1. Importance of India for TTS

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India
What is it well known for?

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EU-India Comparison
In 1995 India was as big as the European Union
EU
28 Member Countries
4 million km²
0.5 billion residents
23 official languages
India
28 States and 7 Union
Territories
3 million km²
1.2 billion residents
23 official languages

4. www.tooltechnicsystems.comPage 4| Importance of India for TTS
Why is India imperative?
Three reasons why every business strategy
should contain India
• Relevant Premium Segment
• Fast growing Middle Class
Attractive
Market
INDIA
Advantage
Cost Innovation
Attractive cost level
for sourcing,
production, R&D
Emerging global
R&D Hub
(Simplicity &
Design to cost)

5. www.tooltechnicsystems.comPage 5| Importance of India for TTS
Attractive Market
Clearly segmented market, premium niche
with addressable and attractive size
Market Pyramid - Characteristics
Addressable Premium Segment
Attractive Middle Market

6. www.tooltechnicsystems.comPage 6| Importance of India for TTS
Youngest population in the world and very strong
macro-economic factors are the key drives for the
robust domestic market
Population in million
1,600
1,400
1,200
1,000
800
600
1,184
400
200
0
+1%
2030
1,533
2020
1,362
2010
Real GDP in US$ bn
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2010
2,000
0
+11%
2030
6,339
15,186
2020
4,639
6,192
3,317
1,729
GermanyIndia
Source: Economist Intelligence Unit, * Purchasing Power Parity
830
3,000
0
+10%
2030
1,000
5,660
2020
2,000
2,520
2010
4,000
6,000
Private Consumption per Head in US$
5,000
10
8
6
3
3
4
8
+3%
0
203020202010
2
4
Share of World GDP (% at PPP*)
6
10

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Urbanization is happening with great pace and is
one key driver for the strong domestic market
Source: McKinsey

8. www.tooltechnicsystems.comPage 8| Importance of India for TTS
Indian Middle Class
Indian consumer market to reach top 3 slot by
2040
*Middle Class: Income between 15,000 - 28,000 EUR (2009-10) Source: Equitymaster
• Poverty in India is going be reduced
to 1/8th of 2005 level by 2015
• India would give up its top position
by 2015 according to UNISCEF’s
estimates
• Advantage (India) in the age-
distribution is strong base for the
future consumption
• BRC will be only second to India by
2035
Rise of the middle class*

9. www.tooltechnicsystems.comPage 9| Importance of India for TTS
Dream of a middle class Indian
House + Car
12
5
50
10
50
40
30
20
10
0
+8%
20302010
Demand for housing in urban regions in million units
DemandSupplySource: TTS Analysis, Economist Intelligence Unit, McKinsey Global Institute
New passenger car registration in T Units
5,000
4,000
3,000
2,000
1,000
0
+14%
2015
4,516
3,395
2010
2,297
2,916
2006
1,380
3,468
Germany India

10. www.tooltechnicsystems.comPage 10| Importance of India for TTS
TTS business segments and their relevance in
the Indian market

11. www.tooltechnicsystems.comPage 11| Importance of India for TTS
TTS relevant business segments
India is set to be world’s 3rd biggest Automotive
market by 2015
Source: Economist Intelligence Unit, TTS analysis
7%
3%
VW, BMW, Mercedez
Rest
Maruti Suzuki
30%
Hyundai Motors
20%
Tata Motors
40%
New passenger car registrations in T Units
OEM’s will be the key to the
automotive market!
26,896
16,693
20,000
5,000
25,000
30,000
4,220
15,000
4,516
10,000
0
2015
3,395
US
Japan China
Germany
India
Passenger car market share in %, 2011
Potential of Indian market to reach
revenues of $80-100 billion

12. www.tooltechnicsystems.comPage 12| Importance of India for TTS
TTS relevant business segments
House construction in India purely based on brick
67%
43%
0%
33%
100%
+23%
2010
57%
2000
Construction Costs of an avg. house
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
Source: Construction Industry Development Council (CIDC)
Labor costs have grown significantly
in the past 10 years and hence pave
way for efficient working methods!
Labor CostMaterial

13. www.tooltechnicsystems.comPage 13| Importance of India for TTS
Market potential - India
Power tools market is expected to grow at 9%
CAGR till 2020
6%
15%
Dewalt
Makita
25%
Bosch
35%
Hilti
5%
3%
B&D
Dynabrade 2%
9%
Metabo
Others
• Bosch is the major player in the
market with 45 BSS*’s (Festool
World) in India
• Other major competitors are Makita, Hilti,
DeWalt and Dynabrade
Power tools market share split in %, 2011Total power tools market in India, in Million $
• Investments in construction and infrastructure
projects are the major drivers for the
significant market growth
• Third biggest power tool market in Asia-Pacific
• Second fast growing market after China
Source: Freedonia, TTS analysis ; *Bosch system specialist - spread over app. 45 sq.m
360
280
220
195
140
600
550
500
450
400
350
250
50
+9%
400
600
2015 2020
300
200
0
2010
100
150
260
20052000
170
100
India Turkey

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Back Up

15. www.tooltechnicsystems.comPage 15| Importance of India for TTS
More than 300 million household will join the
Indian middle class
222
50
34
12
2 1
2000
189
64
31
4
1 0100%
Desprived
<90
Aspirers
90-200
Seekers
200-500
Strivers
200-1,000
Globals
>1,000
2030
322
15
32
29
17
7
2020
273
26
40
25
6
3
2008
Income segment
Rupees thousand
All India households by income bracket, 2000-30
%, million household, 2000 prices
Source: India Urbanization Econometric Model, McKinsey Global Institute