Corporate Presentation’ 2010

SPARKY GROUP Sofia, Bulgaria Berlin, Germany Production (1,275 persons) Power Tools Welded constructions, agricultural and specialized machines SPARKY ELTOS AD Lovech, Bulgaria (725 employees) SPARKY AD Rousse, Bulgaria (550 employees) Trade (200 persons) SPARKY GROUP European Business Units ORGANISATIONAL CHART

SPARKY GROUP European Business Units Western Europe Central EuropeEastern Europe SPARKY Power Tools GmbH Germany SPARKY INTRADEQ France SPARKY UK Great Britain SPARKY Polska Poland SPARKY Hungary SPARKY Trading EOOD Bulgaria SPARKY ZAO Amida Russia SPARKY Ukraine 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 RussiaUkraine

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

11 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 AD BRIEF 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 for the environmental management system  2006 Certified under OHSAS (Occupational Health and Safety System)  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 AD ACHIEVMENTS

15 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 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

MAJOR MARKETS

SPARKY ELTOS AD INVESTMENT PROGRAMS  CNC LATHE

 CNC LATHES AND PROCESSING CENTER SPARKY ELTOS AD INVESTMENT PROGRAMS

 ROTOR AND STATOR PRODUCTION LINE SPARKY ELTOS AD INVESTMENT PROGRAMS

 ARMATURE FLOW PRODUCTION LINE

SPARKY ELTOS AD INVESTMENT PROGRAMS  WIRE-CUT ELECTRIC DISCHARGE MACHINING CENTRE

SPARKY ELTOS AD INVESTMENT PROGRAMS  DIE-SINKING MACHINE

SPARKY ELTOS AD INVESTMENT PROGRAMS  CHIRON FZ12W Magnum  CHIRON FZ15S

SPARKY ELTOS AD INVESTMENT PROGRAMS  MEASURING CENTRE WITH THREAD MEASUREMENT MECHANISM

SPARKY ELTOS AD TECHNICAL 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

 SPARKY AD – MAIN ENTRANCE

SPARKY AD BRIEF 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 AD INVESTMENT PROGRAMS  Investment programs for 10 MIO EUR  New technologies and equipment  IT and staff training  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 AD ACHIEVMENTS

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

38 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

39 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

45 MAJOR MARKETS

SPARKY AD EQUIPMENT

INDUSTRIAL DESIGN  In-house design studio and prototyping department

How to find us  1220 Sofia, Bulgaria  18 Parva Balgarska Armia Blvd.  Tel.: (2)  Fax: (2)  Head office SPARKY PT GmbH  Berlin, Germany  20 Leipziger Strasse  Tel.: + 49 (30)  Fax: + 49 (30)

THANK YOU AND SEE YOU SOON