Company Description

MONNARI TRADE S.A.

Company description

Activity:– Clothes collection designing,– Brands management,– Outsourcing and production control,– Marketing activities connected with the brand promotion,– Clothes sales and clothes accessories in factory boutiques

The leader in the brand’s segment of women clothes

Know-how in building and developing valuable brands

MONNARI chain of proprietary boutiques - the biggest in the 30 + women segment

Efficient development strategy

High growth dynamics of incomes and profits, increasing efficiency

The Company was created by its owners from scratch

The Company description

The key factors of value Strong brands with high growth potential

MONNARI chain of proprietary boutiques, the biggest in the segment of 30 + women

Efficient and proven business model

Good financial standing and stable profitability

Know-how in constructing clients’ loyalty and attachment to the brand

High quality of products

Attractive pattern designing possibility of fashion creation

Highly attractive, distinctive design, broad range of products

Highly-qualified, experienced and devoted team

The range of activity allows to achieve scale’s results

Attractive segment of activity on developing apparel market

The Management Board

Marek Banasiak – the President of the Management Board,

Mirosław Misztal – the Vice-President of the Management Board,

Anna Banasiak – the Vice-President of the Management Board,

Katarzyna Latek – the Vice-President of the Management Board

Qualifications and experience in the segment

Proven efficiency in executing development strategy

Financial investment in the Company

Shareholders’ structure

The main shareholders’ – lock-up of shares for the next 12 months Shares' number

upon last issue

Mirosław Misztal38,2%

Jakub Banasiak18,7%

Agata Banasiak18,7%

Other24,3%

Shareholders Number of shares Number of votes

No. (%) No. (%)

Mirosław Misztal 5 097 820 38,19% 9 097 820 42,62%

Jakub Banasiak 2 500 000 18,73% 4 500 000 21,08%

Agata Banasiak 2 500 000 18,73% 4 500 000 21,08%

Other 3 249 453 24,35% 3 249 453 15,22%

Total 13 347 273 100,00% 21 347 273 100,00%

Business Model

Significant dynamic of development of sales chain of proprietary boutiques

Elimination of receivables

Efficient management of stock (lack of stock) – elimination of a main risk factor for clothes companies

Very good relation value-to-price ratio for the client

Qualified and experienced team

Focus on creating and management of the brand

Increase of profitability by growth of margin and increase in retail sales

Creation of exclusive prestigious product

Outsourcing of production with diversification of supplying sources

Efficient management of stocks

The Company’s network of factory

boutiques

Elimination of the main obstacle in development of

clothes companies – lack of stock

Exclusive product Safe group of clients – above average rich clients, who appreciate

elegance and prestige:• lower sensitivity to country's economy slump

• high loyalty towards our brand

Original collections in accordance with the latest trends in fashion Modern classic, noble materials (natural silk, wool, cashmere) Large numbers, differentiation and complexity of assortment Complexity of collection and short series of models Top quality services in the Company boutiques Unique atmosphere of shopping anchoring positive emotion with the

Monnari brand Precise analysis of clients’ preferences and results of collection sale Possibility of quick and elastic reaction to market needs

Increasing significance of the brand

The brand – unique, not possible to copy

Clients’ interest growth in good quality clothes, easily recognizable, with strong identification

Proprietary boutique – the visiting-card of the brand and the tool of communication with a client

• MONNARI design is intended for women over 30, whose discerning eye seeks classic with a fresh twist. The collections include top quality items all of which are made of superior quality fabrics and knits, with a classic design but not underestimating the latest fashion trends. The full collections account for up to 1000 each season with items in different colour variations

• Classic collection in toned colours, top class natural fabrics apparel with refined finishing. Classic designs completed with the touch of subtle femininity and perfectly matching accessories

• Prestige brand for a professional woman. Luxurious garments emphasising chic and charm of active business women. PABIA will remain classic in style in order to fulfil clients’ wishes however, it will be enhanced in compliance with the world’s latest trends

`

In January 2007 „MONNARI TRADE” S.A. bought 51 % of shares in a fashion company „MOLTON”, which already owns 24 boutiques with luxurious woman apparel

Dynamic development of the sales network

Dynamic development of the sales network

In August 2007 we opened first of 17 boutiques for our new brand „PABIA”. At the end of 2007 we had 26 boutiques for this new brand.

PABIA’s line offers outfits for very active working women who care about fashion.PABIA’s priority is to provide products of the top world quality, made from the best textiles.

Strategic expansion goals

Development of chains of boutiques in Polnad

Chains

Years MONNARI PABIA MOLTON TAMARIS

2007 132 25 24 3

2008  158   48   40   18

184 boutiques at the end of 2007

264 boutiques at the end of 2008

Financial results forecast for 2007 SELECTED FINANCIAL

RESULTS in million PLN

2007 2006 Change in %

Net sales revenues of products, merchandise and raw materials 142,60 91,60 55,68

Operating profit (EBIT) 18,30 15,00 22,00

Operating profit increased by depreciation (EBITDA)

21,00 16,60 26,51

Net profit15,70 11,10 41,44

Accomplishment of assumed objectives for 2007 ahead of schedule:

Planned

Accomplished Change %

Incomes in million PLN for Jan-Dec 117,0 142,6 21,9 

EBIT million PLN for Jan-Dec 16,1 18,30 13,7 

EBIDTA million PLN for Jan-Dec 18,7 21,00 12,3

Net profit in million PLN for Jan-Dec 13,0 15,70 20,8

Boutiques opened in 2007

2 year plan for: 2007-2008 -

70 84 140% 

Net profit and EBITDA in years 2003 – 2006 (in thousand of PLN)

Proven efficiency in strategy execution

Income from sales in years 2003 – 2007 (in thousand of PLN)

w n

zł

High dynamics of growth

0,0

5,0

10,0

15,0

20,0

25,0

2003 2004 2005 2006 2 007

mln

zł Zysk netto

EBIDTA

0

20

40

60

80

100

120

140

160

2003 2004 2005 2006 2007

mln

Net profit EBITDA

 in PLN thousand in EUR thousand

SELECTED FINANCIAL DATA

third quarter

2007

third quarter

2006

third quarter

2007

third quarter

2006

I. Net sales revenues of products, merchandise and raw materials

89 011 57 114 23 232 14 581

II. Operating profit (loss) 6 867 6 896 1 792 1 760

III. Gross Profit (loss) 12 617 6 018 3 293 1 536

IV. Net profit (loss) 10 186 4 817 2 659 1 230

IX. Total assets 116 113 48 352 30 738 12 138

X. Liabilities and provisions on liabilities 29 600 27 179 7 728 6 933

XII. Current liabilities 28 324 14 443 7 498 3 626

XIII. Equity 86 371 21 106 22 865 5 298

XIV. Initial capital 1 335 1 073 348 273

Building of the logistic centre in Lodz

Planned for 2008. Location of the investment is very profitable, next to the main south trade route. The building will combine the spirit of the city with modern architect trends and will perfectly blend with the 19 century industrial character of the city.

This information is only a promotion material

MONNARI TRADE S.A.

ul. Radwańska 6, 90-453 Łódźtel.: (+ 48 42) 636 87 61fax: (+ 48 42) 636 87 62

e-mail: [email protected]