:: global expansion of A.Viryent brand::

:: Presentation for the potential investor ::

PRESENTATION

ABOUT THE BRAND

The story………of the brand name A. Viryent begins with the family tradition of manual shoemaking. It stems from an old shoemaker’s workshop, where handmade shoes have been crafted since 1919…

The idea of naming the brand “A. Viryent” originates from a family

tradition of manual shoemaking. At the beginning of the

nineteenth century, Bartholomey Viryent, one of Napoleon’s

soldiers, came to Slovenia. The first of his grandchildren became a

cobbler and in 1919 passed on the secrets of the cobbling trade to

his son Jakob Virjent, Alja's Viryent great grandfather. Jakob then,

in turn, passed the knowledge gained to his son Rado, Alja's

grandfather. Rado Virjent completed the school for cobblers in

Maribor and proceeded to make handcrafted shoes for many

decades, all the while meticulously perfecting and honing his skills.

It was in her grandfather’s workshop, under his careful

guidance where Alja learned the art and craft of handmade

shoemaking.

:: invoice from Mr. Jakob Virjent shoemaker, from 1931::

:: Mr. Rado Virjent shoemaker, Alja‘s grandfather ::

:: Ms. Alja Viryent and lasts ::

:: Ms. Alja Viryent learning how to repair shoes ::

Ms. Alja Viryent

She is the best known shoe designer in Slovenia. She

creates her art footwear under the brand “A. Viryent”, a

name which goes back to her great-grandfather Jakob

Virjent, who was a shoemaker and had French ancestors.

There are not many women working as shoe makers, but

Alja Viryent's handmade shoes are a labor of love, and a

vocation. It’s a continuation of her family tradition that

has called her to to this profession.

Ms. Alja Viryent

Combining her family’s rich tradition with the knowledge

she gained while studying at the Design Department of

the Academy of Fine Arts and Design in Ljubljana (where

she graduated in November 2004), she started a company

of her own. The name “A. Viryent” is therefore as much a

tribute to her family and her grandfather in particular, as

it is a contemporary lighthouse whose radiance promises

unique and thoughtful shoe craftsmanship of the highest

quality.

Ms. Alja Viryent

Words about the brand

A. Viryent is a brand of luxury, uniquely designed shoes,

which are handmade following old shoemaking tradition

and its secrets. The shoes are professionally designed

because the entire manufacturing process is under careful

supervision of a designer. They are made from the highest

quality natural materials, which are gentle on your feet.

They are comfortable, elegant and fashionable.

Mission Statement

More than 90 year tradition of slovenian cultural heritage

and contemporary design is combined in handmade shoes

by A.Viryent Company. The softness and comfort of our

masterpieces make our demanding customers experience

most precious moments of their lifes.

- to have own manufacture for making LTD collections of shoes and the traditional workshop for custom-made shoes with a steadily growing number of highly-skilled shoemakers, dressmakers, tailors and designers.

- We focus on the creation of luxury shoes for special events such as weddings, Communions, proms, gala balls, or NYE parties. (niche trendsetter)

- Our vision also includes own shoemaking school with an advanced development department with top designers, capable of developing new state-of-the-art shoes, making researches using new technologies incl. 3D laser scanning etc…

Vision

- The company’s major attention goes to customer service, the idea of best fitting of unique shoes, and the process from the order to the delivery. In our vision, we pay personal visits to our top customers, located world-wide, to establish an individual, personal approach.

- Our company’s approach to corporate social responsibility is exemplary, and we tend to reduce the impact on the environment associated with waste. We‘ll take a full responsibility for all our ragged shoes. They will be used in the recycling process as renewed energy.

- Our company actively engages in charity events to help people, particularly children in need.

Vision

The mission of the Alja Viryent brand is to become:

• a globally recognisable brand of hand-made luxury shoes

• a synonym for tradition,

• a synonym for individual approach,

• a synonym for comfort,

• a synonym for quality,

• a synonym for modern design

• and the best example of corporate social responsibility.

The Current Team

• key management

CEO and creative director Ms. Alja Viryent

Marketing manager, Mr. Uros Novak

Senior advisor, Mr. Sašo Satler

PA and PR, Ms. Bojana Virjent, PhD

Opportunities :: A.Viryent shoes ::

:: Problems with finding the right shoes ::

- size and shape of the feet

- durability and extreme comfort

- matching color with wedding/evening dress

- uniqueness of the shoes on the events

• advantages of private orders and custom production

• hi-end design, precious materials

• matching accessories which can change the purpose of the

shoes

Advantages

• extensive experience in working with clients

• communication skills

• ability to identify individual needs

• know-how of a different fashion stlyes acoording to personality and life stlye

• fashion trend awareness

• attire protocol awareness

Market Summary

• CURRENT MARKETSSlovenia 95 %

Austria 3 %

Other countries 2 %

• MARKET SHARE (custom made shoes)Slovenia 70 %

Costs :: Pricing

• GTH collection / 1st production 4000 pairs (Slo market)

Production price app. 35 eur + VAT

Retail price app. 110 eur + VAT

• Custom made shoes (Slo market)

Production price app. 597 eur + VAT

Retail price in our showroom from 1.000 eur + VAT

Sales Summary :: Slo market• GTH collection ( 2009, 2010, 2011, 2012)

• 2.500 pairs / year

• Custom made shoes from 2006 to 2013

• app. 200 pairs / year

Competition (worldwide)

http://www.berluti.com/http://santonishoes.com/http://www.johnlobb.com/http://www.johnlobbltd.co.uk/main/main.htmhttp://www.church-footwear.com/http://www.gjcleverley.co.uk/http://www.taylormadeshoes.co.uk/http://www.thelondonshoemaker.co.uk/http://paulthomasshoes.com/content/bespoke01.htmhttp://www.jmweston.com/http://www.edwardgreen.com/flash/index.htmlhttp://www.anellodavide.com/http://www.carreducker.com/pages/bespoke.htmhttp://www.marioherzog.com/index-slovenian.htmlhttp://www.alessandroteri.comhttp://www.anitamoser.chhttp://www.carolinegroves.co.ukhttp://www.georginagoodman.comhttp://www.raejones.co.ukhttp://www.tandfslackshoemakers.comhttp://www.tdhcouture.com

Alja Viryent :: Global Expansion ::• 3 components:

- THE IDEA (Business concept)

- KNOWLEDGE (shoes / global strategy and luxury market trends)

- FINANCE (value of the investment, …)

The Idea :: Business Concept ::

4 collections (all collections are timeless and fashionable)

• Black collection for business and evening occasions

• White collection for weddings

• Special LTD collections (Idrija Lace collection, Shoeccessories collection and others)

• Private collection (unique pieces from exclusive, rare materials, custom made shoes….)

:: Black collection::

:: for business and evening occasions

:: White collection::

:: for weddings

:: Idrija Lace collection::

:: for weddings and other special occasions

:: It's a completely new concept of a women’s footwear, shoes with exchangeable fine jewellery.The concept is a basic shoe collection with the shoes characterized by a rounded clasp detail on the back of the shoe. With this clasp women can easily accessorize and spice up their shoes and change their walk following the latest trends. With one pair of shoes and different jewellery women can have a million different styles….

:: Shoeccessories collection ::

Shoeccesories collection

The Idea :: Business Concept ::

All collections will be named with name Alja Viryent with the name of the collection.

1. :: Alja Viryent Black collection, Alja Viryent White collection,…..

- Big / small sizes, range of a different width

- Technology and production ( Peko Slovenia or other factory in former Yugoslavia, after 1st year own manufacture)

The Idea :: Business Concept ::

2. :: LTD collection Shoeccessories ::

- Concept / engagement shoes (idea of the collaboration with

one of the famous brand as Tiffany )

- Technology and production ( Peko Slovenia or other factory in former Yugoslavia, after 1st year own manufacture)

The Idea :: Business Concept ::

:: Custom made shoes ::

- Concept (prototypes / inshop corners / client choose his model,

material, color, shape of the heel… / person who takes masurments)

- Tehnology and production in our own workshop

Concept details

• Member club / member only concept

• Private collection (unique pieces from exclusive, rare materials….)

• All shoes will be numbered and produced as unique pieces (the book of our private customers)

• Orders: - corners / measurement taken from assigned person and/or

- private visits (Alja)

:: Costs ::Shoeccessories Collection

Development of the collection

24.000 eur

Leather and small material 23 eur

Soles 45 eur

Rounded clasp (silver) 107 eur / pair

Work per pair 20 eur

Packaging 15 eur

TOTAL 210 eur/pair

Jewellery (woven silver) 160 eur / pair

:: Costs ::Black or White Collection

Development o1 model/different colour

10.000 eur

Leather and small material 28 eur

Heels and soles 12 eur

Work per pair 20 eur

Packaging 17 eur

TOTAL 77 eur

Minimum order 250 pairs / one model / different colour

Costs :: Pricing

• Custom made shoes (global market)

Production price from 597 eur + vat

Retail price 5.000 eur up / all prices upon request

Development of one pair 100 eur

Custom made lasts 150 eur

Leather and small material 56 eur

Packaging 58 eur

Shoe trees etc… 33 eur

Work per pair 200 eur

Perosnal visit and consulting Depending on customer

TOTAL From 597 eur/pair

Roll-out Process

METHODS

• Corporate store network

• Regional franchise

• Distribution concessions

• Wholsale to retailers

– Traditional (dept stores)

– Speciality (weding/fashion expos)

– Exclusive (fashion houses)

– Events (Award shows)

• Online retailing (8% only)

– 3% of all luxury goodss

– 2/3 full price, 1/3 off price

Roll-out Process

KEY MARKETS

• Middle East (10% - 25%)

• North America (10% - 20%)

• Europe (10% - 15%)

• Asia (5% - 8%)

• South/Central America (4% - 5%)

Roll-out Process

GLOBAL LUXURY MARKET TREND

• Global luxury retail market : 200 bilion eur in 2012

• The market is expected to increase by 6% to 212 bilion eur in 2013, in 2015 to 250 bilion eur

• Performance trends of selected key retailers:

– Gucci +23% YTY

– Hermes +18% YTY

– LVMH +16%YTY

– Botega Venetta +34%YTY

– YSL +32%YTY

Roll-out Process

GLOBAL MARKET SHARE

- Europe 36%

- Americas (North and South) 30%

- Asian Pacific 19%

- Japan 10%

- Middle east/rest of the world 5%

Roll-out Process

TIMING AND KEY RETAILERS

1-5 YEARS

- Europe ( Sportina, Mass, LSAG, Porto Montenegro, London, Serbia)

- Azerbaijan, Baku

- Russia

- USA (Neiman Marcus, Saks 5th Ave., Nordstorm, Barneys NY, Bergdof Goodman, Henri Bendel)

• Middle East (UEA…)

Roll-out Process

B2B

- Hotels

- Airline companys

- Banks

- Insurance company

Key Customers

- People who can‘t find the right shoes (size and shape of the feet)

- Basketball players

- People who are all day on their feet (business)

- Special shoes for weddings

- Luxury shoes (private customers with special needs)

Key Customers acc. Collections:: women ::

OUR CUSTOMER for business collections- She is from 35 to 55 years old

- She has a sense for elegance

- Working in business, all day in her high heels

- She has small or big size feet

OUR CUSTOMER for wedding collections- She is form 25 to 35 years old

- Want‘s to wear something special

OUR CUSTOMER for evening collections- She is from 35 to 55 years old

- Want‘s to wear different styles

- Working in business, all day in her high heel shoes

- She has small or big size feet

Key Customers

OUR CUSTOMER (men)- He is from 35 to 60 years old

- He has a sense for elegance

- Working in business, all day in his shoes, have sweaty feet

- He has wide feet or big size feet

Promotion :: activities ::

• Fashion weeks

( Who's next 3rd-6th of July 2014 ( Fasion week Paris ) )

• High heel partys

• Movie Sex in the city 3

• Collaboration with Mr. Gavin Rajah, fashion designer

:: High heel party, summer 2012, Slovenia::

:: Exhibition, Hofburg palace, Vienna, 2011, Austria ::

:: Shoes for Mister Slovenia International, Bangkok, Taiwan 2012 ::

:: Shoes for Mr. Ben Affleck, Hollywood actor ::

Goals and Objectives:: first steps ::

• Finalizing all prototypes :: till May 2014

• Visiting potential buyers with presentations of collections

( Sportina and Mass - Slovenia, LSAG – Austria, Porto

Montenegro - Monetegro, Belgrade – Serbia, Baku – Azerbaijan,

Gavin Rajah - London) :: May, June 2014

• Prezentation for buyers on FW Paris – who‘s next :: in July 2014

• Development of all ordered shoes :: August 2014

• Order all materials :: September , October 2014

• Coordination and production :: November, December 2014

• Collections ready to be delivered to buyers :: January 2015

Financial Plan:: proposal of the first injection of capital::

• Costs of prototypes (production and materials) :: 45.000 eur

• Costs of aditional promo materials (web page, catalogues ets…) :: 16.000 eur

• Costs of salary and other costs for 12 month :: 36.000 eur

• Visiting fair Bologna, and other supliers Italy (selecting materials) :: 3.000 eur

• Costs of visiting potential buyers :: (5x 6.000) 30.000 eur

• Costs of presentations of collections :: (3x 6.000) 18.000 eur

• Costs of prezentation for buyers on Who‘s next :: 22.000 eur

• ____________________________________________________________ total : 180.000 eur

• Development of all ordered shoes :: need to be calculated

• Costs of all materials :: need to be calculated

• Costs of the production :: need to be calculated

Financial Plan:: need to be negotiated ::

• value of the next investment

• financial model and pricing assumptions

• opening of a new company

• ownership shares

Resource Requirements

– Personnel ( we suggest a new team )

– Technology ( Peko factory, Slovenia )

– Products ( All collections )

– Distribution ( finding right buyers, distributors )

– Promotion ( fashion weeks, private presentations etc… )

– Finances ( negotiable )

– Services

The New Team

• key management

CEO and creative director Ms. Alja Viryent

Managing director, Mr. Uros Novak

Senior advisor, Mr. Sašo Satler

PA and PR, Ms. Bojana Virjent

Marketing manager, (suggested from the investor)

CFO manager, (suggested from the investor)

Web/graphic design and online communication Ms. Urša Velkavrh

Head of retail strategic planning Mr. Tom Leung

Advisor for North American market Mr. Jovica Perovič

Production manager Mr. Nisvet Hadžizulfič

With great honour and respect to our rich family tradition we believe in our product. It is our absolute responsibility striving to achieve our vision.

All these years we were following our mission by creating special feelings in our customers lives and working hard to make them unforgettable.

A. Viryent:: Global brand ::

‚Shoes define your standing.‘