To deliver exceptional contract manufacturing services that seamlessly integrate into our customers and value chains, providing access to cost-efficient markets while mitigating investment and risk challenges. We are committed to driving success and growth for our partners through our dedication to innovation, excellence, and superior quality in every aspect of our services.

Our production plant is situated in the western part of Ukraine, 1000 km away from Kyiv and 1500 km away from the war front. Since the beginning of the conflict, our region has experienced only a few rocket attacks, which were strictly targeted at infrastructure objects. Our region is safe! Business and life continue in a normal manner.

We have experienced significant disruptions as automotive clients reduced orders by 50-70%, while home appliance clients maintained and even expanded their product portfolios and orders with us. This clearly demonstrates that industries evaluate the current risks in Ukraine differently, leading to diverse responses in their operations. Recently, Nestlé and Bayer Corporation announced their support for their operations in Ukraine with several millions of euros of inverstmetns.

Our team has had to overcome several challenges, including providing shelter for workers during air raids, organizing special transportation for workers, and installing independent electricity infrastructure. We have been operating under curfew restrictions, which limited production to only 1.5 shifts per day. However, our workers are grateful for the opportunity to work, and this has significantly boosted morale and productivity, with no illnesses or unpaid leave. 30% of our male workers left our company, most of them voluntarily, to fight the Russians, while 25% of our female employees fled abroad with their families. During this wartime, the Ukrainian government adjusted the labor laws, allowing us to work more flexibly, modifying schedules and working days without having to pay double for additional workdays like Saturdays or Sundays. Currently, we can operate mostly without any restrictions.

We are currently working with our clients in Germany, Poland, and Hungary by picking up raw materials at their locations and delivering the finished products to them. This round trip from the client's location to Stryi, Ukraine, and back takes on average between 3-6 days.

Despite these challenges, we have restructured and adapted our organizational process flows to ensure normal and stable operation. The development of the EUR-Hryvnia exchange rate has helped us compensate for the high inflation rate of 25%, allowing us to adjust our employees' salaries accordingly. All of these changes and adjustments have led to an incredible 15% decrease in the company's overall cost framework. We are proud to offer our contract manufacturing service now for a standard assembly operation at no more than 6.00 EUR per hour, while strictly adhering to IATF and ISO 9001, 14001 standards.

The attack by the Russian aggressor on the electricity infrastructure during winter 2023 caused numerous power outages, even in our region. To become independent, we decided to purchase and install a generator with enough capacity to operate the entire plant. Since mid-February 2023, the situation has normalized, and we are no longer experiencing power outages.