1. Beatrice Nae London, 21.10.2003 The Central and Eastern European Refrigeration Systems Market © 2003 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

2. Today’s presentation 01: Report overview 02: Market overview 03: Percentage of revenues by product type 04: Industry challenges 05: Percentage of market revenues by regions 06: Impact of key drivers and restraints 07: Competitive structure and suppliers 08: Final conclusions

3. Segmentation Compressors, Condensers and Evaporators, Display Cabinets, Transport Refrigeration, Packaged cold storage systems Poland, Czech Republic, Hungary, Slovakia, Romania, Bulgaria, Croatia and Slovenia, Baltic States, other ex- Yugoslavian countries Type of ProductBy Region Report overview: Content

4. 2002 value was $390 million CAGR 2002-09 is estimated at some 10.2% Central and East European Refrigeration Systems Market: An overview Source: Frost & Sullivan

5. Total Refrigeration Systems Market: Percentage of revenues by product type, 2002-2009 Source: Frost & Sullivan

6. The economic development and new investment opportunities creates new chances for market growth Boom in the retail market New legislation fuelled by the EU accession creates new customer groups Requirements for low costs and broad product range Decreasing margins and average prices stimulate the growth of bigger customer groups for new equipment Low purchasing power and moderate growth of the economies will hamper faster development of the market Industry challenges

7. Uncertain opportunities for the food industry hold further growth in the medium term Boom in Russia and other CIS countries fuel the re-export market in the regions in East Europe Replacement market for old and second hand equipment provides new market opportunities Struggle for more investors grasps faster market growth

8. Source: Frost & Sullivan Percentage of market revenues by region, 2002

9. CEE Refrigeration Systems Market: Impact of key drivers and restraints, 2002 Drivers Restraints Drivers Restraints Lack of local investors Improving economies Low purchasing power Growth in the retail market Foreign investment Replacement market Legislation Second hand market Lack of regulations High average prices

10. Global companies also present in the West European market like Carrier, Thermo King, Copeland Large West European producers like Danfoss and Bitzer Regional manufacturers like Bock and Friscold Types of competitors Distribution: mainly go to installers, wholesalers and to OEMs; also display cabinets to retailers and transport refrigeration are built into vehicle End-user group: retailers, food producers and transport companies Competitive factors: price, brand name, reliability, delivery time, after sales service Competitive structure Competitive structure and suppliers

11. Final conclusions The overall market is growing very fast from a very low base 15 years ago Opportunities for further growth are almost unlimited since the demand for refrigeration systems is far from being satisfied Further development will depend on economy growth, changes in legislation and the flow of new investors to Eastern Europe

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