Flor Presentation Apr 2014

APRIL 2014

PRESENTATION FOR PROSPECTIVE INVESTORS

AND FRANCHISEES

GENERAL PRESENTATION

SUMMARY

WHO WE ARE 1 FLOR S.R.L. 1 FLOR - GELATO ITALIANO 1 GELATO VS. ICE CREAM 2 10 REASONS 'WHY FLOR?’ 3 FLOR AND GELATO FLAVOURS 4 FLOR GELATO ITALIANO CREAM FLAVOURS TABLE 1 5 FLOR GELATO ITALIANO CREAM FLAVOURS TABLE 2 6 FLOR GELATO ITALIANO FRUIT FLAVOURS TABLE 1 7 FLOR GELATO ITALIANO FRUIT FLAVOURS TABLE 2 8 FLOR GELATO ITALIANO FRUIT FLAVOURS TABLE 3 9 FLOR GELATO ITALIANO COMPOSITE FLAVOURS TABLE 10 PACKAGING 11

CHINA - SHANGHAI F0HC CHINA 13-15 NOVEMBER, 2013 12 JAPAN - TOKYO FOOD & FRANCHISE EXPO 5-7 MARCH, 2014 13 SINGAPORE – FHA FOODASIA 8 – 11 APRIL 2014 14

OUR FLOR GELATO SPECIALTIES 15 COMMERCIAL AGREEMENT WITH ILLY COFFEE 16 THE EQUIPMENT 17 PRODUCTION METHODOLOGY TO MAKE A FRESH GELATO 18 INSTANT FRESH PRODUCTION FOR CUSTOMERS 19 OUR OFFER 21 OUR THREE LEVEL OFFER 23 CONTACT US 24

1 GENERAL PRESENTATION

WHO WE ARE

FLOR S.r.l., a limited liability company, is incorporated in Italy. Its shareholders are a group of international entrepreneurs who are passionate about high-quality foods, especially Italian. They have considerable experience in the food and restaurant sector that has encouraged them to bring their knowledge and enthusiasm to new areas around the world. Consequently, the overall Corporate Strategy is focused on developing retail FLOR Gelato Italiano 'parlours' and point of sale outlets in Italy and elsewhere in the world.

FLOR SRL

FLOR S.r.l. (Rome – Italy) owns “FLOR Gelato Italiano” brand and its unique know-how and manufacturing process. The company’s management team is formed by a group of experienced professionals in the food and restaurant business as well as several other fields. Our different backgrounds allow us to combine our diverse business experiences, know-how and execution strategies and, as a team, we can ensure on-going support, expertise and a continuous supply of enthusiasm!

FLOR - GELATO ITALIANO

FLOR - Gelato Italiano is actively involved in the sale and marketing of high-quality natural gelato with five directly owned shops in Rome under the brand name FLOR - Gelato Italiano. Because of the strong Italian heritage and influence, FLOR gives a great deal of attention to selecting the very best natural ingredients, imported from all over the world and to create the most healthy, exquisite gelato recipes. A highly successful expansion strategy has resulted in the establishment of franchised operations in Doha, Dubai (where we set up our first flagship store at the Aquaventure Waterpark at The Atlantis, The Palm), Beirut, Brazil, and, very soon, other locations all around the world.

THE CONCEPT AND THE UNIQUE TECHNOLOGICAL BREAKTHROUGH

FLOR - Gelato Italiano has created a unique technological process in the field of high quality natural gelato production and over the years has perfected this into the product available today. The successful and rapid acceptance of the concept is mainly due to this unique innovation in the production of the gelato. Details in the chapter “Equipment and Production Methodology” on pages 8 and 9. Please visit www.gelatiflor.it


GELATO VS. ICE CREAM

Artisan Italian gelato differs from commercially produced ice cream in the following ways: AIR CONTENT Air content of ice-cream (referred to as “overrun”) is usually much higher than that of good artisan Italian gelato, which is around 20%. Whilst some air in the product is needed for structure and scoopability, too much air will leave it without flavour and body. Translation: less air = more intense flavour and greater value for money! FAT CONTENT Generally the fat content of ice cream is much higher than artisan Italian gelato. This is usually due to a much higher cream content. Gelato includes dairy flavours, with around 7-8% fat content, as well as non-dairy flavours (generally referred to as “sorbets”), with zero fat content. TEXTURE The texture of artisan Italian gelato will always be much softer and smoother than ordinary commercial ice cream. SERVING TEMPERATURE The serving temperature of artisan Italian gelato is generally around -15°C (+5°F) whereas the serving temperature of ice cream is generally around -20°C (-4°F). SERVING METHOD Artisan Italian gelato to take away is traditionally served with a spatula (one for each flavour), as opposed to a scoop, which is the usual take away ice-cream serving implement. This is to prevent transfer of flavours as well as to prevent water droplets from forming in the gelato (a scoop needs to be washed between servings). PRODUCTION METHOD Artisan Italian gelato is made fresh on-site in a small batch freezer whereas commercially produced ice cream is made in a central manufacturing facility in a large continuous freezer lines, stored and then shipped. CALORIES Calorie content of ice cream is, on average, three times higher than Italian gelato. PRESERVATIVES, DYES AND COLORANTS Ice cream is full of artificial preservatives, dyes and colourants: our traditional Italian gelato contains only those sourced naturally.


10 REASONS 'WHY FLOR?’

The whole concept provides a platform for a unit to expand locally into more parlours and kiosks for direct sale, to supply menu items to restaurants and hotels, mobile carts etc.

1. Why eat the bad stuff if you can eat natural? - Sourcing of raw, natural ingredients (fruits, nuts etc.) from all over the world with a reputation for the highest quality, transformed by our innovative and wholly natural freeze-dried process into a powder from which the gelato is made. Additionally, our FLOR freeze-dried gelato does NOT contain any artificial or chemical preservatives, dyes or thickeners. It is simply an all-NATURAL gelato.

2. Why carry overweight while traveling? - Each gelato flavour, as a unique freeze-dried product, is carefully controlled for quality and packed into airtight aluminium foil bags, which fully preserve our gelato ingredients. These bags can be easily transported as dry goods anywhere in the world, with over 80% less weight than a comparable fresh gelato product.

3. Why sustain unpleasant cold temperatures? - Storage of our freeze-dried gelato bags at room temperature.

4. Better a happy long life than a short one! - Italian Food Regulators have certified our freeze-dried gelato product to have a three-year shelf life (slightly longer than a banana!). Other Food Regulators around the world have confirmed such shelf life.

5. Never mess around with those horrible, nasty little bacteria! - Complete control over bacteriological contamination, which can cause many severe problems when food attendants manipulate fresh raw ingredients.

6. Don’t settle for anything less than quality! - Guarantee of final high quality standards. Consistent high quality is maintained throughout, anywhere in the world. Elimination of: troublesome variables in manipulation of raw ingredients and of unnecessary manual procedures.

7. Save time while working and have more time for yourself! - Ease of production. The process of creating a perfectly fresh and natural gelato is achieved in approximately 10 minutes, with less equipment than a traditionally made gelato.

8. Better to save money than waste it! - Conventional, artisan, gelato production is a very skilled, time-consuming activity. FLOR has essentially done all the preliminary hard work in Rome. The final gelato preserves all the flavour and texture of the original gelato created in Rome without the need to employ an expensive Master Gelato maker! In fact, anyone can make our delicious FLOR Gelato with just a few minutes of training!

9. Don’t be a control freak; we did the hard work for you! - The speed and flexibility of on-site, just-in-time production allows for any possible fluctuating demand reducing the chances of product waste. Absolute control over point-of-sale replenishment and management. Furthermore, a standard FLOR gelato production unit can supply several gelato parlours, kiosks or even the HORECA channel.

10. Don’t let others take advantage of you! - Cost control. Each bag of our freeze-dried FLOR Gelato makes exactly 4.0 Kg of fresh product (with the addition of 2.8 Lt. of either milk or water, depending on the specific flavour being made). Therefore, the FLOR shop owner can monitor costs and turnover to the exact penny, without incurring in the risk of pilferage or unexplained shortcomings in turnover.


FLOR AND GELATO FLAVOURS

With cream based and fruit based gelato, we currently offer over forty flavours made with all-natural ingredients - each one representing the singular flavour of the original ingredient. FLOR is constantly studying and creating new exciting flavours and is able to advise on the specific tastes and needs of each unique geographical area. We do NOT use chemical preservatives, colourants or thickeners. Our gelato is certified as being completely natural. We carefully select our natural ingredients, from certified house farms that have the same respect for quality and nature as we do. Our gelato does NOT contain any artificial preservatives or dyes, vegetable fats, hydrogenated vegetable fats and artificial flavours, thickeners or dyes of chemical origin. Our gelato does NOT contain any hydrogenated vegetable fats. Moreover, our fruit flavours don't contain animal fats, milk derivatives nor lactose. All our products are completely natural. Furthermore, they are all gluten free.


FLOR GELATO ITALIANO CREAM FLAVOURS TABLE 1


FLOR GELATO ITALIANO CREAM FLAVOURS TABLE 2


FLOR GELATO ITALIANO FRUIT FLAVOURS TABLE 1



We create new flavours every month to offer a wider choice to our treasured customers. Kindly check our website for latest arrivals!


FLOR GELATO ITALIANO COMPOSITE FLAVOURS TABLE

UNLEASH YOUR FANTASY! FLOR Basic Cream and FLOR Ricotta Cheese are basic flavours that are not shown as they are not individually sold to public. Combining one of the FLOR basic flavours with some add-in ingredients creates the above composite flavours. Stracciatella, for example, is obtained by mixing FLOR Milk Cream with chocolate chips. Cassata Siciliana, instead, is FLOR Ricotta Cheese with almonds, candied fruits and chocolate chips. Many suggested combinations are detailed in our unique recipe book.


PACKAGING

CURRENT FLOR PACKAGING Each 1.25 kg bag of freeze-dried product yields 4.0 kg of finished gelato (after processing with 2.8 L of either milk or water). Each exclusive formula contains real, genuine and fresh freeze-dried outstanding gelato. Ingredients are delivered in cartons of 8 or 10 bags.

The only current exception is Gianduia, which is packed in a specially designed and sealed 5 kg bucket. One bucket blended with 5 Lt of milk produces 10 kg of gelato.

NEW PACKAGING AVAILABLE We like the idea of customers being always treated with the best, freshly made products. All flavours, including Gianduia, will be packaged in bags containing half of the current volume (625 gr as opposed to 1.25 kg). New production batches will be packed in new design printed cartons. Each carton will contain 2 bags of the same flavour. Each outer carton will contain 6 cartons. This is to allow for low season production as certain markets differ between summer and winter consumption. FLOR has re-designed its bags to contain 625 gr of formula to produce 2 kg of fresh gelato. This will produce half a steel canister, better to manage production batches and minimise waste of old or unsold gelato.


INTERNATIONAL FOOD EXPOS

We have participated in, or are scheduled to do so, some of the most important Food & Franchise Expos in the world. In each Expo we have showcased our unique FLOR know-how and made our delicious fresh gelato on the spot! The following are the latest Expos which we have attended: China - Shanghai F0HC China 13-15 November, 2013 We obtained a huge interest both from consumers visiting the Food Expo as well as from potential investors with whom we are entertaining negotiations to establish the first FLOR shops in PRC. Below are some pictures of the prestigious China Food Expo.

Bird’s-eye view of Shanghai Expo Complex One of the Expo’s pavilion aisles

FLOR booth with queuing visitors Visitors being served gelato samples


Japan - Tokyo Food & Franchise Expo 5-7 March, 2014 Without wishing to appear presumptuous, in Japan FLOR experienced an outstanding success! Our FLOR Gelato stand was, far and away, one of the most visited of the entire expo. Every day we had a line of 100 people or more (!) waiting to taste our FLOR gelato. The Expo organizers had to make special provisions to channel the people waiting for our gelato in a long s-shaped line in the middle of the hallway in order not to conceal other booths! Just to give an idea, overall, we served over 3,000 gelato cups in just 3 days of Expo!! Toward the end of the third day we literally ran out of gelato products and we could serve no more clients! In short, we had a great success and our FLOR gelato was literally loved by the Japanese. We are now into serious negotiations with several potential investors interested in acquiring the Master Franchise rights for FLOR Gelato in Japan. Below some pictures of the prestigious Japanese Food Expo.

Our FLOR booth FLOR Gelato being made fresh

Japanese people queuing up to taste our gelato… …more Japanese enthusiasts still queuing up!


Singapore – FHA FoodAsia 8 – 11 April 2014 In April we will be attending the third most important Asian Food Expo in Singapore. Following the huge success experienced both in Shanghai and, even more, in Tokyo, we expect to achieve nothing less in Singapore. This Expo is a catalyst for food investors coming from throughout South East Asia and India.

Plan of our Singapore booth Singapore FHA logo These Expo venues have proved very successful in getting the FLOR Gelato Italiano concept known to potential clients in the food and retail industries in Asia and elsewhere. Secondly, our flagship stores at the Aquaventure Waterpark, Atlantis, The Palm (Dubai) and in Piazza Campo de’ Fiori (Rome) as well as elsewhere around the world have proved to be the best marketing tool to make the FLOR brand and its high quality, natural gelatos known internationally. Lastly, we support our franchisee investors with: • custom made business planning; • site selection support; • shop set-up and start-up assistance; • complete training programme; • advertising and promotion; • proprietary products; • a highly visible commercial partnership with Illy Caffè; • logistics and distribution chain to smoothly supply our products anywhere in the world.


OUR FLOR GELATO SPECIALTIES

FLOR has a wide range of gelato-based products on offer and we are always expanding it to satisfy the palate of our treasured customers. The following shows our current menu that can be adapted to any local market requirements.


COMMERCIAL AGREEMENT WITH ILLY COFFEE

Illy Caffè is recognized the world over as one of the highest quality coffees in the market, if not the best. In March 2014, Flor Gelato and Illy Caffè signed a commercial partnership agreement which will allow Flor to sell Illy Caffè coffee products throughout its network of retail gelato outlets around the world. Thanks to the partnership with Illy Caffè, all our Flor Gelato outlets will greatly enhance their commercial visibility and increase their turnover opportunities.


THE EQUIPMENT

In this section we show the TWO items of equipment needed for the preparation of FLOR gelato from the unique freeze-dried ingredients. Naturally, if you elect to use your production unit for local distribution, you will need negative freezers for storage right after production and your display units. If you need help we can help you source the necessary equipment.

Vitamix XL Large Capacity Blender Specification Power 220 V. - 50/60 Hz. Consumption 1.7 – 1.9 kW

Measure Height: 18.6 in. / 47.3 cm (with interlock closed) Height: 26.6 in. / 67.6 cm (with interlock open) Depth: 19.0 in. / 48.3 cm Width: 8.5 in. / 21.6 cm Carpigiani LABO XPL 40/60 Production Output: 40/60 Kg/h - 56/84 Lt. Mix Quantity per Batch: Max 10.5 Kg Power: 400 V. - 50 Hz. - 3 Ph. Rated Power: 6.0 kW Condenser: Water Dimensions: Width 50 cm Depth 65 cm Height 140 cm Net Weight 370 Kg


PRODUCTION METHODOLOGY TO MAKE A FRESH GELATO

In this section we show our production methodology and how easy it is to prepare a perfect gelato (even without a Master Gelataio) in six simple steps.

* If you plan to have a large production unit devoted to distribution to other sites, you will need to plan for negative freezer storage.


INSTANT FRESH PRODUCTION FOR CUSTOMERS

Here are some images showing how our delicious FLOR Gelato is made fresh and served right away to eager customers…!


SOME OF OUR SHOPS IN THE WORLD

Flagship Store Flagship Store Rome, Campo de’ Fiori Dubai, Atlantis Aquaventure

Flagship Store Flagship Store Beirut, Hamra Street Doha, Downtown Hotel


OUR OFFER

The success of our FLOR gelato parlours is based on some very simple strengths:

1. Extremely high and consistent quality of our full range of gelato flavours, made fresh in all our shops every day. Our FLOR gelato flavours are made only with the best possible natural ingredients. We do NOT use artificial or chemical preservatives, colourants or thickeners. Our FLOR gelato parlours offer a unique possibility to taste REAL delicious Italian gelato anywhere in the world!

2. Ease of preparation. Our company's know-how, developed over many years of study and investment, allows us to work on the basic natural ingredients' preparation in our factory in Italy. From there, we can ship out to any part of the world our FLOR gelato in a freeze-dried form, packed in airtight aluminium foil plastic bags to fully preserve our high-quality wholesome ingredients at room temperature. In order to make fresh gelato you simply add to our basic freeze-dried ingredients either milk or water (depending on whether you are preparing a fruit based or cream based flavour) and in approximately ten (10) minutes you will be able to enjoy a mouth-watering Italian gelato as if you were in the best gelato parlour in Italy!

3. Cost control. Each bag of our FLOR gelato ingredients (1.25 kg) makes exactly 4.0 kg of fresh product (after adding 2.8 L of either milk or water, depending on the specific flavour being prepared).

Therefore, it is very easy for the FLOR gelato shop franchisee to gauge turnover and costs to the very penny. This important management cost control allows any potential franchisee to easily manage either a single or multiple FLOR Gelato parlours with employees without worrying about turnover shortfalls or cost overruns. In short, we supply potential franchisees with remote-control management tools to facilitate and optimize the follow up on the investment in our FLOR Gelato parlours.

4. A commercial partnership with the renowned ILLY Caffè brand.

Starting from March 2014 FLOR and ILLY have entered into a commercial agreement whereby the world-famous ILLY coffee products will be served in all our FLOR Gelato parlours worldwide. The tie up with ILLY Caffè will allow FLOR Gelato to make its sales outlets more visible, attract more customers, offer more food products and increase turnover.

5. FLOR gelato fully meets the stringent Food Quality Standards set forth by EFSA, European Food Safety Authority, a further guarantee of our quality.

6. For our prospective franchise investors, we offer:

• Custom-made business plans to assess both the specific market and location potential;

• Site selection support; • Turn-key FLOR Gelato shop project ready to operate; • Complete training programme;


• Readily available logistics and distribution chain either from Dubai or Italy that can easily reach any market in the world;

• Advertising and promotion of FLOR both internationally and locally; • Proprietary FLOR brand name and gelato products.

In short, any potential Master Franchisee or single-shop Franchisee investor interested in teaming up with our company to set up a FLOR Gelato shop can rely on all the above advantages and benefit from a unique investment opportunity while enjoying a successful and easily manageable business operation.

We can never stress enough that our FLOR Gelato flavours are all natural and all our recipes are made only with the finest and highest-quality raw ingredients available.

Quality, understandably, doesn’t come for free.

Therefore, although we strive to maintain the best possible price/quality ratio, our FLOR Gelato products are somewhat more expensive than the "average" low quality ice-creams or chemical gelato formulas currently available in the market.

Nevertheless, quality always pays.

All our gelato parlours throughout the world widely experience a large percentage of customer-return because of the quality and taste of our products.

Customer’s confidence in FLOR Gelato is our best advertisement!


OUR THREE LEVEL OFFER

Prospective investors in our FLOR Gelato concept parlours can access to three different levels of partnership with our company.

1. Master Franchise contract for entire sovereign countries Obtain a Master Franchise (MF) contract for entire countries (entry-fees apply). Please consider that third party investors have already subscribed to a few MF contracts while other countries have been optioned for future MF agreements. This type of agreement grants to the third party investor the right to fully develop, within the entire country of election, Directly Operated Stores (DOS) as well as to franchise out to third local investors, pretty much on an independent basis, although within the general guidelines set forth in the MF contract.

2. Master Franchise contract limited to Regional or Urban areas

Obtain a Master Franchise (MF) contract for specific regional or metropolitan areas within it (entry-fees apply). This type of agreement grants to the third party investor the right to fully develop, within the entire Regional or Urban area of election, Directly Operated Stores (DOS) as well as to franchise out to third local investors, pretty much on an independent basis, although within the general guidelines set forth in the MF contract.

3. Single or Multiple-Shop Franchise contract with no territorial exclusivity

Obtain a single or multiple-shop Franchise contract (lower entry-fees). You will operate one or more Directly Operated Stores (DOS) within the same country or regional area, under the direct supply of Flor S.r.l. (Italy) or a Master Franchisee investor, if present. With this option, the single or multiple-shop Franchisee will NOT be granted any right to sub-franchise out to third parties.

Each country has its own peculiarities. A few sovereign countries have already been contracted out. Some other countries have a pending option bought by other investors. Therefore, to discuss the specific countries of interest as well as the above options in full detail please contact us. FLOR Gelato, the best Italian Gelato brought fresh to your doorstep!


CONTACT US

For further information on the opportunities for franchising, please contact: [email protected] +39 06 904 00 752 FLOR S.r.l. Via Santa Cornelia, 9 00060 - Formello (Rome) ITALY

Thank you for your time and interest.

Flor Presentation Apr 2014

Documents

Transcript of Flor Presentation Apr 2014