EINHELL GERMANY AGCompany presentation

Corporate headquarters are at Einhell Germany AG in Landau/Isar in Germany

Einhell employs around 1400 people worldwide

Einhell is located in over 58 countries worldwide with 36 subsidiaries and various sales partners

The group turnover in 2011 amounted to € 365.3 million

Short profile

3

1991 2001 2011

92.9

196.3

365.3

110 %

87 %

Sales growthOver the last 20 yearsIn million EUR

Average annual growth of the last 10 years: 8.7 %

… 58 countries worldwide

Argentina

Australia

Belgium

Bosnia-Herzegovina

Brazil

Bulgaria

Chile

China

Denmark

Germany

Estonia

Finland

France

Greece

Great Britain

Hong Kong

India

Iraq

Iran

Iceland

Italy

Kazakhstan

Kosovo

Croatia

Latvia

Lithuania

Luxembourg

Romania

Russia

Sweden

Switzerland

Serbia

Slovakia

Slovenia

Spain

Sri Lanka

Lybia

Macedonia

Moldowa

New Zealand

Netherlands

Norway

Austria

Poland

Portugal

South Africa

Czech Republic

Turkey

Hungary

United Arab Emirates

Einhell Germany AG(shares in brackets)

HAFE Trading Ltd. (100%)Hong Kong / China

Hans Einhell (China) Chongqing Co., Ltd. (100%)Chongqing / China

Hansi Anhai Far East Ltd. (100%)Hong Kong / China

iSC GmbH (100%)Landau / Germany 

Einhell Holding Gesellschaft m.b.H (100%)Wien / Austria

Hans Einhell (Shanghai)Trading Co., Ltd. (100%)Shanghai / China

Hansi Anhai YOUYANGImport & Export Co., Ltd. (100%)Chongqing / China

Juli 2013

Organisation Chart of the Einhell Group

Einhell Polska Sp. z o.o.(90%)Wrozlaw / Poland

Einhell Ukraine TOV (100%)Kiev / Ukraine

Einhell-Unicore s.r.o. (100%)Karlovy / Czech Republic

Einhell – Intratek Mühendislik ve Dis Ticaret A.S. (85%)Istanbul / Turkey

Einhell Hellas A.E. (96%)Nea Ionia / Greece

Einhell Hungaria Kft. (100%)Budapest / Hungary

Einhell Bulgaria OOD (67%)Varna / Bulgaria

Einhell Romania S.R.L (100%)Bukarest / Romania

Svenska Einhell AB (100%)Göteborg / Sweden

Einhell Slovakia s.r.o. (100%)Pezinok / Slowakia

Hans Einhell Österreich Gesellschaft m.b.H (100%)Wien / Austria

Comercial Einhell, S. A. (100%)Madrid / Spain

Einhell Portugal – Comércio Int., Lda. (100%)Arcozelo / Portugal

Einhell Benelux B.V. (100%)Breda / Netherlands

Einhell UK Ltd. (100%)Birkenhead / Great Britain

Einhell Italia s.r.l. (100%)Mailand / Italia

Einhell Schweiz AG (100%)Winterthur / Switzerland

Einhell Danmark ApS (100%)Silkeborg / Denmark

Einhell France SAS (95%)Villepinte / France

Einhell Croatia d.o.o. (100%)Lepajci / Croatia

Einhell Export-Import GmbH (100%)Tilmitsch / Austria

Einhell BiH d.o.o. (66,7%)Vitez / Bosnia

Einhell d.o.o. Beograd (100%)Belgrad / Serbia

Einhell Norway AS (100%)Larvik / Norway

Einhell Chile SA (90%)Santiago / Chile

Einhell Middle East Trading FZC (100%)Ras Al-Khaima/ United Arab Emirates

Einhell Australia PTY. Ltd. (90%)Melbourne / Australia

Einhell Brasil Ltda. (90%)Campinas / Brasil

Einhell Argentina S. A. (100%)Buenos Aires / Argentina

kwb tools GmbH(100%)Stuhr / Germany 

OOO kwb RUS (100%) Moscow/ Russia

Hans Einhell Ukraine TOV (100%)Kiev / Ukraine

Einhell Holding Australia (100%)Melbourne / Australia

Ozito Industries Ltd Pty(100%)Melbourne / Australia

New Member of the Einhell

Group: KWB

Founded in 1931 by Karl W. Burmeister (= KWB)

System supplier to DIY stores for power tool

accessories and handheld tools

2012: Taken over by Einhell Germany AG

WHAT will Einhell achieve with KWB ?

Double the turnover

from approx. € 30 million to € 60 million

during the next 5 – 7 years with a

profit margin of 5 %

HOW do we want to achieve that?

Internationalisation of KWB

Investment in an international sales organisation

Development / modernisation of the purchasing organisation

Strengthening of product management

Establishment of a QM system jointly with Einhell quality management

Investment in logistics and improvement of the complete supply chain process

Implementation of a uniform IT system

Customers of the Einhell Group

Distribution channels

DIY stores: 60%Specialised trade: 28%

C&C markets: 3%Consumer stores: 9%

The path to a quality product

Step by step to success

The path to a quality product

Fit-for-use tests

Analysis of returns

Pilot productionProduction

Factory audit

Certification

Product management

Inspection

QualityManagement

Development

LaboratoryConcept Contents

Implementation

Benchmarks

Product managementand benchmarks

Analysis of national and international markets – classic market research

Analysis of competitors

Internal product tests and benchmarking of A-brands to define product requirements

External product tests by independent test institutes (e.g. TÜV)

Customer demands

Sales aspects

Supplier and development prospects

ACTIVE MANAGEMENT OF THE ASSORTMENT

Development

Drawing Sample (foam)

Mass productionPrototype

3D model

Finished 3D model

Quality assurance measures before production

Factory audits and quality tests (FFU tests):

For assessment of production centres

Labour:

In total 12 employees evaluate the quality of our products in many thousands of test hours per year in a laboratory with over 1,200m² floor space

Certification:

Cooperation with all internationally approved test centres

Quality assurance measures during and after production

Pilot production:For trial purposes – gives the finishing touch before

mass productionProduction:Monitored by Einhell employees on-site using qualified

methods Product testing:

Part I: standards test Part II: product test Part III: detail test

Analysis of returns

External: Customer feedback is checked, evaluated and logged in a database

Internal: In-process testing and benchmarking on a permanent basis

All information is actively channelled into existing and new products

This ensures that Einhell’s know-how (central database) is constantly updated with the latest knowledge

This knowledge gives us a head start for the next product development

Development, positioning, targets and measures

“Our products are the key to success. With individual design and a first-class price/quality ratio we ensure that each Einhell product leads to the sale of another.“

19

Strategic assortment and product policy

Establishing Einhell as an A-brand in the next 5 years

International expansion (Einhell world wide)

Strategy Einhell

Strategic assortment and product policy

Concentration on core competences– Concentration on core competences

– We can be successful if we focus on our strengths

– Sales, Engineering and Marketing pull together

Our core product categories are:– Power Tools

– Stationary Tools

– Garden

– Water Equipment

Strategic assortment policy

assortment since 2008

Strategic assortment and product policy

Power Tools

Our core-competence assortment

Main focus on stragetic product management

Quality (benchmark BOSCH), exclusive design and development

AIM: To be the number 2 right after BOSCH on the DIY market in 5 years

Strategic assortment and product policy Stationary Tools

Woodworking

Compressors

Welding

Tile and stone cutting machines

Power generators

Wet and dry vacuum cleaners

Lawn mowers

Scarifiers

Trimmers

Scythes

Hedge trimmers

Chain saws

Vac blowers

Cordless grass and shrub shears

Strategic assortment and product policy Gardening

25

Assortment 2012

Energy saving of -15% to -30% with the same flow rate!

Strategic assortment and product policy Eco-concept water equipment

Sharpening of the brand profile and brand awareness Expansion of listing business with all DIY customers – in Europe and overseasCreation of customer loyalty through joint product development, high quality and high delivery performanceDevelopment of an international service network in order to provide first-class service to our customers in all Einhell countriesOrganic growth through the establishment of 2-3 subsidiaries per year. The focus of the next few years will be on South America, India and Russia

Targets 1

Further improvement of product quality Development of the most competitive assortment modules in the DIY market Development of competitive products for our core target groups in the DIY market

Concentration on core competences

• Handheld tools

• Stationary tools

• Garden and water products

Enhell‘s entry into the professional specialised trade

Targets 2

Vision – specialised trade

Achieving a turnover of € 20 million in the specialised trade within 7 years

Gaining 300 specialty retailers in the power tool and motorist area within the next 3 years

Becoming an accepted brand in the specialised trade alongside Bosch blue, Makita, Hitachi and Metabo

We want to offer the best price/performance ratio for the specialised trade

We work with our own sales representatives andapplication technicians

Internationalisation of the specialised trade area starting in 2014

What are we doing to develop our brand?

1. Specialised magazines

2. Product development and innovations

3. HEP concept

4. POS presentations

5. Product training events

6. Service

7. Brand awareness

8. Price positioning

9. Distribution policy

10. Marketing campaign

Einhell offers products of high reliability (function, durability, handling).

This is underlined by numerous product tests performed by various DIY magazines:

1. Einhell as a brand in specialised magazines

31

1.1 Numerous tests and publications

And 18 abroad: – 4x “Test winner“

– 1x “Favourite“

– 4x “Product of the year“

– 9x “Good purchase“

In total approx. 100 tests (Garden & Tools)

Including 81 in Germany:– 6x “Test winner“

– 66x “Good – very good“

– 7x “Price tip“

– 2x “Tool of the year“

2000

2005

2008

2013

2. Product and design development

Import product

Design product1st generation

Design product2nd generation

Design product3rd generation

EinhellRG-EC 2240 MG

BoschAKE 40-19 S

GardenaCSI 4020-X

RSP € 169.99RSP € 179.99 RSP €119.95

WolfAmbition 38 E

RSP € 159.99

EinhellRG-EM 1536 HW

RSP € 139.99

Gardena PowerMax 36 E

RSP € 169.99

2.1 Designs which hold their own

2.2 More innovations

Over the past five years Einhell has developed numerous innovations and applied for many patents

Eco vacuum cleaner system

Hammer drill suction device

Blower vac cleaning system

Hammer drill press control

“Gooseneck“ rain barrel pump

“Innovations will strengthen the brand“

35

2.3 Outlook for 2013 (master battery concept)

3. The HEP concept

Following measures have been decided to help develop a unique product experience based on design, function and quality:

Strengthening of brand identity and recognition through uniform colouring

Differentiation of performance categories according to the requirements of three target groups (HEP):

-> Home (do-it-yourselfers)

-> Expert (ambitious do-it-yourselfers)

-> Professional

3.1 HEP overview

HOME EXPERT PROFESSIONAL

BLUE -> HOME RED -> EXPERT PROFESSIONAL

Target group Do-it-yourselfers Expert do-it-yourselfers Professionals

For all jobs around the home and garden, for

the price- and performance-conscious

buyer

For the ambitious handyman who values function,

performance and precision

For contractors who need top-quality products

for long-term work

Product performance

level

FFU satisfactory FFU good / very good Reference Makita

4. POS presentations

Presentation at the point of sale is an important part of the Einhell brand strategy

We develop individual POS concepts for our customers

Our presentations all have a clear recognition value and boost the brand

Brand identity

4.1 High-value, self-explanatory packaging

4.2 Point of sale

4.3 A brand presents itself as a brand!

POS

5. Product training events

We have created a team for training our customers in Germany and abroad

These training events are used above all for benchmark tests with A-brands in order to convince our customers‘ participants that Einhell products are comparable in function and quality

6. A brand also provides excellent service

The Einhell brand offers a high level of service

RED articles are available as an option with RED SERVICE

RED SERVICE is an extension of Einhell‘s standard service

Relief for local retailers!

RED SEVICE modules:

- Exclusive hotline (free of charge on work days from 8 am to 8 pm)

- Call-back service (within 24 hours)

- Saturday hotline

- Pick up service (within 48 hours)

- Express repair (within 48 hours)

- 10 years service guarantee

- Internet shop

Source: Selbst ist der Mann 02/2012

Qu

alit

y

Price level in % compared to benchmark (Bosch green)

Bosch

Metabo

-30% to -50%!

Import A

Import B

100

60

40

20

Skil

ProWork

B&D

0% -20% -40% -60%+20% -80%

8.1 Positioning today (2012)

-50% to -70%!

Qu

alit

y

Price level in % compared to benchmark (Bosch green)

Bosch

Metabo

up to -25%!

Import A

Import B

100

60

40

20

Skil

ProWork

B&D

0% -20% -40% -60%+20% -80%

up to -50%!

HOME

Expert

8.2 Positioning tomorrow (2015)

9. Distribution policy

Specialised trade

DIY stores Consumer storesC&C markets

Discounters & other stock dealers

Internet &online shops

Einhell Home Reduce Allowed Push Prohibited Allowed

Einhell Expert Allowed Push Allowed Prohibited Allowed

Einhell Professional Push Prohibited Prohibited Prohibited Prohibited

Einhell Grey Allowed Allowed Allowed Prohibited Allowed

Bavaria Prohibited Reduce Allowed Push Allowed

Royal Prohibited Reduce Allowed Push Allowed

10. Marketing campaign

Thank you very much for your attention!