Schock presentation 2014

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THE WORLD OF GRANITE SINKS

SCHOCK - Lighten up your life

SCHOCK – Lighten up your Life

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Contents

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SCHOCK – the company

What is a granite sink?

Market development – german example

Why Schock

SCHOCK – World of materials

SCHOCK – production

Appendix


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1. SCHOCK –THE COMPANY10 MinuteS


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SCHOCK gmbhin the heart of the Bavarian forest

plot sizeBuildings

employees

43.000 m2

25.600 m2

250


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SCHOCK gmbh

grundstücksgrößefläche unter Dach

Mitarbeiter

43.000 qm25.600 qm250

in the heart of Bavaria

Munich

1 hourRegen

Technology


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1979

1980

1986

1988

1989/90

World‘s first granite sink manufactured

Successful cooperation between SChoCK and BLAnCo began. SChoCKexclusively supplies the stainless steel experts with sinks made of „Silacron“and later „Silgranit“

exclusive european producer of sinks and basins made of „Corian“ for Dupont and Dupont‘s exclusive distributor in germany (until 1999)

CRISTALITE® – Nature refined! The dispersion of 80% ultra-pure quartz, the hardest constituent of granite, combined with acrylic ultimately seals the success of the „granite sink“

the SChoCK CRISTALITE® patent for the acrylic-based „granite sink“ islicensed to Carron (now franke group) and BLAnCo

The original for more than 30 years – continuous advances


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2001

2004

2005

2008

2009/10

2011

production for BLAnCo stopped and own Schock label distribution pushed

SCHOCK Antibac - SChoCK is the world‘s first and still the only sink manufac-turer to produce a natural antibacterial hygiene protection system

CRISTADuR® - the material‘s fine structure creates a gleaming surface from which the dirt simply runs off (patent protected)

CRISTASTONE® - World‘s first „granite sink“ that can be combined with a quartz kitchen counter top to provide an exact colour and material match (patent protected)

CRISTALITE®- and CRISTADuR®- taps - 100% identical in material, quality and colour (patent protected), sinks and taps can be combined

® – the new generation of the classic raises SChoCK above the level of the competition in the basic material, too (patent protected)


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SCHOCK gmbhThe team

grundstücksgrößefläche unter Dach

Mitarbeiter


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AROuND 1.500.000 SINKS OR 75% OF ALL GRANITE SINKS ARE MANuFACTuRED uSING THE SCHOCK METHOD EACH YEAR


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Distribution in more than 70 countries Made in germany


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natural materials

Average life span in excess of 20 years

environmentally sound

renewable energies used in the production process

Made in germany – manufactured according to german environmental and quality standards

•

•

•

•

•

SChoCK sustainability

Schock attacheS high priority to

SuStainability and environmental protection


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2. What is a GRANITE SinK?10 MinuteS


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the name „granite sink“ is commonly given to sinks made up of quartz (the hardest con-stituent of granite) and a binder.

What is granite made up of?

30-60%

quartz

10-30% mica

10-20% feldspar


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approx. 85% quartz

approx.

15%

high-grade

acrylic

• the special way we process high-grade acrylic and rounded quartz particles makes Schock sinks so tough and durable

• Acrylic is uV-stable, unlike polyester, and does not get porous

The result:

• three times harder than natural granite• 100% pore-free sealed surface• resistant to aggressive chemicals• Capable of working under extreme pressure

the SChoCK quality

The SCHOCK Quality (nature refined)


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Segmentation of the granite sink marketpremium – mid-range – low-end

Premium

• SCHOCK CriStADur®

® CriStAStone®

• BLAnCo: Silgranit / puradur 2

Suppliers of cheap goods from Asia and eastern europe• granmaster• Marmorin• nature

Manufacturer

Low-end

Mid-range

Premium

• frAnKe: fragranit

• AStrACASt • eLLeCi• pLADoS • LeiSure

Qua

lity

POLYESTER BinDer

ACRYLIC BinDer

Binder/technology

Copycats

SC

HO

CK

Lucite


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® – Colour your lifeformula, ingredients and production

filler: 75-80% fine quartz sand (approx. 0.03-0.08mm) with specially rounded grain shape from germany• robustness and durability

Binder: 19-24% high-grade acrylic• uV-stable and food-safe, making it extremely well suited to everyday use

production: using polished and brushed nickel shells • reverse shrinkage effect creates a high-quality surface finish• Little moulding of the surfaces

75-80%

quartz

19-24% acrylic5%

others


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CRISTADuR® – feel the differenceformula, ingredients and production

Main constituent: 66% micro-fine quartz sand(approx. 0.03-0.03mm)• gleaming surface • Colour purity • unbeatable ease of cleaning

Binder: 15.5% high-grade, highly cross-linked acrylic• gleaming surface and the dirt simply runs off

other ingredients: 12.5% colour paste • Colour purity

Approx. 6% other ingredients• Dirt-repellent

production: using radiated nickel shells, special temperature profile, Schock’s own patented formula• Moulding of micro-fine surface structure

66%

quartz15.5%

acrylic

12.5% colour paste6% others


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SCHOCK method

• Main constituent is quartz• only quartz particles with rounded edges are used

• Surface is tough and hard-wearing• Does not bleach/long-lasting • only Schock, franke and BLAnCo• ®, CriStAStone® and CriStADur® available exclusively from SChoCK

SCHOCK technology vs. Lucite technologyComparing the two methods of manufacturing granite sinks

Lucite method

• Main constituent is quartz• Broken, angular quartz particles are used

• Much rougher and softer surface, not dirt-repellent• numerous manufacturers across the globe: Astracast, elleci, plados, telma guzzini

EXTRA LAYER OF HARD-NESS ON THE SuRFACE


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How the material is differentiatedfrom stainless steel sinks

Stainless steel sink

• Commodity

• Limited possibilities in terms of colour and shape

• Limited thermal energy storage (water in the sink

goes cold quicker)

Granite sink

• individualisation possible thanks to the variety of colours available

• provides a nice warm look and sound

• Saves energy (dishwater stays warm longer in

granite sinks)

• Comes with a naturally antibacterial hygiene

protection system (exclusive to SChoCK)

• environmentally friendly


2075.5680548967

2589887

365-58887 365

3. MARKET DEVELOPMENTgerman example

10 MinuteS


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the sink market in Germany

2007 2008 20090

20

40

60

80

100

120

140

160Total

Steel

Colour

Material split (in eur k)

AMK-data


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MARKET DEVELOPMENT By SinK type

1979

0% 39.4%

100% 60.6% 49.2%

50.8%

2007 1ST HALF OF 2010

Coloured sinks

Stainless steel sinks

this development is confirmed globally in other studies

* Here relevant market share over EUR 50

AMK figures


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MARKET SPLIT: Around 75% of all granite sinks are manufactured using the method developed by SChoCK

Drivers of growth

• Kitchens are status and lifestyle products

• trend towards colour

• Quality awareness

• environmentalism

SCHOCK25%

BLANCO25%

FRANKE 24%

ACRYSIL7%

ELLECI 6%

PLADOS 6%

REST 7%


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4. WHY SCHOCK 10 MinuteS


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Colour your life

• Colour is a great way of serving the trend towards individualisation• Kitchen cabinets, sinks and countertops can be brought into perfect harmony

COLOuR your LIFE


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Quality + experience

Made in germany

Artonyx

• invented the granite sink• 75% of all granite sinks made using the SChoCK method• ®, CriStADur®and CriStAStone® exclusive to SChoCK• ®, CriStADur® and CriStAStone® developed by SChoCK and patent protected• tÜV testing confirms quality leadership• Made exclusively in germany• extremely high quality standards (certification)

CRISTALITE®

®

CRISTADuR®

CRISTASTONE®

SCHOCK – LIGHTEN UP YOUR LIFE

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SCHOCK HygienekonzeptMaking life easier and more hygenic.

Dirt-repellent

The dirt simply runs off

Pro Hygienic 21

Sinks are where food is prepared and dishes and pans are washed up. Large numbers of bacteria result. Pro Hygienic 21 is the first and still the only hygiene protection system for the sink. The integratedprotection mechanism inhibits 95% of bacterial growth.

CRISTADUR®


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premium designs


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unsurpassed variety of colours


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5. the WorLD of SCHOCK MAteriALS

20 MinuteS


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our SCHOCK sink materialsoutclassing art

Colour your life

unity of sink and counter top

Seamless installation

feel the differenceCRISTADuR®

THE WORLD OF SChoCK

MATERIALS CRISTALITE ®


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® – COLOuR YOuR LIFE

eXtreMeLy eASy to CLeAn

CRISTALITE®

eXtreMeLy tough AnD SCrAtCh-proof+

MAXiMuM CoLour intenSity+

MADe in gerMAny+

+uV-StABLe AnD fooD-SAfe+

nAturALLy AntiBACteriAL hygiene proteCtion SySteM

+

the new generation of a classic

®

®

Lighten up YOuR LIFE


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CriStALite®®

® : Predefined surface makes it easier to clean, more hard-wearing and gives greater intensity of colour (1)


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® : Predefined surface makes it easier to clean, more hard-wearing and gives greater intensity of colour (2)

CriStALite®

With ®, SChoCK is now a cut above the competition in the basic material too

1000.01000.0

1525.0

0.00µm0.00µm

56.9µm

1000.0 1000.0

1525.0

0.00µm0.00µm

100.2µm®

SCHOCK – LIGHTEN UP YOUR LIFE

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CRISTADUR® – FEEL THE DIFFERENCE

CRISTADUR®

– FEELTHEDIFFERENCEMATERIAL

GLEAMING SURFACEHYGIENE PROTECTION SYSTEM: DIRT REPELLENT EFFECT – THE DIRT SIMPLY RUNS OFF

TOUGH AND EASY TO CLEANUV-STABLE AND FOOD-SAFE

MADE IN GERMANY

COLOUR PURITY


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CRISTADuR® – Maximum ease of cleaning and stain resistanceSurface finish of granite sinks

Dirt repellent the dirt simply runs off

granite sinks made of quartz + polyester

SChoCK ®

quartz + acrylicCompetitors’ granite sinks made of quartz + acrylic CriStALite®

SChoCK CRISTADuR®

quartz + acrylic


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CRISTADuR® – Immaculately pore-free

Competitors’ material

porous, rough, coarse – the dirt has more to stick to

SChoCK CRISTADuR®

pore-free, smooth, fine – the dirt simply runs off


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CRISTASTONE®

the perfect combination of counter top and sink

perfectly combinable in surface + colour: Cristastone sinks + granite counter tops

uV-stable food-safenaturally antibacterial

tough + easy to clean

MADe in gerMAny


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CRISTALAN® – SeAMLeSS inStALLAtion

Can be seamlessly built in to a solid surface counter top (e.g. Crista-lan, Corian)

uV-stablefood-safeeasy to clean

MADe in gerMAny


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6. PRODuCTION10 MinuteS


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how CRISTALITE® sinks are made

Steps 1 – Checking and warehousing the raw materials All raw materials undergo an incoming goods inspection. onceapproved, they are registered in the erp system ready for step 2

Steps 2 – Manufacturing the intermediate productsSyrup is made out of MMA and pMMA by a process of dissolution within 6h. Colour pastes made and functional batches like ByK natural (anti-settling agent) prepared, coloured sand production blends made

Steps 3 – Producing and evacuating the casting slipA castable mixture consisting of coloured sand blend, syrup, functional batches and colour pastes – in different quantities for different colourformula – is prepared and any air removed by evacuation

Steps 4 – Casting the sinkthe ready-to-use casting slip is poured into the prepared casting mould under pressure and the right heating and temperature profile for the type of material is started up

Steps 5 – Removing the finished sink from the mouldonce the heating and temperature profile has finished, the casting mould is opened and the fully cured, semi-finished sink form removed


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SCHOCK – production process

Step 1 Checking and warehousing the raw materials

All raw materials undergo an incoming goods inspection. once approved, they are registered in the erp system ready for step 2


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Step 2 Manufacturing the intermediate products

Syrup is made out of MMA and pMMA by a process of dissolution within 6h. Colour pastes made and functional batches like ByK natural (anti-settling agent) prepared, coloured sandproduction blends made



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Step 3 Producing and evacuating thecasting slip

A castable mixture consisting ofcoloured sand blend, syrup, functional batches and colour pastes – in different quantities for different colour formula – is prepared and any air removed byevacuation



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Step 4 Casting the sink

the ready-to-use casting slip is poured into the prepared casting mould under pressure and the right heating andtemperature profile for the type ofmaterial is started up



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Step 5 Removing the finished sink from the mould

once the heating and temperature profile has finished, the casting mould is opened and the fully cured, semi-finished sink form removed



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THANK YOu


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ANHANG

APPENDIX


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The Lucite methodCommon problems – Bleaching

Bleaching a fine cracks in a competitor‘s sink after 1,000 cycles with hot andcold waterhot/cold cycle test/en 13310


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The Lucite method

Fine cracks in a competitors‘ sink after one year

Common problems – Cracks


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CRISTADuR® vs. ®

Comparing our premium material and the on-trend material

® – The on-trend material

• fine quartz sand (approx. 0.3-0.8mm)• Looks and feels less fine

• Standard cross-linked acrylic

• polished and brushed nickel shells used• reverse shrinkage creates its own surface structure• Less surface moulding

filler

Binder

production method

CRISTADuR® – The premium class

• 66% quartz sand on average (approx. 0.03-0.3mm)• Looks and feels finer

• highly cross-linked acrylic

• radiated nickel shells used• Very fine surface structure obtained• precisely regulated temperature profile• Special formula


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CRISTADuR® – The premium class

EXTREMELY EASY TO CLEAN

polyester-based sinks

Competitors’acrylic-based sinks

SChoCK CRISTADuR® sinks

unbeatable ease of cleaning and stain resistance


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1. Sinks supplied(volume sales)

2. Sinks supplied(value sales)

There is a clear long-term trend towards colour. SCHOCK, as the market leader, is enjoying a disproportionately large portion of the benefit from this

„Steel“ sinks „Coloured“ sinks

„Steel“ sinks „Coloured“ sinks

Monthly figure 2010 Monthly figure 2010


16,270 23,312

3,933,543 4,950,820

17,270 22,399

4,090,523 4,768,471

94.65 104.08

96.16 103.82

21,834 9,988

1,861,742 1,044,553

21,072 7,930

1,774,741 837,586

103.62 125.95

104.90 124.71

86,577 248

1,954,906 6,636

94,836 376

2,246,646 12,650

91.29 65.96

87.01 52.46

124,681 33,548

7,750,191 6,002,009

133,097 30,705

8,111,910 5,618,707

93.68 109.26

95.54 106.82

334,886 89,746

21,143,829 16,528,504

366,348 85,581

22,334,880 14,976,364

91.41 104.87

94.67 110.36

> 125,00

> 125,00

> 50,00

> 50,00

≤ 50,00

≤ 50,00

Total

Total

Cumulative

Cumulative



Percentagechange

Percentagechange

Percentagechange

Percentagechange

Source: AMK data * Here relevant market share over EUR 50

the sink market in GermanyMarket split by material (in eur and units - as per March 2010)

SChoCKs‘ coloured sinks continue to record double-digit growth rates in 2010 against a market that contracted slightly overall

Documents

Schock presentation 2014