Bulgarian Stock Exchange-sofia · BSESOF:BSE
Bulgarian Stock Exchange-sofia — Sparky Eltos AD — Deutsches Eigenkapitalforum – Bulgaria Forum 2008
28 slides from Bulgarian Stock Exchange-sofia's conference presentation, Nov 10, 2008
Slide 1: Deutsches Eigenkapitalforum – Bulgaria Forum
Deutsches Eigenkapitalforum – Bulgaria Forum Frankfurt, 10 November 2008
Slide 2: Who We Are
WHO WE ARE The brand name Well-known producer of power tools on EU, Eastern Europe, Middle East, Russia and CIS markets The only producer of power tools in Bulgaria Listed on the Bulgarian Stock Exchange since 1998. BSE code: SL9/ELTOS 2
Slide 3: SPARKY ELTOS share price and market data
In 2007 SPARKY ELTOS was added to the oldest blue chip index on the Bulgarian Stock Exchange - SOFIX SPARKY ELTOS AD – share price 01/01/08 – 31/10/08 Market cap.: BGN 65 million; Nr. of shares: 16,735,320; Free-float: 20.2% 3
Slide 4: SOFIX Index Chart
La = SPARKY ELTOS AD 18 | - 2000 16 L 4800 14 Sy | 4600 2 ama oe aoe + 1.400 10 | 4200 | 4000 84 800 6 600 44 400 24 | 200 0 : 0 < < < < < < < < Sy < wv wv aa v ¥ & Ra ee a & g g¢§ ¢§ § EF F¥ F EF F F __ SL9 __ SOFIX — a
Slide 5: SPARKY ELTOS AD – View of the Plant 1961
SPARKY ELTOS AD – VIEW OF THE PLANT 1961 5
Slide 6: SPARKY ELTOS AD – View of the Plant 2008
SPARKY ELTOS AD – VIEW OF THE PLANT 2008 6
Slide 7: SPARKY Group – Organization Chart
SPARKY GROUP – ORGANIZATION CHART SPARKY GROUP Sofia, Bulgaria Berlin, Germany Production Sales (2,300 employees) (200 employees) Welded parts, Power tools Rough terrain SPARKY Trading Ltd. SPARKY GmbH SG Logistics and Forklift trucks SPARKY ELTOS AD SPARKY AD Lovech, Bulgaria Rousse, Bulgaria (1,40
Slide 8: History Milestones
HISTORY MILESTONES 1961 Establishment of the factory 1965 Start of power tools production 1966 AEG first license purchase (500,000 machines capacity achieved) 1975 AEG second license purchase (1,000,000 machines capacity achieved) 1996 Privatisation of the factory by SPARKY GROUP 1997 Ce
Slide 9: Product Range
¢) SPARKY ELTOS AD ye 9 —— www.sparkygroup.com i ed
Slide 10: Power Tools – Private Label
POWER TOOLS – PRIVATE LABEL 10
Slide 11: Production of Machine Components for Other Major Manufacturers
PRODUCTION OF MACHINE COMPONENTS FOR OTHER MAJOR MANUFACTURERS 11
Slide 12: Production
PRODUCTION Certified production processes 1997 ISO 9001 certification-certificate guarantees the quality of the manufacturing process and of the products. Products are certified by TÜV Rheinland and conform the standards GS DIN CE. The components and the materials are supplied by: Albis, Ina, BA
Slide 13: Production Process
PRODUCTION PROCESS Vertical integration of production processes leads to increased competitive advantages R&D Engineering Plastic injection Manufacture of electric motors Manufacture of mechanical parts Metal heat treatment Manufacture of moulds and tooling Foundry for Al and Mg al
Slide 14: Market Position
MARKET POSITION Top selling power tool brand in Bulgaria Export markets are well diversified (70 countries) and generated over 80% of revenue in 2007 Well presented in UK, France, Germany, Italy and Spain (double digit sales growth) One of the three best known brands in Russia and CIS Prof
Slide 15: Sales by Product Line
SPARKY ELTOS AD RS SALES BY PRODUCT LINE % 11% 16% DB Spare parts Bi Impact Drills 0 2-Speed Impact drills O Rotary Hammers @ Small Angle Grinders G Big Angle Grinders Bi Special Tools O Other — —— www.sparkygroup.com
Slide 16: Major Markets
KY ” SPARKY ELTOS AD MAJOR MARKETS 10% 35% @ European Union @ Russia and CIS @ Bulgaria © Rest of the world www.sparkygroup.com a aS
Slide 17: World Market of Powertools
WORLD MARKET OF POWERTOOLS VOLUME OF POWERTOOLS SOLD (MILLION UNITS) TOTAL VALUE OF POWERTOOLS SOLD (BILLION EUROS) 170 8.5 163 8.1 158 7.8 2005 2006 2007 2005 2006 2007 17
Slide 18: Global Market Growth of Powertools in 2007
GLOBAL MARKET GROWTH OF POWERTOOLS IN 2007 12% 10% 17% 5% 17% -3%* EUROPE WESTERN EASTERN ASIA-PACIFIC LATIN NORTH EUROPE EUROPE REGION AMERICA AMERICA * AS A RESULT OF THE SUB-PRIME MORTGAGE CRISIS 18
Slide 19: Competition
COMPETITION SPARKY ELTOS manages to sustain competitive price-quality mix, facing strong competition on foreign markets and in Bulgaria after EU accession SPARKY ELTOS successfully competes with world leading companies like Bosch, Makita, DeWalt, Metabo, Hitachi Well-balanced price-to-quality
Slide 20: Power Tools Market Trends
POWER TOOLS MARKET TRENDS Expected world power tools demand growth above 4% until 2011; however, cordless instruments growth pace will remain above average Growing market and popularity of cordless power tools Introduction and increasing importance of Li-ion batteries, due to their longer endu
Slide 21: Product Portfolio
PRODUCT PORTFOLIO Well-diversified product portfolio – product range covers more than 150 models and modifications (including 100 types of professional tools) Most successful products – drills, angle grinders, hammers, special tools After-sales service and established network of locations for
Slide 22: 2007-2009 Investment Program for 13 Million EUR
2007-2009 INVESTMENT PROGRAM FOR 13 MILLION EUR Investment in new equipment Introduction of new product range – cordless power tools supplied with Li-ion batteries Modernizing and increasing production capacity Specialist education and training Compliance to higher environmental standards
Slide 23: Production of Li-ion Powered Cordless Tools
PRODUCTION OF LI-ION POWERED CORDLESS TOOLS Main object of the investment program High demand growth expected Higher profit margins than corded and Ni-Cd powered tools Environmental concerns Expected additional sales for SPARKY ELTOS by the end of 2010: EUR 10 million 23
Slide 24: Expected Sales
a S maresos10 ~~ Jf EXPECTED SALES Sales -in TEUR 2006 2007 F2008 F2009
Slide 25: Expected Net Income
a S maresos10 ~~ Jf EXPECTED NET INCOME Net Income - in TEUR 10 000 9237
Slide 26: Financials
FINANCIALS (all figures in EUR, share price of EUR 1.99 as at 05.11.2008 used in price-ratio calculations) 26
Slide 27: Thank You and See You Soon
THANK YOU AND SEE YOU SOON Email: dvi.se@sparkygroup.com; Phone: + 359 2 9320 574 27
Slide 28: Disclaimer
DISCLAIMER The presentation is being presented on a confidential basis to a limited number of prospective investors for the purpose of providing qualified information about SPARKY ELTOS AD – stock company established under the laws of the Republic of Bulgaria. This presentation is for information pu
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