«FORTE»Trading House

«FORTE PROM»

«FORTE»Commercial and Industrial Holding

Trading companyThe importer of all the

products

Manufacturing company in Russia

«KASKAD» Group of

companies

«KASKAD»

Group of

Companies

Year of

establishment:

2006

Year of

establishment:

2005

Year of

establishment:

2010

Staff:

120 people

Staff:

12 people

Staff:

More than 60

people

«FORTE PROM»«FORTE»

Trading House

Corporate Structure «FORTE» Trading House LLC

Sales

Department

Marketing

Department

Juridical

DepartmentHR Department

Commercial Director

Sales Chief Sales Chief Sales Chief

Financial

Management

Technical

Support and

Service

Department

ITE and CRM

department

Financial

Department

Accounting

Department

Financial Director

Warehouse

Group of sales

managers

Regional and

Territorial

Representatives

Group of sales

managersGroup of sales

managers

Regional and

Territorial

RepresentativesRegional

Representatives

- Trading

Representatives

- Merchandiser

- Trading

Representatives

- Merchandiser

Sales Chief

Group of sales

managers

Regional

Representatives

Group of

Merchandisers

Direction: climate

equipment

Department of network client

services

Direction:

heating, water supply

President of the Company

- Gas flowing and Electric storage water heaters

- Aluminum and bimetal radiators

-Wall hung gas boilers

- Pumping equipment

-PPR pipes and fittings

Trademark «Oasis» (middle price segment):

Trademark «Akvilon» (middle price segment):- Air conditioners and climate equipment

Brand Portfolio:

2

Company own

trademark

Manufactured in

China

Oasis Akvilon

5

Company own

trademark

Manufactured in

China

Trademarks«Mimaks», «Konord», «Dani», «DeLuxe», «Nord»-Floor gas boilers

- Gas and electric stoves

Distribution

6

HALSEN

1

Company own

trademark

Manufactured in

Russia

Trademark«HALSEN» (premium segment):

- Aluminum radiators

- Gas flowing water heaters

Monlan

4

Company own

trademark

Manufactured in

China

Trademark «Monlan» (economy price segment):

Trademarks of

Russian and

Ukrainian

manufacturers

Company own

trademark

Manufactured in

China

3

Zerten

Trademark «Zerten» (economy price segment):

- Aluminum radiators

- Gas flowing water heaters

- Gas flowing water heaters

Gas Flowing Water Heaters «Oasis»:

Standard Series

Glass Series

Turbo Series

Electric storage water heaters «Oasis»:

Round series (standard)

Steel SeriesPlain Series

Small capacity water heater

Wall hung gas boilers

PPR pipes and fittings

Aluminum and bimetal radiators

Pumping equipment

"Oasis" products for heating and water supply systems:

Cooker hood

Household appliances "Oasis" :

Gas Flowing Water Heaters

Trade mark «ZERTEN»

Aluminum and bimetal radiators

Trade mark «ALECORD»

Trade mark «HALSEN» oriented on products which the company produce/assemble in Russia on its own factories

Aluminum radiators Gas flowing water heaters

«Monlan» - private mark, created specially for network clients of DIY format

Алюминиевые радиаторыAluminum and bimetal radiators

Gas Flowing Water Heaters

Air conditioners

Floor standing and table fans

«Akvilon» Climate Equipment

Products of Russian and Ukrainianmanufacturing plants:

Floor gas boilers:

Mimax Konord Dani

NORD

Gas and electric stoves:

DeLuxe

New product projects:

- Widening of current line of wall hung gas boilers «Oasis» by models with powers 13 and 16 kw and with new comprehensive system of smoke exhaust;

- Adding of the model 1,6 to the assortment line of gas meters;

- Widening of pumping equipment assortment by submersible pumps «Oasis»: model range will be represented by 3 types of submersible pumps -vibration, drainage and deep-well pumps;

-Renewal and widening of current model range of "Oasis" Jet pums, updated model line will contain 9 models instead of 3

- Widening of assortment line of climate equipment «Akvilon» by heating equipment: oil heaters, convector heater, fan heaters.

Sales dynamics of main commodity items:

1,069,178

1,516,000

2,530,000 4,200,060

6,500,000

Total 2008 Total 2009 Total 2010 Total 2011 Plan 2012

Radiators, psc of sections

20,638 19,625

43,760

71,080

105,000

Total 2008 Total 2009 Total 2010 Total 2011 Plan 2012

Electric storage water heaters, pcs

68,511

48,757

76,507 110,200

145,000

Total 2008 Total 2009 Total 2010 Total 2011 Plan 2012

Gas flowing water heaters, pcs

At the TOP-2 suppliers of radiators in Russian Federation in its price segment;

At the TOP-2 among all companies on gas flowing water heater market;

At the TOP-4 of electric storage water heaters importers and manufacturers;

Takes 4% of the Russian market after beginning of business development in floor gas boilers

distribution.

According to Russian experts’ estimations «FORTE» Trading House

nowadays is :

Standard system of product distribution:

Product distribution

FORTE system of product distribution:

Importingcompany

Wholesaler

Wholesaler

Retail shop

Retail shop

Retail shop

Retail shop

Retail shop

Retail shop

Retail shop

Retail shop

Retail shop

Retail shop

Retail shop

Retail shop

Retail shop

Importing company

Retail shop

Forte provides direct deliveries to retail shops of its clients over the whole territory of Russia on the distance more than4500 km (!)

Wholesaler

Retail shop

Products of «FORTE» Trading House are represented in 50 regions of the Russian Federation

among more than 1200 clientsIt is about 2900 retail shops in the Russian Federation.

FORTE Regional representatives already work in such cities as :

Rostov-on-Don, Krasnodar,

Stavropol’, Moscow, Nizhny

Novgorod, Yekaterinburg,

Voronezh, Belgorod, Saratov,

Samara, Volgograd, Ufa,

Tula, Kursk, Bryansk, Kazan’.

«FORTE» Trading House continues the Company representatives takeout in

large cities

FORТЕ has arranged a special department for cooperation with network clients of international and federal level (DIY format) in 2011. Such as:

- LEROY MERLEN (19 hypermarkets in Russia Federation, with annual turnover 1,3 billion dollars)

- Castorama (19 hypermarkets in Russia Federation)

- K-RAUTA (13 hypermarkets)

- Baucenter (8 supermarket)

- Agava (12 hypermarkets)

- Stroylandiya (13 supermarket)

- and others

Forte offers to network clients:

Delivery of products under private trade marks;

Delivery of special requested products which brings mutual advantageous growth of

merchandise turnover not less than 10%;

Availability of merchandisers for consultations of customers regarding

products of the company in their hypermarkets.

Increase of sales due to network clients:

31%

69%

Radiatos (pcs sections)

sales to

network

clients

sales to

regional

clients

14%

86%

Gas flowing water

heater, pcs

sales to

network

clients

sales to

regional

clients

11%

89%

Electric storage water

heater, pcs

sales to

network

clients

sales to

regional

clients

22%

78%

Total sales, mln. RUB

sales to network

clients

sales to regional

clients

FORTE specialists consult all-comers including final customers both

for technical features of the equipment and service maintenance

questions. For this purpose was arranged special number

8-800-700-0098, phone call over the whole Russia is free of charge.

Contract conclusions with authorized service centers.

Today “FORTE” Trading house has contracts with more than

500 service centers within the Russian Federation

Spare parts availability for quick repair

Urgent situations solving

Holding of technical seminars

Marketing program is an integral part of the totalFORTE company operation with clients in regionsand named to provide an efficient salesvolume, encourage the development of theirbusiness and profit growth. It includes:

- Free catalogues, brochures extension, provision of decorative custom design for your customers and partners, brand banners at the outlets face/ shop windows;

- Carrying out rewards programs: monthly bonuses for retailers for commodity unit sold, different bonus issues for sales promotion either in retail or in wholesale direction;

- Providing a giftware for the final customer product promotion (a gift with «Oasis» product purchase);

- Joint participate in promo placement;

- Holding of trainee seminars for your customers, joint participate in conference management in order to make a product presentation, assistance in participation of specialized exhibitions;

- Discussion of any other campaigns as per Partner suggestion.

Marketing program

Competitive price formation;

Permanent presence of assortment / model range;

Promotional products;

Individual bonus programs;

Joint activities for product promotion.

High qualified regional representatives’ work;

Prompt decision of questions arising

Service maintenance of final customers;

Quick goods delivery to the customer warehouse to any place starting from 1 pcs of good;

Advantages in work with clients:

Forte Prom is a plant for die-casting aluminum radiators manufacturing.

The first parcel launch to the market of the Russian Federation is expected close to the end of spring 2012.

Dynamics of Import Product Volume «KASKAD» Group of Companies,

pcs of containers:

Dynamics of Proceeds from Product Sales "Forte" Trading House, USD:

$24,466,000

$21,543,000

$37,226,600

$59,100,000

$103,600,000

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

Total 2008 Total 2009 Total 2010 Total 2011 Plan 2012

290

233

381

630

1,250

0

200

400

600

800

1,000

1,200

1,400

Total 2008 Total 2009 Total 2010 Total 2011 Plan 2012

Thank you for your attention!

FORTE team wishes your company a prosperous business!

Contact us:Tel. + 7 863 25 000 10

e-mail:

victoria@gk-kaskad.ruWeb-site:

www.tdforte.ru