COATINGS SUMMITΠΑΡΙΣΙ2019

FIGHTING OFF A TRIPLE THREAT

Against all odds

by

Αρμόδιος Yannidis

DECORATIVE PAINTS

Est. 1932

Presence in SouthEastΕυρώπη

How was your Company

10 yearsago?

New FactoryMarch 2008

Σεπτέμβριος2008

SHRINKINGOFOUR MARKET

Threat

#1

0%

20%

40%

60%

80%

100%

120%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

GDP Constr_Volume Paint 9 Index

GDP_Const_Paint

New ConstructionPermits Surface

2007 41.790 16.910.545

2008 34.021 13.664.965

2009 27.447 9.833.690

2010 23.380 7.987.904

2011 15.114 4.464.072

2012 9.066 2.641.200

2013 5.675 1.688.735

2014 4.620 1.435.481

2015 4.618 1.301.613

2016 4.305 1.286.560

2017 4.930 1.685.326

Tourism

Deco Market Size195 M€

11 producers > 3M€

Only 1 Multinational (Akzo Nobel’s Vivechrom)

50+ garage paint producers

70% of sales from top 5

Market Structure

3.000 points of sale

Only 2 DIY chains with 20 stores – sell 8% of paint

Majority: Mom & Pap’s shop

2-4 tinters per shop (max 7)

Competition becomes

fierceDuring the years of the

κρίσης NO paint

company has gone

bankrupt, resumed

operations or been

sold!!!

Low Retail Prices 29,50€

10 liters premium paint

ECO labeled

Class 1 – scrub resistance

21% TiO2 content

24% VAT included

VITEXDEBT 30 M€ investment = debt and

depreciation

NO GO: assets divestment

NO: export market in κρίσης also

HIGH: cost of money

Threat

#2

0

10000

20000

30000

40000

50000

60000

70000

2007 2008 2009 2010 2011 2012 2013

YB Sales YB Loans

Sales vs Debt

FAMILYCLASH

The company had 5 shareholders

Management was conducted by 4 of the 5

Strong family management culture with clans and πόλιτικς.

Threat

#3

Power balanceMarch 2009 to September 2009

A B C D E

September 2009 to July 2012

A B C D E

July 2012 to October 2017

A B C D E

Period - March 2009 to July 2012 HAD impact on the company management. NO impact from July 2012

PERIOD2008 -2012

Fast, efficient and sufficient actions needed

to be taken in parallel for all the problems

WITHOUT losing the balance, the

στρατηγικό focus and the control!!!

All of the problems where interconnected!!!

Sometimes

you must

do what is

required.-

Sometimes doing your best is not

good enough.

Divestment• Sale of Πόλυμερ Business• Shut down of EPS (expandable polystyrene) production. • Liquidation of Asphalt membranes production company• MBO of Automotive Refinishing commercial business

Four NON

strategic BU’s

terminated

Actions• Wages reduction /4-day work σχήμα• Cut throat cash flow • Right sizing projects• Customers scrutiny• Expenses reduction• Stock level reduction• JIT stocks mngmnt• NO DIVIDENDS• FAMILY… Fired! 0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012

YB Headcount

Workforce• Selection for LAYOFFS based on merit• Justified and transparent employment terminations• CLANS AND POLITICS FINISHED• Newcomers evaluated on χαρακτήρα and accountability

Opportunity for

culture change

INFLECTION POINT 2012• In 2012 we realized we needed a POSITIVE ψυχολογικό

SHOCK!

• Since 2012 the paints market is neither shrinking nor

growing – relatively FLAT

• In VITEX we decided to outperform and GROW more than

every single competitor every single year!

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

160%

2012 2013 2014 2015 2016 2017 2018

Vitex BS Vivechrom Vechro Kraft Chrotex Paint 9 Index

Vivechrom / Akzo 27% m.s.

Average

Vechro 9% m.s.

Kraft 9% m.s.

Chrotex 7% m.s.

Top 5 GrowthVitex 19% Market.Share

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

2012 2013 2014 2015 2016 2017 2018

YB Loans YB Sales

Sales vs Debt

Resolved the family conflict, strengthened and simplified corporate governance.

Shares Transaction October 2017

A B C D

July 2012 to October 2017

A B C D E

Power balance

#1 Independent paint producer in Greece with the LARGEST & MOST MODERN factory

Today we are:

47% sales growth in 6 years

Sales in 2018 of € 37.600.000

19% Market Share

Employers of 232 people

1.700 owned tinters in Points Of Sale

Factory• 26.000.000 liters

capacity• 30M€ investment

Factory750 KW

• ZERO waste process

• ZERO accidents policy

• Net ZERO energy

EXCELLENCE*αριστεία

EXCELLENCE

POLITICS are for politicians…we are humble PAINT producers…

EXCELLENCE

We have changed ourMANAGEMENT MODEL into a

balanced hybrid between FAMILYand PRO

EXCELLENCE

Through continuous improvement we redesign our functions and processes with a

sole target: TO ADD MORE VALUE

92%of paint is sold:

Family / Personal approachF2F

F2F

• Custom made commercial policy• Sales rep is fully empowered• Customer knows all the ιεραρχεία• ALL employees visit customers• CEO has visited >1000 retailers &

hotels

Supportive approachF2F

F2F

• Big projects support• Flexible payment terms• Higher stocks at our side• Same or next day delivery• 6 pack instead of 12 pack

MARKETING• SHADES Experts• Raise our share of VOICE• Increase PULL • Provide UNIQUE solutions / tools• INNOVATE!

INNOVATION

INNOVATION not only with products/ technical

παραμέτρους but also in the way we do business…

INNOVATION

UNIQUE• New FANDECK in the market• Legally PROTECTED• Competitors CANNOT include in their DB• Abundant distribution• Focused DELIVERY to specifiers• Targeted CAMPAIGN

UNIQUE

UNIQUE

IKEA Home Furnishing Advisors

CASE STUDIES

Color Guild

Teflon

IKEA

AWARD8.000 companies

200 selected

21 awarded!

COMMITMENT

KEEPCALM

SELLPAINT

AND