SAMATOA LOTUS TEXTILES

THE MOST SPIRITUAL FABRIC IN THE WORLD

EXECUTIVE SUMMARY

PRODUCTION

An innovative , not to say disruptive apporach production has been designed, which mixes both cost-cutting and strong social impacts

PRODUCT

Get to understand the market demand

Focus on Lotus

FINANCE

Strategic initial investment to drive competitevness up

Have a proofen business model after 18 months before amplifying the business model

HR

Focus on social compliance

Leverage NGO resources

Set up consistent organisation

MARKETING & SALES

To target the lux market Samatoa needs to exoress values and a brand universe matching the codes of the industry

to maximise its commercial potential Samatoa need sto target a 90% B2B/10% B2C business model

SAMATOA PRODUCTION ROADMAP 2015 - 2020

2016PROVE

$0.3m30 employees / 30

Hectares1.800m Fabric: 50% Lotus - 50%

SilkEbit ~12%

IMPLEMENT & SECURE PRODUCTION

(Cost downs -30% / Productivite +50%)

ENGAGE ORGANIZATION EFFICIENCY

(R&R / 2 workshops / R&D in Fabric)

2017-2018CONSOLIDATE

$1.5m110 employees - 120

Hectares4.5Km Fabric

1.8Km Silk - 2.0Km Lotus - 900 Oth

Ebit ~18%4

2019-2020AMPLIFY

$4.4m440 employees - 480 Hec

15K Silk / 16Km Lotus / 7km Others

Ebit ~16%

INCREASE SOURCING CAPACITY

(+90 hect vs 2016)

SUSTAIN PRODUCTION CAPACITY IMPROVEMENT THRU NEW INVESTMENTS($60K in 2017 / $90K in 2018)

PROFIT RE-INVESTMENT(In Price list decrease to be more

competitive and Invvestments)

2015PREPARE

$0.25m30 employees

65% Silk - 2% Lotus - 35% KapokLight profit

SECURED SOURCING (buy lotus fields concessions $24K /

Free raw materials)

SETTLE DOWN PRODUCTION PROCESS

(R&D‘s ingeneer / Machine investment / testing / automatic

weaving ~$45K)

Designed organization for the 5 years business plan1. In order to insure the quality of the product and to preserve the controle of the know-how, the most valuable tasks has been focused on

Owning the fields

The spinning process

The twisting process

The weaving process

The dying process

50 $ per place 10000 $ per machine 400 $ per machine

stems cleaner spinning specialist

bobine making twisting weaving

Lotus harvest row materialseparation

stems

petals

placenta

stamens

dying

drying process

many process (food, decoration items,...)

drying process

owning the fields

FOCUS on strategic tasks

SAMATOA FINANCIAL ROADMAP 2015 - 2020

2016PROVE

$0.3m30 employees - 30

HectaresEbit ~12%

MANAGE PRODUCTION & ORGANIZATION EFFICIENCY(Cost downs -30% / Productivite

+50%)(R&R / 2 workshops / R&D in

Fabric)

ENGAGE MERCH/SALES/MARKETING

INVVESTMENTS($200K / Ecom upgrade)

MONITOR CAREFULLY FINANICIAL KPI‘ TO DELIVER

AGAINST EXPECTATIONS(Sales – Operations costs)

2017-2018SOLIDIFY

$1.5m110 employees - 120

HectaresEbit ~18%

2019-2020AMPLIFY

$4.4m440 employees - 480 Hec

Ebit ~16%

LEVERAGE FUNDS TO FINANCE EXPANSION

(Profit $200-400K / +$60K in 2017 / +$90K in 2018)

REINFORCE SOCIAL BUSINESS AMBITION

(Salary increase ~5% or Profit sharing 3Y)

PROFIT RE-INVESTMENT(In Price list decrease to be

more competitive and Invvestments)

2015PREPARE

$0.25m30 employees

Light profit

KEEP COUT+OWN RETAIL*

to sustain The transition phase

(200K$ Net sales YTD exc Cout+Brand)

FIND THE INITIAL FUNDS to to finance the company

development plan (Awards/Social Business angels & Capital/Crowd

fundinds/fundations ~$100K)

SECCURED SOURCING & SETTLE DOWN PRODUCTION

TO DRIVE COST DOWN(Concessions $24K / Free raw

materials /R&d Engineer $45K)

1.8Km Fabric: 50% Lotus - 50% Silk

9Km Fabric 40% Silk – 45% Lotus – 15%Others

37km Fabric38% Silk / 42%Km Lotus / 20%

Others

8Km Fabric65% Silk - 2% Lotus - 35% Kapok

Budget Plan

SAMATOA HR ROADMAP 2015 - 2020

2016PROVE

$0.3m62 employees

1.800m Fabric: 50% Lotus - 50% Silk

Ebit ~12%

IMPLEMENT SocialCompliance plan

With top 3 priorities

ENGAGE ORGANIZATION EFFICIENNCY

Hiring and training spinners toproduction expansion

OPTIMIZE University Internship

Develoop partnership withuniversity to source right student

for internship

ENGAGE NGOsTo excute training plan

2017-2018CONSOLIDATE

$1.5m110 employees - 120

Hectares4.5Km Fabric

1.8Km Silk - 2.0Km Lotus - 900 Oth

Ebit ~18%4

2019-2020AMPLIFY

$4.4m440 employees - 480 Hec

15K Silk / 16Km Lotus / 7km Others

Ebit ~16%

Support employees to set upUnion

To develop two way communication

SUSTAIN PRODUCTION CAPACITY

Identify right recruitment channelto build workers pool

REINFORCE SOCIAL BUSINESS AMBITION

enures workers receive marketsalary and benefits

Engagement to employeesImplement retention plan

2015PREPARE

$0.25m36 employees

65% Silk - 2% Lotus - 35% KapokLight profit

Building management teamhire a experinece production

supervisor to support productionrevamp.

Idenifty non-compliance area

to prepare the improvement plan forfuture SA8000 certifictiion

Identify and Select the rightNGOs

to develop criteria for screening thepotential partners (Farmers)

)

SUPPORT THE BUSINESS TRANSFORMATION

GENERAL MANAGER

Production R&D Sales & Marketing

Managing outsource community / NGO and Managing in house production

Explore option Wholesale & Digital marketing

ORGANIZATION CHART YEAR 1

GENERAL MANAGER

PRODUCTION SUPERVISOR

32 WORKERS

INTERNSHIP DIGITAL MARKETING EXECUTIVE

LABOR COST FOR YEAR 1

ORGANIZATION CHART YEAR 2

General Manager

Production Supervisor

61 Workers

Textile Engineer Digital Marketing Executive Sales Executive Asst Accountant HR & Adm

Executive

driver

BRAND RECOGNITION & AWARNESS