Schock presentation 2014

SCHOCK - Lighten up your life

THE WORLD OF GRANITE SINKS 1

SCHOCK – Lighten up your life

Contents

1 ______ SCHOCK – The company 2 ______ What is a granite sink?

3 ______ Market development – German example 4 ______ Why Schock 5 ______ SCHOCK – World of materials 6 ______ SCHOCK – Production 7 ______ Appendix

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SCHOCK – Lighten up your life

1. Schock – THE COMPANY 10 MinuteS

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SCHOCK – Lighten up your life

SCHOCK GmbH In the heart of the Bavarian forest

Plot size 43.000 m2 Buildings 25.600 m2 Employees 250

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SCHOCK – Lighten up your life

SCHOCK GmbH In the heart of Bavaria

1 hour

Regen

Munich Technology

Grundstücksgröße 43.000 qm Fläche unter Dach 25.600 qm Mitarbeiter 250

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SCHOCK – Lighten up your life

The original for more than 30 years – continuous advances

1979

World‘s first granite sink manufactured

1980

Successful cooperation between SCHOCK and BLANCO began. SCHOCK exclusively supplies the stainless steel experts with sinks made of „Silacron“ and later „Silgranit“

1986

Exclusive European producer of sinks and basins made of „Corian“ for DuPont and DuPont‘s exclusive distributor in Germany (until 1999)

1988

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“

1989/90

The Schock Cristalite® patent for the acrylic-based „granite sink“ is licensed to Carron (now Franke Group) and BLANCO

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SCHOCK – Lighten up your life

2001

Production for BLANCO stopped and own Schock label distribution pushed

2004

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

2005

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

2008

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)

2009/10

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

2011

– 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 – Lighten up your life

SCHOCK GmbH The team

Grundstücksgröße Fläche unter Dach Mitarbeiter

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SCHOCK – Lighten up your life

AROUND 1.500.000 SINKS OR 75% OF ALL GRANITE SINKS ARE MANUFACTURED USING THE SCHOCK METHOD EACH YEAR

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SCHOCK – Lighten up your life

Distribution in more than 70 countries Made in Germany

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SCHOCK – Lighten up your life

Schock sustainability •

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 attaches high priority to sustainability and environmental protection 11

SCHOCK – Lighten up your life

2. What is a GRANITE SINK? 10 MINUTES

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SCHOCK – Lighten up your life

What is granite made up of?

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

10-20% feldspa r

10-30% mica

% 0 6 30-

z t r qua 13

SCHOCK – Lighten up your life

The SCHOCK quality The SCHOCK Quality (nature refined)

. approx 15% ade high-gr acrylic

ap

85

qu

pro

%

art

z

x.

• 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

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SCHOCK – Lighten up your life

Segmentation of the granite sink market Premium – mid-range – low-end

Manufacturer

Binder/technology

®

Cristastone®

Premium

SCHOCK

ACRYLIC binder

• SCHOCK Cristadur®

• BLANCO: Silgranit / Puradur 2 • FRANKE: Fragranit

Quality

Suppliers of cheap goods from Asia and Eastern Europe • Granmaster • Marmorin • Nature

Mid-range

POLYESTER binder Low-end

Lucite Copycats

• AstRACAST • Elleci • Plados • LeIsure

Premium

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SCHOCK – Lighten up your life ®

– Colour your life

Formula, 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

5 % othe

rs

19-24%

acrylic

0 8 75

%

z t r qua

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SCHOCK – Lighten up your life

Cristadur® – Feel the difference Formula, ingredients and production Main constituent: 66% micro-fine quartz sand (approx. 0.03-0.03mm) • Gleaming surface • Colour purity • Unbeatable ease of cleaning

6 % othe

Other ingredients: 12.5% colour paste • Colour purity

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

colou past r e

rs

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

Approx. 6% other ingredients • Dirt-repellent

12.5%

.ry5lic% 15 ac

66

%

z t r qua

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SCHOCK – Lighten up your life

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

Lucite method

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

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

EXTRA LAYER OF HARDNESS ON THE SURFACE

• Surface is tough and hard-wearing • Does not bleach/long-lasting • Only Schock, Franke and BLANCO ® , CRISTASTONE® and CRISTADUR® available • exclusively from SCHOCK

• Much rougher and softer surface, not dirt-repellent • Numerous manufacturers across the globe: Astracast, Elleci, Plados, Telma Guzzini

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SCHOCK – Lighten up your life

How the material is differentiated from stainless steel sinks

Granite sink

Stainless steel sink

• Individualisation possible thanks to the variety of colours available

• Commodity

• Provides a nice warm look and sound • Saves energy (dishwater stays warm longer in

• Limited possibilities in terms of colour and shape • Limited thermal energy storage (water in the sink goes cold quicker)

granite sinks) • Comes with a naturally antibacterial hygiene protection system (exclusive to SCHOCK) • Environmentally friendly

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SCHOCK – Lighten up your life

2589887

3. MARKET DEVELOPMENT German example 10 MINUTES

365-58887 365 0548967

75 20

SCHOCK – Lighten up your life

The sink market in Germany Material split (in EUR k) 160

Total Steel

140

Colour

120 100 80 60 40 20 0

2007

2008

2009

AMK-data

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SCHOCK – Lighten up your life

MARKET DEVELOPMENT BY SINK TYPE This development is confirmed globally in other studies

1979

2007

1st half of 2010

Coloured sinks

0%

39.4%

50.8

Stainless steel sinks

100%

60.6%

49.2%

%

AMK figures * Here relevant market share over EUR 50

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SCHOCK – Lighten up your life

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

PLADOS 6% ELLECI 6%

Drivers of growth

REST 7%

• Kitchens are status and lifestyle products

SCHOCK 25%

• Quality awareness • Environmentalism

ACRYSIL 7%

FRANKE 24%

• Trend towards colour

BLANCO 25%

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SCHOCK – Lighten up your life

4. WHY SCHOCK 10 Minutes

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SCHOCK – Lighten up your life

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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SCHOCK – Lighten up your life

Quality + experience

®

CristaSTONE®

CristaDur® Cristalite®

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)

Made in Germany

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SCHOCK – LIGHTEN UP YOUR LIFE

SCHOCK Hygienekonzept Making life easier and more hygenic.

Dirt-repellent

Pro Hygienic 21

The dirt simply runs off

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 integrated protection mechanism inhibits 95% of bacterial growth.

CRISTADUR®

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SCHOCK – Lighten up your life

Premium designs

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SCHOCK – Lighten up your life

Unsurpassed variety of colours

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SCHOCK – Lighten up your life

5. THE WORLD OF SCHOCK MATERIALS 20 MinuteS

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SCHOCK – Lighten up your life

Our SCHOCK sink materials Outclassing art

® CRISTADUR Feel the difference

The world of SCHOCK materials

Unity of sink and counter top

CRISTALITE Colour your life

®

Seamless installation 31

SCHOCK – Lighten up your life ®

– COLOUR YOUR LIFE ®

The new generation of a classic LIGHTEN UP YOUR LIFE

+ MAXIMUM COLOUR INTENSITY + EXTREMELY EASY TO CLEAN

CristaLITE®

®

+ EXTREMELY TOUGH AND SCRATCH-PROOF + UV-STABLE AND FOOD-SAFE + NATURALLY ANTIBACTERIAL HYGIENE

PROTECTION SYSTEM + MADE IN GERMANY

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SCHOCK – Lighten up your life

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

®

CRISTALITE®

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SCHOCK – Lighten up your life

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

CRISTALITE®

®

56.9µm

100.2µm

1525.0 1000.0

1000.0

1525.0 1000.0

1000.0

0.00µm 0.00µm 0.00µm 0.00µm

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

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SCHOCK – LIGHTEN UP YOUR LIFE

CRISTADUR® – FEEL THE DIFFERENCE

COLOUR PURITY GLEAMING SURFACE HYGIENE PROTECTION SYSTEM: DIRT REPELLENT EFFECT – THE DIRT SIMPLY RUNS OFF UV-STABLE AND FOOD-SAFE TOUGH AND EASY TO CLEAN MADE IN GERMANY

MATERIAL

CRISTADUR®

– FEELTHEDIFFERENCE

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SCHOCK – Lighten up your life

CRISTADUR® – Maximum ease of cleaning and stain resistance Surface finish of granite sinks

Dirt repellent The dirt simply runs off

Granite sinks made of quartz + polyester

Competitors’ granite sinks made of quartz + acrylic CRISTALITE®

SCHOCK quartz + acrylic

®

SCHOCK CRISTADUR® quartz + acrylic

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SCHOCK – Lighten up your life

CRISTADUR® – Immaculately pore-free

Competitors’ material

SCHOCK CRISTADUR®

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

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

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SCHOCK – Lighten up your life

CristaSTONE® The perfect combination of counter top and sink

Perfectly combinable in surface + colour: Cristastone sinks + granite counter tops UV-stable Food-safe Naturally antibacterial Tough + easy to clean MADE IN GERMANY

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SCHOCK – Lighten up your life

CristaLAN® – SEAMLESS INSTALLATION

Can be seamlessly built in to a solid surface counter top (e.g. Cristalan, Corian) UV-stable Food-safe Easy to clean MADE IN GERMANY

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SCHOCK – Lighten up your life

6. PRODUCTION 10 MINUTES

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SCHOCK – Lighten up your life

How CristaLITE® sinks are made Steps 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 Steps 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 (antisettling agent) prepared, coloured sand production blends made Steps 3 – Producing and evacuating the casting slip A castable mixture consisting of coloured sand blend, syrup, functional batches and colour pastes – in different quantities for different colour formula – is prepared and any air removed by evacuation Steps 4 – Casting the sink The 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 mould Once the heating and temperature profile has finished, the casting mould is opened and the fully cured, semi-finished sink form removed 41

SCHOCK – Lighten up your life

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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SCHOCK – Lighten up your life

SCHOCK – Production process 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 sand production blends made

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SCHOCK – Lighten up your life

SCHOCK – Production process Step 3 Producing and evacuating the casting slip A castable mixture consisting of coloured sand blend, syrup, functional batches and colour pastes – in different quantities for different colour formula – is prepared and any air removed by evacuation

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SCHOCK – Lighten up your life

SCHOCK – Production process Step 4 Casting the sink The 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

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SCHOCK – Lighten up your life

SCHOCK – Production process 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, semifinished sink form removed

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SCHOCK – Lighten up your life

THANK YOU

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SCHOCK – Lighten up your life

APPENDIX

ANHANG 48

SCHOCK – Lighten up your life

The Lucite method Common problems – Bleaching

Bleaching a fine cracks in a competitor‘s sink after 1,000 cycles with hot and cold water Hot/cold cycle test/EN 13310

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SCHOCK – Lighten up your life

The Lucite method Common problems – Cracks

Fine cracks in a competitors‘ sink after one year

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SCHOCK – Lighten up your life

CRISTADUR® vs.

®

Comparing our premium material and the on-trend material

CRISTADUR® – The premium class

®

– The on-trend material

Filler

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

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

Binder

• Highly cross-linked acrylic

• Standard cross-linked acrylic

Production method

• Radiated nickel shells used • Very fine surface structure obtained • Precisely regulated temperature profile • Special formula

• Polished and brushed nickel shells used • Reverse shrinkage creates its own surface structure • Less surface moulding

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SCHOCK – Lighten up your life

CRISTADUR® – The premium class Unbeatable ease of cleaning and stain resistance

SCHOCK CRISTADUR® sinks Competitors’ acrylic-based sinks Polyesterbased sinks

Extremely easy to clean 52

SCHOCK – Lighten up your life

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

The sink market in Germany Market split by material (in EUR and units - as per March 2010) 1. Sinks supplied (volume sales)

„Steel“ sinks Monthly figure 2010

Monthly figure 2009

„Coloured“ sinks Percentage change

Monthly figure 2010

Monthly figure 2009

Percentage change

> 125,00

16,270

17,270

94.65

23,312

22,399

104.08

> 50,00

21,834

21,072

103.62

9,988

7,930

125.95

≤ 50,00

86,577

94,836

91.29

248

376

65.96

Total

124,681

133,097

93.68

33,548

30,705

109.26

Cumulative

334,886

366,348

91.41

89,746

85,581

104.87

2. Sinks supplied (value sales)

„Steel“ sinks

„Coloured“ sinks

Monthly figure 2010

Monthly figure 2009

Percentage change

> 125,00

3,933,543

4,090,523

96.16

4,950,820

4,768,471

103.82

> 50,00

1,861,742

1,774,741

104.90

1,044,553

837,586

124.71

≤ 50,00

1,954,906

2,246,646

87.01

6,636

12,650

52.46

Total

7,750,191

8,111,910

95.54

6,002,009

5,618,707

106.82

Cumulative

21,143,829

22,334,880

94.67

16,528,504

14,976,364

110.36

Monthly figure 2010

Monthly figure 2009

Percentage change

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 Source: AMK data

* Here relevant market share over EUR 50

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