Project for strategic cooperation with a Chinese partner Made in Europe, Hungary – Győr, June 2011 Graboplast Ltd. Chinese presentation • • • • • • • • • • • • • • • Front page What is Graboplast? Short Company History Ownership Structure Localization Hungarian localization, capacities Products, changes Regional sales Force of R&D Financial details Graboplast in China Graboplast’s strategical aims What could we supply? Industrial environment Contact What is Graboplast? • Graboplast Floor Covering Manufacturing Ltd. offers high quality products with outstanding desing and aesthetic characteristics for the residential and commercial sector. • In the flooring industry, Graboplast is one of the biggest and most traditional enterprise in Central Europe. Short History 1905 1945-50 1959 1961 1969-72 1960-1990 1990-94 1995-2000 1998 2000 2000-2010 Miksa Grab and Sons founded a factory for the production of leather cloth, oil cloth and linoleum flooring Nationalization First major investment, start of PVC foamed artificial leather production Start of CV floor covering production Registration of Grabona’s brand name, name of Graboplast admission,further major investment Establish the biggest Research and Develop Institute in PVC, PU department in Middle Europe Switch to a western typed business model Acquisition, among a Parquet Factory Establish the Green-field 4 m wide PVC floor covering Wallis (hungarian financial investor) owns the majority of the shares Focus on the production of floor covering Ownership structure Management 20% Wallis Ltd. 80% Localization München Slovakia Hungary Milano Trieste Hungary Capacity Central Production of PVC floor specialities Capacity 5 million sqm/year Among the first three largest production facilities in the world Budapest Győr Tatabánya Kecskemét Engineered wooden parquet production Capacity 1.5 million sqm/year 4 meter wide residential production Capacity 18 million sqm/year Most recent technology Among the five largest production facilities in Europe Breakdown by product segments Artificial leather 5% Wallcovering Transport industry 12% products 4% In 2005 Residential floor 45% Commercial flooring 5 % In 2010 Sport flooring 9% Show flooring 6% Parquet Transport industry products 10% Accessories 3% 38% 20% Commercial flooring 11 % Sport flooring 15% Residential floor 17% Parquet Main products Sport floorings • Experienced producer with reliable quality products for indoor sport activities • Wide range of products, solutions for competition, training and leisure: Sport floorings: 2,0-8,0 mm thickness Sport flooring systems: genuine joint and cartilage protection also in long term use Specialities: dance floor, protective cover, moisture barrier • Innovative surface solutions: Patented TECH Surface technology: PUR and micronised Al2O3 particles long life expectancy, easy to clean products PUR Surface for the better cleanability CLP top layer: increased durability, and easier to maintain • Coating technology – no delamination at all • Easy installation and maintenance • 2 m wide sport floorings – less welding, easier and faster installation • 700 000 people is testing our sport floorings, every day! Main products Silver Knight It is the first disinfecting vinyl sheet flooring specially developed for the healthcare industry It is produced according our patented TECH Surface technology SILVER KNIGHT eliminates more then 99% of bacteria, even superbugs It has 3 main benefits: Eliminates bacteria with double defense line, without the use of chemicals 1. Nano – Silver 2. Nano-Titanium dioxide as a photocatalyst Environmentally sound: photo-catalytic “self-cleaning” and air-purifying - It does not mean that you should not clean the surface at all, but the cleaning cycle can be extended - Nano-TiO2 decomposes organic dirt, therefore it adheres less on the surface Due to the nanotechnology it is cost efficient Recommended applications: hospitals, clinics, elderly homes, schools, kindergartens Main products Sipring Air Elite – Sport parquet system SpringAir - sport parquet: • Stable construction • Durable PU sport varnis (9 layers) • Tongue and groove • Glued on the Shockpad Elite subfloor Properties: • 5,1 mm hardwood wear layer • Cfl-s1 fire resistance • 0,4-0,6 coefficient of friction • 56 % shock absorption • 3,2 mm vertical deformation • 99% ball rebound • 41 mm total thickness Benefits of the system: • Professional sport performance • Excellent joint- and cartillage protection • Optimised slip resistance • Durable sport solution • Easy to install Main products Residential semi-commercial and CV floorings • The new factory was found in 1998 as a green-field investment in Tatabánya • Combined the latest technology with an experience of 30 years of PVC flooring production • In 2004: Updating the machinery, adding new units • We are working with coating technology, using only water-based inks • With a capacity of 20 million sqm • Environment friendly technology: no solvents, no heavy metals • High-tech, computer-controlled mixing equipments • Perfect color-matching • In-house design development • Reliable product quality • With a very good price/value ratio • Product range in: 2-3-4 m width; 1,6- 5,0 mm thickness 0,15-0,55 mm wear layer thickness Main products Engineered Wood Parquet • Engineered, genine wooden parquets from Central-European wood species (like oak, beech, european maple, ash, merbau, wenge) • Both tradinional tounge & groove and modern click joints • Produced with latest technology • Member of FEP – The European Federation of the Parquet Industry • Capacity of 1,7 millions sqm • More than 30 years of experience in production • Main markets: Sweden, Denmark, Norway, Italy, Spain, Russia Brands: • Grabo Jive O’loc: 2250 x 190 x 13,5 mm • Grabo Jive T&G: 2250 x 190 x 13,5 mm • Grabo Viking loc: 2250 x 190 x 13,5 mm • Grabo Board: 1800 x 180 x 14,0 mm thickness R&D, technological power of Graboplast Innoviation is the most important part of Graboplast. R&D department is the responsible for the innovation of product, new units and technology. It has well-qualified employees and new implements to make exact search. Graboplast has some European and some World wide patents (primarily production of PVC floor covering) • ISO 9001, ISO 14001 (TÜV) • CSTB French patent for floor coverings • CQCC Chinese patent for floor coverings • Russian fire resistance for sport,transport and commercial floorings. Financial details Annual Report 2010 Net sales: Export sales: EBIT : EBITDA: Employees: ~55 m EUR ~50 m EUR ~0,7 m EUR ~3,5 m EUR 640 Breakdown by regions China 7% Domestic (Hungary) 8% Overseas 15% European Union 36% CIS (Russia, Ukraine) 34% Graboplast in China Turnover Sport Contract Graboplast's sales on Chinese market 2003-2011 Transport 3500 3000 eEUR 2500 2000 1500 1000 500 0 2003 2004 2005 2006 2007 2008 2009 2010 2011* Graboplast in China Transport floorings Strong Xiamen/Fujian Zheijang Jiangxi Peking Chanhchun/Jilin Shanghai Hunan Weaker Guangzhou/Guangdong Chongching Nanjing/Jiangsu Dalian/Liaoning Graboplast in China Some of the projects • Transport floorings – Bus • Project of the Olimpic Games (Peking, Tianjin, Qingdao) • King Long bus factory – Metro • • • • • • Shanghai (lines of 2 and 7) Xian Shenzhen (line of 3) Export of Saud-Arabian Export of Brazil Export of Argentina Graboplast in China Contract floorings Strong Shanghai Nanjing/Jiangsu Anhui Henan Weaker Hubei Shandong Jiangxi Fujian Chongqing Graboplast in China Some of the projects • Commercial floorings – Healthcare • • • • • • • • Chinese Therapeutic Hospital, Wuhan Military Hospital, Hefei Central Hospital, Zibo Central Hospital, Hulu Dao Hospital no.7, Shenyang Hospital no.2, Changshu Chinese Therapeutic Hospital, Yunan Military Hospital, Nanjing – Education • • • • Xiao Zhuang University, Nanjing Teachers’ training college, Nanjing Zhong Yi Yao University, Heilongjiang Qingliang Primary School , Nanjing Graboplast in China Some of the projects • Commercial floorings – Light indusry, office, Entertainment Centrals • Office of Mobilphone association, Ningbo • Office of Fuel Association, Qingdao • Bank of China Offices, ChangZhou • Offices of Industry Bank, Nantong • Kang Yuang Pharmacy, LianYunGang • Huanghai Pharmacy, Qingdao • PuSheng Pharmacy, Wuhan • Wanda Plaza/Warner Brothers cinema: Shanghai, Chongqing, Chengdu, Qingdao • Anti-fascist Museum, Peking Graboplast in China Sport floorings Strong Shanghai Weaker Nanjing/Jiangsu Anhui Shandong Graboplast in China Some of the projects • Sports floorings • • • • • • • • Hall of Xiao Zhuang’s University, Nanjing Basketball hall of Financial College, Shanxi Gym of XuTang Power station, Jiangsu Tobacco Factory, Jiangsu University of Communication, Jiangsu Zhong Yuan Ship Factory, Nantong University of Communication, Anhui Hun Chun Power station, Jilin Strategic Aim Why Graboplast is looking for partnership? • • The floor covering activity of Graboplast can be significantly expanded,for the better capacity utiliziation and for the increased capacities partnership is needed. Further consolidation of the floor covering manufacturers is expected, a prosperous solution is the alliance/association with China. Why China? • • It is clear that the world economy shifts to China and we want to be with the winners. The Hungarian nation is the only one in Europe with Asian origin which helps in the cultural phasing (It is not by chance that in our region China has the biggest investment in Hungary. Strategic Aims - Cooperation with Chinese investor What could Graboplast offer? • A 105 year-old european company culture • Illustrius – German type- technological discipline,acting • Ability of innovation,high standard proceeding in production of floor covering • One of the most important production capacity residental and special floors in Europe • High-qualified employees • Logistic basis,admission in whole Europe, Russian and Near East Illustrius production culture in the range of Graboplast Győr Budapest