apparel management chart

January 2005

Our Vision

To offer products and services of high quality To offer products and services of high quality

so that these represent the first choice behind so that these represent the first choice behind

every consumer habit that makes life prettier. every consumer habit that makes life prettier.

Our slogan : Our slogan :

Your First Choice Your First Choice for a Prettier for a Prettier

LifeLife

Our Business

The distribution and retail sale of consumer products, The distribution and retail sale of consumer products, through a variety of distribution channels, with the through a variety of distribution channels, with the following characteristics:following characteristics:

Powerful International

BRAND NAMES

Targeting Large Markets

With High

Profit Margins

Our Activities

• Department StoresDepartment Stores

• Cosmetics / Personal Care Cosmetics / Personal Care

• Wholesale of Apparel / Footwear Wholesale of Apparel / Footwear

• Retail of Apparel / FootwearRetail of Apparel / Footwear

• StationeryStationery

• Foreign SubsidiariesForeign Subsidiaries

Strategic Business Units (SBUs)

Activities / SBUs

Notos Galleries

70%

16%

14%

Athens

Thessaloniki

Piraeus

Sales 2002 2003 2004 (E) 2003 2004In mln € 85.4 91.6 106.7 62.4 72.6

% Change - 7.3% 16.5% - 16.3%

9-monthYear

2003 Profit MarginsGross = 31.9% Net = 10.7%

2003 Sales breakdown:

2004 : New Department store “Notos Galleries HOME”

17 500 sq.m in the centre of Athens

New utilisation of a whole floor at the

Athens Department store (change from home-

furnishing to young – generation clothes

collection)

Advertising budget was doubled

Additional special events - shows

Notos Galleries

Cosmetics / Personal Care• Selective Distribution Cosmetics

maximum 250 sale points

• Broad Distribution Cosmetics and Products

3.000 Sale points

Lancaster Chanel YSL Revlon Eliz. Arden Davidoff Ιssey Miyake J.P. Gaultier Clarins Bvlgari Stendhal Moschino

Van Cleef Hermes Givenchy Guerlain Kenzo Dolce & Gabbana Sisley Thierry Mugler Max Factor Fendi Krizia Ferragamo

Nikos Lacoste Fiorucci La Perla Chopard Joop! Azzaro Ungaro Alessandro dell’Aqua Gant Roget & Gallet Oscar de la Renta

Jil Sander Isabella Roselini Stella Mc Cartney Alexander Mc Queen Ermenegildo Zegna FCUK

Kolynos

Revlon

Faber Castell

Βest Friends

Hawaiian Tropic

Majorette Toys

15,0%

9,7%

8,4%

66,9%

Notos Cosmetics

J V Lancaster

J V YSL

Braod Distribution

Cosmetics / Personal Care

Sales 2002 2003 2004 (E) 2003 2004In mln € 63.4 69.2 72.9 45.2 47.4% Change 9.1% 5.4% 4.9%

9-monthYear

9-month 2003 9-month 2004 % change Gross Net

Notos Com 34.3 35.4 3.2% 59.5% 22.3%YSL 4.3 4.7 9.3% 74.0% 12.5%Lancaster 6.6 7.3 10.6% 84.1% 10.1%

2003 Profit Margins


2003 : Expansion of Distribution Network YSL in Bulgaria

New Brands Zegna- Alexander McQueen - Stella Mc Cartney

Successful Launches New fragrances in existing brands Chanel (Chance) – Davidoff (Echo) – Bvlgari

(Omnia)

Successful Promotion Activities Sales, Promotions, Events, Improved use of

Beauticians

2004 : The decrease in growth rate is due to the loss

of the representation of the Brand WILKINSON SWORD

Cosmetics / Personal Care

Apparel / Footwear

Wholesale Brands: Lacoste Polo Ralph Lauren The Bostonians Alain Manoukian Cerruti Jeans Henry Cottons Trussardi Jeans Trussardi Sport

Newman Gant Polo Jeans Kookai Redskins Keds Celio French Connection UK

Retail Brands:

Max & Co Sperry Persona Murphy & Nye

Lacoste Polo Ralph Lauren The Bostonians Alain Manoukian Cerruti Jeans Henry Cottons Trussardi Jeans Trussardi Sport

Newman Gant Polo Jeans Kookai Redskins Keds Celio French Connection UK

Max Mara Marina Rinaldi Swatch Springfield

Wholesale Apparel / Footwear

Distribution Network for Greece :

Boutiques = 91

Shop in Shop - Corners = 202 Points of Sales (Apparel) = 765 Points of Sale (Footwear) = 244

Total Company Sale Points = 1.302

Sales 2002 2003 2004 (E) 2003 2004In mln € 33.0 44.8 55.9 39.8 48.9

- 35.8% 24.6% 22.9%

9-monthYear

2003 Profit Margins Gross = 41.1% Net = 28.0%

2003 : New Brand representations Trussardi Sport – Trussardi Jeans-

Henry Cottons- Cerruti Jeans

New markets Gant (Austria)

2004 : New representation of Brand FCUK – Max and Co – Persona

Exploitation of the new brands acquired in 2003 for the whole year 2004

Improvement of Wholesale Index (pieces per customer)

Wholesale Apparel / Footwear

Retail Apparel / Footwear

Geographical Distribution of Stores (Total = 52)

45

3

31

Attica Thessaloniki Patra Mykonos

Stores by Brand

11

6

6

5

4

3

3

3

22

2 111

11

Gant Boys

FCUK

Polo Ralph Lauren

Henry Cottons

Newman

Trussardi

The Bostonians

Manoukian

Marina Rinaldi

Kookai

Keds-Swatch

Max Mara

Springfield

Gant

Multibrand

Lacoste


Sales 2002 2003 2004 (E) 2003 2004In mln € 20.9 22.3 25.8 14.9 17.2% Change 6.7% 15.6% 15.4%

Year

2003 Profit Margins Gross= 58.6% Net= 11.7%

9-month

2003 : Opening of 4 new stores GANT (Patra) – TRUSSARDI (Kolonaki -

Thessaloniki) HENRY COTTONS (Kifissia)

Stores that operated during all of 2003 compared to some months in the previous year 2002 LACOSTE FEMME – LACOSTE PATISSION – GANT BOYS – ALAIN MANOUKIAN

2004 : Increase in existing point of sales (stores) Increase from the stores that did not operate the

whole of 2003 , but have been in operation over the full year of 2004

Increased sales from the new store FCUK in Glyfada


Stationery

Notos Stationery Wholesale (Distribution of Faber-Castell at 2000 points)

Pallis Stores (Stationery in 4 Stores in Athens)

Pallis Office Supplies (Office Supply)

Sales 2002 2003 2004 (E) 2003 2004In mln € 13.1 10.4 6.3 4.7 4.2% Change -20.6% -39.4% -10.6%

Year 9-month

Pallis Stores 44.1%

Pallis Office Supplies 15.5%

Gross Profit Margin for 2003

2003 : Decrease due to closure and absorption of the

company BIG CITY CORPORATION

2004 : BIG CITY CORPORATION is not included in the

projections of 2004

The growth rate for 2004 in the Stationery sector is projected to be around 13,4%

Stationery

BULGARIA1993

CZECH REPUBLIC

1994

ROMANIA2001

SLOVAKIA

1998

CYPRUS1997

HUNGARY2003

AUSTRIA 2003

POLAND1998

Foreign Subsidiaries


Total Personnel Total Personnel = 110= 110 people people

10

6 6

4

2

1 1 1

Stores Abroad (Total= 31)

Cyprus Bulgaria Poland

Czech Rep. Austria Romania

Slovakia Hungary

4

24

40

15

14

5

4

4

Bulgaria

Czech Rep.

Poland

Cyprus

Romania

Slovakia

Hungary

Austria

Foreign Subsidiaries2%3%

37%3%

26%

21%

6%

2%

Bulgaria

Cyprus

Czech Rep

Poland

Slovakia

Romania

Austria

Hungary

Sales 2002 2003 2004 (E) 2003 2004In mln € 6.7 7.3 8.8 5.1 6.1

9.0% 19.9% 19.6%

Έτος

2003 Profit MarginsGross = 49.5% Net = 8.7%

9-month


2002 : Good tourist year

(Czech Republic - Cyprus)

Improvement of Disposable Income

2003 : Decrease in Sales due to the Iraq war Significant decrease in tourism especially in

Cyprus

2004 : New stores (Czech Republic – Austria - Slovakia - Poland)

Strengthening of tourism in those countries


Financial Results 9-months 2004

Company Results 9-month 2004-2003

10.1 %

13.3 %

8.0 %

11.1 %

In mlnIn mln € €

151.5166.8

66.174.9

29.932.3

22.525.0

Sep -03

Sep- 04

Turnover Gross Profit EBITDA Profits Before Taxes

Group Results 9-month 2004-2003

12.3 % In mlnIn mln € €

14.8 %

2.2 %

2.7 %

170.6

191.5

78.189.7

31.2 31.921.9

22.5

Sep-03

Sep-04

Turnover Gross Profit EBITDA Profits Before Taxes and after minority rights

Breakdown of 9-month Turnover by SBU

9-month Turnover 2004 = 191.5 in mln € Department Stores Cosmetics Wholesale Retail Stationery Foreign Subsdiaries

72.6 45.4 46.1 17.2 4.1 6.1

Wholesale24.1%

Department Stores37.9%

Cosmetics-Personal Care

23.7%


3.2%

Stationery2.1%

Retail9.0%

Projections 2004

187.40

209.90

231.80

82.5093.50

103.70

33.5039.60

42.30

22.5027.80

30.50

2002

2003

2004 (Ε)

Company Projections

inin mlnmln € €

10.4 %

9.6 %

11.0 %

6.8 %

Turnover Gross Profit EBITDA Profits Before Taxes

218.8240.0

270.2

100.5111.3

126.7

37.0 41.142.5

23.6 27.2 27.4

2002

2003

2004 (Ε)

Group Projections

3.4 %

13.8 %

12.6 %

0.7 %

inin mlnmln € €

Turnover Gross Profit EBITDA Profits Before Taxes and after minority rights

55.417.5

25.806.3

94.6

55.9

8.8 -6.3

12.1

0.1

Notos Galleries Lambropoulos Notos Galleries HomeCosmetics-Personal Care Joint VenturesWholesale RetailStationery Foreign Subsidiaries Consolidation Differences Central

Projected Group Sales 2004

270270..2 2 mlnmln € €

12.0

1.0

3.3

-0.3

7.6

16.9

0.8

-1.1 -3.5

-9.3Notos GalleriesLambropoulosNotos Galleries Home

Cosmetics-Personal Care

Joint Ventures

Wholesale

Retail

Stationery


Consolidation Differences

Central

Projected Group Net Profits 2004

27.4 mln27.4 mln € €

Company Information

BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

Internal Audit

STAFF POSITIONS

GROUP BUDGET

GROUP ACCOUNTING& TAXATION

GROUP TREASURY

& INVESTOR RELATIONS

GROUP ADMINISTRATION

& PURCHASING

GROUP HR

SBU 1Cosmetics /

Personal Care

SBU 2Wholesale of Apparel / Footwear

SBU 6Foreign

Subsidiaries

SBU 5Stationery

SBU 4 Department Stroes

SBU 3Retail of

Apparel / Footwear

Central

GROUP FINANCE

Management Chart

Board Of Directors

Christos Papaellinas (Chairman)

Alexandros Stratos (Vice Chairman)

George Papazoglou (Managing Director)

Michalis Papaellinas (Vice Managing Director)

Barbara Vernikou (Member)

Aristides Gounaras (Member)

Non-Executive Members

Demetrios Frangetis (Director of the Remuneration

Committee)

Nicolaos Kaloyannis

Gerasimos Vasilatos (Director of the Internal Audit

Committee)

L A N CA S T E R G R O U P H EL L A S S .A .49 %

Y S L BE A U T E S .A .49 %

N O T O S B U L G A R I A L td100 %

N o to s C om C Z S ro70 %

N o to s H U N G A R Y K ft80 %

N o to s R O M A N I A S rl51 %

N o to s SL O V AK I A S ro51 %

N o to s P O L SK A S p . Zo .o100 %

H E L L I N V E ST B U LG A R I A100 %

H E L L I N VE S T L td50 %

B M S M ED S O L td50 %

B M S O VE R SE A S L td100 %

N o tos T e xtilh an d el G m b h ( AU S T R I A )100 %

N O T O S I N T E R N A T I O N A L L td100 %

N O T O S C Y P R U S L td51 %

A P I V I T A S .A .33 ,73 %

A I AK O S S .A .D e p a rtm e n t S to re

51 %

P A LL I S O F F I CE SU P P L I E S S .A .100 %

P A LL I S S T O R E S S .A .50 ,1 %

N O TOS COMH O LDI NG S S.A.

Subsidiaries & Affiliates

Human Resources

110

52110243

232

689

50

541

Headquarters

Apparel WholesaleApparel Retail

Department Stores

StationeryCosmetics

Foreign SubsidiariesJoint Ventures

Total P

ersonnel =

Total Personnel =

20272027

Management

Management & Administra

tion

& Administratio

n = =

25%25% Beautic

ians = 33%

Beauticians = 3

3%

Salesmen = 4

2%

Salesmen = 4

2%

Group Store Distribution Network

Total Number of retail stores = 91

4

4

4

5217

10Clothes and

Footwear Stores

Cosmetics Stores

Stationery Stores

Department Stores

Cyprus

EasternEurope &Austria

Greece

Stock Exchange Data

Satisfaction of the Quality Criteria for Corporate Satisfaction of the Quality Criteria for Corporate Governance set by the Stock Exchange AuthoritiesGovernance set by the Stock Exchange Authorities since March, 20 2003since March, 20 2003

The share of NOTOS COM is part of the The share of NOTOS COM is part of the • FTSE Mid Cap - 40FTSE Mid Cap - 40• Athens Stock Exchange Athens Stock Exchange General Index General Index since 4th November 2002since 4th November 2002• FTSE All World IndexFTSE All World Index• FTSE World Index ex- Multinationals FTSE World Index ex- Multinationals • FTSE Euro Small Cap FTSE Euro Small Cap • FTSE Med – 100FTSE Med – 100• Eurobank Mid Cap Private Sector - 50Eurobank Mid Cap Private Sector - 50

Average Daily Average Daily Time SpreadTime Spread = = 0,0,687687%% ((01/01/1212/200/20044 - - 3131//1212/2004/2004))

Dividend return (average share price 2003): 3,5%Dividend return (average share price 2003): 3,5%

Dividend for 2003= Dividend for 2003= 0,09 € 0,09 € 5 50% 0% from 2002from 2002

Notos Com Share vs General Index & FTSE Mid Cap 40

0

20

40

60

80

100

120

140

160

31/12/2003 29/02/2004 30/04/2004 30/06/2004 31/08/2004 31/10/2004 31/12/2004

General Index

FTSE Mid Cap 40

Notos Com Holdings

03/01/05 31/12/02 31/12/03 31/12/04 (%) 04 (%) 03General Index 2.824,67 1.748,42 2.263,58 2.786,18 23,09% 29,46%FTSE Mid Cap 40 2.324,73 1.875,10 2.377,10 2.309,91 -2,83% 26,77%Notos Com Holdings 3,30 1,74 3,80 3,28 -13,68% 118,39%

Shareholder’s Composition

(DATA: December 2004)

26.72%

16.03%

4.63% 6.60%

46.02%

Management

Institutions

ForeignInstitutionalInvestors

DomesticInstitutionalInvestors

Public

FREE FLOAT = 53.98 %

Important Developments in 2003

• Application and operation of the new IT softwareApplication and operation of the new IT software

• Opening of the new Department Store “notos galleries Home” Opening of the new Department Store “notos galleries Home”

• Undertaking the representation of Gant for Poland, Austria and Undertaking the representation of Gant for Poland, Austria and countries of former Yugoslavia. Opening the first store in Warsawcountries of former Yugoslavia. Opening the first store in Warsaw

• Opening of a new Lacoste store in BudapestOpening of a new Lacoste store in Budapest

• Study for the construction of the main offices and warehouses on Study for the construction of the main offices and warehouses on Athens Athens Ring Road (Attiki Odos) of about 40,000 sq.mRing Road (Attiki Odos) of about 40,000 sq.m

• Undertaking the Exclusive representation and distribution in Greece Undertaking the Exclusive representation and distribution in Greece and Cyprus of the Brands and Cyprus of the Brands Trussardi Jeans Trussardi Trussardi Jeans Trussardi

SportSport Henry CottonsHenry Cottons Cerruti JeansCerruti Jeans

• Undertaking the representation of YSL and Dolce Gabbana Undertaking the representation of YSL and Dolce Gabbana for Bulgaria for Bulgaria

• Undertaking new representations of Boucheron, Zegna, Undertaking new representations of Boucheron, Zegna, Alexander Mc Queen and Stella Mc Cartney and launchingAlexander Mc Queen and Stella Mc Cartney and launching of of new new fragrancesfragrances

• Opening Opening of new stores : of new stores : Trussardi Trussardi (Thessaloniki-Kolonaki),(Thessaloniki-Kolonaki),

Henry CottonsHenry Cottons ( (KifissiaKifissia) και ) και GantGant (Patra) (Patra)

• Renaming the Department Stores to “notos galleries Lambropoulos”Renaming the Department Stores to “notos galleries Lambropoulos”

• Opening of a multibrand store in Hate (boarders Austria & Czech Rep.)Opening of a multibrand store in Hate (boarders Austria & Czech Rep.)

Important Developments in 2004

• Undertaking the Exclusive representation and distribution of Undertaking the Exclusive representation and distribution of

FCUK - Max & Co and Persona FCUK - Max & Co and Persona

Clarins - Thierry Mugler Clarins - Thierry Mugler

• Undertaking the retail distribution of Undertaking the retail distribution of Max Mara - Marina Rinaldi Max Mara - Marina Rinaldi

for the greater Athens area for the greater Athens area

• Launching of the “Notos Galleries Visa” credit Fidelity Card Launching of the “Notos Galleries Visa” credit Fidelity Card

• Opening Opening of new of new retail retail stores : stores : 1 FCUK store (Glyfada)

4 Max Mara stores (Kifissia, Glyfada, Kolonaki, Psychiko) 3 Marina Rinaldi Stores (Kifissia, Psychiko, Kolonaki)

1 Gant store in Poland

2 Lacoste stores in Poland

• NOTOS COM shares enters the “NOTOS COM shares enters the “Eurobank Eurobank

Mid Cap Private Sector 50” indexMid Cap Private Sector 50” index

Visit us at www.notoscom.gr

apparel management chart

Lifestyle