Welcome

, to Leurs Fashions presentation

Business Meeting with GE Bank

Presented by: Moch Hasan CEO of Leurs Fashion Indonesia

Jakarta, 31 May 2012

Presentation Outline

We have prepared to take off and grow So, We offer save and attractive investment opportunity ,because We have seen the opportunities to grow

and We execute to build better business and win the market

We have prepared to take off and grow (1/2) The sale continuously grows 33.12% in line with 24% growth of stores served in 2011 The increase of ROE is mainly due to better asset utilization (79.3% in 2011 compare to 64.3% in 2010)

Sales Growth

Asset Turnover

Cash and Cash Equivalent

We are financially flexible. Our ability to generate cash has improved. Rp6.3 B of Rp8.2 B operating earning has been generated in cash.

We have prepared to take off and grow (2/2)

We have strong cash flow to serve our debt

Retain Cash Flow to Debt

Interest Coverage

Even we financially more leveraged, we have higher ability to cover our debt

Additional Investment

Our shareholders have commitment to support us by providing Rp200 B additional capital for ten year expansions

So, We offer save and attractive investment opportunity We got support from our shareholder

11%
We offer interest rate of 11 %

Rp250 Billions
7.3 of 10
Our business will grow and more be diversified in term of geographic and product segment

8.2 of 10
We financially prepared to meet out liability

,because We have seen the opportunities to grow (1/3)

Potential Growth of Market

Jawa & Bali

Sumatera

Jawa & Bali

Jawa & Bali

Sumater a

Jawa & Bali

Current Market
Upper Class Middle Class I Middle Class II Middle Class III Low Class I Low Class II

Source: Roy Morgan, Indonesia Textile Association, and Statistic Indonesia

,because We have seen the opportunities to grow (2/3)

10.9% middle class will pay more for eco-friendly product and itll expected to increase

10.9%

10.6%
The cloth consumption is expected to grow

Customer believe that sustainable products give positive impact on the environment

73.6%

50%
The Government have allocated special fund for cloth SME to modernized, at least, 50% of machinery by 2014

Its important for company to have environmental program

79.4%

Source: Roy Morgan Database, Nielsen Report, and Indonesia Investment Coordinating Board

,because We have seen the opportunities to grow (3/3)

49.3%
The middle class see brand as primary factor to decide what product they buy

The middle class want to be look good and be seen their wealth

63.2%
Woman is the one deciding what will be bought, even for mans fashion

The middle class own smart phone and would likely want to use it to help shopping

76.8%

The middle class use internet as their preliminary survey for shopping reference

95.3%

81.9%
The middle class prefer to go to small and middle boutique

Source: Roy Morgan Database and Nielsen Report

and We build better business and win the market (1/3) We invest Rp180 B to expand at 2nd and 3rd tier cities of Java & Bali We invest Rp70 B to improve System Information to increase sale per store
Improve the sale per store by increasing efficiency of business process Boost online marketing to capture Y generation Encourage customers self service by using smart phone personal wardrobe application

We are expected to win 8.84% of market share by 2022

andhavebuild better business and win the market (2/3) We We prepared to take off and grow (1/2)
916

Revenue

3,018

Operating Income

1,908 1,224 125 157 547 329 17 29 46 74 119 198

800 372 536 201 268

'13 '14 '15 '16 '17 '18 '19 '20 '21 '22 9

Operating Expense

499

'13 '14 '15 '16 '17 '18 '19 '20 '21 '22

327 151 217

35

41

49

62

79

107

Saving of 5% in operating expense and rapid growth of sale are expected to boost the Operating Income

'13 '14 '15 '16 '17 '18 '19 '20 '21 '22

and We build better business and win the market (3/3)

Relevant cash in flow of investment until 2022
Cash in Flow Free Cash in Flow Discounted Free Cash Flow
329 198 46 74 22 14 120 43 24 136 77 39 234 144 95 249 547 397 916 770

10

17

28 9 -58 -46

61

-60 -54 -120 -120

14

16

18

20

22

Present value of discounted free cash flow of investment until 2022 is about Rp435.79 Billions. And present value of incremental cash flow is about Rp602.56 Billions

Jakarta, 31 May 2012

Proud to

be

green

Profile of Leurs Fashion Indonesia Leurs Fashion Indonesia is subsidiary company of Leurs Fashion International, Retail Fashion Company based on France
Organic fashion retailing company that established on 2006 in Jakarta Specialize in organic fashion with tagline proud to be green Has two main strong brands, Citeur and Tachier, offering high fashion taste

Leurs Fashion Indonesia mainly operated in main cities and 1st tier cities at Indonesia
Targeting upper class market segment The stores of Leurs Fashion is exclusively placed at downtown and center of cities Has 5 distributions center that serve 58 exclusive stores spread at Java & Bali Currently considering emerging middle class as source to grow

Financial Statement of Leurs Fashion Indonesia Leurs Fashions Balance Sheet (in millions)
2011 Cash and Equivalents Account Receivable Inventories Advances & Other current Assets Total Current Assets Property and Equipment Advance for purchase Property and Equipment Other non-Current Assets Total Non-current Assets Total Assets 24,748 2,481 22,400 3,269 52,898 38,155 11,289 4,739 54,183 107,082 2010 18,937 2,732 23,870 2,795 48,334 39,656 4,157 7,124 50,937 99,272

Financial Statement of Leurs Fashion Indonesia

Leurs Fashions Balance Sheet (in millions)

2011 Current Liabilities Non-current Liabilities Total Liabilities Share Equity 6,135 16,719 22,854 38,000 2010 4,196 11,269 15,465 38,000

Retain Earning
Total Equity Total Liabilities and Equity

46,227
84,227 107,082

45,806
83,806 99,272

Financial Statement of Leurs Fashion Indonesia Income Statement of Leurs Fashion (in millions)
2011 2010

Net Sales
Cost of Good Sold Gross Profit Operating Expense Other Income /(Other Expense) EBITDA Depreciation EBIT Interest Paid EBT Tax

84,920
(65,490) 19,430 (11,219) (521) 7,690 (1,719) 5,971 (1,431) 4,540 (1,135)

63,791
(49,753) 14,038 (8,557) 1,320 6,800 (1,542) 5,258 1,279 (3,979) (995)

Net Income

3,405

2,984

Financial Statement of Leurs Fashion Indonesia Leurs Fashion Cash Flow Statement 2011 (in millions)
Operating Activities Net Income Depre Expense Decrease in Current Asset Increase in Current Liability 3,405 1,719 1,247 1,939 Investing Activities Sale of Equipment Purchase of Equipment Cash for Investing Activities Financing Activities Cash for long term debt Cash of long term debt Cash of Financing Activities Net Cash Flow Beginning Balance (1,087) 5,120 4,033 5,811 18,937 32,621 (37,103) (4,482)

Loss of Write Down Assets

Gain of Sale fix Assets Gain of Debt Retirement Cash of Operating Activities

32
(1,106) (976) 6,260

Ending Balance

24,748

Financial Analysis of Leurs Fashion Indonesia

Activity Ratio Inventory Turnover Days of Inventory on Hand Working Capital Turnover Total Asset Turnover Receivable Turnover Days of Sale Outstanding Purchases 2011 2.92 121 2010 2.08 144

Liquidity Ratio Current Ratio Cash Ratio Cash Conversion

2011 8.62 4.03 102

2010 11.52 4.51 131

1.57 0.79 34.22 9 10.67

1.32 0.64 23.35 13 11.86

Overall, We perform better to manage our business activities in efficient way and our capability of generating cash flow to meet short term obligation is improved

Number of Days Payable

28

25

Financial Analysis of Leurs Fashion Indonesia

Solvency Ratio Debt to Asset ratio Financial Leverage Interest Coverage 2011 0.21 1.27 4.17 2010 0.16 1.18 4.11 Profitability Ratio Gross profit margin Operating margin ROE Aset turnover Net Profit Margin 2011 22.88% 9.67% 4.04% 79.30% 4.01% 2010 22.01% 8.59% 3.56% 64.26% 4.68%

Our capital structure is relatively stabile and our ability to meet long term obligation is high

Overall, We have perform better to manage our business in profitable way

ROE 2011 2010 4.04% 3.56%

Profit Margin 4.01% 4.68%

Assets turnover 79.30% 64.26%

Leverage 1.27 1.18

More effective in asset utilization play important role to give high return. It represent by better assets turnover

Assessment of credit risk for Leurs Fashion

Revenue Growth Gross Profit Margin Growth of Stores Segment Diversification Geographic Diversification RCF/total debt Total Debt/EBITDA EBITDA/Interest EBIT/Capital EBITDA Margin EBITDA/Assets Weighting 4 5 5 4 4 25 15 10 10 10 8 100 Score 9 8 9 6 6 8 8 9 8 9 9 Total Score 36 40 45 24 24 200 120 90 80 90 72 8.21

Efficiently Utilized Total

The assessment of credit risk shows that our credit risk is relatively low. The score of 8.21 of 10 show how strong we are in managing credit risk

Financially Prepared

Operationally Grow and Diversified

Projected sale revenue per segment until 2022

Sale revenue per market segment until 2022
Sale revenue from upper class customer Sale revenue from first middle class customer Sale revenue from second middle class customer
1950

743

809

108 103 126 41 12

'15 '16

283 156 34
'17 '18

201 97

280

259

'13

'14

'19

'20

'21

'22

Emerging middle class is projected to be our main source of growth in the future. We expect to seize 8.84% targeted market share

Calculation of relevant cash flow of project

2012
Incremental Cash in Flow (Net) Capital Expenditure Free Cash Flow Discount Factor 0 120 -120 1

2013
0 60 -60 0.89

2014
2 60 -58 0.80

2015
9

2016
22

2017
43

2018
77

2019
136

2020
234

2021
397

2022
674 -96 770 0.32

9 0.71

22 0.64

43 0.57

77 0.51

136 0.45

234 0.40

397 0.36

NPV of Free Cash Flow Total NPV of Free Cash Flow

Total NPV Incremental Cash Flow

-120
412

-54

-46

14

24

39

61

95

144

249

603

Assumed that capital expenditure is made on 2012 with amount Rp120 B, 2013 Rp60 B, 2014 Rp60 B. After 10 years we can reuse it by investing additional 60% of investment value for next additional 10 years

Key assumptions for justification of pro-forma financial performance

Risk Free* Risk Premium* : 5.7% : 12.07% Relevant market base in 2011 is Rp99,774 Billions and grows 10.5% annually The middle class pocket share of total demand is about 48.9% in 2011 and increase about 2.5% annually

Beta*
Cost of Equity Cost of Debt Tax WACC is 10 years

: 1.2
: 13% : 9% : 25% : 11.9%

Relevant time frame for investment The investment can be reutilized for additional 10 years by investing 60% of initial investment value

Green awareness among middle class increase from 8.9% in 2011 to 31.3% in 2022
The growth of sale after project implementation is about 56% annually There will be 2% save of COGS and 5% of Operating Expense

Source: Pelindo equity and index valuation Estimates, Statistic Indonesia, Bloomberg, Roy Morgan database, and Nielsen report Noted: *at March 6th, 2012

Where are our middle class market?

10
Numbers of population Fashion consumption rate Supermarket Middle Boutique Small Boutique Traditional Market
Jawa & Bali Sumatera Kalimantan Sulawesi East Indonesia

Where they do fashion shopping?

8
6 4 2 0

Media used for buying preference

Internet Colleague reference Magazine Newspaper

Television
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: Roy Morgan Database and Nielsen Report

How to tackle any unexpected risk?

Shortage of Suppliers

Volatile Customers

Direct Channel of Suppliers

UNEXPECTED RISK

Strengthen BACKSTAGE Maintain strong suppliers relationship by providing attractive business model for them Diversify and set certain supply rate for each supplier Use famous designer to push product brand

Win FRONTLINE battle

Push digital expansion to capture Y generation market Build brand value of product Prepare excellent supply chain Give solution, not just fashion trend

Proud to

be

green