Silvano Fashion Group 4 Q 2008 Highlights www

Silvano Fashion Group 4 Q 2008 Highlights www. silvanofashion. com

Business model – existing structure Lingerie Apparel Milavitsa Lauma Lingerie Klementi PTA Grupp Belarus Latvia Estonia Splendo KT Oy Vision Finland Latvia Gimil Poland Belarus Linret Junona Russia Belarus Prekyba PTA Lithuania Ukraine Linret LT TK Milavitsa Linret Lithuania Belarus Russia PTA STK Milavitsa Ukraine Russia FSL France Production Retail Wholesale Holding 4

Markets & Brands

Revenue Breakdown Lingerie 83, 7% Apparel 11, 9% Subcontracting 4, 4% Wholesales Retail 66, 5% of sales in 2008 17, 3% of sales in 2008 1, 0% of sales in 2008 10, 8% of sales in 2008 (79, 3% of lingerie) (20, 7% of lingerie) (9, 0% of clothing) (91, 0% of clothing) Top Wholesales Distributors: Branded retail outlets STK Milavitsa (Russia) Milavitsa TK Milavitsa (Belarus) TK Milavitsa (Ukraine) 33 Stores Oblicie 37 Stores 98, 4% in wholesale in 2008 Lauma, Amadea 150+ Milavitsa stores owned and operated by independent distributors Splendo 20 Stores 7 Stores Anttila (Finland) 4, 4% of sales in 2008 PTA 37 Stores Apranga (Lithuania) Tallinna Kaubamaja (Estonia) 1, 6% in wholesale in 2008 Data as of 31. 12. 2008 Please note that the wholesales/retail split includes only direct retail sales of Oblicie, PTA, Splendo, Lauma, Amadea and Milavitsa stores 6

Wholesales Distribution Lingerie Apparel 98, 4% in wholesales in 2008 1, 6% in wholesales in 2008 3 Top Wholesales Distributors in 2008: • STK Milavitsa (Russia) • Anttila (Finland) • TK Milavitsa (Belarus) • Apranga (Lithuania) • TK Milavitsa (Ukraine) • Tallinna Kaubamaja (Estonia) Major Markets 7

Sales by regions 2008 2007 8

Sales by Regions (Apparel vs Lingerie) 9

Product Brand Portfolio Milavitsa Lauma Lingerie PTA Linret Splendo Belarus Latvia Estonia Russia/Lithuania Poland 10

Lingerie Sales by Brands 2008 2007 11

Operations

Retail Network as of 31. 12. 2008 WITH QUICKLY GROWING OUTLET NETWORK THE IMPORTANCE OF RETAIL CHANNEL WILL GROW 60 shopes opened/acquired in 2007 36 new stores opened in 2008 17 shops closed in 2008 Baltics 134 shops in operations Russia 13 shops 18 shops Delays in Shopping Center openings Retail development put on hold in Q 4 5 shops 1 shop 4 shops 16 shops 34 shops 5 directly operated Milavitsa stores in Russia (new and rebranded) 28 shops 7 shops 1 shop 6 shops Poland Ukraine Belarus 150+ MILAVITSA BRANDED OUTLETS OWNED AND OPERATED BY DISTRIBUTORS – FRANCHISE PROGRAM IS BEING LAUNCHED 13

Retail Brand Portfolio TK Milavitsa Lauma Lingerie PTA Linret Splendo Belarus Latvia Baltics/Ukraine Russia/Lithuania Poland 14

Production Model OWN PRODUCTION FACILITIES ALLOW FOR FASTER RESPONSE TO CHANGING CUSTOMER DEMAND Apparel factory in Tallin, Estonia LINGERIE APPAREL Outsourced Own production 69% 31% 66% 34% Lingerie factory in Liepaja, Latvia Lingerie factory in Minsk, Belarus 16 sourcing partners 2 sourcing partners in Ukraine WHILE MAINTAINING OWN PRODUCTION FACILITIES SHARE OF OUTSOURCING WILL BE INCREASING 15

Personnel 2008 2007 16

Financials & Business Development

2008 Key Performance Indicators 2008 BUSINESS OVERVIEW 2008* 2007 Sales EBITDA margin EBIT margin EBT margin Net profit Net margin EUR mill. % 108, 3 11, 4 10, 5% 8, 3 7, 6% 4, 5 4, 2% -1, 1 -1, 0% 98, 6 17, 3 17, 5% 14, 8 15, 0% 15, 8 16, 0% 9, 9 10, 0% Non-current assets Current assets Equity Non-current liabilities Current liabilities Total assets Free cash flow Capital expenditure EUR mill. 22, 1 55, 1 50, 1 1, 2 25, 9 77, 2 19, 6 50, 0 55, 6 0, 3 13, 7 69, 6 EUR mill. -12, 0 6, 0 -10, 4 9, 6 Employees Number of stores lingerie Number of stores apparel Sales space lingerie Sales space apparel 1, 000 m 2 3 901 134 97 37 14, 5 7, 7 6, 8 Change 9, 9% -34, 2% - -44, 3% - -71, 5% - -111, 1% - 3 581 115 85 30 12, 5 6, 7 5, 8 12, 8% 10, 2% -9, 9% 300, 0% 89, 1% 10, 9% 15, 4% -37, 5% * Normalized results by the adjustments described on slide 2 1 8, 9% 16, 5% 14, 1% 23, 3% 16, 0% 14, 9% 17, 2% 18

Q 4 and 2008 Financial Performance Consolidated P&L € `000 Q 4 2008 Q 4 2007 change % 2008* 2007 change % 18, 673 23, 348 -20, 0% 108, 315 98, 580 +9, 9% COGS 9, 327 12, 494 -25, 3% 60, 778 55, 653 +9, 2% Gross profit 9, 346 10, 854 -13, 9% 47, 537 42, 927 +10, 7% 50, 1% 46, 5% +3, 6 p. p. 43, 9% 43, 5% +0, 4 p. p. Distribution costs 6, 233 4, 705 +32, 5% 21, 577 13, 674 +57, 8% Administrative expenses 3, 821 2, 892 +32, 1% 14, 059 10, 900 +29, 0% Other operating income 1, 292 1, 425 -9, 3% 2, 210 1, 046 +111, 3% Other operating expenses 2, 456 1, 425 +72, 4% 5, 845 4, 563 +28, 1% -933 3, 903 -123, 9% 11, 379 17, 288 -34, 2% EBITDA margin -5, 0% 16, 7% -21, 7 p. p. 10, 5% 17, 5% -7, 0 p. p. EBIT -1, 872 3, 257 -157. 5% 8, 266 14, 836 -44, 3% -10, 0% 13, 9% -23, 9 p. p. 7, 6% 15, 0% -7, 4 p. p. 842 1, 314 -35, 9% 5, 610 5, 940 -5, 6% -6, 049 2, 351 -357, 3% -1, 095 9, 880 -111, 1% -32, 4% 10, 1% -42, 5 p. p. -1, 0% 10, 0% -11, 0 p. p. Sales revenue Gross profit margin EBITDA EBIT margin Corporate income tax Net profit margin * Normalized results by the adjustments described on slide 2 1 19

2008 Financial Performance • • EUR 108. 3 million consolidated net sales, 9. 8% increase compared to 2007 – Significant growth of retail sales to reach 28. 1% from total sales, compared to 18. 1% in 2007 – 11. 9% apparel sales proportion in total sales up from 10. 1% in 2007 Gross margin improved from 43. 5% in 2007 to 43. 9% in 2008 – The margin improvement was mainly driven by the growth in retail sales One-off write-offs in Q 4 2008 amounted to EUR 5. 3 million. Normalized EBITDA EUR 11. 4 million excluding one-offs EUR 3. 9 million net loss from foreign exchange (EUR 0. 3 million gain in 2007) – partially generated by intercompany trading and borrowing balances within the Group denominated in EUR currency • Average BYR/EUR rate in 2008 was 3134, 80 as compared to 2937, 06 in 2007 • Average RUR/EUR rate in 2008 was 36, 45 as compared to 35, 03 in 2007 EUR 7. 6 million total net loss of the Group – 163. 6% decline compared to 2007 – net margin equalled -7. 0% (12. 1% in 2007) Negative 17. 3% ROE – Down from 31. 5% in 2007 ROA was -10. 4% – Down from 19. 7% in 2007 – Deterioration of ROA partially caused by increase in working capital, mainly increase in inventories and trade accounts receivable 20

One-off expenses in 2008 • Russian retail restructuring – In Q 4 2008 it management decided that all PTA stores in Russia and selected Oblicie stores should be closed in 1 H 2009 based on performance up to date and due to deteriorating market situation. A loss related to Russian retail operations restructuring was estimated in the approximate amount of EUR 2. 1 million and was recognized in other operating expenses in the amount of EUR 1. 9 million and EUR 0. 2 million in COGS • Splendo disposal – In Q 4 the Group negotiated a share purchase agreement for the sale of all its shares (90% of the share capital) in Splendo Polska Sp. z o. o. , a Polish retail subsidiary. Transaction was expected to generate a loss of approximately EUR 1. 2 million taking into account the Group’s total investment in Splendo. The amount was fully provided as other operating expenses in 2008 • Goodwill impaired – Goodwill in the amount of EUR 2. 1 million was assessed to be impairied and write-off recorded in other operating expenses 21

Balance Sheet • EUR 77. 2 million consolidated assets at 31 December 2008 – Up from EUR 69. 6 million at 31 December 2007 • • EUR 0. 6 million increase in trade receivables in 2008. EUR 6. 2 million increase in inventory to reach EUR 27. 8 million at 31/12/2008 – The growth in inventory was driven primarily by slowdown in customer consumption 4 Q 2008 and also due to the expansion of the retail network • • Property, plant and intangibles increased by EUR 2. 2 million. Current liabilities increased by EUR 12. 2 million – mainly due to increase in loans and borrowings • Equity attributable to equity holders decreased by EUR 5. 9 million to EUR 41. 0 million 22

Income Statement – Retail and Wholesales 23

Income Statement – Lingerie and Apparel 2008 INCOME STATEMENT, TEUR SFG Consolidated Apparel NET SALES 2007 Lingerie SFG Consolidated Apparel Lingerie 15 476 92 839 98 580 11 975 86 605 GROSS PROFIT 47 537 7 782 39 755 42 927 5 156 37 771 Gross profit margin 43, 9% 50, 3% 42, 8% 43, 5% 43, 1% 43, 6% EBITDA 11 379 -1 475 12 854 17 288 -1 294 18 582 EBITDA margin 10, 5% -9, 5% 13, 8% 17, 5% -10, 8% 21, 5% OPERATING PROFIT/EBIT 8 266 -2 246 10 512 14 836 -1 806 16 642 Operating profit / EBIT margin 7, 6% -14, 5% 11, 3% 15, 0% -15, 1% 19, 2% NET PROFIT -1 095 -2 527 1 432 9 880 -1 991 11 871 Net margin 108 315 -1, 0% -16, 3% 1, 5% 10, 0% -16, 6% 13, 7% 24

Margins in 2008 Revenue, EBITDA, Net Profit (€ ‘ 000) EBITDA, Net Profit Margin (%) -7, 0 p. p. 9, 9% -11, 0 p. p. 25

Margins in Q 4 2008 Revenue, EBITDA, Net Profit (€ ‘ 000) Revenue, EBITDA, Net Profit (%) -21, 7 p. p. -20, 0% -42, 5 p. p. 26

Anti-Crisis Steps Implemented in Q 4 • • Focus on the lingerie business Product matrix reconsidered to reduce the number of articles – Most expensive, slow moving models terminated – New launches reduced • • • Cost-cutting procedures Ukrainian wholesales channel restructured Termination of the Polish operations Construction of logistics terminal in Belarus put on hold Payment terms to be extended for customers – Price decrease to be considered • Moratorium on price increase with suppliers, extended payment terms, push for lower prices 27

Retail Expansion Reconsidered • • 17 underperforming shops closed Limited number of lingerie shops to be opened in 2009 All PTA stores in Russia to be closed in 1 H 2009 Selected Oblicie stores to be closed in 1 H 2009 Focus on franchising Entry-level Milavitsa shop concept to be introduced for franchising Oblicie shops to be rebranded into Milavitsa SFG opened the first directly operated Milavitsa shop in Russia – To capitalize on brand awareness and extend business opportunities – To polish existing franchised model • 150+ Milavitsa stores in 11 countries – 5 Milavitsa directly operated stores in Russia by the end of the year • 4 new, 1 re-branded • The first Jockey store opened in Vilnius – Under franchising agreement with Jockey Intl – One store in Kaunas to be rebranded to Jockey 28

Share Buyback Programme • The extraordinary general meeting of shareholders of SFG held on 6 October 2008 authorised the buyback of SFG’s own shares under the following conditions: – SFG is entitled to buy back its own shares within one year of the resolution of the general meeting of the shareholders, – the total nominal value of own shares to be bought back by SFG may not exceed 10% of total share capital of SFG, the maximum price payable by SFG for one share will be EUR 3. 50, – the maximum amount payable by SFG for its own shares is EUR 3, 000, – own shares will be paid for with assets exceeding the share capital, compulsory reserves and share premium. • • • To date, the amount of shares bought back is 393, 000, the average price per share was 1. 15 EUR and total cost amounted to 450, 106 EUR. After the transactions above, SFG owns 393, 000 of its own shares, which constitute 0. 9825% of the share capital. Under the buyback program, shares up to the maximum value of 2, 547, 032 million Euros remain to be bought back. The maximum amount of shares that remains to be bought back is 3, 607, 000. 29

Sale of the Polish Subsidiary • In Q 4 the Group negotiated a share purchase agreement for the sale of all its shares (90% of the share capital) in Splendo Polska Sp. z o. o. , a Polish retail subsidiary – transaction was signed in Q 1 2009 • Transaction to generate a loss of approximately EUR 1. 2 million taking into account the Group’s total investment in Splendo – The amount was fully provided as other operating expenses in 2008 • The sale of loss-making subsidiary will end cash outflows to Polish operations – Net loss of Splendo Polska Sp. z. o. o. amounted to EUR 0. 9 million in 2008 • Splendo to be acquired by a local wholesale partner of the Group – Splendo retail outlets will continue their business after being rebranded as “Milavitsa” franchise stores 30

For further information please contact Baiba. Gegere@silvanofashion. com www. silvanofashion. com