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ERGOPACK Since inception Ergopack has focused on building presence - PowerPoint PPT Presentation

May 31, 2023 •517 likes •576 views

ERGOPACK Since inception Ergopack has focused on building presence in modern retail Organized retail grew at 39% CAGR04 -08 in USD terms Set back in 2009: 36% YoY drop; resumed growth in 1H10 to 13% up YoY Share of non-food category

  1. ERGOPACK Since inception Ergopack has focused on building presence in modern retail Organized retail grew at 39% CAGR’04 -08 in USD terms  Set back in 2009: 36% YoY drop; resumed growth in 1H10 to  13% up YoY Share of non-food category in retail increased from 56% in  2004 to 66% in 2008 Total retail sales of USD 1.2k per capita still lagged those of  USD 3.2k in Russia, USD 6.3k in Poland or USD 10.6k EU average Harder to displace entrenched players with direct relationships  with retailers Ergopack products are present in ~10,000 retail points of sale  Direct deliveries to 2,306 points of sale o Third-party distributors cover the other 8,000 points of o sale According to retail counterparties, Ergopack products are  among 100 best selling Ergopack’s strategy has taken the company to a dominant position in organized retail where the company’s branded products retain an impressive 41% share of shelf -space 10

  2. ERGOPACK Product Portfolio & Sales Strategy Delivers Superior Profitability Proprietary Distribution Network Is Unique For The Industry • Ergopack boasts the highest depth of Open processing and in-house value-added markets Sales via amongst domestic market players 5% direct distribution Whole- • Garbage bags category contributes 35% salers to gross profit 20% Experience in Managing Diversified Portfolio and Proven Ability to Add-On Disposable tableware Gloves 3% 4% Bath Garbage sponges bags 5% 29% Retail Food chains packaging 75% 10% Source: Company data Proprietary distribution system advantages (80% of Other sales): 15%  Better client service and maximization of profits by keeping distributor’s margin Kitchen Cleaning sponges  Strong focus on modern retail (21 national/ cloth 17% 49 regional retail chains including all 4 international 17% retail chains in Ukraine: Auchan, METRO, Billa, Source: Company data SPAR) Direct distribution model in combination with vertical integration assure price competitiveness and outstanding margins 9

  3. ERGOPACK Milestones Continued Growth - Impressive growth of UAH sales - Healthy financial standing - Relocation into brown-field facility in Kyiv region - Mezzanine financing from EBRD 2009 - 2010 2006 - 2008 Expansion/ Focus on Efficiency - Growth funding provided by PE investor, EEGF 2001 - 2005 - Production capacity expansion - Launched polyethylene recycling line - Strong sales growth along with robust financial performance Manufacturing - Acquisition of production premises in Kyiv 1996 - 1999 - Launch of garbage bags and foam rubber products manufacturing - Opened eleven sales branches Distribution - Selling foam rubber products and garbage bags 5

  4. ERGOPACK At a Glance Ergopack is a leading household disposables manufacturer and distributor in Ukraine Nationwide availability of products  #1/ #2 player with approx. 30% market share  Strong sales & profitability dynamics  Growth despite crisis  On track to exceed 2008 pre-crisis EBITDA in 2010  Consolidated Financial Results (GAAP) 2005 2006 2007 2008 2009 2010 Estimated un-Audited Audited Audited Audited Forecasted Sales, ' 000 USD 11 416 15 233 19 709 26 661 22 289 26 100 CAGR 33% CAGR Sales, ' 000 UAH 58 450 76 929 115 432 140 424 173 855 206 169 CAGR 21% CAGR EBITDA, ' 000 USD 1 645 1 218 1 986 4 453 4 373 5 086 Outperformed 14% 8% 10% 17% 20% 19% the market by EBIT, ' 000 USD 1 545 1 005 1 551 3 855 3 642 4 274 14% over 14% 7% 8% 14% 16% 16% 2008-2010 Net Income, ' 000 USD 813 596 733 (3 764) 2 499 2 126 7% 4% 4% -14% 11% 8% Organized retail turnover, UAH mln 94 300 130 000 175 122 243 898 229 855 276 747 7% CAGR 2 Source: Company data, State Statistics Committee

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