1. «Chemmet» LLC «Fiber» project Project Leader- Karamyshev Sergey R&D Leader – Tolochko Oleg, D.Sci., Prof. mob.+7(911) –22-000-41; www.himmet.ucoz.ru; ooo-himmet@rambler.ru ;www.himmet.ucoz.ruooo-himmet@rambler.ru High-strength amorphous metallic fiber for concrete reinforcement

2. 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

3. 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

4. Solution Overview Functionality: High-strength (2000 – 4000 MPa instead 200- 300 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

5. Market Information Market of steel fiber: –European – up to 250 000 ton/year –Russian – up to 25 000 ton/year –Russian market leader «Kurganscalmost» - average production 8 000 ton/year Price –From от 30 000 RUR (900 Euro) /ton (Russian steel wire fiber), –To 400 000 RUR (9000 Euro) /ton (amorphous fiber Fiberflex, France). «Chemmet» LLC «Fiber» project

6. 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

7. Fibraflex TM, SEVA, France Strength - 1400 – 1800 MPa Price –up to 400 000 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 - 2000 – up to 4000 MPa Price –up to 150 000 RUR (3000 Euro)/ton

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. Financing Plan RUBEUR Sales 26 520 000 612 471 Equipment 2 500 000 57 737 Raw materials 8 120 000 187 529 Wages 2 950 000 68 129 Pension Fund Assignments 413 000 9 538 Social Insurance Assignments 5 900 136 Electricity 532 500 12 298 Rent 620 000 14 319 Advertising 130 000 3 002 Transport 68 000 1 570 Repairs 315 000 7 275 Organizational expenses 268 000 6 189 Certification 100 000 2 309 Total Expenses 16 022 400 370 032 «Chemmet» LLC «Fiber» project

15. Financing Plan RUBEUR Sales 26 520 000 612 471 Total Expenses 16 022 400 370 032 EBITDA 10 497 600 242 439 Depreciation 140 000 3 233 Gross Profit 10 357 600 239 206 Taxes 1 553 640 35 881 Net Profit 8 803 960 203 325 GPM,% 39,58 NPM,% 33,20 ROE 3,26 «Chemmet» LLC «Fiber» project