EFTA02701609.pdf

Ri,morrow Business plan 1st year presentation France Only EFTA_R1_02071601 EFTA02701609  Invoicing NO VAT Business Plan presentation / 2morrow Paris Year 2014 - 2015 Jun Jul Aug Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Invoicing Monthly FCF - 26760E - 23104f • 54-530( - 117063E -85'168( -51997f -64193E - 115912E- 128674E 2/3136€ 53392C • 54'988 16061E - 11'649( CUM FCF • 26'760 it - S0064 C • 104'594 • Company to start working in June 2014 for September launch • Total invoicing from September 2014 to August 2014 1,55M Eur • Clear explanation of all expenses in following slides, validate as much as possible with local experts and Italian internal benchmarks where applicable (e.g., tickets) • License already applied for and awaiting just incorporation for approval • Overall financing requested for year 1 until Aug 15 is 668'000 Eur - From Aug 15, second full year should require a further investment of —65K Eur, however the details will be presented with next year budget and there will be a higher cash request for a march cash requirement peak - Third year the company has to be cash flow positive morrow EFTA_R1_02071602 EFTA02701610  Invoicing NO VAT Business Plan presentation / 2morrow Paris Year 2014 - 2015 Jun Jul Aug Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Men 27.680 71660 (37.68 27.680 31.140 27.680 20.760 1920 Women September 2014: Assumption 40 models in town I Preparation 40 models in town 80 models in town According to our analysis based on the Italian market and comparing it to the Paris market which usually overachieves a +20% of revenue (conservative assumption) - we assume that a model's monthly average revenue is C 2.000 for the first 3 months of stay in town (conservative 50% utilization rate, i.e., only 50% of models will work at C 4.000/month) , with a gradually increase of the +10%- 13% from the 4th month on, due to client's fidelity and model's notoriety. Men invoicing is based on the direct invoicing that last year 2morrow did from Milano, augmented by 50% because of local presence in Paris. F morrow EFTA_R1_02071603 EFTA02701611  Fixed costs Year 2014 - 2015 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Office ( 14 000 (3.500 4 1.300 (1500 (1500 <1503 (3.500 (3.500 (3.5W (3.500 (3.503 (3,50D 11500 Cleaning <600 t 603 ( 6420 <603 ( 600 ( 600 ( 600 (600 ( 600 I600 (600 ( 603 Cellphones <I.000 (500 C 503 C SOO (500 0500 C 5C0 t 500 c soo (500 t SCO C SCO t SOO C503 Telephones (603 t 603 ( 600 < 6(0 ( 600 ( 600 ( SOO ( 600 ( 600 (600 (600 (WO Electricity 4200 < 400 C 400 1400 4 400 t 400 <400 C 400 I(00 1400 C4C0 C 400 t4,3 Office supplies Illit (300 (2120 < 200 ( 203 ( 203 ( 200 ( 200 < 200 ( 200 ( 200 ( 203 Tax consultant t10. (15000 Pc support + F1W ( 150 ( 1 500 ( 1 500 < 1 503 ( 1.500 <1.500 ( 1,500 ( 1.503 <1500 ( 1.503 Work consultant c 2 oco (IOW c SCO ( 503 ( 503 (500 C 500 4 5C0 t 503 \ C 5C° C 500 C 500 Zero cost for temporary office for Preparation work pre. VOIP installation for 10 internal Modification of SW license, we should be able to opening cellphones usa numbers for France after 6 provide it with friends. Then months operations 3500/month and 3 months deposit in first month. 150 sq mt semi- central Installation of SW (proprietary + adobe + office) IKEA style furnishing, same amount spent in Italy for Nologo LAN + 6 computers x 850 and costs are similar in Ikea FR each and IT morrow EFTA_R1_02071604 EFTA02701612  Fixed costs Year 2014 - 2015 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug (2.000 C2000 C2 003 2.000 f. 2003 4 2.033 C2.000 4 x.600 (2000 2030 4 2 COO 2030 Other office costs C 4 356 (8.711 C Taxes paid 11611 14157 17.137 32.218 $$53 341t59 13.550 21.550 21666 15072 150 1714 4 400 (1 ,131 13144 11.944 C1167 L642 1435 it 1443 (3.074 (1.351 (3.131 (340 Bank commission + debt Work consultant 2.000 (1.660. C 500 C SOO SOO t SOO C 5C0 (500 C SO3 C 500 (503 ( 503 1506 Internationl wires 15 x 10 wires/month + 6% yearly interest on debt Second trance license to Setup costs France company. Estimate operate in France. First 5000 already paid by 2morrow Cost aligned with Italian expenses and confirmed preliminarly by French tax advisor morrow EFTA_R1_02071605 EFTA02701613  Fixed costs Year 2014 - 2015 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug C 1.508 ( 1.500 18.500 ( 18.500 20.350 ( 20 150 ( 20 350 20 150 (10.)50 ( 20 350 (20.350 Salaries 20.350 t 1 ::0 ( : 110 13 090 ( 13 690 13 690 ( 17/9/ 15 059 15 059 ( 15 G59 15 G59 ( 15 059 15459 15 059 Social charges 15059 9 3150 (9.360 C 10.530 (10530 16.193 (42.506 (16.193 C 16.193 18.211 12.145 4048 Model social 10 193 charges One assistant to set up 6 employees 13th month french law 7 employees 3 Mid level bookers @ 4000 each 2 Assistants @ 1500 each 1 Traffic and % confirmed by tax advisor Operations manager @ of total net payment to 3500 models No scouts included No CEO included morrow EFTA_R1_02071606 EFTA02701614  Variable costs Year 2014 - 2015 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug C 32.403 t 21.600 C 21,600 161200 C 61200 (25.500 C 20.400 C 35.700 (20.400 t 20400 C 5.100 Apart + Residence ”t <LOCO < 2400 t 2 COO 62000 (2.000 ( 2400 C 2030 (2000 C 2 CCO ( 2 003 ( 2 CCO Driver (X* ( 300 ( 300 it 100 ( 300 ( MO ( 300 (300 IC 300 (100 ( 200 ( 2C0 Taxi t 50 t 50 <50 (50 t 50 t 50 C 50 f SO t SO C SO C SO ( SO Mail <250 C2S0 C 250 C 210 t 210 C 250 C 250 C 250 C 210 C 150 C 150 C LSO Messanger < 500 C SCO < 400 Hairdresser 3400 Gift to clients Adapted moth by month based on number of models in town Only for arrivals at beginning of season Xmas presents to clients Kmorrow EFTA_R1_02071607 EFTA02701615  Variable costs Year 2014 - 2015 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug SOO (1.500 (1000 (2.500 t 1 000 t 1 502 (500 Photographers Prints ( 000 ( CO) f#Y3 3 500 4.714 3 300 1 000 • Model payments 20 t 7.140 (7.540 19.593 t 11071 (21.071 (11.626 t 12.331 t 12.152 (10.172 t 5113 t 5.613 t 8.711 Tickets paid for models t 1.600 if 1 6t0 t 12C0 t 1800 t 2,768 t 7.266 (2.768 it 2.766 (3.114 (1768 (2.076 (692 Mother agency (5 000 t 10000 t 5p00 • 10 000 4' 10000 (3 000 10.000 t 10000 t 3.000 t 3 OCO t 14000 15000 t 10.000 (5000 Scouting trips First prints for Sept arrivals Assumption payment 24 hours after work as in Milan (excluding rights) Conservative estimate assuming 50% Aligned with Milano costs employment rate for first year (same cost for CDG and MIL Strong push for first year to for flight and other establish new agency. No transprtations) salaries paid to scouters (4 FTEs) that will increase trips for Paris agency lamorrow EFTA_R1_02071608 EFTA02701616