LABIRINT. Marketing and merchandising. Format and concept. Eventually new venture/equity. STRATEGIC Less risk Less funds Less people training

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2 The Opportunity Ahead LABIRINT Sales team Local knowledge Modern building Local presence International partner European presence Best practices model Supply chain STRATEGIC Less risk Less funds Less people training Your opportunity TACTICAL Immediate bottom line impact (sales) Positioning Portugal Iceland Atlantic Ocean Ireland Spain Greenland Sea FaroeIslands (Denmark) U.K. France Norwegian Sea Norway Denmark Neth. Poland Germany Belgium CzechRep. Lux. Slovakia Switz. Monaco Liech. Italy Sweden Austria Slovenia Russia Hungary Croatia Bos.& San Marino Herz. Finland Estonia Latvia Lithuania Mont. Serbia Alb. Romania Mace. Greece Belarus Bulgaria Russia Ukraine Moldova Turkey Mediterranean Sea Malta Procurement Supply chain Marketing and merchandising Format and concept Eventually new venture/equity

3 Management team Staff Organization Showroom area Planned showrooms Joint experience in furniture retail over 70 years; the owners are among the pioneers in the industry in post-communist Bulgaria Total staff of 100 (2008); currently optimized to 70 Showroom team (consultants, designers, cashiers, floor managers); headquarters team (finance, procurement, marketing, merchandising, admin and HR) 9,700 sqr. m.; 22.5% of total commercial area of top furniture retailers One showroom with potential immediate start (development postponed) in Burgas (second largest city on the Black Sea coast), 22,000 sqr.m. TBA Lines of businesses Accessories, kitchen, living room, bedroom SKU`s 15,000 total, including storage, sleeping or lying, seating, surfaces, sets, kitchen, carpets, wallpapers, mattresses, interior textiles, lighting, domestic appliances Sourcing Brand Website Local (70%); International (30%), 150 suppliers Labirint

4 A Story of Success looking forward towards a new journey for Labirint Being part of the start, development and challenges of furniture retailing in Bulgaria Proud of the showroom concept and implementation Proud of the team Proud of the positioning of Labirint Preparation for expansion in Bourgas

5 Prime Location Excellent accessibility Closest modern format furniture retail to city center Large own parking area (120 parking lots) Bordering two major boulevards Unique access Close proximity to the public transportation network subway station 50 m; immediate access to bus station; tramway station 100 m

6 Our Showroom Concept Concept Access and traffic management large parking area, main entrance, access for people with disabilities, elevators, lifts Layout of merchandise distinct floors, merchandising concept by areas Amenities terrace restaurant and cafe, bank office, teller machine, canteen Client service dedicated personnel by type of furniture (consultants, 3D designers) and single point of order (cash desk, transportation and assembly ordering) General info Total area 20,000 sqr.m. (with office building) Commercial area 9,700 sqr.m. Ground floor cashier zone; accessories & interior textile; lighting; independent retailers Second floor bedroom furniture Third floor living room furniture Fourth floor kitchen Fifth floor restaurant Sixth floor administration

7 Marketing and Client Management Marketing tools Brochure monthly, articles on promotion Website intuitive design, optimized for traffic Moving advertisement premium positioning on public transportation vehicles Billboard advertisement sets on promotion, including in proximity to direct competitors showrooms Promotion special promotions designed for specific groups, discounts (on price, on transportation, etc.) granted based on volume, loyalty, segment Pricing clear pricing strategy for products and for services Vouchers and cross promotions with partners Merchandising Spacious layout and daylight illumination Promotions zone High-end zone Complementing accessories to major furniture lines on display for sale on each floor Huge accessories zone before cashier/exit zone Customized design of furniture Client base Over 900,000 visitors of showroom (2008), 60,000 (per month 2009) Over 50,000 unique visitors of website and 500,000 page views (per month 2009) Large corporate client base

8 Success is Local Commitment Competitive Business Model Strategic Partnership Ideal potential partner World class procurement systems Multiformat Customizable marketing tools EU brand portfolio Effective supply chain/warehousing Ready for legal partnership agreements Next steps Getting acquainted with the company Initial meeting with the entrepreneurs Site visit & market intelligence Structuring an agreement Bourgas store Could be designed to match the format portfolio of the partner Procurement Supply chain Marketing and merchandising Format and concept Eventually new venture/equity INITIAL COOPERATION ALL-EMBRACING COOPERATION

9 Owner and General Manager Owner and General Manager Business Consultant Rajna Parusheva, Georgi Belobradov, Georgi Malchev, m: ,

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