FRANCHISING PROJECT

Index1 Company Profile

2 Worldwide Distribution

3 Brand History & Mission

4 Collections

5 Marketing

6 Store Milan

7 Store Barcelona

8 Store Los Angeles

9 Store Tokyo

10 Worldwide Retail Network

GROUP

11 Franchising Strategy

12 European development plan 2006-08: targets 13 Positioning & Location Requirements

14 Multiple Franchising: Benefits

FRANCHISING

15 Design e Format

16 Store Type

17 Navigation CD

18 Store Requirements

19 Opening Roll-Out & Timing

20 Opening & Fitting Costs

21 Store Performance Indicators

22 Retail Network: Epos system

OPENING

23 Training

24 Opening Assistance

25 Buying support

26 Visual Merchandising & Windows

27 Windows Planning & Timing

28 Visual Merchaindising Set Up

29 Opening & Local Store Marketing

30 P.o.p. & In-Store Marketing

31 Management Assistance

32 Web & Helpdesk

SERVICES

33 Franchising Contract

34 Preliminary Agreement

35 Bank Guarantee

36 Commercial Conditions

37 Payment Terms

38 Orders and Replenishment

39 Franchisee Requirements & Selection

CONTRACT

Group

Group

2

Worldwide Distribution

2

Brand History & Mission

3

“It was established in 1991 as Energie woman’s line and, over the years, it has become one of the most famous andappreciated group brands. Miss Sixty’s target are demanding women who are interested in continuous innovation,original garments and variety. Customers who love playing with the garments and continuously changing their look and style.Women love Miss Sixty first and foremost for its wide range of jeans garments and its original and unique style,but also for its feminine, sexy and glamorous features that do not jeopardise the typical irony of this line. Key wards to describe Miss Sixty’s Brand Personality are: INNOVATIVE GLAMOROUS EXHUBERANT SEXY IRONICIn Spring 2001 a Miss Sixty eyewear line, produced by Marcolin, was also introduced. 2005 has brought a lot of important novelties: Miss Sixty fragrance produced in collaboration with Coty, Miss Sixty jewelsproduced in collaboration with Morellato, a line of bags with Coccinelle, and the launch of thejunior collection for the A/W 0506 season”

3

4

Collections

4

Marketing

5

Sunglasses by Marcolin Fragrance by Coty (gruppo Lancaster)

Bags by Coccinelle

Jewels by Morellato

Spring/Summer 2006 marketing campaign

5

Milan

6

MILANO via Monte Napoleone

6

Barcelona

7

BARCELONA Paseo de Gracia

7

8

LOS ANGELES Melrose

Los Angeles

8

Tokyo

9

TOKYO Mejidori

9

Franchising

Franchising

Franchising Strategy

11

Developing brand awareness and Maximising Sixty Group's turnover

Spreading Miss Sixty's Lifestyle

Penetrating market through dedicated managerial skills

Implementing a successful and profitable business Idea

Optimizing store operations & management

11

Positioning & LocationRequirements

14

Cities, High-profile Shopping Malls, Key Tourist Spots:

Close to the best denim retailers, street wear and fashion designer shops

Main streets/avenues or exclusive shopping areas with design,art and entertainment shops

13

Franchising: Benefits

15

Optimization of Investment and Maximization of Profits

Commercial and Distribution benefits

Bringing Local Market Know-How to Brand Equity

Management, Administration and Marketing Synergies

Delivery priority

REINFORCEMENT OF PARTNERSHIP WITH SIXTY GROUP

14

OpeningOpening

SAN PAULO Iguatemi

16

Design e Format

15

Store Layout

17

PARIGI Etienne Marcel

16

Store Requirements

19

At least 100 sq. mt. shop area

Store Frontage Length: Minimum 7 Linear Meters

Stockroom at least 10% of the shop area

Valuable real estate

Great Brand & Signage visibility

18

Opening Roll-Out & Timing

20

Store opening

EnablingWorks startEstimates

approval Executiveproject

Project

Survey

Enabling Works Period

Activities

0 1 2 3 4 5 6 7 8 9 10 11 12 13

19

Retail Network: Epos system

23

Print screen Best Store system

22

Services

Services

Training

24

Company and brands history and mission

Product & visual merchandising

Customer service e selling techniques

Epos system

AND SEASONAL UPDATES

OPENING IN PROGRESS

23

Opening Assistance

25

First order assistance

In-store training session

In store pop supply free of charge

Windows materials and visual merchandising set-up

Software installation and training

Store launch and local marketing

24

Retail Buying support

26

Analysis of local market & competitors

Collection selection

Recommended & advertising items

Buying capacity & sizes

Category mix

Final order review

Replenishment planning

25

Visual Merchandising & Windows

27

ROMA via del Corso, 179

26

Visual Merchandising Set Up

29

Seasonal Merchandising Book: with in-store set-up indications sorted by theme and instructions for window outfits General Visual Book : Rules on keeping the standards in Miss Sixty stores, brochures, denim wall, to implement the same image worldwide

Windows Display Materials

Professional Visuals Assistance: two visits per season for windows set-up, in-store set-up and sales staff training

28

Opening & LocalStore Marketing

30

Fidelity & vips cards

Billboards, leaflets and posters

Customized graphics and promotional material

Branded giveaways

Hangers and shopping bags

OPENING EVENT INVITATION:

29

31

fitting room carpetunderwear&beachwear

display watchkey ring display

P.o.p. & In-Store Marketing

30

Store Operations &Management Assistance

32

Seasonal visits by commercial and retail managers from Sixty

Visual merchandiser store check

Trend & performance indicators analysis

Seasonal orders assistance

Replenishment planning

Assistance on local marketing activities

Additional training session for store staff&management

RETAIL EXCELLENCE = PROFITABILITY

31

Web & Helpdesk

33

Online updating on franchising project

Communication & statistics

Helpdesk franchising

Customer service franchisee

Customer care

Web-based replenishment

Updates on design, product, marketing, vm

32

Contract

Contract

Franchising Contract

33

3-year contract, renewableBank guaranteeFirst option to take over the store or the branchNo royalty, no entry fee

TO BE SUBSCRIBED ONE MONTH BEFORE STORE OPENING

33

Preliminary Agreement

34

Preliminary agreement submissionAgreement on all preliminary negotiationsDefinition of commercial and contractual conditions Protection and commitment of the partiesOpening date definitionActivation of design and store set-up process

TO BE SIGNED AT THE AGREEMENT

34

Bank Guarantee

35

Amount related to store buying plan At first demand Not revocable

TO BE ISSUED ONE MONTH BEFORE OPENING

35

Commercial Conditions

36

Customized commercial package for franchisee’s need

Improvement of store mark up

Support to reduce stock levels

Contribution on local marketing actions

36

Payment Terms

37

Fixed bank guarantee

Customized payment terms

Commencement dates: according to seasonality

37

Orders and Replenishment

38

Minimum purchases based on break-even analysis

Replenishment via website

Introduction to flash and in-season production policies

38

Franchisee Requirements& Selection

40

REQUIREMENTS

SELECTION BASED ON:

Retail entrepreneurial expertise, possibly in denim marketMotivation & passion for the brandProven knowledge of local market Reasonable expectations of profitability in the middle long run

Presentation & motivationResume and company profile3-year business&financial planInterviews with country sales manager and/or franchising development director

39