Public Joint Stock Company POLTAVA AUTOMOBILE UNIT PLANT Quality, examined by time! Appeal to our partners After 70 years of operation Poltava Automobile Unit Plant became one of the largest producers of brakes for heavy trucks, buses, trailers and railway wagons in the CIS region. Our company is a part of AutoKrAZ holding, which is one of the world’s top 10 producers of heavy trucks. Poltava Automobile Unit Plant has strong production capacity for casting of any articles from non-ferrous metals in accordance to customer design. We propose cooperation to all companies interested in services of foundry and mechanical processing of non-ferrous articles. In this presentation we will provide more detailed information about our plant. We hope that Poltava Automobile Unit Plant will become reliable partner to your company. Andrian Litovtchenko Chief Executive Officer of Poltava Automobile Unit Plant About our company Public Joint Stock Company Poltava Automobile Unit Plant is located in Poltava at Zenkovetska str, 57. The plant produces brakes for heavy trucks, buses, trailers and railway wagons, test benches, hydraulic auto parts and consumer goods. 1945 14.39 ha 917 More than 200 150 ton ISO/TS 16949: 2009 year of foundation of Poltava Automobile Unit Part the total area of the plant’s territory the number of full-time employees as of 01.07.2015 articles are produced by the plant casting capacity of Poltava Automobile Unit Plant a month 1996 1300 34% 81% 12000 & 4000 the plant underwent two stages 5% of certification by TUV SUD Management Service GmbH acquisition of the plant by AutoKrAZ holding equipment units on the books of the company share of employees with high education of goods produced by the plant is exported knock-down kits of cars and tractors respectively can be produced a month. of the total revenue was spent for purchase of new equipment in 2012-2014. About Ukraine Ukraine is the largest country of Central and Eastern Europe with 43mn population. In 2014 Ukraine signed Agreement on Association and Free Trade Zone with European Union. $ 131 bn GDP of Ukraine in 2014 0.34% 3.1% the average annual growth of Ukraine’s GDP in 2000-2014 literacy rate in Ukraine $8668 99.6% By ~160% 50% $ 7.7 bn 46% devaluation of Ukrainian Hryvna EUR 205 to US Dollar during last two years exports to GDP ratio for Ukraine 31% in 2014 exports of engineering products $2.2 bn from Ukraine in 2014 share of Ukraine in global economy in 2014 GDP per capita on purchasing power parity in 2014 of school graduates go to college the average monthly wage in Ukraine’s industrial sector in June 2015 share of exports to European Union in foreign trade of Ukraine. exports of engineering products from Ukraine to European Union in 2014 About Poltava region Poltava is a large industrial city in Central Ukraine with population of 300,000 people. Poltava province is the most developed industrial region of Central Ukraine. Poltava is located in the distance of 550 km from the nearest sea port and 750 km from the border with European Union (Poland). 1.5 million people 3.8% By 20% The largest industrial companies of the region 11 colleges population of Poltava region share of Poltava region in Ukraine’s GDP (2013) rate of industrial production growth is 20% higher than on average in Ukraine. AutoKrAZ, Kryukovka Wagon Building Plant, Poltava Turbomechanical Plant, Poltavamash, Electromotor Plant and others. are located in Poltava region, including Poltava Engineering College named after Y. Kondratyuk, the main talent foundry for engineering companies of the region. Poltava had the lowest crime rate among Ukrainian large cities in 2012 according to Forbes. Energy prices for industrial consumers Ukraine vs. Europe Natural gas prices EUR/cubic meter 0.37 Electricity prices 0.40 EUR/Kilowatt-hour 0.37 0.20 0.33 0.15 0.10 0.06 Ukraine EU avg Germany Poland Ukraine EU avg Germany Poland Source: Eurostat, Ukraine State Service of Statistics Low taxes and devaluation of local currency made Ukrainian tariffs on energy resources much lower than in European Union. For example natural gas prices for industrial consumers are 18% lower in Ukraine than in Germany, while electricity tariffs are 70% lower. Our advantages ADVATAGES OF UKRAINE ADVANTAGES OF OUR COMPANY High level of education of Ukraine’s Huge experience in casting of non-ferrous population Advantageous articles geographic location The plant has free capacities for (Ukraine borders with EU and has sea execution of any orders (capacity – 150 ports) ton castings a month) Lower cost of energy resources The plant is certified in accordance with ISO/TS 16949: 2009 Low labor costs The company is able to use its own raw material or to work on tolling basis depending on client preference Our infrastructure Types of production Foundry, machine-assembly departments, electrotype hardening plant, stamping-and-molding shop, repair shop and tool room, and facilities for plastic and rubber processing. Total area of the territory 14.39 hectares Total area of premises 30847 m² Our infrastructure Machine-assembly departments Our infrastructure Tool shop and press room Thermal treatment and galvanization. Facilities for plastic and rubber processing. Our company has a wide range of specialized equipment and qualified workers to perform the thermal treatment and galvanization of details, for the manufacture of rubber and plastic products. The area of the thermal treatment section is 540 sq. m., galvanization section 2032 sq. m., the total area of the plastic and rubber processing section is 552 sq. m. Equipment of thermal treatment and galvanization section 11 electric furnaces, 2 shot blasting camera, 2 shot blasting drums, washing machine, 2 crane girders; lines for the chemical oxidation of products of aluminum alloys, zinc plating, tin-plating of steel parts, electropolishing stainless steel. Equipment of plastic and rubber section hydraulic equipment for mixing and warming up of rubber compounds, 9 hydraulic presses for vulcanization, deflashing machines, bench drilling machines; 7 injection molding machines, 11 vertical injection molding machines, machine for crushing defective parts. Foundry Poltava Automobile Unit Plant has the full complex of foundry equipment with computerized control. The plant has a separated foundry shop with the total area of 2880 sq. m. comprised of two sections: die casting and permanent-mould casting. Our company is able to cast any non-ferrous articles in accordance to customer design. Compositions used in casting Equipment of die casting section Equipment of permanentmould casting section Production capacity Number of employees in shift For die casting - АК12М2, АК7p, TSA4М1, for permanentmould casting - АК5М2. 5 coreless gas furnaces of 400kg capacity and two furnaces of 600kg capacity, 13 casting machines and CAT-0.25 furnaces, traveling crane, casting ladle, vibrating hopper, two hydraulic presses. 12 CAT-0.25 furnaces и 30 hydro permanent-mould casting machines of its own production, two toggle-crank presses, one belt-saw machine, four rough grinding machines and two belt polishing machines. 150 ton of casting a month. 46 employees. Foundry Mechanical processing Our company has the full complex of equipment for mechanical processing of non-ferrous articles. The plant has a separate shop for mechanical processing with the total area of 2967sq. m. The mechanical processing shop includes 12 production lines. The total number of equipment equals 205 units, including 29 machines with computer numeric control, 108 units of special equipment and 51 units of universal equipment. Samples of mechanical processing CAPEX plan The company’s CAPEX plan includes purchase of new equipment to eliminate existing bottlenecks in production, first of all in the tool shop. Purchase of new equipment: •Vibrobench (2015) •Lathe machine OPTI D 460х1500х400V/3Ph made by Optimum Maschinen Germany GmbH (2015) •Salt spray chamber (2016) •Lathe machine with computer numerical control STYLE510 - 2 units (2016) •Lathe machine with computer numerical control STYLE350 - 2 units (2017) •Vertical milling machine with computer numerical control STYLEВТ-1000 (2018) Our company also plans repair and upgrade of two die casting machines in 2015 and upgrade of computer numeric control system and electric motor drives of lathe machines in 2015-2017. Annex Products of Poltava Automobile Unit Plant Brake Control Valves Trailer Brake Control Valves Air Preparation Systems