TORPAL Company is a Ukrainian retail display equipment supplier that has been in business since 1994. It provides comprehensive shop fitting services for retail chains, from design concepts to manufacturing and installation. The company aims to expand into new international markets and has started exporting to Russia. It produces high-quality shelving and store displays to help retailers maximize sales. TORPAL works with over 300 major retailers and has equipped over 300,000 square meters of retail space to date. The company's strategic goals include further international expansion and modernizing its production facilities.

1. Korovin Olexiy Vasilyovych
w w w . t o r p a l . c o m
Private entrepreneur (Torpal)
Our company TORPAL, has been working since 1994 and our pace of development and
achievements have made us a successful, flexible and innovative company in the field of
retail shop fitting.
The company supplies its products to clients in Ukraine and abroad, and we are keen to
expand the boundaries of the business. The company’s strategic goal is to work with global
retail chains in the CIS and in the World.
Company TORPAL provides top quality products and service thanks to its professional
market approach. The company aims to create new design concepts for retailers in order to
exceed existing standards, generating new ideas for our customers and incorporating our
customers’ desire for innovation. Our successes in the Ukrainian and Russian retail markets
have prepared us to expand into new markets. We are sure our products and services will
infuse a fresh spirit into the shelving and display equipment of European retailers,
improving the shopping experience for their customers.
Mr. Aleksey Korovin, Owner Company TORPAL
Purpose of the Presentation
The purpose of this presentation is to provide some basic information about the company in order to attract new
customers and business partners in the launching, supplying and supporting retail chains with display shelving.
General Background
Main activities of TORPAL Company:
Equipping of retail chains and outlets, including the creation of unique retail display concepts for chain stores,
custom-made shelving and other types of shop equipment;
Consulting to develop innovative solutions for commercial spaces and training programmes for retail chains.
The company work includes supplies and consults with retailers with open or closed store displays. Over time, the com-
pany has developed the “Easy-to-Understand Store” trade concept, based on the main principles of maximising sales and
achieving optimum use of store space.
TORPAL Company pays special attention to the specifics of each stor
owner’s needs. The company provides more than just parts makes
a significant contribution to the store atmosphere, this helps to
encourage customers to make purchases. The company is
able to support large and small retail chains through its
representative offices in the Ukrainian largest cities:
Kyiv, Kharkiv, Donetsk, Zaporizhya and in Russia in
Belgorod. This network also provides a service support
system that helps the company to meet high profes-
sional standards and provide proper supply mainte-
nance regardless of their size and location.
Since 1994, TORPAL Company has equipped more than
300,000 sqm of sales space across Ukraine and Russia.
In 2005, TORPAL Company opened its own 4,000 sqm
complex to showcase company products and
concepts. In 2007, the company’s New Developments
Department was registered as a separate division
called the “I see - shopconcept” Studio. TORPAL Com-
pany began operating in Russia in 2008.
Mr. Aleksey Korovin founded the company and is its sole owner.
General Director of TORPAL Company is Mr. Aleksey Kolesnik.

2. Description of the Business
The company provides complex services in shop fitting to
launch, supply and support retail chains in non-food
sectors with shelving and store display items. The company
also provides consultation
services to retail chains relying on TORPAL Company’s
“I see - shopconcept” Studio (www.isee-shopconcept.com),
which helps retailers maximise sales thanks to optimised
shop layout, design and product display.
Adidas overstock sporting goods BergHOFF kitchenware stores
stores
Key Company Strengths:
Complex approach to business: TORPAL Company
provides comprehensive services to retail chains – from
The TORPAL Company system of support is designed to concept to manufacture and installation of each unit.
provide prompt and professional support retail chains. The
full spectrum of products and services includes: Industry research: The TORPAL Company team of profes-
sionals has spent years studying how to maximise
Product supply of each facility (shelving, mountings, customer responses to retail display areas, and our years
brackets, etc.); of success in the industry are a direct result of this
Supply of additional systems for lighting, in-store research.
customer navigation and display exhibits;
Supply logistics for all products; Facilities and Equipment
Equipment installation;
The company’s main manufacturing and administrative
Demounting services; complex covers 1.5 ha and includes:
Guaranteed maintenance; and production facilities (total area of 3,600 sqm);
Post-guarantee service. offices (532 sqm);
TORPAL Company has a leading position in the Ukrainian storage facilities (564 sqm); and
market for retail shelving supply. Its market share in the
fashion segment alone, as of the third quarter of 2008 is auxiliary facilities (fire fighting station, transformer
18%. substation).
The bulk of TORPAL Company sales (65%) is to supply retail In 2009, the company plans to put into operation office
chain outlets. In addition, the majority of Russian brands space of 1,000 sqm and 600 sqm of additional storage
entering the Ukrainian market at present are working with space.
the company. TORPAL Company supplies 10 of the 16 major The company consists of the Design and Engineering
Russian retail chains in Ukraine. Department, the Quality Control Department, the
In 2008, the company entered the Russian market. Outsourced Contractors Department, a Marketing and
Currently, TORPAL Company services four nationwide retail Sales Department and manufacturing workshops.
chains. Negotiations to supply several others are ongoing. TORPAL Company outsources the supply of 23% of its
The company supplies the following retail chains: products.
Delta Sport Nike (stock-chain), Sportmaster, Kira Plastinina, The company’s production capacity allows it to produce
Adidas (stock-chain), GJ, Savage, InCity, LTB, Woolstreet, goods that can equip more than 180,000 sqm of sales
House, Sportland, Megasport, BergHOFF and many others premises per year. It produces 2,000 tonnes of sheet
(a full list can be found on the company’s website: metal, 500 tonnes of metal brackets and related
www.torpal.com/eng/our_projects/). jointing/reinforcing pieces and 120,000 sqm of
chipboard and medium-density fibreboard (MDF).
InCity fashion stores GJ jeans clothing stores Company manufacturing facilities. Company shaping equipment

3. Organisation / Employees
Basic production equipment:
Woodworking equipment: The company is managed by the General Direc¬tor, Mr.
Altendorf sizing cloth-cutting machines (Germany), Aleksey Kolesnik. The company’s top management
Holzma automatic centering saw (Germany); includes the Financial Director, Commercial Director,
Brandt automatic edge banders (Germany); Development Director, Production Director, HR Director,
Ventura automatic woodworking centre (Germany); Services Director and an Administrative Director. All
Gridgio multi-spindle panel boring machines (Italy); report to Mr. Kolesnik.
and The staff of TORPAL Company can be broken down by
Botero automatic edge-bevelling machines (Italy); position according to the following chart:
Metal working equipment: Director and top management 9
Durma semi-automatic guillotine (Turkey); Mid-level managers 11
Bystronic automatic laser cutting complex
(Switzerland); Lower level managers 8
Durma semi-automatic sheet formers (Turkey);
Specialists 70
Pedrazzoli semi-automatic circular clipping
machines (Italy); Manufacturing personnel 98
Variostar (Austria) and Argus (Italy) semi-automatic
welding machines; Total 196
Garboli scarfing machines (Italy); and
Electron automatic conveyor line for powder coating Considerable attention is focused not only on increasing
with iron phosphate surface treatment (Turkey). personnel as needed, but also on their work efficiency
and their development within their specific department
specialisation. Attention is also paid to the development
of a strong company culture, which values personal
creativity and career development. TORPAL Company
provides a company staff training plan that requires
regular and active participation in department-specific
training sessions.
All staff in the Marketing and Sales Department have
good English skills.
Company cutting equipment Company edge-bending equipment
Supplier Export Experience
The majority of materials and accessories used by the TORPAL Company signed its first export contract with a
company are foreign (from Austria, Poland, Germany and Russian retail chain in April 2008. The volume of products
Italy). TORPAL Company sources in Ukraine use high- sold for export to this retailer was €100,000 as of October
quality materials that are locally produced. The company’s 2008. Company clients in Russia now include national
long-standing partnerships with its suppliers guarantee chains Woolstreet, Sportmaster, Russian Jeans Center and
Profisport. Expansion plans target growth to €2.5 million in
the company flexible supply conditions and short delivery
the near future based on deals currently being negotiated.
terms.
Research and Development Certification and Quality Management
TORPAL Company ’s main research and design works are Quality management at the company is handled by its
performed by its Design and Engineering Department Quality Management Department. The department’s
and the “I see” Shop Concept Studio. The D&E Department system ensures that all company products correspond to
conducts research and implements new technologies in the requirements of applicable national product
the sphere of metal and wood working, while the devel- standards in Ukraine and Russia as well as to European
opment of new product types and display concepts is one norms and technical specifications.
of the core activities of the “I see” studio. Quality management begins with the inspection of
The company’s various lines of retail shelving space imported parts, as well as in-house production control
merchandise includes the lines RAF, ACTIVE, DOT, LITE and and conformance standard testing, including for newly
CHERRY. All products are certified by Ukraine’s national designed products. All serialised products are certified by
standards body, UkrSEPRO. the state. Furthermore, regular communication with
clients ensures that products are well maintained, and any
problems are quickly addressed.

4. Financial Information
The following financial results were prepared in accordance with Ukrainian Accounting Standards. Financial reports based on
UAS differ in various respects from those prepared according to IFRS.
Operational results (€) Year ending Dec. 31, 2007 Year ending Dec. 31, 2008
Gross revenues 3,793,445 4,921,364
Operating income 205,228 420,581
Income before tax 300,094 420,581
4,3 66000
253
196
2,5 39000
2007 2008 2007 2008 2007 2008
Tutnover, min €* Equipped Facilities, sq. metres* Amound of Employees, pers*
Strategy and Prospects
The company’s main strategic goals are:
to enter other international markets, particularly in association with multi-national clients in the retail sphere;
to continue modernizing company equipment and production facilities in order to boost production; and
to make complex services in the shop fitting.
Contact Information N.B.: Ukraine is two hours ahead of London and one hour
ahead of Western and Central Europe (GMT+2).
Mr. Dmitriy Grinchenko
Development director Distances from Kharkiv to major European destinations
(in km*):
TORPAL Company
62370 Ukraine, Kharkiv region, Amsterdam 2,468 Warsaw Belarus Russia
Solonitsevka, Berlin 1,816 Poland
Zavodskaya 49/9 Brussels 2,577 Kiev
L’viv Kharkiv
Helsinki 1,633
Tel.: (+38 057) 783 6630/37 Slovakia Ukraine Dnipropetrovs’k
London 2,892 Bratislava
Fax: (+38 057) 783 6631 Madrid 4,049 Budapest Moldova Donets’k
Kishinev Odesa
Hungary
Email: grinchenko@torpal.com.ua; Paris 2,869 Romania
Sea of
Azov
info@torpal.com.ua Warsaw 1,248 Bucharest
Serbia
Online: www.torpal.com; Vienna 1,765 Black Sea
www.isee-shopconcept.com
* including 540 km from Kharkiv to Kyiv.
Kharkiv International Airport has regular flights to Kyiv
and other major European destinations.
This publication was developed under the EU funded project
“Support to the Development of Business Capacity of Ukrainian SMEs – International Dimension”.
http://sme-int.com.ua
The contents of this document are the sole responsibility of the TORPAL Company and
can in no way be taken to reflect the views of the European Union or WYG International.
This project is funded by Project implemented by
the European Union WYG International led Consortium