1. COOPERATION IN THE BALTIC'S LEVEL - AN IMPORTANT STEP TOWARDS COMPETITIVENESS IN THE WORLD BUSINESS DEVELOPMENT EXPERIENCE OF SAKRET IN ESTONIA Dipl. Ing. M. Sc. chem. Andris Vanags SIA Sakret director, Sakret OŰ Board Member October 1, 2012

2. W HO WE ARE AND WERE WE ARE NOW

3. 3 N AME Name SAKRETE is made of two words: „SACK“ + „CONCRETE“ = „SAKRET“ SAKRET – idea

4. 4 SAKRET ENTERS E UROPE IN 1966.  Step by step European market is conquered.  Presently SAKRET is represented in 29 European countries. SAKRET – in Europe

5. 5 SAKRET IN B ALTIC ' S  In 2003 SIA Sakret is established.  100% ownership of Latvian citizens  Recipes created in Latvia, Lithuania and Estonia and adapted for export markets  In year 2004 first SAKRET dry mixtures plant in Baltic States is opened  In year 2007 the plant in Estonia, Paide and in year 2008 the plant in Lithuania, Kedainai is opened  Currently SIA SAKRET holds licenses for production of products in Latvia, Estonia, Lithuania, Belorussia, Ukraine, Finland, Kaliningrad, St. Petersburg, Volga district and option in Sweden.  In 2012 was established new company in Finland - SAKRET Norde OY.

6. 6 SAKRET in Baltic's Riga October 2004 Capacity of dry mixtures’ plant 100‘000 t/per year September 2006 Capacity of liquid materials’ plant 3’000 t/ per year Paide (Estonia) July 2007 Capacity of dry mixtures’ plant 150‘000 t/per year Kedaini (Lithuania) August 2008 Capacity of dry mixtures’ plant 250‘000 t/ per year

7. 7 SAKRET IN B ALTIC ' S

8. 8 P RESIDENT OF E STONIA : T OMASS H ENDRIKS I LVESS. Many aspects in our countries are similar. If all 6 of us (Latvia, Estonia, Lithuania, Denmark, Sweden, Finland) would reunite, together we could be stronger and achieve more. Some things that we are interested in – ecology, safety of power industry, free movement of services, and of course EU market. Even if Latvians speak in different language, it is one Europe! 04.06.2012.

9. 9 A “BIG PLAYER” Estonia Latvia Lithuania

10. 10 E XTERNAL C OMPETITIVENESS

11. 11 L ATVIA & E STONIA We have something in common… Communication History Mind set Etc.

12. 12 More markets – more stabile experience !

13. 13 BE LIKE A “SPONGE” SAKRET International institutions Embassies Government Investment and Development Agency of Latvia Local Partners International Partners Competition Latvian Chamber of Commerce and Industry

14. 14 Latvian Entrepreneur Club in Estonia Information exchange between corporations Make contacts and get familiar wit Estonian bureaucracy Share experiences with Start-ups GOALS:

15. 15 E NTERING N EW M ARKET What to do: Learn the market Demand Supply Offer Make consumers addicted Innovate : “Change or die”

16. 16 N EXT 3 S TEPS TO S UCCESS 1 Find partners you trust International and local organizations 2 Gather a team Include local professionals, that are familiar with the market 3 Do not forget about local government You have to be there to succeed

17. 17 W HY E STONIA D EVELOPMENT HAS NEVER BEEN THE SAME.

18. 18 Sabiedriskās domas pētījumu centrs SKDS, 2005 Which of the 3 Baltic countries has been the most successful since recovering independence? (%) (all respondents) W HY E STONIA Latvia Lithuania Estonia Hard to say

19. 19 B ALTICS C OOPERATION Estonia – Latvia Cross-Border Cooperation Programme 2007-2013 Summary report, February 2010

20. 20 E STONIAN LESSON NOT a “quick catch”

21. 21 E STONIAN LESSON Patience P Stability

22. 22 SAKRET RECIPES OF SUCCESS IN B ALTIC  Values : Good leadership, innovation and cooperation  Regular “eye to eye” meetings with ALL branch directors  Individual approach to every country/culture  Board picks out ALL the new employees  Training of new employees  Be multilingual

23. 23 SAKRET RECIPES OF SUCCESS Key to success : democratic franchise system, REPUTATION, know-how selling

24. 24 THANK YOU!