«Chemmet» LLC «Fiber» project Project Leader- Karamyshev Sergey R&D Leader – Tolochko Oleg, D.Sci., Prof. mob.+7(911) – ; High-strength amorphous metallic fiber for concrete reinforcement
Challenge Assessment Customer problem: «Chemmet» LLC «Fiber» project Concrete Low tensile and bend strength ! Reinforcement is necessary !! Reinforcement is necessary ! Steel bars traditional solution Disadvantages: Low efficiency corrosion labor cost high termo conductivity
Solution Overview Technology Process stages: Alloy melting High-speed casting on the rotating drum (spinning- process) Mixing with concrete (in standard mixer on construction-site) Result: High-strength fibers (2000 – 4000 MPa) «Chemmet» LLC «Fiber» project
Solution Overview Functionality: High-strength (2000 – 4000 MPa instead MPa for steel bars) flexibility, safety corrosion resistance Customer value: material and labor cost saving on reinforcement work (up to 25-30%) work acceleration «Chemmet» LLC «Fiber» project
Market Information Market of steel fiber: –European – up to ton/year –Russian – up to ton/year –Russian market leader «Kurganscalmost» - average production ton/year Price –From от RUR (900 Euro) /ton (Russian steel wire fiber), –To RUR (9000 Euro) /ton (amorphous fiber Fiberflex, France). «Chemmet» LLC «Fiber» project
Overview On Competition ordinary fibers Competition based on unique properties of our product «Chemmet» LLC «Fiber» project «Kurganscalmost», Russia, Harex, Germany «BMZ»,Belorussia, «Severstal-Metiz», Russia Recem ТМ, Germany, distributed by «TD Evrohim-1», Russia Cuttered steel fiber d= 0,1-0,15 мм, l= 32 mm Wire steel fiber Polymer and celluloze fiber
Fibraflex TM, SEVA, France Strength – 1800 MPa Price –up to RUR (9000 Euro)/ton Overview On Competition amorphous fibers «Chemmet» LLC «Fiber» project Competition based on high quality and low priceses of our product Strength – up to 4000 MPa Price –up to RUR (3000 Euro)/ton
Business Model Product - amorphous fiber Main customer segments: –industrial floor makers (70% of fiber market), –industrial concrete construction producers –dry concrete premix producers Reasons to buy: –unique properties (high strength, non- corrosive, non-abrasive, safe in use –reasonable low price «Chemmet» LLC «Fiber» project
Market Entry Geographical areas: –Russia (North-West and Central region, Moscow) –Europe (Finland and Scandinavia, Baltic countries, Eastern Europe) –CIS countries Finland – the best way to technology transfer of innovation from Russia to EU Delivery Channels: –B2B sales Service Providers: –regional dealers in main target regiones «Chemmet» LLC «Fiber» project
Other Fundamentals Management Team Overview «Chemmet» LLC – Russian start-up company for the project Project Leader- Karamyshev Sergey – «Chemmet» LLC 100% owner and director. – General and Production management, investment, product sertification. R&D Leader – Tolochko Oleg, D.Sci., Prof. – Alloy composition and production technology research and development, IP protection. CFO – Tantsura Alexander –financial analysis, budget, accounting, investment proposal. Product manager – Vasiljeva Ekaterina, Ph.D. –product marketing research, customer relationship The team has positive experience of mutual research work in hi-tech business. «Chemmet» LLC «Fiber» project
Other Fundamentals IPR Overview Know-how in the amorphous alloy technology, based on Prof. Tolochko 20-years research 1 Patent (RU 99004): –fiber surface treatment «Chemmet» LLC «Fiber» project
Risks Sales/Rates, Branch, Industry, Efficity/Productivity, Environment Competitors, Regulatory, Quality IT&IP Security, Fraud, Protection of Labour, Finance Reports, Measuring/Monitoring, Shareholder Relation Protecting of Assets, Currency, Taxes Importance Probability «Chemmet» LLC «Fiber» project
Risks LevelControl activities Overproduction of products, sale problemshigh Separate evaluations, planning sessions Output of low-quality productshigh Audit of quality, ongoing monitoring Output of too expensive productsmedium Ongoing monitoring, performance indicators Lack of patents or licenses (IP)mediumSeparate evaluations Industry riskmedium Ongoing monitoring, performance indicators Risk of information securitylowPhysical controls Risk of fraudlow segregation of duties, physical control, internal audit «Chemmet» LLC «Fiber» project
Financing Plan RUBEUR Sales Equipment Raw materials Wages Pension Fund Assignments Social Insurance Assignments Electricity Rent Advertising Transport Repairs Organizational expenses Certification Total Expenses «Chemmet» LLC «Fiber» project
Financing Plan RUBEUR Sales Total Expenses EBITDA Depreciation Gross Profit Taxes Net Profit GPM,% 39,58 NPM,% 33,20 ROE 3,26 «Chemmet» LLC «Fiber» project