EFTA02701609

Ri, morrow Business plan 1st year presentation France Only EFTA_R1_02071601 EFTA02701609 Invoicing NO VAT Business Plan presentation / 2morrow Paris Year 2014 - 2015 Invoicing Monthly FCF CUM FCF Jun Jul Aug Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug • 26'760 it - S0064 C • 104'594 - 26760E - 23104f • 54-530( - 117063E -85'168( -51997f -64193E - 115912E- 128674E 2/3136€ 53392C • 54'988 16061E - 11'649( • 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 Men Women Jun Jul Aug Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 27.680 71660 (37.68 27.680 31.140 27.680 20.760 1920 September 2014: Assumption 40 models in town Preparation 40 models in town I 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 Cleaning Cellphones <I.000 (500 Telephones Electricity 4200 Office supplies Tax consultant t10. Pc support + F1W Work consultant c 2 oco Zero cost for temporary office for license, we should be able to provide it with friends. Then 3500/month and 3 months deposit in first month. 150 sq mt semi- central (3.500 4 1.300 (1500 (1500 <1503 (3.500 (3.500 (3.5W (3.500 <600 t 603 ( 6420 <603 ( 600 ( 600 ( 600 (600 ( 600 C 503 C SOO (500 0500 C 5C0 t 500 c soo (500 t SCO (603 t 603 ( 600 < 6(0 ( 600 ( 600 ( SOO ( 600 ( 600 < 400 C 400 1400 4 400 t 400 <400 C 400 I(00 1400 Illit (300 (2120 < 200 ( 203 ( 203 ( 200 ( 200 < 200 (15000 ( 150 ( 1 500 ( 1 500 < 1 503 ( 1.500 <1.500 ( 1,500 (IOW c SCO ( 503 ( 503 (500 C 500 4 5C0 t 503 LAN + 6 computers x 850 each Preparation work pre. VOIP installation for 10 internal opening cellphones usa numbers Installation of SW (proprietary + adobe + office) (3.503 I600 C SCO (3,50D (600 t SOO 11500 ( 603 C503 (600 (600 (WO C4C0 C 400 t4,3 ( 200 ( 200 ( 203 ( 1.503 <1500 ( 1.503 \ C 5C° C 500 C 500 IKEA style furnishing, same amount spent in Italy for Nologo and costs are similar in Ikea FR and IT Modification of SW for France after 6 months operations 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 Other office costs (2.000 C2000 C2 003 2.000 f. 2003 4 2.033 C2.000 4 x.600 (2000 2030 4 2 COO 2030 Taxes paid C 4 356 (8.711 C 11611 14157 17.137 32.218 $$53 341t59 13.550 21.550 21666 15072 Bank commission + debt 150 1714 4 400 (1,131 13144 11.944 C1167 L642 1435 it 1443 (3.074 (1.351 (3.131 (340 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 Salaries C 1.508 ( 1.500 18.500 ( 18.500 20.350 ( 20 150 ( 20 350 20 150 (10.)50 20.350 ( 20 350 (20.350 Social charges t 1 ::0 ( : 110 13 090 ( 13 690 13 690 ( 17/9/ 15 059 15 059 ( 15 G59 15 G59 ( 15 059 15059 15459 15 059 Model social 9 3150 (9.360 C 10.530 (10530 16.193 (42.506 (16.193 C 16.193 18.211 12.145 4048 charges 10 193 One assistant to set up 6 employees 3 Mid level bookers @ 4000 each 2 Assistants @ 1500 each 13th month french law 7 employees 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 Apart + Residence 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 Driver ”t <LOCO < 2400 t 2 COO 62000 (2.000 ( 2400 C 2030 (2000 C 2 CCO ( 2 003 ( 2 CCO Taxi (X* ( 300 ( 300 it 100 ( 300 ( MO ( 300 (300 IC 300 (100 ( 200 ( 2C0 Mail t 50 t 50 <50 (50 t 50 t 50 C 50 f SO t SO C SO C SO ( SO Messanger <250 C2S0 C 250 C 210 t 210 C 250 C 250 C 250 C 210 C 150 C 150 C LSO Hairdresser < 500 C SCO < 400 Gift to clients 3400 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 Photographers SOO (1.500 (1000 (2.500 t 1 000 t 1 502 (500 Prints ( 000 ( CO) f#Y3 3 500 4.714 3 300 1 000 • Model payments Tickets paid for models 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 Mother agency 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 Scouting trips (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 First prints for Sept arrivals Strong push for first year to establish new agency. No salaries paid to scouters (4 FTEs) that will increase trips for Paris agency Aligned with Milano costs (same cost for CDG and MIL for flight and other transprtations) Assumption payment 24 hours after work as in Milan (excluding rights) Conservative estimate assuming 50% employment rate for first year la morrow EFTA_R1_02071608 EFTA02701616