manufacturers and suppliers, and our downstream communication to
Sales and customers, we could better respond to customer inquiries on alternative products, offer advice on
process or product substitutes, and generally create a positive response for our customers.

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#994191339 / 02/2023 © 2023 Motion Industries, Inc.

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