12.10.13 consulting overview

MARK G. ANDERSON 949-244-9991 MICHAEL LUNDSGAARD 310-897-1841

ADVISORY SERVICES AND STAGE GATE MENU

UNDERSTAND MARKET SERVED

ASSESS CURRENT POSITION

IDENTIFY ELEMENTS OF

STRATEGY

DEVELOP TACTICAL

PLANS

DEFINE OPERATING

MODEL

SET FINANCIAL

PLAN

CAPITAL STRUCTURE

INDUSTRY EXPERTISE

TOPIC EXAMPLES

Market Size Growth Segmen-tation Target Consumer Retailer Require-ments Competition Growth Barriers

TOPIC EXAMPLES

Brand Identity On-Line Presence Product Line Historical Brand Performance Size and Capabilities SWOT Analysis

TOPIC EXAMPLES

Positioning Statement Target Consumer Target Channels Target Geography Value Proposition Plan of Attack

TOPIC EXAMPLES

Specific Business Objectives Required Competency Sales Plan Marketing Plan Merchandise Plan (Product) Sourcing Model

TOPIC EXAMPLES

Supply Chain Operating Procedures Logistics Partners IT Plan Organization/HR Comp. Schemes Financial Reporting and Controls

TOPIC EXAMPLES

Sales & Margin Plan Capital Budget Cash Flow Optimization P & L Balance Sheet Asset Utilization

NOTES: Ensure key sequential product to market stages: a. Product Assortment to sell in. b. Product line planning. c. Sales programs and strategy. d. Marketing programs and strategy. e. Sales execution plan. f. Execution calendar. THREE-YEAR STRATEGY: Semi-Annual review and pivot recommendations.

TOPIC EXAMPLES

Investor Due Diligence Acquisition / Partner Search Licensing Sale of Business Business Planning Investor Package Review Crowdfunding Platforms Board of Director / Advisory Boards

STAGE 1 PROJECT-BASED CONSULTATION

STAGE 2 RETAINER-BASED CONSULTATION

- “Charting the Future”

ADDED ADVISORY SERVICES

TOPIC EXAMPLES

Capital Require-ments Capital Source I.D. Enterprise Value Optimization Acquisitions Strategic Partners Licensing


UNDERSTAND MARKET SERVED Market Size / Growth / Segmentation / Target Consumer / Retailer Requirements / Competition / Growth Barriers

True North International can help you determine the global market potential of your brand by identifying market size, prioritized growth potential, segments to target, the consumer within that segment, the retailers that will deliver your

brand, the strengths and weaknesses of your competition and the barriers to success.

CATEGORY)OPPORTUNITY)MENS)

0" 5" 10" 15" 20" 25" 30"

MENS"ACTIVE"/"ATHLETIC"

MENS"DRESS"

MENS"CASUAL"

YOUNG"MENS"

MENS"BOOTS"

MENS"SANDALS"

MENS"SLIPPERS"

PERCENT)OF)MENS)FOOTWEAR)SOLD)

CATEGORY)OPPORTUNITY)WOMENS)

0" 5" 10" 15" 20" 25" 30" 35" 40" 45"

SEASONAL"BOOTS"/"SANDALS"

WOMENS"ATHLETIC"/"ACTIVE"

WOMENS"BETTER"DRESS"

WOMENS"DRESS"SANDALS"

WOMENS"SLIPPERS"

ALL"OTHER"

PERCENT)OF)WOMENS)FOOTWEAR)SOLD)

RANGE&ROVER&CONSUMER& LAND%ROVER%CONSUMER%


ASSESS CURRENT POSITION Brand Identity / On-Line Presence / Product Line / Historical Brand Performance / Size and Capabilities / SWOT Analysis

With knowledge of your consumer and the prioritized product segments that will deliver your brand, True North

International can then help you to evaluate your internal strengths and weaknesses, allowing you to properly invest in the assets necessary to succeed with your Brand Action Plan.

CRITERIA EXAMPLES

Advantages of proposition? Capabilities?

Competitive advantages? USP's (unique selling points)? Resources, Assets, People?

Experience, knowledge, data? Financial reserves, likely returns? Marketing - reach, distribution,

awareness? Innovative aspects?

Location and geographical? Price, value, quality?

Accreditations, qualifications, certifications?

Strengths 1. USP’s – Textile wrap – grosgrain / Accent in-

sole and outsole- Stamped leather – intricate patterns. Pantoffle / Babbouche opp. for Spring.

2. Unknown – can craft image and niche. 3. Resources / Assets a. Anas in Italy right next

to the factory. b. Xxxx Xxxxx Capital, the backing to makes sure the brand strategy can methodically be done right! 5 year plan.

4. Start-Up, low overhead and sound financial backing should enable competitive pricing.

5. Experience and market knowledge of

Weaknesses 1. Unknown Brand / no usable brand assets. 2. Unknown Image – potentially lost on retail

floor. No clear/consistent distinctive identity. Opportunities

1. To craft an image from scratch to fit the market need and niche.

2. Brand origin (Jordan) is a market opportunity targeting high disposable income loyalists.

Threats 1. The Economy / Timing 2. Name / pronunciation backlash 3. Pricing

Strengths – Elaborated in great detail with examples, photos, interviews and testimonials.

1. USP’s – Textile wrap – grosgrain / Accent in-sole and outsole- Stamped leather – intricate patterns. Pantoffle opportunity for Spring. As a Unique Selling Point – the possibility exists to use the brands heritage (Jordan) and the history of footwear in that region and apply it to today’s styles.

2. The Xxx Xxx brand is unknown – can craft image and niche – the image is not predetermined in this market.

3. Resources / Assets: A. Anas is located in Europe – in Italy right next to the factory / his heritage is Jordanian and he lived in the U.S. for many, many years giving him a very diverse international outlook. B. Xxxx Xxxxx Capital, the backing to makes sure the brand strategy can


IDENTIFY ELEMENTS OF STRATEGY Positioning Statement / Target Consumer / Target Channels / Target Geography / Value Proposition / Plan of Attack

Now, reflected in great detail, True North International can help to outline the systematic steps necessary to execute

your plans.

CATALOG HOUSE

CAT 1 DISCOUNT

DIS

DEPARTMENT STORE

DS 1 FLASH SITE

FLSH

FOOTWEAR SPECIALTY

FS 81 INDEPENDENT SPECIALTY

IS 26

ON LINE DISCOUNT

OLD ON LINE RETAIL

OLR 32

VOLUME DISCOUNT

VD TOTAL 141

BRAND&PRODUCT&RULES&LOOK&AND&MATERIALS&

UPPERS&LAND&ROVER&3&RUGGED&!PEBBLED!LEATHERS!!DISTRESSED!LEATHERS!!IRREGULAR!MOTTLED!LEATHERS!!OILED!SUEDES!AND!NUBUCK!!HEAVY!CANVAS!!RAW!EDGE!

RANGE&ROVER&3&REFINED&!NAPA!LEATHERS!!BURNISHED!LEATHERS!!UNIFORM!MOTTLED!LEATHERS!!NUBUCK!!HEAVY!LINEN!!FINISHED!EDGE!

FUNCTIONAL*SLEEK*CONTEMPORARY*

CONCEPT'ACTION'PLAN'

LAND'ROVER'–"INTRODUCE"COMFORTABLE,"FUNCTIONAL,"AFFORDABLE,"INNOVATIVE"AND"STYLISH"FOOTWEAR"TO"THIS"CONSERVATIVE"BRAND"LOYAL"CONSUMER"AND"IN"THIS"DISTINCT"ORDER"OF"PRIORITY"

RANGE'ROVER'–"INTRODUCE"STYLISH,"INNOVATIVE,"COMFORTABLE,"FUNCTIONAL"AND"AFFORDABLE"FOOTWEAR"TO"THIS"FASHIONABLE"BRAND"LOYAL"CONSUMER"AND"IN"THIS"DISTINCT"ORDER"OF"PRIORITY'

"


DEVELOP TACTICAL PLANS Specific Business Objectives / Required Competency / Sales Plan / Marketing Plan / Merchandise Plan / Sourcing

True North International can outline the specific sales and marketing plans that will guide you toward achieving your

business objectives.

ACCOUNT DOORS CHANNEL CITY STATE ZIP DISCOUNTSOCT NOV DEC OCT NOV DEC MENS WOMENS KIDS MENS WOMENS KIDS

DOORS SOLD PAIRS PER DOOR AVERAGE PRICE

NORM THOMPSON 1 CAT HILLSBORO OR 97124 0 0 0 0% 0% 0% 36 48 0 $60.00 $75.00 $35.00NORM THOMPSON ON LINE 1 OLR HILLSBORO OR 97124 1 1 1 0% 0% 0% 24 36 12 $60.00 $75.00 $35.00RUDDY DUCK 1 IS HOOD RIVER OR 97031 0 0 0 0% 0% 0% 36 48 48 $60.00 $75.00 $35.00SHOE MILL 7 FS PORTLAND OR 97222 0 1 0 0% 20% 0% 36 48 0 $60.00 $75.00 $35.00SHOE MILL ON LINE 1 OLR PORTLAND OR 97222 1 1 1 0% 0% 0% 12 12 0 $60.00 $75.00 $35.00ZELDAS SHOE BAR 1 FS PORTLAND OR 97210 0 0 0 0% 0% 0% 0 72 0 $60.00 $75.00 $35.005 DOORS UP / WOOLY MAMMOTH1 FS SEATTLE WA 0 0 0 0% 0% 0% 36 48 0 $60.00 $75.00 $35.00AMAZON 1 OLR SEATTLE WA 98109 0 1 0 10% 33% 10% 60 120 120 $60.00 $75.00 $35.00NORDSTROM 117 DS SEATTLE WA 98101 0 20 0 10% 10% 10% 0 0 48 $60.00 $75.00 $35.00NORDSTROM ON LINE 1 OLR SEATTLE WA 98101 1 1 1 10% 10% 10% 60 72 48 $60.00 $75.00 $35.00NORDSTROM RACK 95 DIS SEATTLE WA 98101 50 0 10 20% 20% 20% 72 96 0 $60.00 $75.00 $35.00

NETMENS WOMENS KIDS TOTAL SALES

54564 84592 22738 $8,336,134 $7,277,878

17310 24240 13902 $2,702,310 $1,943,480

69866 103620 39606 $13,349,670 $11,363,570

18060 24624 6910 $3,172,250 $2,597,376

159,800 237,076 83,156 27,560,364$---- 23,182,304$--Target 18,200,000$33

PAIR 480,032 GROSS-PROFIT 3,206,009$3333MENS 33.29% 623,093$33333333WOMENS 49.39% 4,604,424$3333KIDS 17.32% 988,593$33333333

TOTAL 9,422,119$----

GROSS-MARGIN 44.05%Q1AQ4 32.06%

40.52%38.06%

TOTAL-YEAR 40.64%

TOTAL PER QUARTER 2019

PAIRS


DEFINE OPERATING MODEL Define Supply Chain / Define Operating Procedures / Select Logistics Partners / Develop IT Plan / Organization / HR /

Compensation Schemes / Financial Reporting and Controls

True North International can help you select economical and efficient sourcing and third party operations partners as well as define an organization to execute.

SOURCING PLAN

CHINA China Shoe Bond New Allied

VIETNAM OSCO (OGGI)

INDIA Vista Shoes Bachi Choudary Indiport PA Footwear Kiwi Enterprises PVT Leayan Global Roger Industries Limited Leiner

BANGLADESH Sonali

INDONESIA Karindo

MOROCCO Morosco

PORTUGAL Jefar Pedouro Gemeos Arto-Ri

SPAIN Calzados Kepis

NORTH AMERICA

Director 3/1/13

Kids Director 3/1/13

Operations / HR 3/1/13

Sales Director / Adult 7/1/13

Product Development / Contract 3/1/13

Retail Sales / Contract 1/1/14 Seattle 2013

Retail Sales / Contract Seattle 2013 Add thru year

Retail Sales / Contract New York 2013 Add thru year

On Line Sales

Customer Service 6/1/13

Marketing Director / Web Services 7/1/13

Fulfillment / Distribution Center 1/1/14

Social Media / Publicity / PR 8/1/13

Web Services / IT 1/1/14


SET FINANCIAL PLAN Sales & Margin Plan / Capital Budget / Cash Flow Optimization / P & L / Balance Sheet / Asset Utilization

True North International can role up all of the costs and margin plans to accurate reflect in the financials.

Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected ProjectedJanuary February March April May June July August September October November December Year<Ended2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018

Revenues:))Sales).)wholesale 843,980$)))))))) 1,636,970$))) 1,900,150$)))) 97,680$))))))))) 1,334,220$)) 184,620$)))))))) 454,630$))))))))) 3,373,900$)) 676,330$)))))) 158,700$))))))) 696,920$))))) 376,500$))))) 11,734,600$))))Sales).)Retail 5.0% 8,000$)))))))))))) 11,000$))))))))) 15,000$))))))))) 18,000$))))))))) 25,000$))))))) 30,000$)))))))))) 35,000$))))))))))) 35,000$))))))) 30,000$)))))))) 30,000$))))))))) 50,000$))))))) 75,000$))))))) 362,000$)))))))))Sales).)Shipping)wholesale 2.50% 10,550$)))))))))) 20,462$))))))))) 23,752$))))))))) 1,221$))))))))))) 16,678$))))))) 2,308$)))))))))))) 5,683$)))))))))))) 42,174$))))))) 8,454$)))))))))) 1,984$))))))))))) 8,712$))))))))) 4,706$))))))))) 146,683$)))))))))Sales).)Shipping)retail 1.25% )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.))))Returns,)allowances)and)discounts)@)5% 1.3% )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.))Net<Revenues 862,530$)))))))) 1,668,432$))) 1,938,902$)))) 116,901$))))))) 1,375,898$)) 216,928$)))))))) 495,313$))))))))) 3,451,074$)) 714,784$)))))) 190,684$))))))) 755,632$))))) 456,206$))))) 12,243,283$))

Cost<of<Goods<Sold: )))))Inventory).)Beginning) 1,285,806$))))) 1,848,243$))) 1,213,512$)))) 1,133,371$)))) 1,182,772$)) 699,404$)))))))) 2,279,340$)))))) 2,349,704$)) 975,500$)))))) 1,020,960$)))) 1,130,016$)) 772,817$))))) 1,285,806$))))))Finished)goods)purchases 950,075$)))))))) 48,840$))))))))) 667,110$))))))) 92,310$))))))))) 227,315$))))) 1,686,950$))))) 338,165$))))))))) 79,350$))))))) 348,460$)))))) 188,250$))))))) )$.)) )$.)) 4,626,825$))))))Freight)(3.5%)of)net)sales) 3.5% 51,752$)))))))))) 100,106$))))))) 116,334$))))))) 7,014$))))))))))) 82,554$))))))) 13,016$)))))))))) 29,719$))))))))))) 207,064$))))) 42,887$)))))))) 11,441$))))))))) 45,338$))))))) 27,372$))))))) 734,597$)))))))))Duties,)Customs)(15%)of)cost)purchases) 15.3% )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.))))Royalties).)wholesale)(0,6,)7,)8) 6.0% 67,518$)))))))))) 130,958$))))))) 152,012$))))))) 7,814$))))))))))) 106,738$))))) 14,770$)))))))))) 36,370$))))))))))) 269,912$))))) 54,106$)))))))) 12,696$))))))))) 55,754$))))))) 30,120$))))))) 938,768$)))))))))Inventory).)Ending (1,848,243)$)))) (1,213,512)$)) (1,133,371)$)) (1,182,772)$)) (699,404)$)))) (2,279,340)$)))) (2,349,704)$)))) (975,500)$)))) (1,020,960)$) (1,130,016)$)) (772,817)$)))) (527,342)$)))) (527,342)$))))))Total<Cost<of<Goods<Sold 506,909$)))))))) 914,634$))))))) 1,015,597$)))) 57,737$))))))))) 899,975$))))) 134,799$)))))))) 333,890$))))))))) 1,930,531$)) 399,993$)))))) 103,332$))))))) 458,291$))))) 302,967$))))) 7,058,654$))))

)))Gross<Profit 355,621$)))))))) 753,798$))))))) 923,305$))))))) 59,164$))))))))) 475,923$))))) 82,129$)))))))))) 161,422$))))))))) 1,520,543$)) 314,791$)))))) 87,352$))))))))) 297,341$))))) 153,240$))))) 5,184,629$))))

41% 45% 48% 51% 35% 38% 33% 44% 44% 46% 39% 34% 42.3%

Total<Expense )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.))

Operating<Income 355,621$)))))))) 753,798$))))))) 923,305$))))))) 59,164$))))))))) 475,923$))))) 82,129$)))))))))) 161,422$))))))))) 1,520,543$)) 314,791$)))))) 87,352$))))))))) 297,341$))))) 153,240$))))) 5,184,629$))))

Provision<for<income<taxes )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.)) )$.))

Net<Income 355,621$)))))))) 753,798$))))))) 923,305$))))))) 59,164$))))))))) 475,923$))))) 82,129$)))))))))) 161,422$))))))))) 1,520,543$)) 314,791$)))))) 87,352$))))))))) 297,341$))))) 153,240$))))) 5,184,629$))))

Projected<Statements<of<Income<(Operations)<and<Operating<ExpensesFor<the<Year<Ending<December<31,<2016


SUMMARY - WITH A THROUGHLY PLANNED BUSINESS YOU AVOID COSTLY ERRORS

SALES BY QUARTER

Q1 DOLLARS 2015 2016 2017 2018 2019 MENS PAIRS 2015 2016 2017 2018 2019NET $504,570 $2,264,936 $4,724,991 $5,003,727 $7,277,878 1888 16184 32568 35928 54564

CHANGE 448.88% 208.61% 105.90% 145.45% 857.20% 201.24% 110.32% 151.87%

Q2 DOLLARS 2015 2016 2017 2018 2019 MENS PAIRS 2015 2016 2017 2018 2019NET $253,220 $849,716 $1,389,785 $1,647,842 $1,943,480 1596 7308 11652 13872 17310

CHANGE 335.56% 163.56% 118.57% 117.94% 457.89% 159.44% 119.05% 124.78%

Q3 DOLLARS 2015 2016 2017 2018 2019 MENS PAIRS 2015 2016 2017 2018 2019NET $1,121,333 $4,039,082 $5,927,273 $8,072,108 $11,363,570 5056 23974 32370 48890 69866

CHANGE 360.20% 146.75% 136.19% 140.78% 474.17% 135.02% 151.03% 142.90%

Q4 DOLLARS 2015 2016 2017 2018 2019 MENS PAIRS 2015 2016 2017 2018 2019NET $610,790 $1,374,612 $1,765,842 $1,151,223 $2,597,376 4432 9408 11592 6336 18060

CHANGE 225.05% 128.46% 65.19% 225.62% 212.27% 123.21% 54.66% 285.04%

TOTAL DOLLARS 2015 2016 2017 2018 2019 MENS PAIRS 2015 2016 2017 2018 2019NET $2,489,913 $8,528,346 $13,807,891 $15,874,900 $23,182,304 12972 56874 88182 105026 159800

CHANGE 342.52% 161.91% 114.97% 146.03% 438.44% 155.05% 119.10% 152.15%

2015 2016 2017 2018 2019PAIR 55040 177714 287714 329550 480032MENS % 23.57% 32.00% 30.65% 31.87% 33.29%WOMENS % 36.90% 46.47% 47.10% 46.79% 49.39%KIDS % 39.53% 21.53% 22.25% 21.34% 17.32%

GROSS PROFIT 2015 2016 2017 2018 2019Q1 $258,239 $995,965 $2,143,336 $2,284,322 $3,206,009Q2 $88,643 $300,258 $510,677 $523,135 $623,093Q3 $513,287 $1,733,498 $2,523,147 $3,425,607 $4,604,424Q4 $206,080 $480,996 $681,126 $457,017 $988,593TOTAL $1,066,250 $3,510,717 $5,858,286 $6,690,081 $9,422,119

GROSS MARGIN 2015 2016 2017 2018 2019Q1 51.18% 43.97% 45.36% 45.65% 44.05%Q2 35.01% 35.34% 36.75% 31.75% 32.06%Q3 45.77% 42.92% 42.57% 42.44% 40.52%Q4 33.74% 34.99% 38.57% 39.70% 38.06%TOTAL YEAR 42.82% 41.17% 42.43% 42.14% 40.64%