Andeschile

Andes Chile S.A.Outdoor and Winter Sports Company.

Gonzalo Oyanedel G.

COMMERCIAL BACKGROUND:

Owner of the ANDES INVESTMENTS S.A. Holding Company.

15 years as the exclusive importer and distributor for Chile of TECNICA, TYROLIA, ATOMIC, CAMPING GAZ, WILSON (1977-92).

12 years as the exclusive Importer/Distributor and Licensee of PUMA for Chile (1980-92) under the company name Intersport S.A.

8 years as the exclusive Importer & Distributor for Chile of LOTTO from Italy (1993-2000) under the company name Industrias Deportivas S.A.

SPORTS BACKGROUND:

7 years as a member of the National Chile Ski Team (1972-78).Participated in all type of international races.Sailing trip for 18 months around the world (2000/ 01).Also practices: Ski, Running, Tennis, Golf, Scuba Diving, Water ski, Cycling, etc.

ANDES INVESTMENTS S.A.

Andes Investments S.A. was founded on November 16 th, 1988, in order to separate the import business (with all brands beside Puma), from a new developing industrial business, according to a licensee agreement signed between Puma Germany A.G and Intersport S.A.

The new company was named Industrias Deportivas S.A. According to this, the Puma business remained under Intersport S.A., being the Importer and Distributor for Chile before the construction of the Puma factory in our country, who had a production capacity of 4.000 pairs per day.

Andes Investments S.A. participated in the property of Intersport S.A. as the PUMA licensee for almost 4 years (1988-1992), then the company was sold to Puma Germany A.G. and as they became a subsidiary in Chile, the company name was changed to Puma Chile S.A.

Andes Investments S.A., through its company Industrias Deportivas S.A., became the exclusive importer and distributor in Chile for LOTTO Italy, between 1993 and 2000..

HOLDING STRUCTURE

ANDESINVESTMENTS S.A.

ANDES CHILE S.A.INDUSTRIAS DEPORTIVAS S.A. INTERSPORT CHILE S.A.

ANDES INVESTMENTS S.A.

Is a Holding Company own in 99,9 % by Gonzalo Oyanedel and main share holder of the following companies:

• 99% Property of Industrias Deportivas S.A.• 99% Property of Andes Chile S.A.• 99% Property of Intersport Chile S.A.

Company Profile

ANDES CHILE S.A. RUT: 76.073.653-8 Av. La Dehesa 1201 Office 715, Edificio Oriente Comuna Lo Barnechea Santiago CHILE

Company Objective

To import and sell leader brands, in all type of Outdoor and Winter Sports Equipments in Chile.

Administration Structure

Board of Directors

Managing Director

Administration & Finance Manager

Accounting

Delivery

Central Zone Representatives

Logistic Center

North Zone Representative

s

Customer Service

Product & SalesManager

South ZoneRepresentatives

Maketing & WEBManager

Logistic Center

Logistics, stock handling and distribution are outsourced. This allows costs to be

managed, and increase in direct relation to business growth.

The Outsourcing Company undertakes the following responsibilities:

• Product reception.• Product storage.• Stock control.• Customers order preparation.• Deliveries.

Administrative control is handled through the head office in Santiago, using anintegrated system. This system links stock control, invoicing, sales reporting,

sales analysis, and inventory management.

Logistics & Stock Control

• Outsourced to a logistics center.• Variable costs in relation to stock levels.• Centralized administrative control. • Focus on core business objectives.

Advantages

THE BRANDS

• VAUDE (Outdoor Apparel & Hardwear ), www.vaude.com• DOLOMITE (Ski Boots and Trekking Footwear), www.dolomite.it• TECNICA (Trekking, After Ski Boots & Trail Running Footwear ), www.tecnica.it• LOWA (Outdoor Footwear Hiking & Trekking ), www.lowa.de• LA SPORTIVA (Outdoor Footwear, Hiking & Climbing), www.lasportiva.com• NORDICA (Skis, Ski Boots, Poles & Accesories), www.nordica.com• CARRERA (Goggles, Sunglasses and Helmets), www.carrerasport.com• LEVEL (Ski Gloves), www.levelgloves.com

Chile

CHILEMacroeconomic Scenario

Real GDP average growth 4,8% last 5

years. Domestic demand (Consumption)

growth 5,9%. Per capita income US$14.510 (PPP). Average inflation 2004-2008 5,2

%,2009 expected 0 %. Unemployment 8,1%. Low country risk rate in Latin America. Population (07/09 estimate): 16,9

million. Current exchange rate $535 per US

dollar. Non import duty with China and trade

agreements with NAFTA, European Community and others.

Retail sales growth over 20%.

Social-Political Scenario

New Government starting march 2010.

Political stability for the last twenty years.

Solid institutions including independent Central Bank.

Population concentration, 40% Santiago 60%others.

Progressive reduction in poverty, emerging middle class.

Women´s labour force participation up to 36%.

Outdoor life style on the rise. Gym business growing throughout

entire country.

Consumers in Chile present a sensitivity and receptivity to international brand names.

The market in the metropolitan region of Santiago, has a consumer participation rate of 40%, and a high level in the other largest cities around

the country, as can be seen in the following chart:

Region Metropolitan Areas Population (Mprs)

Region IRegion IIRegion IIIRegion IVRegion V

MetropolitanRegion VIRegion VIIRegion VIIIRegion IXRegion XRegion XI

Region XII

Arica-IquiqueAntofagastaCopiapóLa Serena-CoquimboValparaiso/ Viña del MarSantiagoRancagua-CuricoTalca/ LinaresChillan/ Concepción/ Los AngelesTemuco/ValdiviaOsorno/Puerto MonttCoyhaiquePunta Arenas

Total

426.351592.846252.353700.363

1.842.4926.455.911773.950904.104

1.953.678864.929

1.145.49491.938

262.869

16.267.278

Chilean Population Per Region

Population Chart Distributed per Region (Total 16 Million people)

CHILE Population Chart Per Sex & Children

  Men’s Women’s Boys Girls Total

Nº Inhabitants 6.801.575 6.938.703 1.329.000 1.198.000 16.267.278

Percentage 41,81% 42,65% 8,17% 7,36% 100%

Geographical Distribution Analysis

Given the geographical layout of the country, 40% of Chilean consumers are found in the metropolitan region of Santiago.

The V and VIII regions hold a further 24% of the consumer market, with a population exceeding 1.8 million, while the regions IV,VI, IX and X hold 28%, with a collective population between 600,000 and 1 million people. The gender distribution of the market holds 51% female consumers, and 49% male.

According to the preceding statistics, it can be concluded that 63% of the market is in the region of Santiago, Viña del Mar / Valparaiso and Concepción, areas where by the greatest efforts to introduce the product will be made. This areas are also the real ski market in Chile.

MARKET PLACE

Highly competitive market.

Most of all international brand names are present in our market.

Free trade agreements with EC, NAFTA, China, Japan, Korea & Singapore; no restrictions or quotas from the Far East countries.

Evolved considerably in recent years partly due to the good economic situation of the country.

Chile became as one of the most atractive destination for all type of trekking and mountain activities due the diversity geography.

There are many ski resorts in Santiago region and around volcanoes in the South.

Many people go ski for the day.

International ski teams train in Chile during the Northern Hemisphere's summer.

Economy in Chile improving, therefore skiing becoming more accessible.

Tourism from all South American Countries mainly from Chile, Brazil, USA & increasingly Europe.

Importers are also direct retailers.

Chilean Market

Department Store Chains

Falabella has 40 stores in Chile, 14 in Peru, 8 in Argentina and 3 in Colombia.

Ripley has 40 stores in Chile, and 10 in Perú.

La Polar has 37 stores in Chile and will expand to Perú and Colombia.

Paris has 30 stores in Chile and 2 in Argentina with three more in construction, and will expand to Perú

Other Main Retailers

Sparta has 40 multisport stores along Chile.

Bellsport has 42 footwear store along Chile.

Patuelli Deportes has 8 footwear stores in Santiago.

North Face has 15 stores along Chile.

Doite has 8 Corporate Stores in Chile.

Andes Gear has 5 specialized outdoor stores in the main cities.

Tatoo has 3 specialized outdoor stores in Santiago.

Pro Shop has 4 stores in Santiago.

Also exist more than 75 outdoor stores along Chile

There are also more than 100 Ski & Snowboard stores between the V and the XII Region.

Total FOB Imports Outdoor Brands

Doite US$

The North Face US$3.370.864

Salomon US$

Columbia US$

Lippi US$

2010 2011 2012 2013 2014 TOTALVaude 250.000 300.000 350.000 400.000 450.000 1.750.000

Dolomite 235.000 270.000 300.000 350.000 400.000 1.555.000

Tecnica 185.000 200.000 215.000 230.000 830.000

Lowa 50.000 75.000 100.000 125.000 150.000 500.000

La Sportiva

100.000 125.000 150.000 175.000 200.000 750.000

Nordica 300.000 350.000 400.000 450.000 1.500.000

Carrera 20.000 25.000 30.000 35.000 110.000

Level 30.000 35.000 40.000 45.000 150.000

TOTAL 635.000 1.305.000

1.510.000

1.735.000

1.960.000 7.145.000

PURCHASE PROGRAM US$

  DOITE SALOMON NORTH FACE COLUMBIA

EERRM$

Ingresos 0 0 0 00% 0% 0%

Costos de Venta 0 0 0 0

Resultado Bruto 0 0 0 0Margen % Promedio 0 0% 0% 0%

Royalty 0 0 0 0% Ventas 0,0% 0,0% 0,0% 0,0%Gastos de Administración 0 0 0 0% Ventas 0 0% 0% 0%

EBITDA 0 0 0 0Margen % 0,0% 0% 0% 0%

Depreciación 0 0 0 0

EBIT 0 0 0 0

Gastos Financieros 0 0 0 -0% Venta 0,0% 0% 0% 0%Gasto Financiero Edificio 0,0 0,0 0,0 0,0Utilidad Antes de Impuestos 0 0 0 0

Impuestos -0 0 0 -0

Utilidad Neta 0 0 0 0Margen % 0% 0% 0% 0%

  2010 2011 2012 2013

EERRM$

Ingresos 601.091 1.705.823 1.753.095 2.029.343183,8% 2,8% 15,8%

Costos de Venta -324.006 -923.368 -952.048 -1.102.983

Resultado Bruto 277.085 782.456 801.046 926.360Margen % Promedio 46,1% 45,9% 45,7% 45,6%

Royalty 0 0 0 0% Ventas 0,0% 0,0% 0,0% 0,0%Gastos de Administración -174.726 -379.565 -385.942 -411.279% Ventas 29,1% 22,3% 22,0% 20,3%

EBITDA 102.359 402.890 415.105 515.081Margen % 17,0% 23,6% 23,7% 25,4%

Depreciación 0 0 0 0

EBIT 102.359 402.890 415.105 515.081

Gastos Financieros -9.764,8 -20.211,6 -19.228,3 -17.733,3% Venta 1,6% 1,2% 1,1% 0,9%Gasto Financiero Edificio 0,0 0,0 0,0 0,0Utilidad Antes de Impuestos 92.594 382.679 395.876 497.348

6% Bono Participación Gte. Gral. -5.556 -22.961 -23.753 -29.841 Impuestos -17.407,6 -66.547,8 -59.222,9 -79.476,1

Utilidad Neta 69.630 316.131 336.653 417.872Margen % 11,6% 18,5% 19,2% 20,6%