Market attractiveness matrix

1. Assessment of market attractiveness
Please note that all data in the report has been changed and serves for demonstration purposes only

2. General information
TA R G E T
P R O J E C T
Assessment of concrete local market attractiveness
TA S K S
• General information
• Market volume
• Competitive Analysis
• Consumer segmentation
• Calculation of return on investment
• Market Attractiveness Matrix
G E O G R A P H Y
________________
O B J E C T S O F
R E S E A R C H
M E T H O D O F
R E S E A R C H
T I M E L I N E S
2
October 2022
Desk research
concrete market

3. 3
General information
The concrete market is primarily associated with the construction industry. For the whole_______ have to 8.72%
of the market volume of work by type of economic activity "construction", on _______ have to about 1% of the
same indicator
1575
2131
3638
4794
3104
3700
4444
5322
2015 2016 2017 2018 2019 2020 2021 2022
Volume of construction in **** (million euros)

4. 4
Peculiarities
The market growth rate in 2021 was 19.2%, in 2022 the figure remained almost
at the same level. This indicator for ________ is 2 times higher than for ______.
Since 2019, the number of construction organizations has remained at about the
same level (1178 in 2022)
For 2021-2022 the number of individual entrepreneurs in the construction
industry increased by 21%
A key factor in choosing a concrete supplier is its geographical location
(including within the city)
Large construction companies prefer to mix concrete on their own
The average margin in the concrete market is high – an unsaturated market

5. 5
Market volume
Geography Capacity, thousand tons
_______ 54,094.452
_______ 650.937
_______ 439.892
_______ 33.124
Market saturation in _______ area is 58,16%*:
availability of development and growth prospects
* Calculated by identifying areas where the market is saturated, and referring to areas where the concrete market lacks
production, with the same proportion of saturation, we consider the number of required concrete production points and
refer to those already available at the moment.

6. 6
Competitive analysis
Number of branches Name of the organization
6 _______
3
_______
_______
_______
_______
_______
2
_______
_______
_______
_______
_______
_______
_______
_______
Total in city more 170 companies and
factories for the production of concrete
One of the most important
characteristics of the market is
attachment to the concrete production
site, and hence the importance of
geographic coverage for manufacturing
companies.
Organizations that have more than one
branch in city:

7. 7
Competitive Analysis
Rating Competitor
Market share
(fin.)
1 _______ 9.30%
2 _______ 8.40%
3 _______ 6.30%
4 _______ 6.20%
5 _______ 5.80%
6 _______ 5.30%
7 _______ 5.10%
Other 53.60%
• Concrete market is developing, often "spontaneous", unsaturated
• Unlike the precast concrete market, the concrete market is divided
between a large number of manufacturers
• The share of the average market participant is less than 3%
• The production of reinforced concrete products, according to expert
estimates, accounts for about 70% of the total volume of concrete
produced (concrete products were not taken into account in the
calculations)
• More than 170 companies and factories, not including construction
companies that produce concrete for their needs
• Over 800 concrete delivery companies
• Large producers, as a rule, consider concrete as an accompanying /
related product (the main one is reinforced concrete products),
market volumes for them are small

8. 8
Competitive Analysis
Area Producer share
Share of new
buildings*
Difference
_______ 11.63% 7.53% 4.10%
_______ 22.67% 9.59% 13.08%
_______ 5.86% 2.05% 3.81%
_______ 6.48% 5.25% 1.23%
_______ 12.79% 18.72% -5.93%
_______ 7.76% 5.25% 2.51%
_______ 6.98% 6.16% 0.82%
_______ 13.95% 29.68% -15.73%
_______ 2.96% 4.79% -1.83%
_______ 8.93% 10.96% -2.03%
In _______ area located about 20 competitors, which is 11.63% from organizations throughout the city. The proportion of new
buildings (*incl. low-rise buildings) in this area is7.53%, i.e. in the area, the demand for concrete matches the supply.
Particular attention should be paid to area _______, which is located near area _______ and has a concrete supply shortage of
about 16%. The second most attractive area -_______.

9. 9
Consumer segmentation
Consumers in the market can be divided into three main categories.
The main segment is house-building organizations and individuals, which in total account for more than 50%
of concrete market consumers (in physical terms). In this segment, there are both capital developers,
builders of low-rise housing, and private individuals.
* Excluding concrete produced directly by precast concrete manufacturers
Housing construction, 56.7%
Road construction, 28.4%
Concrete products, 14,9%

10. 10
Subsegments of concrete market
From the segment of house-building organizations, three can be distinguished subsegment:
Builders of capital housing are less in need of an "outside" concrete producer, since often large
construction companies produce it on their own for their own needs. For this reason, the main
segments are builders of low-rise housing and individual developers, in total 12%.
Capital construction, 88%
Low-rise construction, 2%
Individual construction, 10%

11. 11
Subsegments
From the segment of house-building organizations, three can be distinguished subsegment:
Builders of capital housing are less in need of an "outside" concrete producer, since often large
construction companies produce it on their own for their own needs. For this reason, the main segments
are builders of low-rise housing and individual developers, in total 12%.
Capital construction, 88%
Low-rise construction, 2%
Individual construction, 10%

12. Thus, the capacity of the concrete market, which can be counted on when building a new plant in area _____
is about 33 thousand tons / year
If we talk about the growth rates of each of the segments, then low-rise construction is growing by +23% per
year, while individual developers - no more than 7%. In addition, the latter have a pronounced seasonality of
demand, presenting the main demand in the summer months. According to market expert estimates, the
demand for concrete in the next 3 years will continue to grow at about the same pace as in recent years.*
*Segmentation was carried out based on the classification of concrete depending on the application:
• hydrotechnical concrete for dams, sluices, canal linings, water supply and sewerage facilities;
• concrete for enclosing structures (light);
• concrete for floors, sidewalks, road and airfield pavements;
• special-purpose concretes (heat-resistant, acid-resistant, for radiation protection).
12
Final indicators
Geography Capacity-2022 Capacity-2023
City_______ 439.892 497.078
Area ______ 33.124 37.430
Area_______ 130.559 147.532

13. 13
Final indicators
Market capacity is 39 million Euro/year
Provided that the plant takes up to 6-8% of the market in the
first year, as well as with a margin of 23%, the payback period
will be about 2 years
ROI (return on investment) for 5 years = 3.1*
Only for area _______: payback
10 years/ROI will be 0.6 for 5 years
For the city _______: payback
less than 1 year/ ROI = 8 for 5 years of work

14. 14
Market attractiveness for investment
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Market Attractiveness Matrix*
Annual
payback
Market saturation
The point of maximum
attraction in region
Project under consideration

15. 15
Summary
✓ The most promising consumer segments (market open to entry): builders of low-rise housing and
individual developers. Their share is about 12% of the total construction volume
✓ The capacity of the market open for entry (total city_______) – near 40 million euro or 53
thousand tons per year
✓ A large number of small competitors with a market share of less than 3%
✓ Open market growth rate around +13% per year
✓ Market saturation 58,16%
✓ ROI (based on 5 years of work) is 0.3 euro (covering neighboring areas, incl._______)
✓ Payback period - up to 2 years (when covering neighboring areas, incl._______)
✓ The market is medium-attractive for investments (when covering neighboring areas, incl._______)