History of the company, clients, market share BATTERY PRODUCTION Closed joint stock company «АКОМ» leader in the production and distribution of the automotive batteries in Russia, operates since 2001 15 Years on the market 2001-2005 Production capacity 1 mln. batteries per year. Assembly plant. Joint venture with Tudor (Exide) 2005-2010 Full-cycle license production of SLI batteries Bosh & Varta. Joint venture with VARTA (JCI). Technological leadership on Russian market TYPES OF PRODUCTS Automotive batteries for LMV (АКОМ, REACTOR, BRAVO) Automotive batteries for LCV (АКОМ) From 2012 Market leader in SLI batteries production, each 4 th battery on the domestic market is produced at AKOM plant; from 2017 Major local supplier of EFB to OEM on the domestic market CLIENTS AND MARKET SHARE OEM market in RF: 36% market share decrease to 32% in 2016 Aftermarket in RF: 18% domestic market share, 37 dealers in 32 regions in 2016 Up to 50% of Russian export - 20 partners in 13 countries in CIS
АКОМ has been aggressively competing with import brands on the SLI battery market since 2011
Market opportunities for Growth BATTERY PRODUCTION External factors Fast growing demand for automotive EFB and AGM SLI Batteries: New product lines of EFB and AGM batteries, developed by AKOM meet the requirements of European, USA, Japanese and Chinese standards. Market share of EFB, AGM batteries is expected to rise from 10% to 40% within the period 2016-2020. Domestic market of SLI EFB, AGM batteries has been steadily increasing from 0,6 mln. bat (in 2015) and is expected to grow up to 4,2 mln. bat per year by 2020 Redistribution of the battery market in favor of Russian manufacturers. On the Russian market there is no domestic analogues of EFB, AGM High export potential of EFB, AGM, GEL product due to the presence of the demand at the foreign consumer markets. Internal factors Experience in the world standards development and mass production of the battery at AKOM. The largest sales distribution network in RF. Annual production capacity is 3,4 million batteries;
Automotive batteries production figures 2012-2016 BATTERY PRODUCTION АКОМ is leading with the total 1,851 mln. batteries in 2015 Producer city 2012 2013 2014 2015 2015 / 2014, % 2016 forecast 2016 / 2015, % CJSC «АКОМ» Zhigulevsk 1 390 000 1 312 000 1 516 000 1 851 000 22,1% 2 070 000 11,8% PLC «ISTOK» and PLC KZA" Курск 1 046 000 1 173 000 1 235 000 1 426 612 15,5% 1 590 000 11,5% OJCS «Tyumen accumulator plant» Branch PLC«Tubor» Tyumen 1 240 400 1 034 600 1 099 000 1 415 400 28,8% 1 620 000 14,5% Nizhny Novgorod region 848 000 808 000 866 000 707 110-18,3% 750 000 6,1% CJCS «AkTeh-Baikal» Irkutsk region 580 000 517 000 552 000 637 000 15,4% 680 000 6,8% CJSC MPKF «Alcor» Tyumen 531 600 443 400 471 000 606 600 28,8% 700 000 15,4% PLC TANGSTOUN Ryazan region 128 000 195 000 393 000 509 388 29,6% 530 000 4,0% OJCS «Elektroistochnik» Saratov 270 000 447 000 311 000 263 890-15,1% 270 000 2,3% Others 31 000 36 000 107 000 128 000 19,6% 140 000 9,4% Total 6 065 000 5 966 000 6 550 000 7 545 000 15,2% 8 350 000 10,7% Rosstat data
Product Range BATTERY PRODUCTION AKOM is operating with 3 major SLI battery brands on the aftermarket: Shapes L2, L3 & L5 Nominal capacity 55-190 Ah, forward and reverse polarity 3 years warranty period REACTOR Extra power for the most modern vehicles and better electrical performance. AKOM is proven quality battery. BRAVO Excellent choice with the best Price/Quality ratio.
Innovative products BATTERY PRODUCTION EFB class (Enhanced Flooded Battery), AGM (Absorbent Glass Mat) and GEL (Gel Electrolyte) are not manufactured in Russia so far. CJSC "AKOM" is looking forward to diversify its product range with new EFB, AGM SLI batteries that will enable to gain extra market share on the domestic market. Enhances flooded battery (EFB) AGM Battery On the market GEL battery
AKOM Growth Strategy BATTERY PRODUCTION Strategy milestones: increase annual production capacity up to 5 mln. batteries; Deployment of R&D center within the Company; Strengthen competiveness of AKOM brands through diversifying its product range; Collaboration with major financial funds and equities to gain extra finance opportunities for intensive development. Main objectives: increase battery output at Zhigulevsk plant up to 3,4 mln. batteries per year by 2018 Complete project with government Industry Development Fund for R&D and production of EFB, AGM SLI batteries; retain 40% OEM market share; increase aftermarket share up to 26% by 2018;