ZI-MAG d o o Who are we

ZI-MAG d. o. o.

Who are we? • • We are one of the leading wholesale trader in Slovenia with 20 -years of tradition. We buy, distribute, market, represent and service several international well-known brands regionally. We have no retail shops of our own. Trustee of distinguished brands of technical products, toys, textile products, tobacco products, fast-moving consumer and prestigious goods. Provider of specialized logistic services. ZI-MAG d. o. o. 2

What is our mission? • Efficient bringing well-known brands from producer to retailers of south-eastern Europe markets under competitive conditions. • Delivering goods, endorsing the quality selected goods. • Providing top-quality service (after sales). ZI-MAG d. o. o. 3

Where are we going? • As one of the leading distributor of distinguished brands, we will expand our wholesale product portfolio and optional entering foreign markets (former Yugoslavia). • We will gradually expand into a leading supplier of specialized services in Slovenia. ZI-MAG d. o. o. 4

Strategic objectives • 10% growth of our sales revenue by 2012, • observe, consider and enhance all parties satisfaction, • consistently improve employee commitment and satisfaction while developing a performance management system, • improve the company’s image in order to be considered among one of the 10 best companies in Slovenia in this segment. ZI-MAG d. o. o. 5

Why choose us? Because • we understand regional markets and cover them with a broad range of brands, • we have professional expertise and offer reliability, • our information technology and our support and after-sale services are well developed, • we build good relationships with retailers, • we offer our clients holistic and tailor-made logistic services. ZI-MAG d. o. o. 6

ZI-MAG d. o. o. Organization ZI-MAG d. o. o. Direct Marketing Wholesale And Service Technics ZI-MAG d. o. o. Textiles Toys Office Supplies 7

Wholesale – product groups – revenue share (2011) • • • lighters and tobacco accessories 33% toys 10% technical consumer goods 39% textiles 10% office supplies 8% ZI-MAG d. o. o. 8

Wholesale – portfolio in year 2011 • lighters and accessories (Zippo, Denicotea, Unilight, Flame Club) • toys (Jiri Models, Veriplast, Wader, Grafika. Grafoprint) • technical consumer goods (Leatherman, Maglite, Wenger, Gerber, Nite Ize, Edco) • textiles (Carlo Guidetti, Polyflame) • office supplies (Jiri Models, Grafika. Grafoprint) ZI-MAG d. o. o. 9

ZI-MAG’s Wholesale Service Range • Knowledge of the market. • Knowledge of selling technical consumer goods brands products. • Ability to cover assigned territory. • Access to a sales organization. • Administrative support. • Sales records. • Forcasts of purchases. • A marketing plan. • Competitive information. • Price calculation. • Market research. • Advertising and sales promotion support. • Translations. • Solving claims / technical service. ZI-MAG d. o. o. 10

ZI-MAG’s competitive advantage • ZI-MAG is one of the leading distributors and strongest player on Slovenian consumer goods market. Strong background in people with complex business and market knowledge. • Organization: fully dedicated staff (Product manager and back-office) therefore knowledge of existent mode of operation and specific brand owner’s needs. • Sales: dedicated sales force with a considerable experience. • Trade: excellent negotiating position of ZI-MAG, thanks to the long-time effective collaboration and considerable critical mass. ZI-MAG d. o. o. 11

CONCLUSION ZI-MAG d. o. o. 12

• ZI-MAG is one of the leading distributors of global products on Slovenian market. • Develop and implement strong brand management capabilities, especially to service both the large Key accounts, along with smaller localized point of sale. • Develop brand strategies and plans that meet brand objectives and channel needs in accordance with principal’s marketing plan. • Grow market share through superior branding and implementation of new products, strengthen brand performance, category understanding. • ZI-MAG ensures that true partnership with principals is maintained, with the focus being on long-term profitability for both sides. ZI-MAG d. o. o. 13

SLOVENIA ZI-MAG d. o. o. 14

Slovenia – country data • • • Population: GDP per capita: Currency: Inflation: Political Situation: 2. 055. 634 (December 2011) 17. 286 € (2010) € 2% (2011) Stable, parliamentar democracy, majority center government • Unemployment (ILO) 7, 9 % (3. quarter 2011) • Economical situation: Stable growth (3. quarter 2011 0, 5%) Source: Statistical office of the Republic of Slovenia ZI-MAG d. o. o. 15

Year 2011 – Short overview Biggest customers: • Mercator • Spar • Tus • Tobacna Grosist • Petrol • Merkur • Police and Army ZI-MAG d. o. o. 16

Slovenian market in 2011 • • Hypermarkets: 35 stores Supermarkets: 630 stores Petrol stations: 490 stores C&C: 23 stores Border Shops: 25 Technical shops: 86 stores Hunting and fishing shops: 28 stores Sport&Freetime stores: 18 ZI-MAG d. o. o. 17

Business Plan 2012 SWOT Analysis of our position on Slovene market STREGHTS WEAKNESSES • • • Many licensed brands • Big investments in small market • Low market awareness for some new brands Tradition Quality Brand loyalty Wide assortment OPPURTUNITIES THREATS • Entering new doors • Focusing on bestselling items • Wide and strong promotional activities • Reaction of competition on new comer • Open European market – decreased power of local distributors • Market globalization ZI-MAG d. o. o. 18

Business Plan 2012 Our targets for 2012: - Purchase: ________ EUR ex-works for 2013: - Purchase: ________ EUR ex-works for 2014: - Purchase: ________ EUR ex-works Our targets are based on the fact that Europe and Slovenia are in the middle of recession. ZI-MAG d. o. o. 19

Business Plan 2012 Strategy for 2012: • Expanding the sales network (southern markets) – new trade chains and channels • Intense sales and marketing support • Focusing on the best selling items and positioning • Strong advertising activities • Enter in all major chains ZI-MAG d. o. o. 20