Specialty store designed to capture the idea of Living Big, in smaller spaces...the new Furniture & Home Decor Store of 2011.

1. Investor
Presentation 1
The Global Launch of the first
Consumer-centric Home Fashion
Licensing Idea
January 2008

2. Investor
Presentation 2
Contents
1. Introduction
2. Why Project Starshop?
3. What’s in it for you?
4. Starshop Organization
5. Financial Information
6. Timing and Next Steps
“…feeling and sensuality,
mood and emotion are the things that matter most
in our relationship with buildings and interiors…”
ILSE CRAWFORD, author, editor, designer and teacher
Quoted in Vogue Living Australia Nov/Dec 2007

3. Investor
Presentation 3
Introduction
• We are here to present a business plan: PROJECT STARSHOP
• We have outlined our strategies and thoughts regarding the
development and implementation of the PROJECT STARSHOP
concept for a global launch of this concept with a particular
focus initially in the United States.
• The United States market presents us with a perfect green field
as there really is no branded place such as PROJECT
STARSHOP in this market today. Because of this, we are very
excited and confident that PROJECT STARSHOP will become
one of the America’s preeminent home fashion retailers within
five years.
3

4. Investor
Presentation 4
Starshop’s Business Proposition
Starshop is a home-fashion / lifestyle concept
inspired by a European perspective of global style
expressed emotionally through home furnishings &
accessories focused on unique colour, texture and
fabric combinations showcasing a variety of moods.
Initially distributed through primary & secondary US
markets and located at upscale lifestyle centres.
The concept will be emotionally showcased by
creatively designed retail [and online] environments
and supported by a significant e-commerce capability.

5. Investor
Presentation 5
Founding partners for Project Starshop
Charles Schlaeppi
Chairman and
Chief Executive
Officer
Johne Albanese
President and
Chief Operating
Officer
Reg Anderson
Vice-President,
Retail Operations
and Store
Development
Stephanie Sink
Vice-President,
Merchandising
and Product
Styling

6. Investor
Presentation 10
Vision Statement
“We aspire to be the United State’s and ultimately, the
world’s most stylish and innovative home fashion
destination by providing superior product selection,
unique and eclectic styling ideas, and an environment
that gives consumers permission to create their own
sense of who they are inside their homes. Through
such, we will provide superior sales and profit growth for
our stakeholders.”

7. Investor
Presentation 11
Code is a multi-cultural team of branding professionals
with experience in building global lifestyle brands

8. Investor
Presentation 12
Code’s commitment to Project Starshop
“Starshop is a rare opportunity: one that promises to re-
define a category by infusing the powerful cultural
influence and emotional pervasiveness of the world of
fashion into home furnishings and accessories.
We at Code see this opportunity in terms of creating a
breakthrough brand idea. We believe it’s attractive
enough to take an equity stake and engage in
partnership to help build this brand. We’re truly excited
to be part of the Starshop initiative and are committed to
bringing this brand to life.”
Nic Paul & Dominic Mason
[Partners] CODE Branding & Design

9. Investor
Presentation 13
Contents
1. Introduction
2. Why Project Starshop?
A. Market opportunity
B. Project Starshop Concept
3. What’s in it for you?
4. Starshop Organization
5. Financial Information
6. Timing and Next Steps
“…to be the United State’s and ultimately,
the world’s most stylish and innovative
home fashion destination…”
OUR VISION

10. Investor
Presentation 14
Source: Furniture Trends for the 21st
Century, USA Today March 2000
Americans need a refuge from the pressures and stress of
their complicated lives and are spending more time at home
because that's where we feel secure and comfortable.
As a result, we are taking extra time to make our homes
places where we are happy to live and entertain.”
- Catherine Bailley Dunne
Author, Interior Designing for All Five Senses

11. Investor
Presentation 15
Sources: Furniture Trends for the 21st
Century, USA Today March 2000 www.furniturestyle.com; Trend Watch;
Bob Benson, Trends in Furniture, 2006, Founder, www.kitchen-furniture.info
Key trends: consumers look to home as an expression and
extension of who they are and their lives
• People are looking for a personal connection
with their home products. They want a product
that looks as though human hands have
touched it and have “stories” to tell.
• The furnishings in our homes are becoming
‘collections of our lives.'
• Today's trend about furniture is a simple one.
The desire of “being yourself” has taken
dominance over being purely driven by fickle
trends. If you like it, buy it. If you don't, don't
buy it.

12. Investor
Presentation 16
Emotional connection key to long-term recognition and
success
“Human beings are powered by emotion, not by
reason. […]The essential difference between emotion
and reason is that emotion leads to action while
reason leads to conclusions”
Kevin Roberts, CEO Worldwide, Saatchi and Saatchi

13. Investor
Presentation 17
Source: Euromonitor Country Sector Briefing, Home Furnishings, USA, 2007
Datamonitor United States Home Furnishings, 2004
Key trends: Fashion and furniture are no longer
separate
• Analysts believe that products in
fashionable colors and textures are
essential to reach women with high
spending power as they keep up
with fashion trends.
• Fashionable home colors of the new
millennium will continue to be those
that are in sync with what are being
displayed on catwalk runways.

14. Investor
Presentation 18
Source: Euromonitor Country Sector Briefing, Home Furnishings, USA, 2007
Datamonitor United States Home Furnishings, 2004
Key trends: Exposure to multiple cultures is part of Gen Y’s lifestyle
• Younger consumers (Gen Y) are gaining
importance.
• The most successful companies will be those
that offer products and a buying experience
that meet the needs of this group that grew up
in a multi-cultural America.

15. Investor
Presentation 19
Source: Bob Benson, Trends in Furniture, 2006, Founder, www.kitchen-furniture.info
Key trends: Changing definition of luxury and indulgence
• Luxury used to be defined by degree of opulence and decadence.
They may be appealing, but they are losing traction.
• Nowadays, consumers are paying not only for craftsmanship and
quality, but maybe more importantly, for experiences and a sense of
adventure as part of the benefits they expect from brands.

16. Investor
Presentation 20
A snapshot of US home furnishings retail landscape

17. Investor
Presentation 21
However all in all, an overview of competitor brands reveals generic
descriptors, lack of differentiation and emotional connection
Brand Themes Collection
s
Inspiration Sub-
Brands
Initiatives Others
Primary Secondary
Robb& Stucky Contemporary
Elegance
Affluence &
Luxury
Contemporary,
Relaxed &
Gracious
Luxury & Fashion Interior Design Kitchen Aid
centers
Room & Board Contemporary
Minimalism
Clean, Classic,
Simple
No discount
policy
Roche Bobois French Style &
Design
Creativity Contemporary,
Travel, Provincial
French
Mediterranean
Natuzzi Italian Style &
Design
Contemporary
Minimalist
Italian
Mediterranean
Ethan Allen Contemporary
Elegance, Classic
Beautiful Living Interior
Decoration &
Consultation
Linge Roset Creativity &
Beauty
Wit Art & Design
Bo Concept Urban Chic Minimalist
Crate & Barrel Contemporary +
Simple & Twist
No-frills Trends & world
inspired
CB2, Land Of
Nod
Thomasville Craftsmanship &
Heritage
Classic Elegance Style & film icons Tips on home
furnishing
Flamant Casual Elegance,
Nostalgia
Discrete Luxury Old-world
sophistication
Pottery Barn Warm, Cosy,
Well-Appointedth
Timelessness Pottery Bard Kids Ideas for interiors
Kreiss Exclusive Family Ranges named
after places
World inspired,
Classic Styling
Ask Michael
Kreiss
Baker Enduring Style Craftsmanship,
Heritage
Ralph Lauren Class, Opulence Elegance St. Germain,
Noble Estate,
Modern
Chairman
Lifestyle [RL] &
Fashion

18. Investor
Presentation 22
Differences between what consumers want and what
furniture brands are offering could be one of the reason
for the conservative growth of 4% per annum
Source: Euromonitor Country Sector Briefing, Home Furnishings, USA, 2007
million

19. Investor
Presentation 24
Learning from the fashion category that is rich with emotional
meaning
The vast majority of the population
consumes and shops with their mind
and emotions. They look for a rational
reason and then take an emotional
decision.
Before seeing something in detail,
you have a sense of what it is. Before
understanding, you feel.
Hence the importance of a ‘story.’ Celebrity
endorsements are successful because
consumers already have a ‘history’ with the
stars, and think of the brand as a
personification of the star.
Similarly the importance of designers behind
the brands. John Galliano is as much a
brand as Christian Dior – the house he
designs for.

20. Investor
Presentation 25
‘In celebrating fashion,
we celebrate our culture;
we celebrate our spirit;
we celebrate ourselves.’
National Geographic Fashion. Cathy Newman

21. Investor
Presentation 26
The hospitality category has already learnt this: no
longer provides mere accommodation, but now
facilitates ‘storytelling’

22. Investor
Presentation 34
The accessibility of fashion: Price is irrelevant to style
Sharon Stone wearing a
GAP t-shirt with Valentino
and Armani at the Oscars
heralded the idea that price
is irrelevant to style
Designers from Vera Wang to
Isaac Mizrahi now introducing
low-budget lines to
accommodate more clients

23. Investor
Presentation 35
‘Fashion has created a
vast potpourri of styles
from which to select.
Refreshingly, this gives a
green light to the mixing of
all kinds of garments:
chain store, couture,
secondhand, brand new,
occupational and “ethnic.’
‘The Fashion of Fashion’ - Valerie
Mendez
The accessibility of fashion gives
birth to a myriad of individual
expressions of style

24. Investor
Presentation 36
Consumers are inspired by different cultural identities
John Galliano of Christian
Dior often combines
cultures, using Arabic and
Asian textiles to depict folk
art in his clothes.
Eastern-heritage
designers like Anna Sui
and Vivienne Tam are
successful in the West,
designing clothes with
touches of Asia
Consumers are
becoming more well-
traveled and their
homes reflect their
travel experiences

25. Investor
Presentation 40
Starshop, inspired by fashion,
reaching for differentiation
through emotional connection with consumers

26. Investor
Presentation 41
Target market
Target Segments Profile Reference brands
Projected global
perspective
Post baby Boomers
Own home in the suburbs,
2 cars, full-time
established professionals,
teenage children
Kreiss, Ethan Allen,
Banana Republic,
Thomasville, Natuzzi,
Baker, Robb & Stucky,
Brooks Brothers
Aware of global affairs and
issues. Probably have not
traveled extensively, but
take a broad outlook on
life.
Generation X
Have an apartment, semi-
detached house, young
family, stable
professionals, possibly
working from home
Banana Republic,
Anthropologie, Room &
Board, Pottery Barn, Z-
Gallery, Ethan Allen, Ikea
Informed perspective,
possibly from a
professional role
Generation Y
Fresh graduates, on the
first step of their career,
renting apartments,
internet-savvy, avid
magazine readers
Crate & Barrel, Pottery
Barn, Ikea, Gap,
Abercrombie & Fitch
Interested in humanity.
Most likely to travel.

27. Investor
Presentation 42
The emotional profile of our target segments: “Resolver”
• Consciously desires self-
growth. Accepts personal
skills and competencies and
uses them actively… is
responsive to communities
that provide opportunity for
self-growth.
(Cote & Levine)
• Actively engage themselves
in developing their identity,
intellect & emotional maturity
in their interests.
• This involves learning about
the world and going out in
the world to actualize their
abilities.
• They yearn to grow, and
desire to reach their
potential.

28. Investor
Presentation 43

29. Investor
Presentation 44

30. Investor
Presentation 45

31. Investor
Presentation 46

32. Investor
Presentation 47

33. Investor
Presentation 48

34. Investor
Presentation 49

35. Investor
Presentation 50

36. Investor
Presentation 51

37. Investor
Presentation 52
Re-contextualising colours, textures and forms, drawing inspiration, design and styles from the
emotionally-rich area of global fashion.
The world of ‘living big’

38. Investor
Presentation 53
Fashion-inspired
Living big means a world-view that is
open to change.
Seeking inspiration from the world of
fashion, as fashion itself seeks inspiration
from the world.
.

39. Investor
Presentation 54
Eclecticism
Living big is less about
tradition and conformity,
but about discovery and
freedom of expression.
Diverse influences co-
exist in the same setting
[e.g. elegance and
informality].

40. Investor
Presentation 55
Innovative ideas
Living big means daring to try
something different.
Borrowing materials from the category
of fashion (& beyond) to innovate and
create a sense of adventure.

41. Investor
Presentation 56
Imagination
Living big is about daring to
dream.
The painted plant is an
extension of a real-life plant on
display in the retail environment.
The same motif is extended as a
pattern on products and
accessories

42. Investor
Presentation 63
The spirit of “Living Big” is expressed through our “moods”
to capture the trade’s business & consumers’ imagination
‘Parisian’
‘New Classic’
‘Mediterranean Vineyard’
‘Warehouse Loft’
‘Bohemian’
‘Spring Mist’
‘Simple Chic’

43. Investor
Presentation 71
Target : 40% of the market, largely in the mid-high segment, aptly
called the “New Luxury” segment.
High / Luxury
Mid – Mid High
Mass-Mid
Starshop

44. Investor
Presentation 72
Goal & Objective
Our ultimate goal will be to have approximately 75 to
100 free standing retail stores, primarily under licensing
arrangements with existing home furnishings retailers,
as well as 125 to 200 in-store galleries by the end of
calendar 2012.
This will be accomplished by offering an excellent
product (the concept itself), the very best employees on
the corporate team, strong marketing efforts, healthy
retail partners, and a very loyal consumer following.

45. Investor
Presentation 73
A&P Activities – illustrative ideas focus on ‘guerilla
marketing’ activity : high potential impact at low cost
Public relations
& media
EnvironmentsEvents Rituals
Merchandising Service
Delivery
Sponsoring a
Cause
Others

46. Investor
Presentation 74
Illustrative ideas leverage the visual language of the
products and activate the idea of ‘living big’
Creating
inspirational
displays from
merchandise:
amalgamating
different
accessories to
form a typical
object like a
lampshade, for
example.
Using large-
scale textiles
as banners
within a retail
environment
and in an
outdoor
environment
like a street or
for an event.
Sponsoring a
fleet of
vehicles to
target a retail
or residential
location,
demonstrating
high-impact
visual assets.
Creating a
series of
individually-
designed
pieces by
celebrities for a
auction at a
charity fund
raising event
Bringing the
brand into the
world of high
fashion.
Limited edition
fashion
accessories
using the
textiles and
materials from
the Starshop
range. Holding
a fashion-
related event
like a catwalk
show, again
leveraging the
styles and
shapes from
the product
range

47. Investor
Presentation 76
To be inserted by the Starshop team
1. Distribution
2. Franchise System and Support
3. E-Commerce

48. Investor
Presentation 77
Financial
• Financial Objectives
• To achieve a Revenue of US$ 88,813 Mio by Year 5
• To achieve a NPBT of US$ 8,380 Mio by Year 5
• To achieve a return on Sales of 9.4 % by Year 5
• To be profitable in Year 2
• To be Cash Flow positive in Year 2

49. Investor
Presentation 78
Financials
• Assumptions
• To have 51 Retail Stores by Year 5
• Store Revenue based on US$ 400 per sq.ft. to be achieved 6 months after store
opening
• 25 % of Store Sales will be accessories
• E-commerce sales to account for 20 % of overall sales from Year 3
• Gross Profit Margins to decrease over 5 years due to lower margins for E-
Commerce
• Staff level to increase to16 gradually over 5 years
• Most services to be outsourced, e.g. Accounting, Legal, IT support, Designers,
Store Designer, E-Commerce, Website, Advertising
• Credit Terms to Retailers: 30 days, E-Commerce to consumers: Credit Card
• Credit Terms from Suppliers: 30 – 60 days
• Starshop to share 50 % of investment into first 3 stores with additional
investments into more stores in the following years
• Depreciation over 3 years for all investments
• Bad Debt Provision of US$ 1,075 Mio by Year 5 or 7.2 % of A/R’s

50. Investor
Presentation 79
Financials
• Profit and Loss 5 Year Forecast
• To show the summary sheet only for the period of 5
years including the start up phase.
• Total Sales
• Total Cost of Sales
• Gross Profit
• Gross Profit Margin %
• Expenses
• Net Profit
• % of Revenue

51. Investor
Presentation 80
Financials
• Cash Flow 5 Year Forecast
• To show the summary sheet only for the 5 year
period including the start up phase
• Total Cash Inflow (Stores)
• Total Cash Outflow (Purchases)
• Net Cash Inflow
• Cash Outflow from Operations (Expenses)
• Cash Outflow from Capex
• Net Opening Balance
• Net Cash Inflow/Outflow
• Net Closing Balance

52. Investor
Presentation 81
Financials
• Capex Plans
• To show the Capex breakdown in the CF summary
sheet over the 5 years period including start up
phase

53. Investor
Presentation 82
Financials
• Cash Requirements and Timing
• Based on the Cash Flow, to show the capital that
needs to be injected and the time when these
amounts are required. We should obtain US$ 3.0 Mio
and show at any point in time a positive cash balance
and equity position.

54. Investor
Presentation 83
Financials
• Pay Back / ROI
• To have two slides, i.e. one that is targeted at
furniture manufacturer and the other at venture
capitalist.
• Venture Capitalist
• To show the Net Profit Development for 5 years
including the start up phase.
• To show the Net Disbursement for every year for the
30 % equity to investors.
• This would show the Pay Back in number of years as
well as the ROI on the investment of 3 Mio.

55. Investor
Presentation 84
Financials
• Pay Back / ROI
• To have two slides, i.e. one that is targeted at
furniture manufacturer and the other at venture
capitalist.
• Furniture Manufacturers
• To add the profit furniture manufacturers would make
by selling products to Starshop. Assumption is a 5 %
profit on Cost of Sales for Furniture and accessories
sales but without E-Commerce sales. This would
reduce the Pay back period and increase the ROI.

56. Investor
Presentation 85
Financials
• Share Value/Share Holdings
• Share Value will be 10 $ per share initially
• A total of 1 Mio shares will be issued
• A total of 30 % will be sold to investors
• A total of US$ 3 Mio will be required
• Based on the forecasted revenue after 5 years of 88 Mio, we
estimate the value of the company and the value of the brand to
be 1 time revenue, i.e. approx 90 Mio
• OR
• Based on the estimated Net Profit of US$ 8,8 Mio after 5 years,
we estimate a P/E of 10, i.e. approx 90 Mio.
• In Year 5, a 30 % equity stake would be worth approx .30 Mio.

57. Investor
Presentation 86
eCommerce – Key component to our success

58. Investor
Presentation 87
Contents
1. Introduction
2. Why Project Starshop?
3. What’s in it for you?
4. Starshop Organization
5. Financial Information
6. Timing and Next Steps
“…insert a quote from financial summary…”

59. Investor
Presentation 88
Insert benefits for investors

60. Investor
Presentation 89
Contents
1. Introduction
2. Why Project Starshop?
3. What’s in it for you?
4. Starshop Organization:
A. Organization chart, headcount, responsibilities
B. Suppliers (type etc.) and working relationship
C. Logistics
D. Outsourced services
E. Legal
F. E-Commerce
5. Financial Information
6. Timing and Next Steps
“…75 to 100 free standing retail stores,
primarily under licensing arrangements…
as well as 125 to 200 in-store galleries
by the end of calendar 2012…”
OUR OBJECTIVE

61. Investor
Presentation 90
Initial Organization
Charles Schlaeppi
Chairman, CEO
Johne Albanese
President, COO
Reg Anderson
VP – Retail Operations/Store Development
Stephanie Sink
VP – Visual Merchandising/Product Styling
Lucy Schlaeppi
Director of Customer Service/Retail Support

62. Investor
Presentation 91
Organization @ 18 Months
Charles Schlaeppi
Chairman, CEO
Johne Albanese
President, COO
Reg Anderson
VP – Retail Operations/Store Development
Stephanie Sink
VP – Visual Merchandising/Product Styling
Lucy Schlaeppi
Director of Customer Service/Retail Support
Global Buyer - Furnishings
Customer Service Manager
Retail Trainer
Admin Assistant

63. Investor
Presentation 94
Supporting services for retail licensees
• Real estate location assistance
• Complete interior design services including all interior plans and
elevations
• Complete exterior signage package
• Complete interior signage and POP package
• All merchandise (furniture/accessories/etc.)
• Complete operational and sales training system
• Store Operating System
• Complete Grand Opening and Ongoing marketing/advertising package
• Quarterly updated planagrams
• Quarterly operational assessments
• HR Support
• Financial planning toolkit
• And much, much more!

64. Investor
Presentation 95
Contents
1. Introduction
2. Why Project Starshop?
3. What’s in it for you?
4. Starshop Organization
5. Financial Information:
A. Assumptions: Financial and Non-Financial
B. Profit and Loss 5 Year Forecast
C. Cash Flow 5 Year Forecast
D. Capex Plans
E. Cash Requirements and timing
F. Share Value
G. Shareholdings
H. Payback calculation
I. ‘In-Stock’ furniture
6. Timing and Next Steps
“…Insert quote from financial summary…”

65. Investor
Presentation 96
Financial Information – to be inserted by Starshop team

66. Investor
Presentation 97
Contents
1. Introduction
2. Why Project Starshop?
3. What’s in it for you?
4. Stashop Organization
5. Financial Information
6. Timing and Next Steps
“…Insert quote from financial summary…”

67. Investor
Presentation 98
Insert slides for timing and next steps

68. Investor
Presentation 99
THANK YOU