SAFE CAP 1998 - 2007.

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Presentation transcript:

SAFE CAP 1998 - 2007

Table of contents General Information page 3-4 Products & Service page 5-7 Staff page 8 Development story page 9-15 Sales & Marketing page 16-19 Licenses & Patents page 20 Strategy & Opportunities page 21-23

General Information Business Name: Safe Cap Group Activity: SCG is a group of companies engaged in plastic closures production & sales for PET bottles. Year of foundation: 1998 Location: Production place – Fryazino, Moscow region, Russia; Head office – Moscow. Subsidiaries and distribution offices: Russia: Novosibirsk, Samara, Rostov-on-Don; Mineralnie Vody Kazakhstan: Karaganda; Almaty Ukraine: Kiev (distributor). Distribution activity: distributor of Alcoa, Rexam, Portola, Corvaglia, KWK in Russia and exclusive distributor of Alcoa in Kazakhstan

Our attitude to a Closure … A: Closure features B: Ensuring of Closure features Excellent sealing possibilities. Provides freshness and product life in the best way. 2. Fits to high speed capping equipment of bottling lines. Fits to standard range of PET neck finishes. Provides trouble free application. Simple for consumer use. Optimal opening/closing torque. 4. Tamper Evidence: patented Safe Cap design provides the highest level of tamper evidence available; provides consumer a sense of security that the package safety hasn’t been compromised Skilled staff. Quality management system ISO 9001 standard Strong principles of quality control. High quality of moulds & equipment. High quality of raw material and packaging. C: Technical support Outstanding technical assistance for integrating product and capping equipment. 2. Supply of adapted capping chucks could be realized by customer’s request. D: Service Tampo/Offset printing for decoration closure top. Embossment for decoration closure top. Promotion possibilities. Design service for decoration work. A + B + C + D => PRICE

Products & Service Products * 28mm plastic screw closures for returnable and non-returnable PET bottles (PCO/BPF28/Alcoa1716 neck finish) for carbonated and still beverages -Safe Cap 501 – one-piece HDPE closure, tamper evident band-molded “pig-tail”, sealing property–bore seal Safe Cap 601 – one-piece HDPE closure, tamper evident band – molded “drop band”, sealing property–bore seal -Safe Cap 101 – one-piece HDPE closure, -Safe Cap 201 – two-piece HDPE closure, tamper evident band-molded “pig-tail”, sealing property – EVA-liner “out-shell” Safe Cap 2000 – two-piece HDPE closure, tamper evident band-molded “pig-tail”, sealing property – EVA-liner “out-shell”

Products & Service -Carters SC 307 – two-piece PP closure, tamper evident band- molded “pig-tail”, sealing property – EVA-liner “out-shell” -Carters SC 310 – two-piece PP closure, tamper evident band- molded “drop band”, sealing property – EVA-liner “out-shell” * Safe Cap 4804 - 48mm 3-start thread HDPE closure for non-carbonated beverages, tamper evident band – molded “drop band”, sealing property – bore seal SH-48 - handle for 48mm PET neck finish SH-28 - handle for 28mm PET neck finish All range of Alcoa products can be supplied All range of Rexam products can be supplied All range of Portola products can be supplied All range of Corvaglia products can be supplied All range of KWK products can be supplied

Products & Service Service Tampo printing for decorating closure top (up to 3 colors) Offset printing for decorating closure top (up to 3 colors) Embossment for decorating closure top Promotion possibilities: - inside embossment on the closure, - embossed EVA-liner, - inkjet code printing inside of the closure, - laser decoration inside of the closure and EVA-liner. Design service for decoration work. Technical support: - outstanding technical expertise for integrating product and capping equipment, - supply of adapted capping chucks could be realized by customer’s request, - complete satisfaction assured

Staff Employees - Workers: 105 people TOP- Management: 5 people - Engineers & Technical staff: 31 people - Administrative staff: 39 people - Management: 10 people TOP- Management: 5 people Total: 190 people

Business Model: …quality first Since its foundation in 1998, Safe Cap has been offering high quality products and services at the market as a way for building strong and reliable customer base to ensure dynamic and stable development… Sales mln, pcs For the last five years the company’s sales volume has been demonstrating a CAGR of over 16%...

Business Map: … keep expanding Safe Cap’s adherence to high quality standards have enjoyed appreciation on the part of leading Russian and CIS companies engaged in water, soft drinks, beer and dairy business, which is the key driver for the dynamic expansion of SC’s sales network…

Marking entry: ... window opportunity Step by step … 1998 Safe Cap was established Core business activity: Exclusive distributor of Hoffmann Neopac AG /Swiss/ products (one & two-piece closures) in Russia & CIS Annual volume of sales exceeded 117 million closure 1999 Safe Cap has got the right to produce Hoffmann products under the trade mark “Safe Cap” in Russia & CIS Profit re-invested in purchasing of production premises in Moscow region Injection molding and tampoprinting lines installed. Production was started Concluded Agreement with Alcoa: SC became authorized distributor of Alcoa in Russia Annual volume of sales increased over 270% (… and reached 436 million pieces) 2000 Own production reached 126 million pieces Regional network established: distribution offices opened in Novosibirsk, Karaganda (Kazakhstan), Kiev (Ukraine) Concluding of Agreement with Alcoa: SC became exclusive distributor of Alcoa products in Kazakhstan Annual sales volume exceeded 511 million pieces (+17% y-o-y) Sales of own production reached 25% of total sales volume.

Development story: …milestones Competitively priced quality closures have generated growing demand for Safe Cap products and services from customers in Russia and CIS Safe Cap responded to the market demand by creating and developing regional distribution network… 2001 Concluding of Agreement with Hoffmann Neopac AG about purchasing of Hoffmann technology, Know-How and equipment and SC has got the unlimited right to produce and sell products under the name “Safe Cap” in Russia & CIS Hoffmann Neopac equipment relocated to Fryazino, Moscow region, Russia Own production exceeded 54% of the total sales 381 million closures produced (+300% y-o-y) 699 million closures sold (+37% y-o-y) 2002 Production facilities expansion Distribution centers in Rostov-on-Don and Samara opened Annual output grew 62% to reach 616 million pieces Own production reached 63% of the total sales volume Total annual sale volume exceeded 980 million pieces (+41% y-o-y)

Moving forward: … Successful track record of Safe Cap development is the result of the effective team work, management vision and client-focused approach… 2003 New production lines put into operations and reach double increasing of production facilities which was bought from Hoffmann Neopac AG New storage facilities in place (about 1,600 sq.m.) Own production accounted 67% of the total sales volume(876 million pieces) Volume of production grew over 42% Annual volume of sales reached over 1,3 billion pieces (+32% y-o-y) 2004 28/48mm bottle neck handles and 48mm closures added to the product portfolio Productive capacity expansion was continued (one injection molding and printing lines were put into operation) Own production reached 69% of the total sales volume 997 million closures produced (+14% y-o-y) Annual volume of sales grew 11% and exceeded 1,45 billion pieces 2005 St.Peterburg branch office was opened Annual output exceeded 1,1 billion pieces (+ 12% y-o-y) Annual volume of sales more 1,55 billion pieces (+ 7% y-o-y) Own production accounted 72% of the total sale volume

Moving forward: … 2006 New product SC601closure is added to the product portfolio SC concluded distribution agreement with O-I: SC became authorized distributor of O-I products in Russia and former USSR countries SC concluded distribution agreement with Corvaglia Closures: SC became authorized distributor of Corvaglia products in Russia Two new production lines were put into operation in the first half of 2006. Printing capacity was increased over 35% by putting into operation new 3d colors Continua/Tampoprint SC has made the first agreement for injecting under the contract: SC manufactures plastics moldings using customer’s moulds and raw materials. October 2006 - SC became an owner of the land (1,72 hectare) under its plant Annual output 1,3 billion pieces (+ 18% y-o-y) Annual sales volume about 1,8 billion pieces (+ 16% y-o-y) New distribution warehouse in Mineralnye Vody was opened

Moving forward: … non-stop Two new production lines are put into operation in the first half of 2007. The first air flow conveyor line for transportation of closure was installed in June 2007. New storage shelving system is installing in the warehouse. New warehouse facilities were put into service in the half of 2007. New bar code system was put into operation in warehouse storage Quality management system of SC was confirmed by ISO 9001 standard Production and warehouse facilities of SC got approvals from Danone and Heineken audit teams. Annual output – about 1,64 billion pieces (+ 6% y-o-y) Annual sales volume more 2 billion pieces (+ 13% y-o-y)

Moving forward: … higher and higher

10 TOP Customers 2002 - 2007 2007 2006 2005 2004 2003 2002 Share of 10 TOP customers is slightly increasing at the expenses of customer’s consolidation.

Production & Printing dynamics mln, pcs mln, pcs

Sales dynamics: … and structure mln, pcs … now in % Sales of Safe Cap products had being increased more intensively than imported goods within 2002-2006. Share of own sale was always growing.

Licenses & Patents License for unlimited right to produce and sell closure under the name of SAFE CAP in Russia and all CIS countries accordingly following patents: Euro Patent No: 0178253 / US Patent No: 4.645.088 / Canada Patent No: 1249548 Industrial Patent No.48797 in Russia Industrial Patent No.542 in Belorus Industrial Patent No.4868 in Ukraine Industrial Patent No.219 in Kazakhstan Patent No. 197652 for trade mark “LS” in Russia Patent No. 17033 for trade mark “LS” in Belorus Patent No. 13241 for trade mark “LS” in Kazakhstan Patent No. 33817 for trade mark “LS” in Ukraine Patent No. 201635 for trade mark “III” in Russia Patent No. 188398 for trade mark “III Hoffmann” in Russia Patent No. 17032 for trade mark “III Hoffmann” in Belorus Patent No. 13240 for trade mark “III Hoffmann” in Kazakhstan Patent No. 36701 for trade mark “III Hoffmann” in Ukraine (duplicate)

Strategy of development Safe Cap considers various business opportunities to be explored and realized in order to: - ensure stable development - improve profitability - protect/expand market share Key areas for strategic development include: - Commodity caps & closures manufacturing - Diversification of product lines - Contracted injection - Customs molding - Manufacturing under licence agreement - Acquire attractive business - JV partnership - Alliance & exclusive partnership - Merging with key industrial players/investors

Opportunities: …partnership Safe Cap is open for a strategic partnership with industry investors in order to develop the business by using the existing platform… Safe Cap has a number of competitive advantages that allow for speedy and efficient expansion that offers attractive return on the capital invested … Safe Cap is flexible in considering various forms for partnership with an interested investor, including: Establishment of a joint venture to develop a stand alone investment project Investments in capital assets of Safe Cap for the purpose to reinforce capital base to allow for maximum leveraging benefits Sale of majority share to investor for providing of operating control Combination of the above mentioned

The main features of the company 100 % of our occupation is plastic closure business 100 % Russian private capital Sales by own distribution network Young experienced team Flexibility and mobility in making decisions Good friendly relationships with key beverage bottlers