b) mobile telephony

1. Air conditioners Sector.

The air conditioner market is divided into split units that cater to individuals for home use and in central air conditioning machines for use in commercial and professional space. The local air-condition market posted a significant rate increase during the last decade that was caused mainly from the sales increase in split units. The productive air-condition sector is highly concentrated as only 15 companies are engaged in the production of central air-conditions. Air condition products demand specialized knowledge and are distributed mainly from the constructors directly. Imports of central air conditioners are low mainly because of the high transportation cost.
On the contrary, the split units market is separated to a big number of importing companies that have increased dramatically during the last five years. New commercial schemes have entered the market, most of which come from low cost countries resulting in price pressures and shrinking profit margins. According to ICAP, F.G. Europe both for 2002 but also for the past years is the leading company in the Greek market that activate in the specific sector, having approximately the 15% of Greek market share.

The position of F.G. EUROPE

Based on ICAP’s research with regard to air conditioning (December 2004), F.G. EUROPE holds the first place in the Greek market among the companies that activate in this particular sector of not only value but also in sales quantity, controlling approximately the 15% of the Greek market sales of air-conditioning split units and approximately the 5% of Greek market in the sales of FUJITSU semi-central systems, a sector in which relatively recently entered F.G. Europe with the sales of VRF systems of FUJITSU and CLIVET central air conditioning systems.

2. Electric Household Appliances Sector.

Electric household appliances market is considered one of the most competitive and is estimated annually in 1.027 million euro. Its main traits include the consolidation trend and the migration of turnover towards big franchises selling electric and electronic goods, as well as the mergers, takeovers and alliances among the sector's companies during the last years. The sector's leaders are the specialized retail chains, associations and super markets. Multistores, with private label products, like Practiker, Continent, Carrefour and Makro have managed to capture a market share that is estimated around 15%. The electric devices sector also includes the household appliances with refrigerators, cookers, washers, as well as the corresponding built-in appliances.

It is estimated that market will follow a steady upward route for the next years of 2%. A factor that can influence the market is the increased construction activity, which appeared in the last years. Significant role in the market's evolution and the further development played the policy from big stores of discount sales that follow. For F.G. Europe S.A. and its try for a dynamic presence in the section of white house hold appliances, main advantage is the recognition of "ESKIMO" brand and the good reputation that has among customers the last 45 years.

The position of F.G. EUROPE

For F.G. EUROPE and its effort for a dynamic presence in the section of white household appliances, main advantage is the recognition of "ESKIMO" brand and the good reputation that has among customers the last 45 years. At the same time the continuous product range enrichment and the continuous new cooperation’s research are expected to contribute significantly to the sales’ increase and to strengthen the company’s position in the section of white household appliances, where the company’s sales today according to ICAP represent approximately the 2% of the section’s sales.

3. Mobile Telephony Sector.

Mobile telephony appeared in Greece in1992 and had a very impressive development fast after its first steps. At the same time technology improvement was such that most of today mobile telephony users own very modern handsets, covered the whole area of Greece and supported from many complementary services that continually increase and upgrade. First Service Providers were TIM and VODAFONE (ex PANAFON). In 1998 COSMOTE started its activity and in the middle of 2002 Q-TELECOM entered the market.
Mobile telephony users are estimated approximately to 9.31 million in 2002 versus 7.96 million in 2001, representing a penetration of 85.5% in 2002 in relation to 73% in 2001 according to last census were the population was 10.9 million.

The position of F.G. EUROPE

F.G. EUROPE was one of the first Master Dealers of TIM, having as a cooperation objective the product and services’ commerce of TIM.

The Company created the autonomous Mobile Telephony Department on 1996 by developing rapidly its activities through All over Greece sales network and was soon known in the market with the commerce sign “Clevernet”.

Since 2001 the Company develops significantly its activities in the sector of Business to Business sales by enrolling at its customer base a big number of remarkable companies.

The company today, despite the sign of “Clevernet”, and its activity as TIM’s Master Dealer, is activated in the wholesale commerce of prepaid calling cards on behalf of all four companies of mobile telephony in Greece (ΤΙΜ, Q-Telecom, Vodafone and Cosmote).

At the same time F.G. EUROPE S.A. trades all the range of mobile telephony’s products (cellular phones, batteries, accessories etc) in cooperation with the largest manufacturing companies.