1. Business Strategy

2. MARKETING PLAN
MTS
ADV & Product Convention Incentive POS Demo Call
PR Information Zone Center
Small
Heating Project
Retailers Installers
Companies Bureaux
Renovated
New Houses Apartments Tenders
Houses
Posters ADV Campaign Exhibitions Call Center Demo Zone Web Site

3. Targets Achieved vs. the Marketing Plan
Targets: Status:
1. Improve Product Display and 1. Continuous distribution of
Association of ARISTON & pedestals, pocket
C&M brands with top Quality. holders, brochures, wobblers, sti
ckers.
2. Increase the professional
level of our distributors’ staff. 2.1 HEA training – once a month
2.2 Dealers’ convention – Feb.
2.3 Continuous training of shop
assistants throughout Ukraine
3. PR and ADV “new” image of
ARISTON 3.1 Articles in specialized
magazines
3.2 Promo action “Ariston-Bonus”
4. Answer the needs of growing
professional channel 4.1 Catalogues of HEA
4.2 “Ariston – Club”
4.3 Introduction of Rendamax?

4. General plan of action: Electrical Water Heaters (Ukraine)
Targets: Actions: Timing:
1. Enlarge the actual 1. Involve new retailers 1. All year round
distribution net. into Ariston
distribution.
2. Increase the professional 2. Continuous product 2. All year round
level of our distributors’ trainings.
staff.
3. Continue the Upgrade of 3. To control the 3. All year round
the “White Goods” level availability of Ariston
channel focusing only on products in retail
ARISTON quality and shops, transfer
design products. orders.
Merchandising.
4. Increase MTS presence in 4. High quality products 4. All year round
the growing Professional and a stronger
Channel marketing policy and
support (banners,
lightboxes, stands,
labels)

5. General plan of actions: Wall hung boilers (Ukraine)
Targets: Actions: Timing:
1. Continue to develop 1. To use Rendamax like a 1. Till the end of the
ARISTON (MTS) brand tool through the current 2004.
image as heating and potential partners.
specialist. Beginning of the
promotion of ARISTON
solar systems.
2. Continue to create a 2. ARISTON “GAS CLUB” 2. All year round.
consistent ARISTON
brand loyalty.
3. To create first MTS’ 3. Use the support of ORBI 3. Till the end of the
Ukraine DEMO ZONE (Lviv) like winner of first 2004
MTS’ Ukraine tender.

6. Plan of Action ARISTON
Targets: Actions: Timing:
1. Motivation and 1.1 Locally organized product 1.1 Throughout the year
loyalty building training and issue of
among shop’ certificates
assistants 1.2 “ARISTON – Bonus” 1.2 July - Dec
2. Increase sales of 2.1 Promo action “ARISTON- 2.1 July-Dec
ARISTON range Bonus” in Ukraine;
2.2 Promotion “ARISTON – 2.2 Dec
Installer Club” in Ukraine
2.3 Promo action “Free Filter” 2.3 Sep
in Azerbaijan
2.4 Promo action (Georgia, 2.4 Sep
Moldova, Armenia)

7. Plan of Action ARISTON
Targets: Actions: Timing:
3. Advertising in 3. “Aqua-Therm”, and 3. Throughout the year
professional “Instal-Info” (Ukraine)
magazines
4. Support for Service 4.1 Distribution “professional 4.1 Nov – Dec
Centers equipment” to SC
4.2 Distribution of 4.2 Oct – Dec
flags, badges, labels, disp
lays
5. Display of Products 5.1 Sep
5.1 Local exhibition in
Azerbaijan 5.2 September
5.2 Metal stands (Caucasus) 5.3 June
5.3 Metal stands (Ukraine) 5.4 All year round
5.4 Light box (Ukraine)

8. Plan of Action C&M
Targets: Actions: Timing:
1. Product information 1 General Catalogue 1. June
dissemination
2. Product display 2.1 Metal Stands 2.1 June
2.2 Light Box 2.2 July
2.3 Iveco turbo daily 2.3 July
3. Advertising 3. Articles in UIT’ “Nova Tema” 3. All year round
4. Project Bureau
4. Project Bureau Presentation 4. August

9. Program “ARISTON – BONUS”
1. Target group: sales assistants of
“Thermolux” retail network throughout
Ukraine;
2. Program duration: 1 July – 31
December;
3. Products: Super Glass, Bravo,
Eureka, Ti Tech Round, Ti Tech
Small, GIWH, Booster, Platinum, Ti
Tech Square, Ti Tech Large, WSAN,
Ti Shape, Wall Hung Boilers, RAC,
SGA, ARK/ARH, WSE, NHRE, Ti
Tech STI, SI 150 – 300, Floor
Standing Boilers, Indirect Cylinders

10. Program “ARISTON – CLUB”
1. Target: installers in Western
Region of Ukraine;
2. Beginning of Program: February
3. Main activities:
- regular technical trainings;
- support on product, spare
parts availability;
- Bonus – program according to
“Ariston – Bonus”;
- close involvement of project
engineers;

11. Competition “THE BEST PROJECT ENGINEER”
1. Target: project Bureaux engineers in Kherson;
2. Product: All range of ARISTON gas products;
3. Duration: July – December
4. Description: Timing:
- Announcement of the competition; June, 2004
- Election of “Review Committee”; June, 2004
- Submittal of work; November, 2004
- Prize ceremony December, 2004
Submitted projects are judged on the following criteria:
1) Project data gathering techniques;
2) Level of consistent quality in project design;
3) Use Computer technology (Auto CAD);
4) Project follow-up, and customer’ satisfaction.

12. Update of Marketing Costs - ARISTON

13. Update of Marketing Costs - ARISTON

14. Update of Marketing Costs – C&M

15. PRODUCT LAUNCH STATUS
Models: Status: Timing:
1. Ti Glass Certification is completed April, 2013
2. WSE
3. WSAN
4. ARK
5. ARH
6. SI 150 ~ 300
7. SG 2,5 K
8. RAC Split ARISTON, C&M
9. Ti Shape
10. Bravo Certificates are pending Samples, CB, and
EMC pending
11. T2 27/28 MFFI Certificates are pending June, 2013
12. Eurocomfort
13. EcoCombi, EcoSystem
14. New Storage Cylinders
15. New SGA Ariston, C&M

16. MARKET SCENARIO (UKRAINE)
Electrical Water Heaters

17. MTS presence (Ukraine)
MTS 46% 28% 25% 20%
share:
Bazar
50% 39%
45%
40% White Goods
35%
30% 47% Professional
25% 12%
20% DIY
15%
10% 2%
5%
0%
White Goods Professional Bazar DIY
Estimation of the 2013 Ukraine market volume*: 210 000 pcs.

18. Market share EWH (Ukraine)
Others 3%
Atlantic 3%
Baxi 3%
Fismar 3%
NovaTec 4%
Electrolux 7%
Gorenje 9%
Lorenzi 30%
MTS 38%
0% 10% 20% 30% 40%
Estimated 2013 Ukrainian market volume: 210 000 pcs.*

19. Lorenzi Brand Share (Ukraine)*
ISEA ROUND *
23%
49%
28%
THERMEX
* Assembled in Ukraine

20. AQS SWOT ANALYSIS IN UKRAINE
STRENGTHS WEAKNESSES
MTS LORENZI
MTS LORENZI
 Strong brand  Effective price mix
awareness No presence on  No direct presence in
 Local assembly (ROUND)
 The widest range of low price segment the country
 Good price for value
products  Not clear Service
(ISEA, CLASSIC)
 Service policy
 Rep. Office in Kiev  Sole brand
distribution policy
OPPORTUNITIES THREATS
MTS MTS
 Political instability and changes of
 Launched of new models of EWH -
customs duties
WSE, WSAN, TI TECH SHAPE, ARK, ARH for
widening the range of MTS and compete with  Drastic improvements in State Hot Water
Lorenzi with complete range. Supply (Kyiv’ example)
 New forthcoming DIY channel  Increase in price of electricity

21. MARKET SCENARIO (Ukraine)
Gas Wall Hung Combi Boilers

22. DISTRIBUTION GWHB CHANNELS (UKRAINE)*
White goods
0,5%
37% Professional
0,5%
Bazar
DIY
62%
Estimated Ukrainian market
volume*: 60 000 pcs. * MTS Source

23. Total market of the GWHB (Ukraine) 2013: 60 000 pcs. (estimation)
16%
14%
HERMANN
JUNKERS
12%
BERETTA
WESTEN+BAXI
10% PROTHERM
FERROLI
8% ARISTON
C&M
6% VAILLANT
THERMONA
4% TERMET
VIESSMANN
OTHERS
2%
0%

24. GWHB SWOT ANALYSIS IN UKRAINE
STRENGTHS WEAKNESSES
MTS MTS
 Strong brand  Working problems
awareness with cash receiving
 Wide range of  No possibilities to
products combine EWH & GWHB
shipments
 Service (stock of
spare parts in Ukraine)  The absence of
warehouses into regions
 Company in Ukraine The absence of right
model on the market in
low price niche (T2)
OPPORTUNITIES THREATS
MTS MTS
 Political instability ( forthcoming
 Aggressive price for
elections)
market entering
 Service centers in
each oblasts

25. PRICE POSITIONING

26. Price positioning 80l. EWH: Dnepropetrovsk
185
182
175 176
174
165
159
155
151 152
145
135
132
125 124
115 115
111 110
109
105
102 102 102 102
98 97
95 95 95
91 92
90
85
Базар Профи Быт. Техника Строит. Матер.

27. Price positioning 80l. EWH: Kiev
290
283
280
270 270
267
260
250 238 249
245
240 237
235
230 231
220
210 210
205
200 189
190 188
180
170 171
160 150
156
150 150
140 142 130 141
138 126 136
130 129 132
128 128
111 123 121
120 107 110 131
117
110 112
105
100 104 105 96 98
90 89
80
WG Profi DIY

28. Price positioning 80l. EWH: Kiev – Sale Hits
280
274
260
249
240
220 219
200
180
170
160 163 162
144 145
140 139
128 125
120 117
100
Platinum 50
TI 80 R
Gorenje TGR 80
Atlantic O"PRO 50
SG 80 R
Gorenje GBF 80N
max min

29. Price positioning 80l. EWH: Kharkov
229 230 229
225
215
215
212
205 209
194
195
191 190
185
187
177
175
165
150
155 155
148 153
145 144
142 145
137 137
135 134
127 133
130 130
120 127
125 117 125 125 125
120 120 120 121 121 120
112 117
115 115 115
112
110 117 110
105 106 105 105
102
100 100
95
90
85
Базар Профи Быт. Техника

30. Price positioning 80l. EWH: Donetsk
180 177
171
170 170
160
150
140 130
130 130 132
125 125 127
118 123 120
120 120
116 116 115 117
110 111 104
115 100
102 101
100 100
95 98 97
90
80 Isea 80 S
Isea 80 P
SG 80
Ti Tech 80
Atlantic 80
SG 80 R
Fox 80
Round 80 S
Round 80P
Bazar Profi WG DIY

31. PROMOTERS ACTIVITY

32. Promoting activities: Geographical Centers
Kiev
Kharkov
Lvov
Donetsk
Dnepropetrovsk
Kiev – Konstantin Skvortsov;
Odessa
Kharkov – Anna Bondareva;
Donetsk – Viktoria Khardikova;
Dnepr – Oksana Marchenko;
Odesa – Evgeniy Lubenets;

33. Promotion activities: Functions
• Controlling the display of ARISTON products according
to the corporate standard, distribution of POS materials;
• Maintaining weekly .xls database of retail outlets dealing
in the sector of EWH, RIS, RAC;
• Monitoring and monthly report on changes in price
positioning;
• Reports on yearly sales by retail outlet within the region;
• Product training for sales assistants;
• Segmentation of retail outlets (DIY, White
Goods, Specialized “Heating and Water
Solutions”, newspapers, internet, etc.);
• Follow-up, PR and promotion actions.

34. Promotion activities: Achieved Results
• Building-up and maintaining amiable relationship with
retail shop assistants, who in turn influence final
consumers;
• Disseminating product information among shop
assistants;
• Tracking distribution route via warranty card number;
• Importance of each partner (retail outlet) evaluated on
the basis of yearly sales, personnel changes;
• Continuous control and improvement of product display;
• Prompt correction of price positioning on the market;

35. Promotion activities: Plans
Description: Timing:
1. Provide adequate support for person in Odessa; 1. June
2. More close involvement in 6 month promotion 2. July – Dec
action;
3. Identify all performers in professional channel 3. June – Sep
“Heating + Water Solutions” throughout all
regions, and supply their needs;
4. Improve training materials for sales assistants in 4. June
White Goods retail outlets;
5. Build-up PR activities with project designers, city 5. July – Dec
“Gazovoe Hozyaistvo”;
6. Direct involvement in “Ariston-club” and 6. July – Dec
“Ariston-Bonus”.

36. MAIN COMPETITORS ACTION

37. Main Competitors Actions
TRADE MARK ACTION Rate
HERMANN Aggressive actions on the market through its exclusive distributor “Vodnaya Technika”. HIGH
Exclusive distributor
1) started to print out its own magazine for heating engineers, active at each regional exhibition;
2) Initiated program “Hermann – Bonus”, work w project engineers;
3) Quantities are achieved through the sale of Habitat;
JUNKERS 1) Active on each regional exhibition through its local partners MEDIUM
2) Good training facilities - 3 regional in Kiev, Lvov, Dnepropetrovsk;
3) Initiated “Junkers – Bonus” program;
4) Expanded its sales representatives network throughout Ukraine;
5) Efficient logistic flow of product and spare parts deliveries
6) Introduction of colored versions of fan flue GIWH
7) Emphasis on high technology used in GIWH (Hydro Power, mini dimensions, AA batteries)
BERETTA 1) Active on major exhibition in Kiev, though operating through its Moscow Branch office; MEDIUM
2) Low marketing profile compensated by very attractive price positioning on the lower level
3) Strong effort to improve its image as “Spare parts are always available”

38. “Junkers – Bonus” Programc
Bosch – Ukraine OOO officially initiated program “Junkers – Bonus”
program during an exibition Aqua-Therm on 15 April, 2013.

39. “Hermann – Bonus” Program