Načrt prestrukturiranja

8/20/2019 Načrt prestrukturiranja

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Increase of efficiency and

profitability

5 Year Business Plan

Ljubljana, 4th January 2016


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© ADMETAM

Agenda

Executive summary

Initial situation

Future strategy and structure

Improvement programme

Plan 2016-2020

Implementation


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Develop realistic growth strategy based upon new business model, technical competence centre Žir i

The ALPINA story: The time is NOW

Source: ADMETAM

FROM …. TO ….

• Production dominated business model,no marketing and sales support, retail outlets

• Market led product development & sales focus,brand management / marketing, retail business

• Overcapacity/ inefficiency/ inflexibility andunprofitable third party production

• Benchmarked OEU/ OEE/ appropriate capacities/outsourcing of peak requirements/ flexibility

• Lack of profitability/ own funding/ sustainability,corporate value?

• Competitive profitability / self sufficiency/ sustainabilityIncrease corporate value

• “We can do it all and better”, neglecting added valueof technical competence and bundling

• Applying core competences, outsourcing non-corebusiness, development of technical competence centre

• Organisation without leadership/ strategy/transparency/ performance management

• Strategic positioning and framework / group widetransparency/ key performance indicators and reward


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Executive summary (1/2)

Market

• Markets for Sport and ALLDAY still with small growth partly developed by variety of product

• ALLDAY lost market share in Europe to be compensated by better product range/ internationalisation

• Need to complement product range in line with market requirements and own competence

Sport

• Sport market very competitive with big players across all relevant countries

• Stronger cross country presence, downhill and trekking need distribution/ marketing development

• Product range to be carefully streamlined, brand extension needed (complementary product)

ALLDAY

•Collection and brand development to be strengthened, consider design support

• Internationalisation together with local presence at fairs and competent management

• Price calculation to reflect product development and internationalisation•

Retail

Source: ADMETAM

• Main retail market former Yugoslavia still with high potential due to brand awareness

• Growing competitive pressure (Deichmann, CCC, Mass, Humanic) requires network development

• Appropriate retail network with clear KPIs and retail concept to be developed


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Executive summary (2/2)

Footprint/

Operations

Source: ADMETAM

Organisation

• Implement new organisation with 2nd tier management considering core competences/ centralisation

• Establish functioning management system and appropriate transparency and control, esp. subsidiaries

• Provide leadership, focus continuously on objectives and their measurement

Profit/ Loss

• Increase EBITDA to > 15% of sales by improving gross margin and reducing cost

• Implement entire improvement programme as quickly as possible

• Focus on top-line development, raising international potential supported by efficient marketing

Balance Sheet/

Cash Flow

• Ensure Group’s cash position by fast cost reduction/ sale of assets and bridge finance as required

• Equity ratio to be improved by net profit/ debt-equity swap considering debts of subsidiaries

• Establish full transparency group wide/ monthly consolidation/ integration of subsidiaries

• Implement new footprint to increase capacity utilisation and reduce cost significantly

• Eliminate duplication of office functions and warehouses across the region, centralise group functions

• Improve productivity on all lines and ensure equipment utilisation by appropriate maintenance


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Agenda

Executive summary

Initial situation



Plan 2016-2020

Implementation


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ALPINA is facing two very critical issues to be resolved quickly

EXTERNAL ACTIONS REQUIRED

Over indebtedness /liquidity gap Operational inadequacy

Holistic

restructuring

ALPINA with liquidity gap of 3.8 Mil. Euro

in 2016 (bridge finance) Equity at 0.9 Mil Euro by 31.12.2015 Eliminate all risks contained in balance

sheet, restructure also intercompany

relations

Prepare for reorganisation/ social plans Debt/ equity swap inevitable to cover

corrective actions

Target equity ratio of about 20%, increaseby net profit in future years

ALPINA with massive over-capacity in

almost all areas Capacity utilisation < 50% in plants and

prototyping

No capex/ maintenance over years/risk of production stop

Too high cost of goods limit sales potential Operational restructuring must close

liquidity and profitability gap

Cost savings must enable futurefunding of business development

1

Bridge finance of 3.8 Mil. Euro in early 20162

3

Customers “advanced” payments to smoothtransition in 2016

4

Continue restrictive capex policy

Debt/ Equity swap : up to 4.5 Mil Euro

EBITDA € 2.6 Mil./ 2015 Act

Net loss € -1 Mil./ 2015 Actual

Time is of essence !!!


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0

50

100

150

200

250

300

350

400

450

500

20% 30% 40% 50% 60% 70% 80%

S a l e s p

e r h e a d

( t € )

Gross margin1) (%)

Comments

*Estimated 1) Gross margin calculation for ALPINA and peers includes material costs only

Source: Alpina Management, Annual reports 2013 & 2014; ADMETAM

Prada

Aigner

Ferragamo

BuffaloTOD’s

Geox

Deichman

Reno

ECCOBata

CCC Alpina

• Direct competitors likeDeichman, Geox or Renoachieve gross margins of

50%

• With gross margin of48% and 39 t€ sales perhead in 2014 Alpina is

not able to compete in

the chosen market• Top brands like Prada,Ferragamo and Aigner

show gross margins

around 70 % with high

share of own retail

Alpina Group KPIs significantly behind its competitors

Nike

Adidas

Under Armour

Rossignol*


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-1.0

-6.8

1.4

-2.9

1.6

-11.7

2.6

-0.9

5.4

-0.3

EBITDA (in Mil. €) Net profit (in Mil. €)

2012 2013 2014 2015F 2016 Plan

1.535 1.514 1.524 1.5531.278

2012 2013 2014 2015F 2016 Plan

10

32

7

41

-10

42

0.9

32

5

26

Equity (in Mil. €) Debt (in Mil. €)

2012 2013 2014 2015F 2016 Plan

1) New gross margin calculation includes cost of direct materials, direct and hired labour and subcontracting services 2) Before extraordinary/ restructuring effects, after normal inventory

write downs 3) Assumming D/E swap up the amount of € 4.5 Mio. Sources: Alpina Group financial data, ADMETAM

58.1 59.1 61.0

38%

61.6

39%

58.2

42%

Sales (in Mil. €) Gross margin (in %)

2012 2013 2014 2015F 2016 Plan

Sales/ Gross Margin1)%

Capital structure3)

EBITDA2) / Net Profit

Headcount

Financial analysis provides working agenda and priorities


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Most of the overdue payables are towards Chinese suppliers

In T EUR / % total Legend

% of total trade payables

Alpina d.o.o. payables

Alpina China payables

Source: Alpina financial data, ADMETAM

Trade payables overview1

1) Alpina d.o.o. data on 22 Dec 2015 and Alpina China data on 30 Nov 2015

646 380 489 429

3,2701,605

521 387

511

2,252

900 876545

3,781

Undue 0-30 days 31-60 days 61-90 days Over 90 days

In T EUR / % total

27%

• Total payables to suppliers amount to 8,355 T EUR• 45% of total payables is due over 90 days, thereof mostly to Chinese suppliers (3,270 T EUR)• From 2014, debt to Chinese suppliers increased by 800 T EUR on the account of exchange

differences only

• Procurement from local suppliers in China lacking any supervision from Central Purchasing in Žiri

Source: Alpina financial data, ADMETAM

Trade payables overview1

1) Alpina d.o.o. data on 22 Dec 2015 and Alpina China data on 30 Nov 2015; displayed age structure for China does not include arrangements for installment repayment.

11% 10%

7%

45%


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30%

25%

21%

11%

9%

3%

Trekking Trade goodsWoman low shoes Other fashionWoman high shoes Other sport

Broad with “islands”,no direct retail contact

45%

Profile of business units underlines complexity and needs

International

penetration

Product

basis

Delivery

cycle

Future investor’sconsiderations

32% 23%

Women, ex-Yugoslavia,

classic/ comfort

Ex Yugoslavia only,

Slovenia biggest market/ store nu.

Ski XC/ downhill, trekking, no

complementary product (packages)

All product available in Alpina, other

brands, bags, Men limited/ no children

Women/ casual + business, wide lasts,

shoes only, >80% carry over product

Sales 2014

Alpina d.o.o. only

Customer

portfolio

Salescontribution*

SPORT ALLDAY RETAIL

Europe unbalanced (>EE) , lost clients,

~20% of Germ. top retailers

Stores mainly attractive as locations,

not yet as “retail business”Individual/ less attractive collection, some

relation to retailIndividual brand and business

XC all relevant markets via dis-tributors,

DH/ Trekking “Balkan”Europe,/core Eastern E., Italy/ France?,

Russia now problematic

Season collections, some innovations,

re-order possible

2 collections p.a., older season

inventories, ongoing discount2 collections p.a., re-order possible

XC/ >20%, DH/ TR relevant market share

“Balkan” onlyRelevant in ex Yugoslavia only,

continuously shrinking / concept?

Market

shareNo relevant market share in Europe/

more relevant in ex Yug.

Big brands competing worldwide, lack of

Alpina marketing

Growing competition by footwear special./

clothing brands/ Verticals

Competitive

environmentGrowing competition by footwear

specialists / with complementary products

31%

18%

7%7%

6%

25%

Wenaas RossignolIntersport Sportmaster Backcountry Others

14%10%

9%

6%

5%

57%

K-Mail Order GMBH&COResam AGLLC TervolinaBruno Bader GMBHOverseas Power IndustriesOthers

Sources: Alpina, ADMETAM, * Sales 2014, XC = Cross country/ DH = downhill, TR = trekking

1

R t il i i ifi tl b l k t


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Slovenia Croatia BiH Serbia

Retail gross margins are significantly below market peers

Retail gross margins for ALPINA’s and purchased goods in Jan-Mar 14 and Jan-Mar ‘151)

1) Data for period Jan/Mar 2014 and 2015 2) Source: Individual reports

ALPINA DEICH-

MANN

48% 45%

CCC

54%

WORT-

MANN

45%

Benchmark Gross Margin % of sales (2013/14)2)

ARA

56%

33%35%

21% 22%

2014 2015

Alpina Trade goods

23%

28%

20%

27%

2014 2015

40%39%36% 36%

2014 2015

40%

32%36%

2014 2015

47%

Sources: Alpina data, Retail data Alpina, ADMETAM

Alpina includes

manufacturer + retail

margin

1


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Production is not allocated considering cost efficiency

Calculated salary costs

per working hour Production in pairs

by facility (2014)

Increase of hourly rates in Zhonghan due

to negative currency ratio EUR/RMB

Production facility reduction should consider a

disposal of capacities based on optimal utilisation

and lower labour cost

∑ 1,627,083

Facility

Finished

products

(in pairs)

in % of total

Ziri 495,330 30%

Bromy 344,256 21%

Fogs 317,470 20%

Siro 6,340 0%

Zhongshan 463,687 28%

Source: Alpina Management; ADMETAM;

∑ 1,767,740

Facility

Half finished

products (in pairs)in % of total

Ziri 295,450 17%

Bromy 334,683 19%

Fogs 323,217 18%

Siro 215,494 12%

Zhongshan 598,896 34%

7.70

2.78

2.73

2.45

1.89

0 2 4 6 8 10

Ziri

Bromy

Fogs

Siro

Zhongshan

1

US $ i t t t ll id d +25% € 05/14 11/15


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US $ impact not at all considered: +25% vs. € 05/14 – 11/15

Source: ECB; ADMETAM

Cost advantage China is

eroded

1

C it tili ti i ll l t i i t d tl


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Žiri Siro Bromy Fogs Zhongshan

Production facilities

Max. capacity

in 2014

Produced

capacities in

2014

Capacity

utilization

Dir. Inj1 line.

Cem.1 line

Cemented1 line

Cemented2 lines

Cemented2 lines

Cemented2 lines

429 326

235 143

54.8% 43.8%

111

6

5.7%

522

344

65.9%

749

317

42.4%

922

464

50.3%

in k pairs Downhill1 line

317

118

37.1%

• All Alpina Production Facilities are not running at high utilization

• Siro has been mainly used to produce HFG and uppers in 2014, only a minor quantity of Trekking shoes

Capacity utilisation in all plants inappropriate and costly

2 1 1 1-2 1 11Production shifts

1) Max. capacity calculation is based on currently available technology with 2 shifts, 8 hours working day and a 6 working days a week, with estimated 48 production weeks in a year

2) 11 hours shift with a 7 days working week

1)

Source: Alpina Management; ADMETAM

2)

1

C t l d ti f d Zh h t f k t


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Current lead-time for goods ex Zhongshan out of market

Alpina d.o.o,

Žiri, Slovenia Alpina FOGS d.d.,

Sarajevo, BiH

Zhongshan Alpina Footwear Ltd,

Zhongshan, China

Source: ADMETAM; Interview Alpina

Transport in China 1 dayTerminal handling in China 3 days

Sea freight to Europe 28 days

Terminal handling in Europe 3 days

Transport to Ziri 2 days

Transport to Ziri 1-2 days

The future footprint will reduce the time to market by 5 weeks

Total lead time

37 days!

1

Dramatic decrease of investment in production equipment


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FOGS BiH BROMYBiH

KitajskaCHN

Ziri SLO Siro Ro

2.55

2.17

0.86

0.75

Dramatic decrease of investment in production equipment

Sources: Alpina financial data, ADMETAM

0

1

1

2

2

3

3

Purchasing in Mil. EUR

Alpina had invested continuously and with increasing proportion in the production

equipment since 1960. Beginning of 2000 the investment activity has declined rapidly.

Tangible assets Book Value in Mil.EUR

No

data

Ageing infrastructure

1

Business strategies to be determined on target positioning


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Clear and market oriented positioning essential to determine strategic directions

Price/value perceived

Manufactory/

Selected

(Niche)

Brand

business

(Image)

Industrial

supplier

(Cost leader)

Vertical

retailer

(Volume)

Success factors

Manufactory/

Handcraft (Nishe)

Brand business

(Image)

Industrial supplier (Cost leader)

Vertical vendor (Volume)

• Brand management/merchandising

• Focus style/ CI/ PR• CRM/ service• Internationalisation• Market segmentation• Flexibility/ quality• Product innovation

• Supply Chain Excellence• Market penetration

• Distribution/ own stores

• Retail competence

• Width of product range/collection cycle

• Marketing/ advertising

• Process excellence/process innovation

• Factory selection

• Logistics/infrastructure

• Cost management

• Sourcing

• Technical competence• Individuality/ productquality/ limited product

offer

• Regional awareness

• Flexibility in production

• Direct customer relation/service orientation

Potential direction

Brand

strength

Business strategies to be determined on target positioning

Cross C

Down H

own

sourced

Trekking

3rdparty

production?

ALPINA?

Iris

Source: ADMETAM

1

Transparency and control over subsidiaries is required

http://www.fashionstores24.de/wp-content/uploads/2013/08/tamaris-logo.jpghttp://www.fashionstores24.de/wp-content/uploads/2013/08/tamaris-logo.jpg


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Transparency and control over subsidiaries is required

ALPINA

Group

Alpina

ŽiriA-

Prod

Alpina

Bromy

Alpina

BH

Alpina

FOGS

Alpina

CRO

Alpina

SRB

Alpina

CH

Alpina

SIRO

Alpina

Sport

Corp.

Alpina

UA

P&L and

BS SA/A M M M M M M M M M M M

Sales

VolumeM D D D D M M M M

Production

volumeM M M M M

Controlling

reportQ

Budget/

Forecast A A A A A A A A

• Management is focused on volume of production and sales which is followed on daily basis. However, there are limited orno KPIs to set up standards neither in production nor in sales (e.g. “In store” performance indicators or OEE productionefficiency, etc)

• Controlling function is established for retail subsidiaries and Alpina d.o.o. but no formal controlling activities are beingperformed over the production sites

• Statutory auditors are chosen by the local management therefore Alpina should increase control over this process

• Management prepares top-down budget for Alpina d.o.o. while other entities have simplified budgeting procedure withoutreal importance

Sources: Alpina Finance, ADMETAM

1

Agenda


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Agenda

Executive summary

Initial situation



Plan 2016-2020

Implementation

Strategic restructuring/ re-alignment based on holistic approach


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HR organisation

development/mbo

infra-

structure

resources,systems …

finance/

controlling

profit/ cash flow/financing

processes plant network

markets/

customerstechnology/

applications

• Design of blueprint: started• Comprehensive restructuring

plan: ready

Source: ADMETAM

• Create sustainable vision• Define credible roadmap• Exit compulsory settlement

• Prepare for future investor(s)

Aim Years of crisis and losses

-

vision

objectives

values

roles/responsibility/

leadership

business model/ value chain

strategy/

positioningcompetition

New ALPINA with sustainable

financials & business model

• Assure liquidity for supply & investment• Secure customer & supplier base• Create new business & future sales• Align core competences

Strategy

• Consolidate/ close plants• Reduce functional costs• Improve purchasing• Increase overall productivity• Optimise core processes

Operations

• Implement new organisation• Upgrade managerial skills• Improve measurement/ reporting• Enforce stronger leadership

Management

• Corporate presentation finalised• Brand positioning active• Sales recovery activities: started• Internationalisation started

• Plant configuration: finalised• Cost & productivity initiatives:started

• Group wide reorganisationrunning

• New Management Board:CEO & CFO

• New communicationstructure established

• New calculation modelrunning

Strategic restructuring/ re alignment based on holistic approach

2

Ensure strategic fit positioning & product/ market development


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Sport/ Wellness

Casual/ City

Day/ Business

Evening

LowMedium

High

Couture/ Events

Function

Price

Style

DiscountMass

Masstige

Customer/ Markets Brand/ Products Distribution Strategic framework

• Future positioning

clarified?• Appropriate competenceset?

• Business modeladequate?

• Objectives clear?

• Understanding of market

potential requirements?• Clear priorities regardinggrowth potential?

• Competitive position?• How is marketdevelopment supported?

• Categories reflect

positioning?• Contribution marginsecured?

• Order process own retail?• Product marketingadequate?

• Revenues growth as pre-

requisite for sustainabledevelopment

• Customers segmentation

• Understand expectationsand provide appropriatecompetence set for target

groups

• Prioritise marketdevelopment and invest

• Define market potential and

requirements• Set clear priorities regardinggrowth potential

• Define brand and productportfolio

• Support development

• Provide appropriate distri-

bution structure/ coverage• Clarify and develop role ofown retail

• Develop key clients/ keyaccounting

• Provide sales standards

• Provide strategic framework

for realignment• Make vision and objectivesmeasurable

• Key strategic projects• Develop 5 year plan andtranslate into action/ budget

S t r a t e g i c i m p o r t a n c e Own

retail (allformats)

Own

retail(store)

Multi-

brand

Fran-

chising

Sales potentialH

L

H

L

A L P I N A s t r a t e g i c f r a m e

Vision

Strategic objectives

Strategies

Key strategic projects

5-year plan (assumptions)

2015 - 2020

Budgets/ Forecasts

Annual activity plan

Brand

Product

Price

Customer

segmentation

Functional

requirements

g p g p p

Source: ADMETAM

2

Key drivers of ALPINA strategic development already defined


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Functional Design

Product

Customers

Distribution

Marketing

Operations

Ensure “modernity and function” by on-going design collaborations

Shoes and bags as platform, extend to new categories if appropriate

Customer centric organisation and business development

Internationalise via new doors and co-operations, new technology

Integrated multi-channel brand marketing, specific product marketing

European footprint/ technical knowledge, integrated/ efficient processes

Key drivers of strategic development

y g p y

2

New organisation market-/result driven - establish profit centres


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Full responsibility for

• Product development

• Turnover/ sales

• Gross profit/ margin• Cost of company/

division

Full responsibility for

• Product quality

• On-time-delivery• Product cost etc.)

• Overhead cost

Sales

channels

Profit

centres

Costcentres

Customers/ Consumers

Product Development

Sport

Operations

Marketing

Products Services

Demand/ feedback

Corporate services (Finance, Controlling, HR etc.)

Profit centre

Sport

Distributors Own shops Outlets

Profit centre

ALLDAY

E-commerce

Profit centre

Retail

Role model for market orientation

Product Development

ALLDAY

Retailers A

RetailersSport

New organisation market /result driven establish profit centres

Sources: ADMETAM

2

Organisational structure to reflect ALPINA core processes


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Product

DevelopmentStyle

Material

Research

Pattern

Maker

Prototyping/

Sa.Collection

Supply Chain/

Operations Industrialisation PurchasingProduction

Management

Quality

Management Logistics

SupportProcesses

Product

Development

Process Owne

Retail

Sales ChannelRetail Strategy/

PlanningBuying

Merchan-

disingOperation

Store

Controlling

Sport/ ALLDAY

Sales ChannelsSales strategy/

Planning

Network

Development

Customer

Service

Order

Processing

Sales

Controlling

(Licence

Management)

Licence

Planning

Concept

Development

Licence

Agreement

Licence

Management

Licence

Controlling

PR/ Brand

ManagementBrand

Management Advertising Promotion Fairs

Public

Relations

g p

Higher effectiveness through clear responsibility and process ownership

Source: ADMETAM

Retail

Director

Technical

Director

CEO

Technical

Director

Commercial

Director

CFO

Commercial

Director

2

New organisation with 2nd-tier management as discussed


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B. Vtič Vraničar

CEO

Management Board

HR/

Legal

Accounting/

Tax/ Consolid.

IT

CorporateServices

Iztok Malačič

Strategy/

Controlling

Subsidiaries

Iztok Malačič

USA

Finance/

Risk M.

g g

B&H BROMY

Source: ADMETAM

Quality

Sourcing

Prod. Planning

Logistics

Product

development

Sport

Sales Mgmt./

Cust. Service

Product

marketing

Alpina USA

Sport

Product

development

ALLDAY

Area Managers

Product

Marketing

Customer

Service

Retail

Mitja Bežan

Buying

Visual/

E-Commerce

Operations/

CRM/ Stores

Regional

Mngmt.SI/B&H

Stores

B&H, FOGS

Regional

Mngmt.CR/ SRB

Stores

Commercial

TBD

Iztok Malačič

CFO

Product

development

Production

SI/ B&H

Marketing/

Communic./PR

Supply Chain/Operations

TBD

2

Agenda


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Executive summary

Initial situation



Plan 2016-2020

Implementation

Approach: re-alignment of Alpina Group mainly in two phases


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Retail improvement

Product portfolio/

collection development

Market orient. pricing/margin improvement

Sales/ wholesale/

marketing/ services

Strategy/ structure/

reorganisation

Overhead cost

Supply chain/ footprint/

productivity/ logistics

1

2

3

4

5

8

Efficiency programme

Q IV

20152016

By 201

Phase I: “Sustainability” Phase II: “Value Creation”

Targets/ results:

Restructure retail network

Sell outdated stocks

Quick wins in productions

Top line growth/ customer base

Market penetration

Reduce overhead cost/ generatecash

Improve gross margins

Targets/ results:

Sport development (package)

Offer „total look” in fashion segment

Strong position of brand

Restructure production network to

capacity requirement (make or buy)Stable capital structure

Minimum 15% EBITDA

Increasing corporate value

Overlapping

phases

7

Sourcing/ organisation/

ITT1)6

Strengthen existing business

Restructure operation holistically

Enterprise value

through growth of sales/ margin

1) ITT = Invitation To Tender

Sources: Alpina Management; ADMETAM

Working capital

reduction9

2

Comprehensive improvement program in implementation


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Achieved

in

FYE

T EUR

1) Incl. effects from closures in 2015 (+40) and remaining closures in 2016 (+525), closure of Serbia (+100) in 2017

2) Working capital doesn’t have influence on EBITDA and is not included in the total EBITDA effect 6,620

Total

Sources: Alpina Management and Finance; ADMETAM

Product portfolio/

collection development1

Market orient. pricing/

margin improvement2

Sales/ wholesale/

marketing/ services3

Retail improvement4

Supply chain/ footprint/

productivity/ logistics5

Overhead costs8


reorganisation7

Sourcing/ organisation/

ITT6

Working capital

reduction2)9

Module Measures EBITDA effect

• Reduction of ALLDAY collection develop. costs due to more focused collection• Increased revenues based on extension of the existing product portfolio (i.e.

bags, scarves, small leather goods etc.), esp. in own Retail

• Increase manufacturer margin in calculation process (especially ALLDAY) dueto better collection etc. by 2-3%, starting with AW 16 collection

• New clients/ distributors expected in Japan, China/ SEA• Build up clients in USA and hand over to new sales person in Alpina USA

• Improve store portfolio by closure of unprofitable units• Improved sell through increased traffic and conversion rate, improvement of open-

to-buy process, implementation of merchandising concept; start with SS16

• Closing down/ optimizing own existing production network• Decrease logistics costs through invitation to tender for local logistics in Žiri

and other locations

• Measures by ITT of raw material (especially leather) across the Group• Savings on tooling by 160 TEuro through process improvement, additional

individual measures for optimising other material costs and services

• Decrease general overhead headcount considering future needs of group aswell as core competences

• Reduction of overheads through detailed plan as presented with all measuresquantified

• Old stock of about 400,000 pair of shoes quantified, cooperation with MFFashion and other wholesalers in progress

• New footprint will shorten cycle time for Sports and reduce inventory

140+250 2017

500 2017

200 2017

6651)+200 2017

2,200+250 2017

645+270 2017

1,000 2017

300 2017

200+40 2) 2016/17

2

ALPINA to increase sales and marketing – re-focus internationally


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ALLDAYSPORT

A. Focus on European development incl. ex-clientsand new, build directly operating organisation

B. Develop American market via local Area Managerusing existing US subsidiary

C. Develop Asian market by sales agents andrelationships to relevant organisations

D. Middle East with special product (i.e. sandals)

Target 2020:Minimum 125 doors

wholesale

Share outside Europe>20%

Own stores in somelocations to supportwholesale

1. Ensure current growth in existing network,focus on all product segments (esp. trekking)

2. Develop market oriented sales organisationrather than product focus only

3. Start development of new distributors in keymarkets in 2016

4. Expand to underdeveloped markets

Target 2020:

Top distributors in allrelevant markets

Segmentation ofkey customers(accounts)and general customerbase

2

ALPINA product development/ sales and marketing more focused


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ALLDAY AW16 Collection Plan by product groups

• More focused and more merchandisedcollection

• Taking into consideration ALPINA Retail needs

• Growth with Beyond Core category for brandawareness and gaining new customers

• Increase in average production order througha smaller collection

• Styles reduced by > 20%

Source: Alpina ALLDAY department and ADMETAM

3

Marketing Calendar

Area Marketing ALPINA d.o.o. ALLDAY ALPINA d.o.o. SPORT

January 2016

TRADE FAIRS 16. - 19.1. Riva del Garda, Italy,

Collection AW 16/17

24.-27.1. ISPO, Munich, collection

16/17

PR/EVENTSsend PR results Alpina racing team to

customers

send PR material and images to

customers

MATERIAL/CONCEPTS

Define flagship products and

concept for photo shooting,

campaign AW 16/17, export and

retail

prepare lookbook AW 16/17,

deadline end of Jan16

INTERNET ACTIVITIESprepare new banners trekking 16 for

web site

news and results alpina racing team

SOCIAL MEDIA news and results alpina racing team

ADVERTISING

February 2016

Brand stretch − ALPINA Sports and ALLDAY to be intensified


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© ADMETAM

?

Already part of ALPINA portfolio

Realisation not certain (trademark issues)

1) Incl. caps, bands, hats and facemasks 2) Both thermal and non-thermal clothing

Cross

Country

Watches

Trekking

Shoes

Hiking

Shoes Snow

boarding- Hunting

- Military

- Work &

safety

Thermal clothing:

- Underwear

- Socks

- Caps- Gloves

Sunglasses

Overboots

Downhill

Socks

Headwear 1)

Body

care

products

HelmetsGoggles

Shoe

care

Grips

Tops

and

bottoms2)

Poles

?

?

Sport

Shoes &

Boots

Skis

Backpacks

Bindings

Ski cases

Boot

bags

Gloves

?

Drink

belts

Snow

boards

Brand stretch – ALPINA Sports

Watches

Eyewear

Bodycare

products

WatchesClothing

Travel

luggage

Shoes &

Boots

Shoe care

FoulardsInlay

soles

Socks Scarfs

BeltsHosiery

Hats Bags

Small leather goods

Men’s

Children’s

Women’s

3

Brand stretch – ALPINA ALLDAY

Building complementary product groups will enable sales channels and market penetration/ competitive strength

Consistent price calculation considering retail price positioning


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© ADMETAM

• Expected retail marks can vary from 2.5 to 2.8 timeslocal wholesale price4)

• Normal wholesale price determination process:

backwards based on achievable retail price in aspecific country

RemarksCurrent manufacture margin Alpina Žiri

Source: Alpina; ADMETAM 1) manufacture margin planned min. 30%, currently signif. below 2) different cost items by country e.g. landed costs, duties, customs costs etc.

3) average depends on country 4) Alpina - Europe 2.5 – 2.8

14%18%

9% 8%

18%

5%

12% 13% 12% 12%

0%

5%

10%

15%

20%

6 9 A 0 1

6 9 A 0 2

6 9 0 1 Z

6 2 3 1 1

6 2 9 8 1

6 7 4 9 1

6 7 5 2 1

6 9 3 1 1

6 9 3 1 2

6 9 3 8 2

Different manufacture

mark-ups with target

manufacture mark-up

of >30%1)

COGS Manufacture

marginEXW

price

Landed

costs2)Wholesaler/

Distributor

Margin

(if existing)

Local

wholesale

price

Retail

margin

Retail

price

10%3)x 2.5-2.84)

3

Re-organization of ALPINA retail business with clear focus


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Visual

management

Internal supportnetwork

Clear buying

process

Management

tools (KPI’s)

Customer

service

Development

of personnel

Re-organization

Program

Targets/ Results

• Review/ optimise portfolio/ eliminateloss making units

• Retail Headquarter more focused onthe business side, store support

• Clear goals to be shared, set of KPI’scontinuously measured and monitored

• Motivated staff

• Strengthened portfolio

• Higher Sales and lower buying

• Improvement of sell thru

• Improved margins/ profitability

• Sustainability/ ability to invest

3

Retail network to be optimised from 104 to 76 stores


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1

2

1) Position of BIH Retail director to be merged with the position of SLO Retail director 2) Position of SRB Retail director to be merged with the position of CRO Retail director

3) Retail Serbia envisaged to be sold

Source: Alpina; ADMETAM

Outlet

E-shop

SLO

3

Yes

CRO

1

Yes

BIH1)

1

Planned

SRB2)

0

/

Existing retail network and organisation consisting of four markets and four retail directors

Future retail network and organisation includes merger of SLO and BIH, CRO and SRB

Retail directors

SLO BIHRetail directors

Stores

Outlet

E-shop

35

1

Yes

Appoint key store managers to raise performance levels & KPI’s retail

12

0

Planned

CRO SRB3)

26

1

Yes

(1)

1

/

Stores 44 32 14 9

3


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Alpina’s future production footprint consolidates into Sport & ALLDAY


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© ADMETAM

Alpina d.o.o,

Žiri, Slovenia

Alpina Bromy d.o.o,

Tesanj, BiH

Alpina FOGS d.d.,

Sarajevo, BiH

Source: ADMETAM; Interview Alpina

Sport: assembly,

Prototyping: Sport& ALLDAY

Sport: Preparation,

assembly

ALLDAY: preparation,

assemblySports: assembly +

dir. injection

New potential production footprint

• Production facilities for Sports(Fogs) and ALLDAY (Bromy) with

high efficiency

• Maintain final assembly of Sports inŽiri and ensure retention oftechnological knowledge and

expertise in that product group

• Shift ALLDAY production to Bromyin order to clearly separate divisions

1)

1) Assembling of dir. Injected Trekking shoes in Bromy until complete split of Alpina to Sport & Fashion divisions in the M&A process

Technical

competence

centre Žiri

3

Comparison production capacities & sales plan, still “enough room”


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© ADMETAM

0

200.000

400.000

600.000

800.000

Cemented

DH

Max. capacity fut. Footprint cemented

Max. capacity fut. Footprint DH

0

200.000

400.000

600.000

800.000

Direct injection

Cemented

Max. capacity fut. FootprintcementedMax. capacity fut. Footprint dir.In ected

0

200.000

400.000

600.000

800.000

Cemented

Max. capacity fut. Footprint cemented

Future Footprint Sport (3 Y Plan)

Žiri Fogs Bromy

• Production capacity is sufficient to cover the planed quantities

• Capacity utilisation in Fogs and Bromy are expected to reach an acceptable level

• In Žiri significant overcapacity visible according to the future footprint (reaction investor?)

Future Footprint Fashion (3 Y Plan)


3

Timeline-footprint reorganisation – to be started immediately


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© ADMETAM

China

2016

Q2.

2017

Q3. Q4.. Q1. Q2. Q3. Q4. Q1. Q2. Q3.Q1.

Fogs

Žiri

Bromy

1Siro

2

Shift high end TR to Žiriand move HFG to Fogs

Closing of Siro

Footprint reorganisation

Action steps:

1

2

3

4

Shift TR+XC S to Fogs

Shift TR (dir. Inj.) toBromy

Shift XC S to Fogs

1Shift ALLDAY (dir. Inj.)

to Bromy

Phase 1

Phase 2

Phase 3

Phase 4


2018

2 Shift ALLDAY to Bromy

2

1 3

1st April 2016

100% Fashion

X

X

X

4

Sport

ALLDAY

3

31st Dec 2016

Direct Injection

Key procurement levers at ALPINA to be prioritised and implemented


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© ADMETAM

Consolidation of raw materials/ tools

Invitation to tender/ negotiations of bundled

material groups

Annual purchases1):

• Leather 2) ( € 4.5 Mio)

• Soles ( € 3.1 Mio)

• Synthetic material ( € 1.9 Mio)

• Accessories ( € 1.7 Mio)

Possible cost reductions exceedeing € 0.5 Mio

1) Based on centralised purchases in Žiri in 2014 2) Including base leathers for both ALLDAY and Sport

Implementation of supplier pool/

integrated supplier management

Reorganisation of procurement (Group-

wide co-ordination, processes, …)

Procurement systems (Material groups-/supplier/ risk-control)

Improvement of procurement methods/

tools (Invitation to tender/ synchronisation/…)

Further conceptual developmentsOperational procurement optimisation

Supplier

selection

Material group

strategy

Supplier-

strategy

Supplier-

evaluation Segment-Lieferanten

Haupt-

Lieferanten

Aufbau-

Lieferanten

Test-Lieferanten

Abbau-Lieferanten

3

• Packaging ( € 0.7 Mio)

Turnaround dependent on implementation of target-organisation


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Develop blue print organisation Refine organisational structureDetermine capacities and

timeframe

Core-business

Non core-business

Division

Function

...

...

Division

Function

EliminationOptimisation

Division 1

...

...

...

Division 2

...

...

...

2015 2017

I II III

1

FTE

• Define processes/ divisionswhich are core business/

competences

• Assess necessity of corporatefunctions

• Clarify requirement foroutsourcing/ relocation

• Determine level of integration/define synergies

• What processes/ interfaces are to berestructured

• Depth and width of organisation to bedefined

• Which prerequisites need to beconsidered – cost structure/ location/social plan

• Establish group-wide responsibilitiesand communication

• Capacity of fully operating unit(quantitative/ qualitative)

• Benchmark individual processes

• Which tasks will be eliminated bywhen

• Which milestones/ deadlines are tobe considered

• Manage communication

n

n

n n

n

n

2016

IV

4

2

Re-alignment fundamental for securing profit & value creation


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© ADMETAM

Evaluate “make or buy” production/ logistics considering future strategy and risk profile

Reduce organisational complexity/ improve efficiency

Develop strategic framework Alpina incl. product/ market expansion

Build an effective (accountabilities) and efficient Group organisation

Focus on core competences and implement future concept

Realise cost saving/ profit improvement potential

Source: ADMETAM

4

Agenda


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© ADMETAM

Executive summary

Initial situation



Plan 2016-2020

Implementation

Achieve profitability and re-alignment to build sustainable future


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© ADMETAM

Extend implementation restructuringprogramme, streamline supply chain/ raisepurchasing potential, release capital (stock)

Provide final strategic direction/ agreebusiness strategy/ 5 y plan/ ensure p.b.t.

Develop new business structure/ organi-sation, market orientation/ business model

Establish core competences and marketoriented product development

Improve existing distribution prepare new;

improve retail action and transparency,start sales/ marketing initiatives

Stabilising existing client network andturnover

Monitor cash flow/ reducecapital in stock/ assets

Immediate actions/ quick wins(capex stop, termination of contracts,stop marketing)

Agree and implement restructuringprogramme

Re-organisation and comprehensive

cost reduction

Quality organisation and management

Strategic extension of product range,

complement brand/ product portfolio

Market expansion (also own stores);push raising quality of distribution,penetrate key regions

Product/ service innovations, E-comm.,investment in brand/ PR

Co-operation/ strategic alliances

Financial stabilisation/ improvementequity ratio, transparency & control

Stop loss and

cash burn

Effective structure

Positive EBT

Growth

ROCE

Results Results Results

Reduce cost structure –release capital

Build organisational strength

and sustainability

Implement strategy −create value2016 2016 - 2017 2017 +

Over-

lapping

Operationally

achieved

Key questions:

• How to financially support restructuring?• When is right time to sell (2nd half 2016)?

Expansion MaturityStart-upDegene-

rationSaturation ………

… or …

Turnaround/

Expansion

Insol-

vency

Restructuring

necessary

Profit

Growth

Source: ADMETAM

4

Plan assumptions

Plan assumptions include current situation/realistic growth scenario


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© ADMETAM

p

Sales SPORT: Closer cooperation with existing and/or new distributors to regain lost market shares in themarkets with higher potential from AW17 onwards

ALLDAY: opening new markets through own company (US) and in cooperation with distributors (China, Asia); increase number of doors by 50% until 2020

Retail: increase sales per sqm by 45%, € 1.3 Mio additional revenues by 2020 through new store

openings; additional € 2.0 Mio through portfolio extension (bags, small leather goods, foulards etc.); closeloss making Serbian subsidiary in 2016 and outlet in CRO in 2018, open an outlet near Belgrade in 2017

Product/

Channel mix

Sport: build up trekking segment in own retail; develop new markets with specialised hunting/ army boots ALLDAY/ Retail: increase Price/Quality mix, more focused collection from AW16 onwards, grow with

Beyond Core (new customers)

Retail: Implement a complete merchandising concept/ optimize retail network/ close stores Retail: integrate purchased non-Alpina products into Alpina product portfolio

Gross Margin Margin positively affected by footprint optimisation, new calculation system and new markets (US, Asia) Margin for new products in line with the future positioning

Increase of gross margin in own retail by 9 percentage points in Croatia and 3 percentage points inSlovenia through better pricing and portfolio extension

Cost/

Infrastructure

Cost reduction according to improvement programme and timeframe considered Re-organisation in line with strategic and financial requirements to result in lower overheads Optimization of production facilities (2x Bosnia, Slovenia, China, Romania) to increase efficiency and

utilization; new footprint to be implemented by beginning of 2017

Marketing expenses to grow over time in line with sales 2% inflation rate considered, 3% of salaries increase, all other costs grow at inflation level

Capex/ Funding From 2017 onwards € 1 Mio. capex p.a. into development DH/XC/TR, € 2 Mio. capex for equipment group -wide p.a. Principal repayment included as per Financial Restructuring Plan; additional repayments to DUTB in 2017

(€ 2.5 Mio + € 0.6 Mio), repayment of loans to daughter companies in the amount of € 3.2 Mio Working capital funded by positive cash flow, sale of old stock and closed operations/stores Sale of old stock planned at € 2 Mio in 2016 (net effect € –1.25 Mio.); additional decrease of inventory in

the amount of € 1 Mio in 2017

4

Realistic sales increase to achieve sustainable profitability

Development by divisions


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© ADMETAM 4

Development by divisions

Development by regions

1) Without revenues for services Sources: ALPINA ALLDAY, Sport and Retail Sales, Controlling; ADMETAM

2015 2020

2015 2020

In Mil. €

In Mil. €

ALLDAY

Sport

Retail

TOTAL1)

10

28

21

59

18

30

23

71

3

8

11

25

100

0

2

59

5

10

12

25

122

1

4

71

Eastern Europe

Northern Europe

Western Europe

Southern Europe

America

China

Asia

Other

TOTAL1)

Key Measures

• Concentrate on existinggeographic areas with Sport

• Improve current client basisboth in Sport and ALLDAY

• Development of US andChina/ Asia using

partnerships (ALLDAY)• Grow in own retail using

existing, optimised structure

• Consolidation of existing retailnetwork

• Opening of outlet in SRB in2017, 1 store in 2018 and 1 in

2019 and 1 in 2020

• Focus on existing Sportcustomer base

• Growth with XC and DH(external

customers) and TR (own

retail)

• One quarter of ALLDAYgrowth through new

customers and new markets

Key Measures

10

28

2118

30

23

ALLDAY Sport Retail

2015 2020

3

811

25

10

0,1 0,32

5

1012

25

12

2 14

2015 2020

Measurable results of the operational restructuring programme

Key Assumptions cost initiatives

C t f i ti


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© ADMETAM 4

Key Assumptions – cost initiatives

Initiative P&L category Main levers 2016

T €2017

T €2018

T €2019

T €2020

T €

Product portfolio/


COGS Reduction of collection development costs for AW16 and SS17 Stronger sales with portfolio extension (bags, small leather

goods), esp. in own retail

120 140 160 180 200

20 250 330 500 760

Market oriented pricing COGS New calculation system starting with AW16, resulting withincreased margin of wholesale prices, esp. with ALLDAY

250 500 500 500 500

Sales/ wholesale/

marketing/ services

COGS New clients in US and Asia starting with AW16, resulting inadditional sales and margin impact

100 200 200 200 200

Retail structure/

improvement

OPEX;

COGS

Improve store portfolio through closure of unprofitable stores Improve sell through by increased traffic and conversion rate,

improve open-to-buy process, set up a merchandising concept

85

(625)2)100

(640) 2)100

(640) 2)100

(640) 2)100

(640) 2)

100 200 200 200 200

Supply Chain/

footprint/ productivity/

logistics

COGS Closure of plants in China and Romania to consolidate andreduce unused capacities and related costs

New logistics centre in BIH

550 2,200 2,200 2,200 2,200

100 250 250 250 250

Sourcing/

organisation/ ITT

COGS ITT for raw materials across the Group (esp. leather) Insourcing of tooling and other individual measures for

reducing purchase costs of other materials

75 645 645 645 645

140 270 270 270 270


organisation

OPEX Reorganisation of indirect functions, focus on Žiri (prototyping,logistics)

500 1,000 1,000 1,000 1,000

Overhead cost/controlling/ cash

OPEX Based on detailed overheads reduction programme by costtype; strongly related to reorganisation

150 300 300 300 300

Working capital 1) Sale of old stock; reduction of cycle time with new footprint 100 240 240 240 240

Total EBITDA effect 2,190 6,055 6,155 6,345 6,625

1) No effect on EBITDA 2) Total annual EBITDA effect (665T €) incl. effect from closures in 2015 (40 T €), closures in 2016 included in original budget (525 T €) and closure ofSerbia (85 T € in 2016, FYE 100 T €) 3) € 2.4 Mil in 2016 and additional € 1.1 Mil in 2017 (without severance payments in China) Source: Alpina; ADMETAM

Cost of reorganisation:

Total: € 6.3 MilCash relevant: € 3.5 Mil. 3)

Turnaround – programme focuses especially on cost reduction


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© ADMETAM

2015 2016 2017 2018 2019 2020

Forecast Plan Plan Plan Plan Plan

Total operating income 62.1 101% 58.2 100% 60.2 100% 64.3 100% 67.7 100% 72.3 100%

Net sales 61.6 100% 58.2 100% 60.2 100% 64.3 100% 67.7 100% 72.3 100%

COGS -38.3 -62% -33.8 -58% -32.3 -54% -34.6 -54% -36.4 -54% -38.9 -54%

Gross margin 23.8 39% 24.4 42% 27.9 46% 29.7 46% 31.3 46% 33.5 46%

GM% 39% 42% 46% 46% 46% 46%

OPEX -21.3 -35% -19.0 -33% -17.8 -30% -18.7 -29% -19.7 -29% -20.8 -29%

Operating EBITDA 2.6 4% 5.4 9% 10.1 17% 11.0 17% 11.6 17% 12.7 18%

Extraordinary/ Restructuring items -0.1 0% -1.8 -3% -2.1 -3% 0.0 0% 0.0 0% 0.0 0%

EBITDA 2.5 4% 3.6 6% 8.0 13% 11.0 17% 11.6 17% 12.7 18%

EBITDA margin 4% 6% 13% 17% 17% 18%

Depreciation -1.7 -3% -1.7 -3% -1.7 -3% -1.8 -3% -1.9 -3% -2.0 -3%

EBIT 0.8 1% 1.9 3% 6.3 10% 9.2 14% 9.7 14% 10.7 15%

Net financial result -1.6 -3% -1.8 -3% -1.3 -2% -1.0 -2% -0.9 -1% -0.8 -1%

Other result 0.0 0% 0.0 0% 0.0 0% 0.0 0% 0.0 0% 0.0 0%

EBT -0.8 -1% 0.1 0% 5.0 8% 8.1 13% 8.8 13% 9.9 14%

Tax 0.0 0% -0.1 0% -0.9 -1% -1.4 -2% -1.5 -2% -1.7 -2%

Net profit -0.8 -1% -0.3 -1% 4.2 7% 6.7 10% 7.3 11% 8.2 11%

Impact of improvements -0.1 -1.8 3.9 6.1 6.2 6.5

4

Alpina group P&L (in Mil. €)

1) Incl. minority interest for the period 2017-2020 2) Shown as net effect including improvements and restructuring costs


1)

2)

Development of Capital structure – debt level can be reduced


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© ADMETAM 4

Capital structure Alpina group (in Mil. €)

Debt

Equity position strengthens after the deterioration in 2014 and 2015

on the account of strong operational performance

Debt can be reduced to more moderate levels

Equity


7

-10

0.9

5

9

16

23

31

2013 ACT

2014 ACT

2015Forecast

2016Plan

2017Plan

2018Plan

2019Plan

2020Plan

41 42

32

26

2119

1613

2013 ACT

2014 ACT

2015Forecast

2016Plan

2017Plan

2018Plan

2019Plan

2020Plan

Solid capital structure and internal cash flow as key points


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© ADMETAM 4

Inventory

Debt/EBITDA ratio

Working capital

Cash flow from operations

Alpina

Group

Inventory as

% of sales

NWC as % of sales

Debt/EBITDAratio

T EUR

36%

27%

2015 F 2020 Plan

26%

23%

2015 F 2020 Plan

12.6x

1.0x

2015 F 2020 Plan

-423

9,929

2015 F 2020 Plan


Development of cash flow 2016 – 20 proves strengthening of FCF


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© ADMETAM 5

Alpina group cashflow (in Mil. €)


2015 2016 2017 2018 2019 2020

Forecast Plan Plan Plan Plan Plan

Operating Activities

Profit for the period -0.8 -0.30 4.2 6.7 7.3 8.2

Add Back Non-Cash Items 1.2 1.9 2.9 2.0 2.1 2.2

Add Back Interest Costs 1.6 1.9 1.3 1.0 0.9 0.8

Working Capital Effects -2.2 0.6 0.2 -0.5 -1.0 -1.3

Change in other assets 0.0 0.0 0.9 0.4 0.0 0.0

Change in other liabilities -0.2 0.0 0.0 0.0 0.0 0.0

Operating cash flow -0.4 4.2 9.3 9.7 9.3 9.9Investment/financing

Capex -0.4 -1.6 -3.0 -3.0 -3.0 -3.0

Financial (incl. Interests) 0.9 -3.1 -6.0 -3.1 -4.0 -4.3

Divestment & restructuring 0.0 0.4 0.0 0.0 0.0 0.0

Investment/financing cash flow 0.5 -4.3 -9.0 -6.1 -7.0 -7.3

Opening Cash 0.8 0.9 0.7 1.1 4.7 7.0

Net Cash flow 0.1 -0.2 0.4 3.6 2.4 2.6

Closing Cash 0.9 0.7 1.1 4.7 7.0 9.7

Early 2016 financial requirements to be covered by bridge finance

1st half 2016 end of 2016


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© ADMETAM

Financial

needs

3.8

mil. €

Funding requirements early 2016 as investment in working capital and restructuring programme.

Immediate re-payment through reduction of cost structure, margin improvement and sales of old stock.

Immediate start of restructuring fundamental to meet timelines: finance and savings

Restructuring

requirements

2.7

Mil. €

Working

capital

Alpina

d.o.o

3.8

Mil. €

Bridge

finance

1) Cash in in the amount of € 2 Mio on the account of sales of old stock planned for 2016Sources: Alpina Finance, ADMETAM

5

1.1

Mil. €

3.8

Mil. €

Re-payment

through

Stock sales1)/

savings

Agenda


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© ADMETAM

Executive summary

Initial situation



Plan 2016-2020

Implementation

ALPINA Group

Project organisation with clear and measurable targets

65 45 Mil EBITDA =


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© ADMETAM

• Gross Margin1) 2014: 37.9%• Gross Margin1) 2015: 38.7%

• ALPINA• ADMETAM

M1: Product portfolio/


M2: Market oriented

pricing/ margin improv.


ALPINA Group

ALPINA Group Target

• Gross Margin %: 46% by

internal measures and

through product

market offensive


M5: Supply Chain/

footprint/ working cap.

M3: Sales/ wholesale/

marketing/ services


M4: : Retail structure/

improvement


1) New gross margin calculation includes cost of direct materials, direct and hired labour and subcontracting services

Source: ADMETAM

M8: Overhead cost/

controlling/ cash



M6: Sourcing/

organisation/ ITT


M7: Strategy/ structure/

reorganisation

Clear Targets Detailed programme Project Organisation Responsibilities Control

“Ingredients”

2.67.6

22.4

65.4

Alpina EBITDA2014

Alpina EBITDAafter impr.

EBITDA (mEUR) EV (mEUR)

5 Mil EBITDA

25 Mil

enterprise

value

5

12

Business development ALPINA with clear timeline

Shift ALLDAY from FOGS to BROMY Adjust “indirect”production


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© ADMETAM

Source: ADMETAM

5

P r o d u c t i o n

H Q

R e t a i l

A L L D A Y

S p o r t

Implement all operational improvements in line with potential and return

Reorganisation/ consider the removal HQ from Žiri to Ljubljana/ merge with retail function

Close non profitable stores and sell properties as soon as possible

Implement retail operational discipline/ ensure adequate

store management/ buying and stock policy

Clean up all inventories and sell

surplus stock to generate cash1)

Define collection and price structure/ source product accordingly

Define collection and price structure/ source product accordingly

Define distribution strategy and

roll out plan

Clean up all inventories and sell

surplus stock to generate cash1)

Review entire distribution structure

and improve market penetration

Define appropriate marketing support

considering return on marketing

Ensure transparency across the business units and integration/ control of subsidiaries

2013OCT ‘15 NOV ‘15 DEC ‘15 JAN ‘16 FEB ‘16 MAR ‘16 APR ‘16 MAY ‘16 JUN ‘16 JUL ‘16

Shift ALLDAY from Žiri to BROMY

Close factory Romania/ insource volume

Review/ Close factory China/ insource volume

production

considering central

planning

requirements

start dates, footprint timeline page 38 1) Cash in from sales of old stock expected in the second half of 2016

Restructuring and re-alignment of ALPINA Group - summary

Operational and financial restructuring


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© ADMETAM

Improvement

programme 2016

(EBITDA)

Cash requirement(temporarily 2016)

Debt/equity swap2016

Product and market

development 2020

(EBITDA)

Jan Feb Mar Apr May Jun Jul Sep Dec 2017

> 6 Mil. Euro 3.8 Mil. Euro up to 4.5 Mil. Euro

Attend

MICAM/ Milan(ALLDAY)

Approval

Business plan

> 5 Mil. Euro

Operational and financial restructuring

e x t e r n a l

i n t e r n a l

Shift Sport

prod. to

FOGS

Close

plant

Romania

2016

5

Approval

Reorganisation plan

Attend

ISPO

(SPORT)

Attend

ISPO

(SPORT)

(Evtl. attend

FFANY

New York(ALLDAY))

Attend

FFANY

New York(ALLDAY)

Approach new

international

customers(ALLDAY)

Close

plant

China

Move ALLDAY

production

Žiri to Bromy 1)

Move dir.

injection

to Bromy

Approach new

international

customers(ALLDAY)

Attend

MICAM/ Milan

(ALLDAY)

Reorganisationindirect headcount

1) Detailed footprint timeline to be found on page 38

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