ZI-MAG d.o.o.

1. ZI-MAG d.o.o.

2. Who are we? • We are one of the leading wholesale trader in Slovenia with 20-years of tradition. We buy, distribute, market, represent and service several international well-known brands regionally. • We have no retail shops of our own. • Trustee of distinguished brands of technical products, toys, textile products, tobacco products, fast-moving consumer and prestigious goods. • Provider of specialized logistic services.

3. What is our mission? • Efficient bringing well-known brands from producer to retailers of south-eastern Europe markets under competitive conditions. • Delivering goods, endorsing the quality selected goods. • Providing top-quality service (after sales).

4. Where are we going? • As one of the leading distributor of distinguished brands, we will expand our wholesale product portfolio and optional entering foreign markets (former Yugoslavia). • We will gradually expand into a leading supplier of specialized services in Slovenia.

5. Strategic objectives • 10% growth of our sales revenue by 2012, • observe, consider and enhance all parties satisfaction, • consistently improve employee commitment and satisfaction while developing a performance management system, • improve the company’s image in order to be considered among one of the 10 best companies in Slovenia in this segment.

6. Why choose us? Because • we understand regional markets and cover them with a broad range of brands, • we have professional expertise and offer reliability, • our information technology and our support and after-sale services are well developed, • we build good relationships with retailers, • we offer our clients holistic and tailor-made logistic services.

7. ZI-MAG d.o.o. Organization

8. Wholesale – product groups – revenue share (2011) • lighters and tobacco accessories 33% • toys 10% • technical consumer goods 39% • textiles 10% • office supplies 8%

9. Wholesale – portfolio in year 2011 • lighters and accessories (Zippo, Denicotea, Unilight, Flame Club) • toys (Jiri Models, Veriplast, Wader, Grafika- Grafoprint) • technical consumer goods (Leatherman, Maglite, Wenger, Gerber, Nite Ize, Edco) • textiles (Carlo Guidetti, Polyflame) • office supplies (Jiri Models, Grafika- Grafoprint)

10. ZI-MAG’s Wholesale Service Range • Knowledge of the market. • Knowledge of selling technical consumer goods brands products. • Ability to cover assigned territory. • Access to a sales organization. • Administrative support. • Sales records. • Forcasts of purchases. • A marketing plan. • Competitive information. • Price calculation. • Market research. • Advertising and sales promotion support. • Translations. • Solving claims / technical service.

11. ZI-MAG’s competitive advantage • ZI-MAG is one of the leading distributors and strongest player on Slovenian consumer goods market. Strong background in people with complex business and market knowledge. • Organization: fully dedicated staff (Product manager and back-office) therefore knowledge of existent mode of operation and specific brand owner’s needs. • Sales: dedicated sales force with a considerable experience. • Trade: excellent negotiating position of ZI-MAG, thanks to the long-time effective collaboration and considerable critical mass.

12. CONCLUSION

13. ZI-MAG is one of the leading distributors of global products on Slovenian market. • Develop and implement strong brand management capabilities, especially to service both the large Key accounts, along with smaller localized point of sale. • Develop brand strategies and plans that meet brand objectives and channel needs in accordance with principal’s marketing plan. • Grow market share through superior branding and implementation of new products, strengthen brand performance, category understanding. • ZI-MAG ensures that true partnership with principals is maintained, with the focus being on long-term profitability for both sides.

14. SLOVENIA

15. Slovenia – country data • Population: 2.055.634 (December 2011) • GDP per capita: 17.286 € (2010) • Currency: € • Inflation: 2% (2011) • Political Situation: Stable, parliamentar democracy,majority centergovernment • Unemployment (ILO) 7,9 % (3. quarter 2011) • Economical situation: Stable growth (3. quarter 2011 - 0,5%) Source: Statistical office of the Republic of Slovenia

16. Year 2011 – Short overview Biggest customers: • Mercator • Spar • Tus • Tobacna Grosist • Petrol • Merkur • Police and Army

17. Slovenian market in 2011 • Hypermarkets: 35 stores • Supermarkets: 630 stores • Petrol stations: 490 stores • C&C: 23 stores • BorderShops: 25 • Technical shops: 86 stores • Hunting and fishing shops: 28 stores • Sport&Freetimestores: 18

18. Business Plan 2012 SWOT Analysis of our position on Slovene market

19. Business Plan 2012 Our targets for 2012: - Purchase: ________________ EUR ex-works for 2013: - Purchase: ________________ EUR ex-works for 2014: - Purchase: ________________ EUR ex-works Our targets are based on the fact that Europeand Slovenia are in themiddleofrecession.

20. Business Plan 2012 Strategy for 2012: • Expanding the sales network (southern markets) – new trade chains and channels • Intense sales and marketing support • Focusing on the best selling items and positioning • Strong advertising activities • Enter in all major chains