Confidential

DEMONSTRATION PLAN

ENERG d.o.o.

Investments in operating assets

Koper, 24.01.2013

TABLE OF CONTENTS

1 The description of the undertaking 31.1 Introduction of the management team 31.2 Short company presentation 41.3 The vision of the company 51.4 The company's mission 52 KEY PRODUCTS / SERVICES OF THE COMPANY 62.1 Respresso Drink 62.2 Distribution of Champagne Louis Roederer 83 BENEFITS OF THE RESPRESSO FUNCTIONAL DRINK 84 THE COMPANY REFERENCES 95 DEFENITION OF THE PROJECT 96 EFFICIENCY ASSESSMENT OF THE PROJECT117 CAPITAL 118 THE MARKET ANALYSIS 129 THE COMPETITOR ANALYSIS 1310 CUSTOMER SEGMENTATION 1411 SALES 1511.1 Sales on domestic market 1511.2 Sales on foreign markets (on EU market and outside of EU) 1512 SUPPLIERS 1613 PLANED NEW JOBS 1714 STOCKS 1815 ACCOUNT RECEIVABLES 1916 TRADE PAYABLES CUSTOMERS 1917 THE FINANCIAL PART OF THE BISINESS PLAN 2017.1 The economics of the past business 2017.2 The projections of the future of business 2117.3 The projection of incomes 2117.3.1 Business incomes 2117.3.2 Financial incomes 2117.3.3 Extraordinary incomes 2117.4 The projections of expenses 2117.4.1 Operating expenses 2117.4.2 The financing expenses 2217.4.3 Extraordinary expanses 2217.5 The financing of a long-term investing for growth 2217.5.1 Total Investments costs 2217.5.2 The closing of financial structure 2217.5.3 The financing of counterfactual investing for growth 2217.6 The assessment of the profit and loss account, net cash-flow and balance sheet 2317.6.1 Profit 2317.6.2 Net cash-flow and projection of the profit and loss account2317.6.3 The projection of the Balance sheet 2317.7 The projection of the indicators 23

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1 THE DESCRIPTION OF UNDERTAKING

1.1 Introduction of the management team

Company Energ d.o.o. is having a single managing authority with managing director Klabjan Kostja. Company also have two procurators Klabjan Jordan and Klabjan Brigita. Mr. Klabjan Kostja is in charge of coordination and business part of company, the procurators are in charge of Financial, Technical and Logistic part of company.

Managing Director Klabjan Kostja has numerous experiences in import, selling and distribution of different premium beverages. He led successful company which was distributing premium wines, water, teas, distillates and cocktails additives (prestigious brands like AriZona, Fiji, Louis Roederer and Patron spirits.) Mrs.Marijana Stjepovič is employed in Energ d.o.o. In her previous career she worked with Interdisciplinary teams, where she got a wide range of experience in the field of Project Management. .

Name and Surname

The Birth Date

Employed in Energ d.o.o. since

Kostja Klabjan 05.05.1982 08.11.2012

Marijana Stjepovič 17.06.1974 01.11.2012

Company Energ d.o.o. is cooperating with external consultant at the developing of new projects. The most importnat are:

Tilen Žbona – design (An Academic painter, professor at Koper University and lecturer on Academy of Design in Ljubljana

Patricija Randl – Professional Associate on the Healthy Food segment, , Commerce ( she is working on Master with subject that covering comparing caffeine in cup of coffee and cup of Respresso Guarana)

Boris Kobej - Marketing (Assistant in Department of Psychology at the University of Koper and the author of tutorial for Koper university for management)

Vlado Roksandič - distribution and marketing of Respresso for Slovenia, Croatia, Serbia and Monte Negro (G3 long-time CEO, founder and co-owner of G3 in Serbia and Montenegro)

Enej Sirk – Financial Advisor

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1.2 Short Company Presentation

Presentation and History of the Company

Name of the company: ENERG d.o.o.Address: Ferrarska ulica 10Postal code and city: 6000 Koper - CapodistriaCity: KoperPhone: +386(0)5 6314132Mobile: +386(0)40 626 872Fax: +386(0)5 625 7131   e-mail: kostja.klabjan@respresso.siWEB: http://www.respresso.si/Owners: 30 % - Klabjan Jordan

70 % - Energ d.o.o.CEO: Klabjan KostjaRegistration number: 5663326000VAT number: SI80738192Activity code G46.190 - non-specialised

distribution sale of various products

The number of employees at 31.12. previous year

2 

The total turnover of the undertaking in the previous year EUR (2011)

16.266 

Account number: Name of the Bank: SI56 1010 0002 9021 910 BANKA KOPER d.d. SI56 3300 0000 5201 713 HYPO BANK d.d.   

Company Energ d.o.o. was established in the year 1992 with a purpose of importing and distributing of the premium beverage brands in high price range. During company development, we expand the offer, but very carefully choosing the selling

Kostja Klabjan The Head coordinator

Enej Sirk Tilen Žbona Boris Kobeja Marijana StjepovičPatricija Randl

Vlado Roksandič

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products. All items that were not competitive on market or not interesting were excluded immediately from the offer.

The Company is giving theirs customers the best products and service. We are building our visibility on the market with quick establishment of Distribution Net, providing promotional material, offering help at promotional activities and consultancy and also staff training.

Energ d.o.o. is very proud on our various ranges of selected wines, teas, distillates and cocktail mixes. Our regular clients are all big supermarket chains, restaurants, bars, clubs, also Exhibitions and Concert Organizers, Sport Events and a lot of other events that take place.

In the beginning of the year 2012 we started thinking about developing our own brand of drink, which would take place in range of Functional and healthy drink. After good thinking and Preliminary market analysis of EU market our expert team start working on development of the drink named Respresso. Respresso is based on the South African red tea Rooibos (Aspalathus linearis) and specially chosen herbs.The preparation of Respresso will be the same as coffee preparation in all cafe, hotels and restaurants; the only difference is different handle with non-return valve. We can offer six different mixtures with specific flavours : Rooibos Classic, Rooibos with Mint, Rooibos with Chamomile and pollen, Rooibos with Ginseng and Orange, Rooibos with Guarana and Acai berries(Euterpe oleracea) and finally Rooibos with Goji berries (Lycium barbarum). The advantage of Respresso drink is in extraordinary antioxidant potential, which is at least four times higher than those which it has green tea. Beside that all drinks are (with exception of Guarana and Acai ) completely free of caffeine and Tein.

Company Energ d.o.o. sees business opportunity in producing and distributing of Functional drink Respresso. Functional drink Respresso do not contain caffeine, what makes it healthier from coffee and tea, which has long-term negative effects on cardiovascular health.

1.3 The vision of the Company

The vision of Energ D.o.o. Company is to stay and develop leading position on the development field of functional drinks. We are present for several years on the Functional drinks segment and today we want to expand on the other field of Functional Food. In the next years company wants to substantiate the status as reliable and quality partner, which successfully follows quick development of the market and offering healthy and quality foodstuff.

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1.4 The company's mission

The company wants to take over the role of the main distributor of the functional drinks on the domestic and foreign markets.The high status will be maintained with quality service. Comparing with the competition we want to be visible also as generators of a new way of enjoying the tea.To our customer we will be partner, known from high quality, competitiveness and sales activities. To our employees we are offering a pleasant working environment with opportunity for personal and professional development.

2 KEY PRODUCTS / SERVICES OF THE COMPANY

Products and services of the company Energ d.o.o. are directed to the final customer to whom we want to present »smart« food. Those are traditional foodstuff (teas, water, etc...) enriched with natural active components (such as : herbal extracts, omega-3 essential fatty acids, vitamins, minerals ...) they are organically processed and free of artificial additives. With their functionality, they have long-term impact on the health and well-being of the users, while they not significantly exceeding the average price of non-functional products on the shelf.

At this time Company Energ d.o.o. is specialized on two market segments and those two are development of the Functional and healthy drink Respresso and distribution of Louis Roederer Champagne wines. Company sees the business opportunity mostly in development and distribution of the functional drink which has similar characteristic as coffee, with major difference that Respresso is also suitable for all the people who do not drink coffee from different reasons.

2.1 Respresso Drink

Company Energ d.o.o developed, under our own brand, functional drink Respresso, Base of every Respresso is mix of finely ground tips, granulated and powdered rooibos (Aspalathus linearis). It is creative drink, result of Slovenian knowledge and imagination. We can offer six different mixtures with specific flavours : Rooibos Classic, Rooibos with Mint, Rooibos with Chamomile and pollen, Rooibos with Ginseng and Orange, Rooibos with Guarana and Acai berries(Euterpe oleracea) and finally Rooibos with Goji berries (Lycium barbarum). For the sweetening we recommend Coconut sugar instead of white sugar or cane sugar his glycemic index (GI), is just 35.

Ingredients are carefully chosen and mostly biologically produced. According to the ,so far performed, preliminary measurements of antioxidative potential they expect that drinks are having a higher antioxidant value as green tea (by ORAC method).

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We prepare it like coffee in different ways: espresso, macchiato, cappuccino, bianco, latte, Americano and Americano iceFor every version, you can choose classical flavour as a basic mix of red tea rooibos or mix which contains chosen super food.

Rooibos tea is not tea from tea tree, but a unique red tea, which is produced from oxidized leaves of coniferous bush, legume family of plants from rooibos (africans, exiles. Róibos). Aspalathus linearis, grown in the Cederberg region of South Africa. Many scientists were investigating the beneficial effects of rooibos, so his beneficial effects on humans are known. Especially surprising its high antioxidant content, which they take effect against HIV-u (the virus causing AIDS), protect your brain from damage and prevent the formation of tumors. Also ranked, among the few plant species, that reduces the risk of developing cardiovascular disease. Complete absence of caffeine and low in tannins, these are still two important advantages in comparison with real tea and coffee.

Advantages of Respresso drink are: Tea is having the same way of preparation as a coffee Tea has added healthy foodstuff and we drink it as coffee 3/4 of World population do not drink coffee, all those people are potential

consumers of Respresso

Nutritionists recommend that we consume adequate amounts of the three basic types of nutrients: proteins, carbohydrates and fats. With Respresso you can give your body wellbeing because it allows daily intake of these nutrients, including vitamins and minerals, which are located in selected super food.

All Respresso drinks can be offered in various ways (espresso, macchiato, cappuccino, latte, bianco, americano and americano ice), as basic mix of rooibos or from the mixture that we add superfood. Beside basic flavour Classic we can offer you five more, very special flavours.

Classic

Basic flavour of all drinks is Classic which is combination of finely ground buds, granules and powder of South African red tea, rooibos, therefore, without supplements. It is characterized by intense red colour and delicate flavour, so it is not as bitter as the green and black tea.

The simplest drink, for someone the real one, is Respresso with Classic flavour. And the others prefer Classic with milk (macchiato, cappuccino, bianco and latte), long americano or cold americano ice.

Goji

Goji mix is made from finely ground buds, granules and powder of South African red rooibos tea and finely ground dried Lycium barbarum (type of Goji from Himalayas) .That plant is in past years known from media under English name goji .Goji has strong antioxidant impact. Goji adds to the delicate taste of rooibos more intense flavour, slightly bitter and slightly piquant notes of the white pepper. Because of intense flavour

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it is suitable for use with milk, prepared as cappuccino, latte or a bianco. Especially it is good sweetened with coconut sugar, which gave us in combination with milk a real gourmet treat

Guarana

Guarana is a mixture consisting of finely ground buds, granules and powder of South African red rooibos tea and finely ground dried beans of guarana.Due to the presence guaranin (caffeine) is an ideal alternative to energy drinks and of course a healthy substitute for coffee, because it contains as much caffeine as one cup of coffee.Guarana do not has characteristic taste, so therefor it is used for making energy drinks. We use finely ground beans of Guarani without extracts.

Mint

Mint mix consists finely ground buds, granules and powder of South African red rooibos tea and finely ground dried mint.

Mint calms, menthol in it gives us a fresh flavour. Mint aroma and flavour overcome even in combination with rooibos. It is real treat for all mint lovers. It is very tasty in all preparations with milk or without, even better with a little coconut sugar.

Ginseng with orange

Ginseng with orange is made up of finely ground buds, granules and powder of South African red rooibos tea and finely ground ginseng and dried orange peel

Ginseng calms, relaxes the body and mind, so we recommend it at bedtime. Interesting is the combination of ginseng roots with orange. Ginseng gives us spicy flavour and orange flavour of fresh citrus. Even though they cover rooibos flavour, the mixture of all three is very wonderful and very healthy

Chamomile with pollen

Chamomile with pollen is composed of finely ground buds, granules and powder of South African red rooibos tea and dried chamomile flowers and freshly ground dry pollen.

This mix is real vitamin bomb. Its delicate flavour is based on rooibos, to which we added a note of chamomile and honey pollen.

2.2 Distribution of Champagne Louis Roederer

Company is distributing different wines from the brand Champagne Louis Roederer.

3 BENEFITS OF THE FUNCTIONAL DRINK RESPRESSO

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Many scientists were investigating the beneficial effects of rooibos, so his beneficial effects on humans are known. Especially surprising it is high antioxidant content, which take effect against HIV (the virus causing AIDS), protect your brain from damage and prevent the formation of tumors. Also ranked, among the few plants species, that reduces the risk of developing cardiovascular disease. Complete absence of caffeine and low in tein, these are still two important advantages in comparison with real tea and coffee.

Needle-like rooibos leaves and also his tea contain important minerals. Calcium helps bones to be harder and helps the nervous system to function properly. Sodium allows to our kidneys correct regulation. Our muscles need magnesium, so a cup of this tea is very good after recreation.Rooibos also contains zinc, iron and vitamins A and E.

In none of the studies we did not find adverse effects, so we recommend it to all people of all ages and with different issues. For example, pregnant women and mothers who are breastfeeding, you can use tea from rooibos to replace the missing iron in the body in order to avoid unnecessary problems.Rooibos is useful for people under stress; it has a beneficial effect on the nervous system. It is recommended for people who experience a mild depression, have headaches or cannot sleep at night.Because of this information, we believe that our biologically produced rooibos is ideal substitute for coffee and all other non-alcoholic beverages.

Company Energ d.o.o. will start, in the next phase, with distribution of machines for Respresso functional drink preparation for a home use

4 THE COMPANY REFERENCES

Company Energ d.o.o. was, with developed functional drink Respresso, also nominated for The Best New functional drinks 2012 and for The Best New ingredient concept. There were the most important global producers of drinks like Nestle, Coca-Cola and Pepsi (The proof is attached to the tender applications).

Company Energ d.o.o. has already signed exclusive contracts for distribution on different geographical areas :

- 10 Degrees C Limited: Grate Brittan- Extreme – intl: Middle East- Wine culture limited – Coffee culture Limited: Hong Kong, Macao,

Singapore, Indonesia and China- Novi kolektiv d.o.o.: For Slovenia, Croatia , Serbia and Monte Negro

Functional drink Respresso you can find in following restaurants and hotels :- Hilton hotel in London- Hilton hotel in v Dubai- Well known sushi restaurant Nobu in London- Restaurant Robertos in Dubai

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- W Hotel Hong Kong (we are at the end of the closing the deal with one of the best designers hotels in the World)

5 DEFENITION OF THE PROJECT / INVESTMENT

Recently, the company Energ d.o.o. put all its time and available financial resources to the development activities, with the aim to put the functional drink Respresso as quickly as possible to the market. The company's goal is to launch the functional drink, that will have a beneficial effect on the human health and well-being.

Base of every Respresso drink is mixture of finely ground tips, granulated and powdered rooibos. To this classical base mix we can add super food, and get mix with a flavour. We prepare it on classical coffee machine that we can find in any bars, restaurants... all we need is special Respresso handle, that’s pressing the boiling water through mixture of rooibos. That is how all components are soaked with water and we get wanted flavour. We can offer it in differently shaped cups and glasses it all depends how we prepare it: Espresso, Macchiato, Cappuccino, Bianco ,Americano ,Latte or Americano ice.

Different ways how to make Respresso

By analogy of coffee preparation, Respresso is also available in various forms (espresso, macchiato, cappuccino, bianco, latte, Americano or Americano ice) and appropriate service (in special cups or glasses). Following the descriptions of individual preparation and serving.

EspressoEspresso is made from selected blends finely ground buds, granules and powders of aromatic red rooibos tea, if desired with different flavour, and it is the primary form of Respresso. Serve it in small cups. Because of similarities in the preparation and serving we recommended it to those who like to drink espresso coffee.

MacchiatoThat is espresso in which we add one spoon of foamy milk. We serve it in small cup and we recommend it to those who like caffee macchiato.

CappuccinoThat is espresso prepared with hot milk and steamed-milk foam. We serve it in small cup and we recommend it to those who like to drink cappuccino.

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BiancoThat is espresso prepared with hot milk and steamed-milk foam. We serve it in large cup and we recommend it to those who like to drink white coffee.

LatteThat is espresso prepared with cold and at the same time hot milk and steamed-milk foam on the top. We serve it in a glass and we recommend it to those who like to drink caffe latte.

AmericanoThat is a very long espresso, so therefore not so much concentrate. We serve it large cup. Werecommend it to those who like to drink long coffee.

Americano iceThat is Americano that means very long espresso, but cold. We serve it in a glass with ice. We recommend it to those who like to enjoy a bit of different tea, not hot, but pleasantly cold and refreshing.

The investment scope - Purchasing of machines for Respresso preparation (machines are

customized for Respresso preparation)- Purchase of packaging for the home use machines- Salaries of employees- Working capital (purchase of raw materials for the production of

Respresso)

Company Energ d.o.o. will start, in the next phase, with distribution of machines for Respresso functional drink preparation for a home use.

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Please find below the proforma values of investments:

INVESTMENT  Purchasing of machines for Respresso preparation (machines are customized for Respresso preparation) 4.000Salaries of employees 2.000Salaries of employees 23.000Working capital (purchase of raw materials for the production of Respresso)

6.000TOHETHER 35.000

6 EFFICIENCY ASSESSMENT OF THE PROJECT

Expected direct effects of the investment over the next four years after the investment are (projection from 2013 to 2015):- To increase the added per employee to 106 K in 2015- An increase in sales revenue from 38 K to 1.7 million in 2015- Increase in net profit from 3 K to 318 K in 2015- Increase the number of employees for 4 persons.

Datum of the beginning (investment)  April 2013Datum of the end (investment)  April 2014

7 CAPITAL

The company Energ d.o.o. was established with a minimum capital of € 8,763 in 1992. The company throughout the entire period of operation was not paid profit. The Allocation policy of profit is, already trough entire history of the company, based on reinvestment in the investment, development and working capital (stocks). This type of system will also continue in the future. The intention is to follow the innovations in the market and competition and technological improvement of the production structure.

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8 THE MARKET ANALYSIS

We know that consumption of hot drinks is growing globally, and today that is the world-known trend. The research conducted in 50 selected world countries found that the global value sales of hot drinks in 2002 globally reached 53.3 billion U.S. dollars, which is 1.3% more compared to the previous year. More noticeable was the increase in quantity sale since its value was 16.3% higher than the year before. Coffee remains the most important segment in the sale of hot drinks, which was as high as 58.3% of total sales. Nevertheless, mainly due to inquiry , price competition and growing interest in newer, healthier and decaffeinated beverages, such as fruit or herbal teas, coffee sales, globally speaking, declined by 8.1 percentage. In the tea segment the green tea is the one which is in the analysed period reached many as 21 percentage growth in sale. While, in the Asia-Pacific countries a well-established for many years, the green tea has reached a good "position" in the countries of Western Europe and North America, mainly because the people in these areas considered it as "accessory", which offers a modern, new and healthier lifestyles (World Market for Hot Drinks, 2004)

Country

Tea consumption in percentages

India 23,00%China 16,00%Russia 6,00%Grate Brittan 6,00%Japan 5,00%Turkey 5,00%Pakistan 4,00%USA 4,00%Iran 3,00%Egypt 3,00%Poland 1,00%Australia 0,40%The rest of the World 23,60%Together 100,00%

In the period between 1996 and the 1998, the countries with the highest tea consumption per capita were Ireland (3 kg pc), United Kingdom (2.5 kg pc), Turkey (2.1 kg pc) and Iran (1.5 kg pc). Despite the fact that India is the country that consumes, world speaking, absolute maximum of tea, its tea consumption per capita was in the same period only 0.7 kilograms. Consumption per capita in the United

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States was 0.3 kg, Australia and New Zealand 0.9 kg p.c. and 1.1 kilograms per capita per year.

Consumption of hot drinks was in 2003 on a global scale, the largest in Australia and European countries. Area of Eastern Europe with 121.7 litters of hot drinks per person put it on fourth place in the world. Strongly after these countries are countries of North America and Africa and eventually the rest of the world.

Analysis of the growth trends of hot beverages consumption in the same regions of the world, showed that the growth of tea consumption in the area of Western Europe in the analysed period stagnated. In countries in North, Central and South America and southern parts of Africa even reached negative growth. The only part of the world, which was in the analysed period, that reached a significant change in the growth of hot beverages consumption, was region of Eastern Europe.Also information from the research carried out by the drinks specialist - company Zenith International, showed that Eastern European markets are those who will probably show the most in the near future in the field of all kinds of drinks

Similarly, as is typical for the global market, was also in the European markets in last few years, possible to detect a change in the structure of tea sales. Most consumers of tea are in order to enjoy a healthier and tasty tea went from drinking black tea to drinking of herbal and fruit tea, the consumption of which, during the period from 1997 to 2002 increased by nearly 50 percentages. Only green tea consumption was in 2002, twenty times higher than in 1997 (Brits Tire of traditional tea - The world's surprising tea and coffee lovers Revealed, 2003).

It is also interesting that in most countries, which are mostly poor or rich, we can see the increasing interest and desire for healthy living and the associated to that is also very important the diet. For this reason, are understandable also information, showing that "Europeans" increasingly crave for various medicinal teas, which are clearly been dominated by green tea, whose characteristic is that it is hunter of free radicals that cause cancer and stroke , relieves sunburn, lowers blood pressure, strengthens the immune system, relieves overabundance of stomach acid, protects against formation of kidney stones, restores power after physical exertion, renews youthful skin, raising the concentration, calms the spirit, etc.. In the years from 2002 to 2007 based on the forecast, the European market of hot drinks should increase annually by 1.6 percent of average annual growth. From the picture below (Picture 3) it is clear that the value of the market in 2002 was 22.9 billion U.S. dollars, which is expected to increase by 2007 to the value of 24.8 billion U.S. dollars, which means the increase of 8.3 percent compared to 2002. Most probably in the future growth will depend on the growth and development of the Russian market with hot drinks (The Global Hot Drinks Market to 2007, 2003).

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9 THE COMPETITOR ANALYSIS

Droga d.d. with their own brand of tea named "1001 Flower" is the leading provider of teas on the Slovenian market, it is estimated that they have a 70 percent covered of supermarket, and 60 percent market share of the restaurants and hotels. Their biggest competitors in the retail shops are trademarks of Mercator, Spar and Tuš and the Croatian brand Podravka and Franck.

There is no direct substitute drink for the coffee with the same method of preparation. In the year 2009, was launched Red Espresso as the first Rooibos espresso. Because of the difficult way of preparing in the restaurants was probably the biggest reason that was not that well excepted on the global marketplace (it is only well known only on domestic market of South Africa).On the Italian market appearing some instant drinks such as coffee substitute. Since we are talking about of instant drink we just know that is not healthy. Besides that, these drinks are not working functionally to our body as they contain only aroma of Ginseng. Companies such as Starbucks offering drink to customers named Late Chai (tea to which they add the milk). The analogy of preparing the drink is not the same as the coffee, and beside that their way of preparing is appropriate as we know just for their chain Starbucks.

10 CUSTOMER SEGMENTATION

We took the global market (mass market) and segmented it into the typical groups of customers, to which we want to offer through their favourite sales channels the thing they need (and for now they do not get it anywhere).

The analyses showed us that women 27 + who live in the bigger city canters, are the main customers of the functional drink Respresso. For women 27 + it is characteristic that their values coincide perfectly with the values which the company Energ d.o.o offers with its line of functional drink Respresso (we get that facts from the analyses that were done by test presentation and sale of functional drink Respresso in London (Hilton Hotel).

At younger men the interest is lower, after 30 in this segment of customers we find the growing interest for "health care" products. Because of the awareness and level of education, this segment of customers is located primarily to the city centres.

Before mentioned the two segments of people can be joined in to the group of people who have active biorhythm, they are aware of the importance of proper diet and regular recreation for a healthy lifestyle. There is trends of communities of these

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people are identified by the activity they regularly visit (recreation, aerobics, fitness, marathon, dance ...)Children up to 15 years of age are customer segment which have the biggest impact of their parents. And if the parents belong to the groups of previously mentioned customers, then they indirectly influence on their children, who do not have enough knowledge and did not fully appreciate the importance of proper nutrition. Besides that, young people need a lot more quality and rich diet during their development in to an adult.

Company Energ d.o.o. sees the business opportunity also in fact that ¾ of population do not drink coffee. Among them are:

children, elderly, breastfeeding mothers pregnant women those who cannot enjoy the coffee because of health issues, those who do not drink coffee because they are aware of negative effects of

coffee, Those who don’t like coffee.

Functional drink Respresso can enjoy everyone.

11 SALES

Company Energ d.o.o. in the first years mostly took care of prestigious higher price range hotels by supplying them with premium brands of. The second selling channel was restaurants with high standards and their customers were ready to pay for quality and well known products. Now at this point we put the most energy and finances in to the promotion and public awareness campaign about our new product Functional drink Respresso. Company Energ d.o.o. will start, in the next phase, with distribution of machines for Respresso functional drink preparation for a home use.

11.1Sales on domestic market

Respresso is not just a tea. Respresso is drink which combine red tea rooibos with carefully chosen super food. The main element of Respresso is biologically grown South African red plant rooibos. Their needle leafs, dried on sun and then powdered, is the base for all Respresso drinks. Other components are carefully chosen super foods. We chose those which are making great taste with rooibos and also making great combination that is functional for our body.

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Company Energ d.o.o. do not have any agreement with customer in Slovenia, we work based on the un formal agreement. The key customers in Slovenia are:

- Kavarna Sputnik- Egoist- AS- Playa- Solist

11.2Sales on foreign markets (on EU market and outside of EU)

We already signed exclusive contracts for distribution of Respresso on several geographic areas:

- 10 Degrees C Limited: Great Brittan- Extreme – intl: Middle East- Wine culture limited – Coffee culture Limited: Hong Kong, Macao,

Singapore, Indonesia and China - Novi kolektiv d.o.o.: For Slovenia, Croatia, Serbia and Monte Negro

At the end of the year 2012, you could order our product at the following places :

- Hilton hotel in London- Recognized sushi restaurant NOBU in London - Hilton hotel in Dubai- Restaurant Robertos in Dubai- W Hotel Hong Kong (we are just about to close the deal with one of the

best designers hotels in the World) - Bohause Cafe- Intercontinental Hotel- Westin Hotel

The goal of the company Energ d.o.o. is that in the year 2013 get in to the most prestigious Hotel chains like: Hilton, Starwood, Intercontinental Group, Holliday Inn, Sheraton, Kempinski.

12 SUPPLIERS

Company Energ d.o.o. has signed long-term contracts with key suppliers on delivery of key components of functional drink Respresso. That means in advance clearly defined price of raw material, required quality, payment terms, ecological acceptability of raw materials, procurement of materials, the responsible person at the supplier office and delivery terms of the material. Choice of suppliers is based

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primarily on quality, reliability, professionalism and responsiveness. All suppliers of raw materials have to have the relevant EU organic certifications.

Company Energ d.o.o. requires suppliers provide regularly monitored production process, responsiveness and flexibility respecting of agreements and continuous to give us information on the latest production methods.

The main suppliers of raw materials are:- Prove Brazil - Dicaf Cafe- Rooibos ltd- Giuseppe Vechi

Company orders materials for the production of functional beverage Respresso in different geographical areas where are the best climatic conditions for their growth:- acai, gurana, orange - Brazil- goji berry, ginseng - China- Coconut sugar - Indonesia- Pollen - Slovenia- Chamomile and Mint - Serbia- Rooibos – South Africa

All the raw materials in dry ground form come to Slovenia and then pods of Respresso are filled in company Dicaf Cafe (Bra, Italy).

Coconut sugar is packed and filled in the Slovenia Company Troy d.o.o.

Purchasing Department provides:

- permanent and always on time supply of material,- The establishment and maintenance of the correct business relationships with suppliers,- To achieve the most favourable purchasing conditions and- reduction of unit costs of purchased materials

13 PLANED NEW JOBS

In the company Energ d.o.o. we have, at the moment, two employees. Those are Managing Director Mr. Klabjan Kostja and Office Manager Mrs. Marijana Stjepovič

The company plans to hire in 2013, an additional person who will be responsible for new product development and marketing of functional drink Respresso. The company plans to employ Master of biotech faculty or graduate agronomist.

In the following years, the company will employ according with planned increase in sell. In the table below you can find schedule of envisaged employment and level of education.

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Number of planed new employees

2011 2012 2013 2014 2015achieved planed planed planed planed

1. January           2. February           3. March           4. April           5. May           6. June   1     1 7. July           8. August           9. September   1 1   110. October       1  11. November          12. December          

A. TOGETHER NOUMBER OF EMPLOYEES ON THE 31.12.   2 3 4 6

B. AVARGE NUBER OF EMPLOYEES BASED ON THE ANUAL WORKING HOURS

  0,92 2,33 3,25 4,92

Planned number of new employees at a rate of professional education

2011 2012 2013 2014 2015status planed planed planed planed

I. Primary school           II. Lower Vocational (up to 2

years)          III. Lower Vocational (up to 3

years)          IV. Secondary school   1       V. High School         1VI. Higher Professional School          VII.University degree   1   1 1VII./2 Masters     1    VIII.PhD          

NUMBER OF THE EMPLOYEES ON THE 31.12.   2 3 4 6

14 STOCKS

Company Energ d.o.o. is aware that the stocks represent a significant part of their assets, so it is crucial to have control over store management. At Energ d.o.o. the average time of the stock is 45 days. The amount required to finance the stock will continually grow in the accordance with the increase in sales volume. Company will have at the end of 2015 for 108 thousand EUR stocks.

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When optimizing the size of company stocks we have to consider a various factors:- Reliability of suppliers- Location of suppliers- The cost of transport- Size of orders- Lifetime of ordered goods (expiration date )

The following table shows the amount of funds needed for financing stocks.

A. AVERAGE TIME OF STOCKS turnover in 2011 IN DAYS

  The turnover ratio of stocks in 2011  

B. AVERAGE TIME OF inventory turnover in 2012 to 2015 in the days

45 The turnover ratio of stocks in the years 2012 to 2015 8,11

Stock level and the amount required for the financing it in

EUR2011 2012 2013 2014 2015

achived planed planed planed planedA. STOCK status on the day 31.12.   34 12.488 76.871 108.077B. The required amount of resources to fund stock for one year

  4 1.540 9.477 13.325

15 ACCOUNT RECEIVABLES

Company Energ d.o.o. In 2012 began with the marketing of functional drink Respresso. In the first phase we were primarily focused on the traditional markets that a major consumer of tea (United Kingdom, Middle East, Asia). Sales on the domestic market are directly to restaurants, hotels, pubs and restaurants. With customers in the domestic market we do not have contracts, but we are operating with order forms. Sales on foreign markets are done through distributors with which were already signed contracts (contracts and other evidence you can find in the annex of the tender).The company is in the preparation of financial projections considered maximum length of time Accounts receivable turnover ratio, which will be to 120 days (domestic direct purchasers will pay in the relatively short periods, while distributors on foreign markets will continue to have payment deadline up to 120 days).

In the table below you can see status of receivables and the amount of funds needed for financing stocks.

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Balance of receivables and  the amount required for financing in

EUR2011 2012 2013 2014 2015

achived planed planed planed planedA. Balance of current  receivables on 31.12. 17.359 12.636 80.691 415.054 581.432

B. REQUIRED AMOUNT OF RESOURCES TO FINANCE RECEIVABLES IN YEAR

15.733 4.154 26.529 136.456 191.156

We already signed exclusive contracts for distribution of Respresso on several geographic areas:

- 10 Degreees C Limited: Great Brittan- Extreme – intl: Middle East- Wine culture limited – Coffee culture Limited: Hong Kong, Macao,

Singapore, Indonesia and China - Novi kolektiv d.o.o.: For Slovenia, Croatia, Serbia and Monte Negro

16 TRADE PAYABLES CUSTOMERS

Company Energ d.o.o. has signed long-term contracts with key suppliers on delivery of key components of functional drink Respresso. That means in advance clearly defined price of raw material, required quality, payment terms, ecological acceptability of raw materials, procurement of materials, the responsible person at the supplier office and delivery terms of the material. Choice of suppliers is based primarily on quality, reliability, professionalism and responsiveness. All suppliers of raw materials have to have the relevant EU organic certifications.

Company Energ d.o.o. requires suppliers provide regularly monitored production process, responsiveness and flexibility respecting of agreements and continuous to give us information on the latest production methods.

The main suppliers of raw materials are:- Prove Brazil - Dicaf Cafe- Rooibos ltd- Giuseppe Vechi

In the table below you can see balance of liabilities and the necessary amount funds to finance of supplies.

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Balance of liabilities and value of supplies financed from suppliers

in EUR

2011 2012 2013 2014 2015

achived planed planed planed planedA. STATE OF Current trade payables on 31.12. 3.677 703 36.439 215.157 306.468

B. VALUE OF SUPPLIES TO BE FINANCED BY SUPPLIERS IN YEAR 1.087 173 8.985 53.052 75.568

17 THE FINANCIAL PART OF THE BISINESS PLAN

17.1The economics of the past business

The volume and quality of assets is determined on the basis of the last balance sheet statements.

Volume of assets from 2010 to 2011 increased from € 226 thousand € to 229 thousand €.

Company has available long-term assets at the end of 2011 of € 83 thousand. Long-term assets of the company at the end of 2011 were representing in manufacturing equipment and machines.

Current assets in 2010 amounted to € 140 thousand and were increased in 2011 to € 146 thousand. The structure of current assets in 2011 was representing mostly in short-term investments and short-term receivables.

In the structure of liabilities is the largest share of total liabilities has at the end of 2011 represented the retained earnings from previous years as was € 181 thousand.

17.2The projections of the future of business

Following is an explanation of the projections of future business investments of the company realized through projections of revenues, expenses, and investment in the fixed and current assets and other cash flow.

17.3The projection of incomes

17.3.1 Business incomes

Company will in 2013 sold on the domestic market for around € 80 thousand €. The company is planning continual growth in operating revenues on both the domestic

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market and foreign markets. In 2013, the company actively start with the marketing of functional drink Respresso. In 2013, the company will increase revenue volume, especially with an increased sell on foreign markets (access to the hotels chains and restaurants). In 2015 the company sales volume will be increased to 1,7 million €.

17.3.2 Financial incomes

The company is not planning the realization of revenue from the financing.

17.3.3 Extraordinary incomes

The company is not planning extraordinary income

17.4 The projections of expenses

17.4.1 Operating expenses

Operating expenses in 2013 will be € 241 thousand. Operating expenses will increase in 2015 up to 1.4 million €. The majority of operating expenses are related to the costs of raw materials.We plan that the company Energ d.o.o. will have relatively low cost of services (we estimate they will be between 46 and 366 thousand €).

The company is planning to employ at the end of 2013 one person. The Company will according to management policy of the company in the initial period will pay the statutory minimum wage. In period of these projections, the number of employees will increase to 6 until 2015,what will mean an increase of total labour costs based on working hours from initial € 23 thousand in 2012 to € 127 thousand in 2015.

17.4.2 The financing expenses

Due to the investment in the working capital the company will receive a loan from Slovenian Enterprise Fund in the amount of 25,000 €. Interest charges will vary between 400 € and 700 €

17.4.3 Extraordinary expanses

The company is not planning extraordinary expenses.

17.5The financing of a long-term investing for growth

17.5.1 Total Investments costs

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In 2013 company will plans to invest in working capital. The total investment is estimated at € 35 thousand.

17.5.2 The closing of financial structure

In the table below you can see closing of financial structure.

The company will acquire investment funds from more resources. In 2013, the company will have from the Slovenian corporate loan under € 25,000. The remaining assets the company will provide from the financing from its own resources.

Successful realization of the project depends in the great way also from the performance of company in the tender of Slovenian Enterprise Fund - P7 Microloan for micro and small companies. From this address the company is planning in the year 2013 to receive 25 thousand € of return financial assets.

17.5.3 The financing of counterfactual investing for growth

At Energ d.o.o. we are planning to that the stock of materials and receivables will increase in accordance with business growth. Obligations to suppliers in the years from 2013 to 2015 according to the business volume will continually increase.

Balance of short-term liabilities at the end of 2013 will be up to € 36 thousand and at the end of 2015 will be € 306 thousand.

17.6The assessment of the profit and loss account, net cash-flow and balance sheet

17.6.1 Profit

The company will realize in 2013 a profit of up to € 3 thousand, in the third year after the investment the profit will come up to € 318 thousand

17.6.2 Net cash-flow and projection of the profit and loss account

Below we present explanation for the projected income statement and net cash flow of the business (prospective statement of cash flows) for the period 2013-2015.

Projections show positive cash flow throughout the period, suggesting that the company will not have liquidity problems. The balance of cash in the years 2013 - 2015 is ranged between 140 thousand € and 362 thousand €.

17.6.3 The projection of the Balance sheet

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The volume and quality of assets is determined on the basis of the last balance sheet statements. Based on the projections volume of assets at the end of 2013 will be 303 thousand €. The company's assets will increase in the coming years in accordance with the Company's business and additional sources of funding and the end of 2015 is amounted to 1.1 million.The company will dispose at the end 2013 with € 69 thousand and at the end of 2015 with 68 thousand €.

Current assets during the observation period will increase to by 233 thousand € in the year 2013 to the 1.0 million € in 2015.

On the equity and liabilities is clear that the capital of the company from 2013 will continually increase. Amount of capital will be at the end of 2013 243 thousand € at the end of 2015 will increase to 804 thousand €.

17.7The projection of the indicators

The following table shows the performance indicators. Performance indicators show company successful business (increasing profits, value added, value added per employee).Performance indicators point to a successful business. Throughout the studied period the volume of revenue will increase. In line with the increasing scope of activities the company is planning to employ additional staff. The number of employees will increase in 2015 to 6Successfully realized investment in the working capital, will be reflected in the generated added value of the company. Added value in the company will increase from 35 thousand € in 2011 to 525 thousand € in 2015.A successful business will be reflected in the realized profits of the company. In our company we plan that over the years we will realize profit.n line with expected developments of profits indicators of company performance will be changed as well.. Profitability of the company we monitor using the available profitability of capital and return on assets (both indicators point to a successful business).All other indicators are improving, indicators of performance, financing indicators and indicator of horizontal financial structure.

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Operational indicators 2011 2012 2013 2014 2015achived planed planed planed planed

1. Number of employees   2 3 4 6 2. Net sales revenue in EUR 16.266 38.435 245.435 1.262.455 1.768.522 3. Net income (+) or loss (-) in EUR 1.949 3.742 24.053 242.759 318.429 4. The added value in EUR 4.610 35.584 97.656 389.875 525.623 5. Added value per employee   38.819 41.853 119.962 106.906            6. Level of financial safety 94,04 99,68 80,32 67,77 71,847. The return on capital 0,90 1,71 9,88 49,93 39,588. The return on assets 0,85 1,70 7,94 33,84 28,439. Long-term financial balance 0,91 1,00 0,84 0,67 0,71           10. The share of revenues generated outside of the European Union   0,22 1,77 4,46 4,1411. The share of revenues generated outside of the Republic of Slovenia   0,74 67,04 80,60 74,80           12. The amount of net operating capital 132.581 142.926 196.795 434.099 745.38513. Current assets 146.258 143.629 233.234 649.256 1.051.85314. Payables 13.677 703 36.439 215.157 306.468

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