Corporate Presentation’ 2010

SPARKY GROUP

Sofia, BulgariaBerlin, Germany

Production(1,275 persons)

Power ToolsWelded constructions,

agricultural and specialized machines

SPARKY ELTOS ADLovech, Bulgaria(725 employees)

SPARKY ADRousse, Bulgaria(550 employees)

Trade(200 persons)

SPARKY GROUPEuropean Business Units

ORGANISATIONAL CHART

SPARKY GROUPEuropean Business Units

Western Europe Central Europe Eastern Europe

SPARKY Power Tools GmbH

Germany

SPARKYINTRADEQ

France

SPARKY UKGreat Britain

SPARKY PolskaPoland

SPARKYHungary

SPARKY Trading EOOD

Bulgaria

SPARKYZAO Amida

Russia

SPARKYUkraine

• Italy• Spain• Benelux• Austria• Switzerland• Scandinavian Countries• North Africa• Belarus• Kazakhstan

• Bulgaria• Balkan countries • South Africa• Egypt• Iran• Dubai• Middle East• Far East• Latin America

• France• Spain• Portugal

•England•Ireland

•Poland •Hungary•Russia •Ukraine

THE FACTORIES

SPARKY ELTOS AD manufacturing plant in Lovech, Bulgaria for production of power

tools

SPARKY AD Russe manufacturing plant in Russe, Bulgaria for production of welded

parts, agricultural machines, backhoe loaders and rough terrain trucks

PRODUCTION

SPARKY ELTOS AD 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 alloys Assembly Painting shop Control equipment

SPARKY AD RUSSE R&D Engineering Foundry for steel and cast

iron Welding Metal heat treatment Forging Painting shop Assembly Control equipment

WHO ARE WE

The brand name SPARKY

The Markets EU countries, Eastern Europe, Middle East, Russia and CIS

The Team Highly educated, well-trained staff with long experience in industrial production Continuous training and professional education

WHO ARE WE

The Management Experience Crisis management End-user oriented corporate communication

The Production Continuous expansion of the product ranges Constant renovation Investment in new technologies Environmental awareness

WHAT WE DO

Production of professional power tools – SPARKY branded and in cooperation with other established producers of power tools

Production of private label power tools

Production of components for other companies (outsourcing)

Assembly work for established producers of power tools and other products

PRODUCTION OF POWER TOOLS & COMPONENTS

WHAT WE DO

Production of forgings, castings, welded and machined parts on a subcontracting basis for leading European and world manufacturers

Production of forklift trucks and backhoe loaders for the East European and Russian markets

Original Equipment Manufacturer (OEM) assembly

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PRODUCTION OF WELDED PARTS & EQUIPMENT PRODUCTION OF

WELDED PARTS plinths chassis booms hinges masts buckets

EQUIPMENT

agricultural machines road construction machines transportation machines

SPARKY ELTOS AD – VIEW OF THE PLANT

SPARKY ELTOS ADBRIEF HISTORY 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 Certified under ISO 9001 1998 Listed on the Bulgarian Stock Exchange 2003 Technical Laboratory certified under ISO/IEC 17025:1999 2004 Certified under ISO 14001 for the environmental management system 2006 Certified under OHSAS 18001 (Occupational Health and Safety System) 1997-2006 Investment of 30 million Euro 2008 Signed 2.2 million Euro contract for the purchase of cold chamber die

casting machines for the Al/Mg foundry with the leading manufacturer Oskar Frech GmbH + Co. KG

The biggest employer in the region

One of the top selling power tools brands in Bulgaria and well known in Russia and CIS

The product range includes more than 150 models and modifications

SPARKY ELTOS ADACHIEVMENTS

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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, BASF, SKF, FAG, Thyssen, Shall, Marquardt, Capax, Pirelli, LFA, Röhm, Schunk, and other well reputed manufacturers

2004 ISO 14001 certification (established and applied environmental management system for development, production and maintenance of power tools and accessories)

2006 OHSAS 18001:1999 certification (Occupational Health and Safety System) -certificate is developed in response to urgent customer demand for a recognisable occupational health and safety management system standard. The emphasis is placed on practices being pro-active and preventive, by the identification of hazards and the evaluation and control of work related risks

The Technical Laboratory is certified by the DUTCH ACCREDITATION COUNCIL RvA and complies with the accreditation criteria for test laboratories as laid down in ISO/IEC 17025:1999

SALES BY PRODUCT LINE

11%4%

7%

23%

16%

16%

22%1%

Spare parts Impact Drills 2-Speed Impact drills

Rotary Hammers Small Angle Grinders Big Angle Grinders

Special Tools Other

MAJOR MARKETS

38%

35%

17%

10%

European Union Russia and CIS Bulgaria Rest of the world

SPARKY ELTOS ADINVESTMENT PROGRAMS

CNC LATHE

CNC LATHES AND PROCESSING CENTER

SPARKY ELTOS ADINVESTMENT PROGRAMS

ROTOR AND STATOR PRODUCTION LINE

SPARKY ELTOS ADINVESTMENT PROGRAMS

SPARKY ELTOS ADINVESTMENT PROGRAMS

ARMATURE FLOW PRODUCTION LINE

SPARKY ELTOS ADINVESTMENT PROGRAMS

WIRE-CUT ELECTRIC DISCHARGE MACHINING CENTRE

SPARKY ELTOS ADINVESTMENT PROGRAMS

DIE-SINKING MACHINE

SPARKY ELTOS ADINVESTMENT PROGRAMS

CHIRON FZ12W Magnum CHIRON FZ15S

SPARKY ELTOS ADINVESTMENT PROGRAMS

MEASURING CENTRE WITH THREAD MEASUREMENT MECHANISM

SPARKY ELTOS ADTECHNICAL LABORATORY

Up-to-date Testing Equipment In accordance with our corporate strategy we are investing in up-

to-date measuring and testing equipment in order to be able to achieve the best results and deliver the best quality

PRODUCTION OF POWER TOOLS & COMPONENTS

POWER TOOLS – PRIVATE LABEL

PRODUCTION OF MACHINE COMPONENTS FOR OTHER MAJOR MANUFACTURERS

PRODUCTION OF MACHINE COMPONENTS FOR OTHER MAJOR MANUFACTURERS

PRODUCTION OF MACHINE COMPONENTS FOR OTHER MAJOR MANUFACTURERS

PRODUCTION OF MACHINE COMPONENTS FOR OTHER MAJOR MANUFACTURERS

SPARKY AD – MAIN ENTRANCE

SPARKY ADBRIEF HISTORY 1907 Foundation of the company for production of agricultural machines

1910 Production of grinders for grain mills and turbines 1939 Production of field cutters and cultivators 1962 Production of harvesters 1986 Production of fork lift trucks 1990 Production of rough-terrain trucks 1995 Production of backhoe loaders 1997 Company take-over by SPARKY GROUP 1998 Introduction of new range welded and mechanical

parts for construction and lifting equipment 2000 Installation of the first painting workshop 2003 ISO 9001 certification 2007 Installation of the second painting workshop 2007 Installation of the third welding workshop 2007 Celebration 100-th Anniversary of the company establishment 2008 Listed on the Bulgarian Stock Exchange. BSE code: SPV/SPARKY

SPARKY ADINVESTMENT PROGRAMS

1997-2006 Investment programs for 10 MIO EUR New technologies and equipment IT and staff training

2007-2010 Investment program for 23 MIO EUR Building of new factory in Ruse, equipped with modern production lines and

equipment, using the latest technologies in the mechanical processing New technologies, equipment and capacity increase

The biggest employer in the region

SPARKY is one of the top producers of welded metal constructions, components, forklift trucks and backhoe loaders, agricultural machines and spare parts

The product range includes more than 200 models and modifications

SPARKY ADACHIEVMENTS

SPARKY AD – THE QUALITY ISO 9001:2008: This certificate guaranties the quality of the production process DIN 18800-7: SLV Halle certification for welding of steel components DIN EN 15085-2: SLV Halle certification for welding of rail transport devices and parts DIN EN 1SO 3834-2: The certification guarantees the high professional qualification and experience of

our specialists

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PRODUCTS PRODUCTION OF

WELDED PARTS plinths chassis booms hinges masts buckets

EQUIPMENT

agricultural machines road construction

machines transportation machines

CONSTRUCTION

Praktiker store industrial constructions modernization

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WELDED PARTS

Booms for lifting equipment

Plinths for lifting equipment

Chassis for lifting equipment

40

WELDED PARTS

Plinths for truck mounted cranes Hinges

41

Buckets for road construction machines

WELDED PARTS

42

FORK LIFT TRUCKS AND AGRICULTURAL MACHINES

43

PRODUCTION PROCESS

COMPLETE PRODUCTION CYCLE - FROM R&D TO THE FINAL PRODUCT

44

MAIN PRODUCTS

20,3%

22,5%

6,5%

22,5%

25,7%

0,6%

0,1%

0,5%1,4%

P linths

C has s is

B ooms

Hinges

Mas ts

B uc kets

Agric ultural mac hinery

C ons truc tion

Other

45

MAJOR MARKETS

58,9%

32,0%

4,2%

3,3% 0,6% 1,0%

F ranc e

G ermany

US A

Ireland

B ulgaria

Other

SPARKY ADEQUIPMENT

INDUSTRIAL DESIGN

In-house design studio and prototyping department

How to find us

1220 Sofia, Bulgaria 18 Parva Balgarska Armia Blvd.

Tel.: + 359 (2) 9320 500 Fax: + 359 (2) 9320 510

Head office SPARKY PT GmbH

10117 Berlin, Germany 20 Leipziger Strasse

Tel.: + 49 (30) 203916-0 Fax: + 49 (30) 203916-66

WWW.SPARKYGROUP.COM

E-mail: info@sparkygroup.com

THANK YOU AND SEE YOU SOON