NORIS GRUPPEN A/S

BUSINESS PLAN 2003 - 2007

Table of contents:

1.0 The company ...... 1 Founded ...... 1 Founders background ...... 1 Employees ...... 2 2.0 The concept ...... 2 The stores...... 5 3.0 The products ...... 7 4.0 Marketing ...... 9 The market…...... …. 9 Marketing activities...... …...... 10 Target group………...... …...... 11 Marketing budget…...... …...... 12 Brand positioning…...... …...... 13 5.0 Analysis ...... 14 Internal analysis ...... 14 External analysis ...... 15 6.0 Goals...... 16 Action plan ……...... 16 7.0 Use of funds – increased share capital...... 17 8.0 Written assumptions for Business Plan 2003-2007…...... 18 Income...... 18 Expenses...... 18 Assets...... 20 Stockholders equity...... 20 Liabilities...... 21 9.0 Calculated assumptions for Business Plan 2003-2007...... 10.0 Business Plan 2003-2007.....…………………...... 11.0 Unaudited Interim accounts 30.06.02...... 12.0 Audited Annual accounts 31.12.01......

1.0 The company 1.1 Founded Noris Gruppen A/S was founded by Sigurður Róbertsson and Gunnar Björn Gunnarsson in May 2001. Noris Gruppen A/S opened its first store in Norway’s largest shopping mall, The Kvadrat Shopping Center in Sandnes on May 10th 2001. Noris Gruppen now owns a total of two stores in the Stavanger area and five stores in Oslo (where one is a temporary outlet) under the name of “ASTA”. The growth of the company has been fuelled by the drive, continued focus and efficiency of the owners, despite financial limitations.

1.2 Founders background Gunnar Björn Gunnarsson Gunnar is the chairman of Noris Gruppen A/S. He graduated with a BM from the Norwegian School of Management (BI) in 1993 and earned a postgraduate degree in Accounting and Finance, from London School of Economics in 1994. Gunnar is currently a Project Manager at Fjárstoð ehf. which is Iceland’s biggest accounting company with approximately 60 employees. Until midyear 2001, Gunnar was the Managing Director of Navision Axapta in Iceland, a distribution company for Danish business software. Gunnar is on the Board of the cultural institute "Gunnarsstofnun" on behalf of the Ministry of Culture and Education. He is a former finance director of the Icelandic government’s Vehicle Inspection and worked as an auditor at KPMG for four years. Gunnar has extensive consulting experience, has been on the board of numerous companies and has assisted two companies in public offerings on the Icelandic Stock Exchange.

Sigurður Róbertsson Sigurður is the Managing Director of Noris Gruppen A/S. He graduated with a BS in Business Administration with a major in finance from California State University, Sacramento in 1994. He is the former Managing Director of the Icelandic Shoe Company which distributes shoes to approximately 20% of the Icelandic shoe market. Sigurður has extensive experience in all fields of the shoe industry. Before becoming director of the Icelandic Shoe Company, Sigurður was manager of the research department of the University of Iceland in addition to sitting on numerous boards and committees on behalf of the University.

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1.3 Employees Noris Gruppen A/S currently employs approximately 27 full and part-time employees. The daily manager for the company’s stores in the Stavanger area is Ásta María Róbertsdóttir Meinich-Bache, the sister of Sigurður Róbertsson.

Noris Gruppen A/S has managed to recruit enthusiastic employees who are determined and regard themselves as part of the team. The store managers are carefully selected with regard to being trendy, service minded and efficient.

The company intends to hire a logistic manager in 2003. This is a key position in order to ensure logistic support and maintain inventory levels.

2.0 The concept The concept of the ASTA stores is all about a minimalist design of the stores and a grand open entrance. The shoes are displayed in a simple manner on large white walls with shelves for each type. Each shelve is branded with the logo of the shoe it displays.

Kvadrat Shopping Center in Sandnes

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The main colors in the stores are white, grey and red. There are very large and fashionable “image” posters placed on the walls and each store has plasma TV’s showing trendy videos with hip music to match. This creates the atmosphere the company seeks.

Kvadrat Shopping Center in Sandnes

In the larger stores, there is a trendy red sofa and a small table with newspapers and magazines for men. In addition to creating a “look”, this provides men with relaxation while their ladies shop.

A part of the concept is to use famous brands to hype the image of the stores although the greater mark- up is gained by other brands. The stores dominate the selection in each particular brand and in this way build up consumer recognition.

It is the company’s policy to locate the stores in trendy, key locations with high commute. Shopping centers and prime downtown areas are the best choices.

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Byporten Shopping Center, downtown Oslo

The idea of the ASTA concept is also to create a selection for customers focused on fashion shoes, since the shoe market in Norway is largely dominated by big shoe chains focused on low price and quantity.

Storgate, downtown Oslo

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2.1 The stores When opening new stores, Noris Gruppen A/S has access to a dedicated workforce willing to work long hours for a reasonable price. In this way, Noris Gruppen A/S has been able to construct its stores in an inexpensive and fast manner.

The company’s stores have recently been fitted with IBM SurePos 500, Point of sale system (POS) which is connected online to the company’s server. The system includes Touch Screens and scanners.

The company puts great emphasis on logistics and pro active control. This is a criteria for growth and increased margin.

Some of the advantages of a POS system: • Monitor turnover online. • Produce statistics. • Run ABC analysis. • Conduct sale- and purchase budgets. • Observe what styles are selling, with reordering in mind. • Control discounts. • Monitor movement of inventory among stores. • Complete inventory control. • Inventory kept as low as possible. • Control the performance of individual sales people.

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Company stores in order of opening dates: 1. Kvadrat Shopping Center, Sandnes, May 10th 2001. 2. Söregate in downtown Stavanger, Oct 10th 2001. 3. Triaden Shopping Center, Oslo, March 10th 2002. 4. Outlet in Storgate, downtown Oslo, May 1st 2002. 5. Byporten Shopping Center, Oslo, Oct 12th 2002. 6. Oslo City Shopping Center, Oslo, Nov 25th 2002. 7. Temporary Outlet in Karl Johansgate, downtown Oslo, Dec 15th 2002.

Söregate in downtown Stavanger

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3.0 The products The brands consist mainly of fashion shoes, sneakers and boots designed for mainstream customers looking for trendier alternatives. This middle market is most lucrative in terms of number of customers and price per shoe. (See sec. 4.3) It is also the intention to sell accessories that are complementary with shoes in the stores, e.g. bags, belts and socks.

The ASTA concept consists of the following international shoe brands; Diesel Footwear, Skechers, Logo69, www.com, X-18, UN Iceland and will soon include; Miss Sixty. Noris Gruppen holds the distribution rights for Logo69, www.com, X-18 and UN Iceland in Norway. These distribution agreements ensure Noris Gruppen an average mark-up of approximately 3,5 - 4,0. As Noris Gruppen is also the biggest customer of Diesel Footwear and Skechers in Norway the company receives a mark- up close to 3.0.

Noris Gruppen A/S intends to use high-end fashion brands to uphold the trendy image of its stores. It is however the intention to gradually develop the company’s own brand. The idea is not to design or develop its own shoe line but to brand shoes directly from factories that are producing shoes under another label. This will guarantee a much higher mark-up, in the range of 4.0 - 5.0.

The shoes that Noris Gruppen A/S purchases are mainly from China, Italy, Spain and Portugal. Shoes from Asia are in general much less expensive than shoes from Europe. However, time to market is much shorter from European factories as distances are less and transport is easier.

Import taxes on shoes to Norway have recently been abolished. This is unique in Europe and makes the Norwegian market even more attractive.

Diesel Footwear is a large shoe brand from Italy. Its original design has made it a huge success worldwide. The brand is only available in high profile stores, carefully selected by Diesel.

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Skechers is one of the biggest shoe companies in the world. They operate with aggressive marketing campaigns using famous celebrities. Skechers has grown extremely fast and is recognised as a tremendous success in retail and marketing.

Miss Sixty is an Italian fashion phenomenon with a very strong market position in clothing in Norway. Miss Sixty is very selective of stores for their merchandize and is now starting its brand-building for footwear in Norway. They have selected ASTA to carry its whole collection.

Logo69 is an Icelandic shoe brand based in London. The company’s owner/designer is Marta Rúnarsdóttir, who has established a strong market- and financial position worldwide. Her main niche is ladies boots and sandals.

www.com is the sporty collection from the above mentioned, Logo69.

X-18 is an Icelandic shoe design and marketing company focusing on street fashion. Their main emphasis is on fashion for younger people.

UN Iceland is a company founded by Óskar Axel Óskarsson, founder of X-18. Their main focus is on mainstream fashion shoes produced in China, Spain and Portugal.

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4.0 Marketing The company recognises unused opportunities when it comes to marketing efforts. In order to guarantee a professional approach, Noris Gruppen A/S intends to recruit an advertising agency as a consultant instead of hiring a marketing manager.

By recruiting an advertising agency, the company will gain professional local marketing knowledge and a better understanding of what medias to use.

4.1 The market The shoe business is mainly divided into two seasons. In the spring, the designers and factories display shoe lines for the coming fall. In the same manner, shoes for the fall are introduced in the spring. The designers and factories introduce their shoe lines on the major shoe fairs, such as GDS in Düsseldorf, in February and September and Garda in Italy, in January and August. It is during these fairs that Noris Gruppen A/S will have to prepare their orders for the coming season. In order to ensure the right orders it is important to bring store managers with an understanding of the Norwegian market to the fairs.

Sale of shoes varies according to seasonal changes, while June and December generate the most turnover. In January and July there are “sales” for the ending seasons. It is important that shoes for the spring arrive in the shops before “back to school” which is in August, and in the same manner, the shoes for the fall will have to arrive at the end of January.

Today’s population in Norway is approximately 4,5 M. with 1 M. living in the greater Oslo area. The population of Stavanger is 250.000, Bergen 400.000 and Trondheim close to 500.000. Noris Gruppen A/S plans to expand to Bergen and Trondheim after completing its expansion in Oslo.

The population of Sweden is approximately 8.9 M. where as a 1.2 M live in Stockholm and 495.000 live in Göteborg. Noris Gruppen A/S plans to enter the Stockholm and Göteborg after having reached its targets in Norway.

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Purchasing power in Norway and Sweden is very high by worldwide standards and therefore both countries are suited to the ASTA concept.

4.2 Marketing activities The company expects to follow a thorough marketing plan developed in cooperation with its advertising agency.

However, the experience of the Icelandic market points to using billboards and cinemas to reach its customers. These medias are both relatively economical and less traditional than standard newspaper ads and therefore more likely to draw attention for the trendy image of ASTA. Most of the shoe brands have ready-made videos that can be used with relative little preparation.

Noris Gruppen A/S plans also to arrange trendy parties and events, which attract media attention and build a strong image.

In addition to a professional marketing plan, Noris Gruppen A/S sees opportunities in groundwork marketing activities, such as printing its own image posters that are changed periodically in all the stores. By changing posters regularly, one makes sure that the same image is maintained everywhere and that there is always something new happening in the stores. Centralized printing of price campaigns and decorations for the stores are also effective and can be done periodically.

Noris Gruppen A/S started originally in 2001 as a Franchiser for the “ásta-g” concept of X-18. In the beginning of 2002, Noris Gruppen A/S however revoked the Franchiser agreement and became a distributor for other popular brands along with being a retailer. As a result, Noris Gruppen A/S changed the name of its stores from “ásta-g” to ASTA. The name was carefully chosen as its original name had already established some goodwill. The new name ASTA is however totally under the ownership of Noris Gruppen A/S, is simpler and yet close to its original name.

Noris Gruppen A/S intends to change its web page, www.asta-g.no along with the new name of its stores. The company sees opportunities in enhancing its web page and eventually establish some cooperation with a Norwegian sponsor that might be

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interested in a trendy exposure. This also leaves opportunities for clearing inventory and developing a customer base that can be serviced through special offers.

4.3 Target group The target group of ASTA are mainstream customers for fashion shoes between 15 and 40 years of age. However, the customer base is much broader and even includes children. The middle market for fashion shoes in Norway has largely been left unattended by the big chains, such as: Din sko, Økonomisko, Skoringen and others that concentrate mainly on quantity and low prices. This leaves tremendous opportunities for a concept like ASTA as competition is scarce in the high-end and middle market. This market is also economically attractive as purchasing power is high in Scandinavia.

Noris Gruppen A/S intends to reach its target group through its strategically located stores. Total focus on branding makes the concept attractive and builds up customer loyalty.

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The ASTA concept has been very well received by the big shopping malls where competition is fierce in retail spaces. This is mainly because of the distinct look and the image of ASTA. Following is an interview with the director of the biggest shopping mall in Norway where he is standing inside the ASTA store, proudly displaying the new shopping concept in Norway.

The company intends to open 4 stores annually and at year-end 2004, plans to own a total of thirteen stores in Norway. The company will finish its build-up in Norway before expanding into Sweden in order to ensure synergy effects and economies of scale. This strategy is also in line with international marketing theory, which emphasizes to establish a strong position in each market before expanding to the next.

After having reached its goals in Norway, Noris Gruppen intends to open 13 stores in Stockholm and Göteborg in Sweden.

4.4 Marketing budget Noris Gruppen’s stores located in the various shopping centers are obligated to participate with approximately 1.5% of their turnover in mutual marketing activities.

The company is set on aggressive marketing, targeting 4,5% of its turnover to marketing efforts. After taking the mutual marketing activities into account, this leaves approximately 3% to other activities.

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Brand positioning:

Exspensive ❋ ❋ Timberland ❋ Nike ❋ Swear ❋ ❋ ❋ Art ❋ Adidas ❋ New

❋ ❋ ❋ Guess ❋ ❋ ❋ Ralph ❋ Dr. ❋ ❋ ❋

❋ Zinda ❋ Vagabond ❋

❋ ❋ Fila ❋ ASTA ❋ ❋

❋ ❋ ❋ Vans Nose Kenneth ❋ DNA ❋

❋ ❋Bianco ❋ Don ❋ No name ❋ ❋EuroSko ❋Skoringe n Casual Sport Fashion ❋ Trend ❋Ökonomisko

❋

Inexpensive 13

5.0 Analysis 5.1 Internal analysis Many factors contribute to a succcessful operation in Norway. A SWOT analysis gives the following picture:

Strengths: • An already established business concept. • Two years of valuable experience in running business in Norway. • 6 stores in prime locations. • A strong and a focused concept. • Concept fills the gap in the middle market for fashion shoes. • Concept very well received by shopping centers . • High markup. • Strong international brands. • Point of sale system with an exact inventory overview. • Extremely efficient in setting up own stores in a fast and inexpensive manner. • Directors experience in the shoe business. • The chairman’s experience in financing and auditing. • Chairman and Director are both fluent in Norwegian and have lived in Norway for many years. • Experience of complex Norwegian labor law. • Employee enthusiasm. • Financial statements audited by KPMG and Business Bank is DNB.

Weaknesses: • Weak financial status. • In need of a larger inventory. • Been dependent on only one or two weak suppliers. • Lack of focus in marketing. • Lack of investment in marketing . • Fast growth of the company causing growing pains.

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Opportunities: • Development of own brand with a higher markup. • Higher markup of international brands. • Inventories from X18 and UN available for very low prices. • Professional logistic management; reducing inventory, controling movement of inventories between stores and ensuring strategical reordering. • Import taxes abolished. • Aggressive marketing. • New exciting markets.

Threats: • Week financial status. • Currency fluctuation in long-term debt • Competition in the high-end and middle market.

5.2 External analysis Competition is scarce in the middle market for fashion shoes in Norway and is dominated largely by the big shoe chains which are more focused on quantity than image and brand building. There are however, some competitors who are performing well in the middle market such as DNA and Bianco. It is however Noris Gruppen's opinion that the total image of ASTA will stay strong.

Norwegian labour law are very complex and protective towards employees. These laws may even be so restrictive that many small businesses have start up problems and have difficulties with continuing operation. Noris Gruppen A/S has however through experience managed to understand and deal with these regulations.

Norway is regarded as a very stable market, both economically and politically. The proportional size of the middle class in Norway is very large and recently, import taxes on shoes in Norway have been abolished. This makes the Norwegian market especially attractive for the ASTA concept.

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6.0 Goals In the next five years, Noris Gruppen A/S intends to open 6 new stores in Norway, and 14 new stores in Sweden. This will furnish the company with a strong position in the middle market for fashion shoes in Scandinavia.

Eventually, the company will focus on Finland and certain areas of Germany as future markets where buying power and fashion go hand in hand.

Noris Gruppen A/S intends to become highly professional in logistic management since; reordering, low inventory, time to market and a continuous flow of new products are key elements to ensure the future growth of the company.

Noris Gruppen A/S intends to show a stable annual growth in profit margin of 20 – 26% and thereby ensure further future growth of the company.

Following is a draft of an action plan for 2003:

Action plan 2003 jan feb mar apr may jun jul agu sep okt nov des Increase in share capital ...... X X Hire of logistic manager ...... X Rent of warehouse ...... X Purchase of inventory ...... X Purchase of transport vehicle ...... X Down payment of debt ...... X Marketing effort ...... X X X X X X X X Opening of store 8 ...... X Opening of store 9 ...... X Opening of store 10 ...... X Opening of store 11 ...... X Shoes for fall arive for the spring ...... X Shoes for spring arrive for the fall ...... X Shoefair, Garda for next fall ...... X Preparing own brand ...... X Shoefair, GDS for next spring ...... X

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7.0 Use of funds – increased share capital Noris Gruppen intends to increase its share capital with 100 M.ISK (approximately 9.090.909 NOK.) in order to refinance debt, ensure sufficient inventory and finance future expansion. The company plans to raise 50 M. ISK before January 15th 2003 and the additional 50 M. ISK before June 30th 2003.

Approximate appropriation of funds: 2.0 M. Down payment of loans from shareholders. 3.5 M. Down payment of accounts payable. 2.0 M. Increase in inventory. 1.0 M. Investment in fixed assets. 0.5 M. Marketing effort in year beginning.

Further investments are to be financed by cash from operating activities.

One of the objectives with increased share capital is also to help the Company to start it’s own label. The Company does not intend to design or develop shoe lines, but will brand boots and sandals with its own name, directly from factories in Europe and China.

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8.0 Written assumptions for Business plan 2002-2007 The budget covers a five-year period to year-end 2007. The company's "format" budget for each store is the underlying assumption in the making of the totals in the Profit and Loss account, Balance Sheet and the Statement of Cash Flows.

The budget is based on Norwegian kroner (NOK) and does not take into account inflation or indexation.

Income tax of 28% has been calculated into the budget. There is no loss from earlier years to be deducted from income taxes.

8.1 Income At the beginning of 2003 the company operates 6 stores and intends to open 4 new stores annually for the next 5 years. By year-end 2004 the company expects to start expanding into the Swedish market.

8.2 Expenses Cost of goods sold: The company has distributor agreements with Logo69, www.com, X18 and UN Iceland. These agreements ensure a mark-up close to 3,5 – 4,0. As the company is also one of the biggest customers of Diesel Footwear and Skechers in Norway the company receives a mark-up close to 3,0. The company intends to brand its own label where the mark-up can be close to 4,0 – 5,0.

Salary and related expenses: Currently the company employs 27 full-time and part-time employees. It is estimated that with the opening of each store the company needs to hire at least 2,5 full-time and part-time employees.

The budget estimates 15% in payroll related expenses.

Office cost: Office cost consists of the following normative expenses: Telephone, postal, brochures, stationary, homepage, computer equipment and miscellaneous cost.

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Administrative cost: Administrative cost consists of the following expenses: Marketing, allowances, travel, trade fairs, revision/consulting, purchased assistance and other administrative cost.

The company estimates marketing cost per shop close to 60.000 NOK per year. In addition the company intends to use approximately 4% of its turnover in marketing where as 1.25 M. will be used extra in 2003, 2 M. in 2004, 2.7 M in 2005, 3.5 M in 2006 and 4.5 M. in 2007.

Housing expenses: Housing expenses consist of the following normative expenses: Rent, heat/electricity, maintenance, insurance, cleaning, security and other housing expenses.

The budget considers renting of a warehouse facility in 2003 to ensure a better logistic management.

Other operating expenses: Other operating expenses consist of the following: Leasing/ASP of software, operational insurance and other operating expenses.

Depreciation: Depreciation has been calculated according to the depreciation plan where investments have been taken into account until year-end 2005.

Properties are depreciated with 20%.

Financial income and expenses: Financial income: The budget estimates approximately 5% return on bank deposits for bank guarantees and investments. No interests have been calculated on other bank deposits.

Financial expenses: The budget estimates approximately 10% rate of interest on debts.

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8.3 Assets Property and equipment: Budgeted start up cost for each store is from 450.000 - 650.000 NOK in furniture, fittings, computers and other equipment. Four stores are to be opened annually for the next five years.

The budget considers purchasing a transport vehicle for 250.000 NOK in 2003.

Investments: The budget reinvests profits in investments / new stores.

The company does not intend to invest in properties in order to run its stores but to focus only on retail.

Inventory: Start-up inventory for each store is estimated 1 M. NOK.

Receivables: Receivables consist mainly of claims on suppliers because of faulty shoes etc. The budget estimates an annual increase of 200.000 NOK in receivables.

Bank deposits: Only a required bank balance will be upheld and excess capital will be invested in line with the company’s investment strategy.

8.4 Stockholders equity Stockholders equity was set 1.050.000 when the company was registered by KPMG in May 2001, with 100.000 booked as capital stock and 950.000 booked on an overvaluation account.

The company goal is to increase its share capital by 100 M. ISK, (9.090.909 NOK.) Paid in share capital has been incorporated into the budget.

The budget does not take into account paying dividends to shareholders.

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8.5 Liabilities Long-term liabilities: The company intends to change its debt of 1,2 M. NOK with the DNB bank into a five-year long-term loan.

The company holds a fixed overdraft with DNB bank of 1 M. NOK.

Current maturities of long-term loans have been transferred to current liabilities in the balance sheet.

Current liabilities: Other payables are mainly purchases of inventory and equipment for opening of new stores.

The company also intends to use increased share capital to pay down short-term debts and loans from shareholders.

21 CALCULATED ASSUMPTIONS

ÁSTA G - STORE FORMAT

200X jan feb mar apr may jun jul aug sep okt nov des Total

Seasonal changes 8,00% 5,00% 7,00% 9,00% 11,00% 11,00% 10,00% 8,00% 5,00% 7,00% 7,00% 12,00% 100,00% OPERATING INCOME:

Sales ...... 336.000 210.000 294.000 378.000 462.000 462.000 420.000 336.000 210.000 294.000 294.000 504.000 4.200.000 Accessories ...... 3.600 2.250 3.150 4.050 4.950 4.950 4.500 3.600 2.250 3.150 3.150 5.400 45.000 TOTAL INCOME 339.600 212.250 297.150 382.050 466.950 466.950 424.500 339.600 212.250 297.150 297.150 509.400 4.245.000

OPERATING EXPENSES: Purchases: v Cost of goods sold ...... 97.029 60.643 84.900 109.157 133.414 133.414 121.286 97.029 60.643 84.900 84.900 145.543 1.212.858 v Freight and distribution ...... 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 48.000 v Cost of inventory ...... 647 404 566 728 889 889 809 647 404 566 566 970 8.085 101.676 65.047 89.466 113.885 138.303 138.303 126.095 101.676 65.047 89.466 89.466 150.513 1.268.943 Salary and related exp.: f Salary ...... 48.250 48.250 48.250 48.250 48.250 48.250 48.250 48.250 48.250 48.250 48.250 48.250 579.000 f Salary related expenses ...... 7.238 7.238 7.238 7.238 7.238 7.238 7.238 7.238 7.238 7.238 7.238 7.238 86.856 f Other employee cost ...... 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 60.000 60.488 60.488 60.488 60.488 60.488 60.488 60.488 60.488 60.488 60.488 60.488 60.488 725.856 Office cost: f Telephone and fax ...... 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 12.000 f Postal expenses ...... 500 500 500 500 500 500 500 500 500 500 500 500 6.000 f Brochures, magazines etc...... 500 500 500 500 500 500 500 500 500 500 500 500 6.000 f Stationary ...... 500 500 500 500 500 500 500 500 500 500 500 500 6.000 f Computer equipment etc...... 600 600 600 600 600 600 600 600 600 600 600 600 7.200 f Homepage ...... 200 200 200 200 200 200 200 200 200 200 200 200 2.400 f Misc. office cost ...... 500 500 500 500 500 500 500 500 500 500 500 500 6.000 3.800 3.800 3.800 3.800 3.800 3.800 3.800 3.800 3.800 3.800 3.800 3.800 45.600 Administrative cost: v Marketing,shopping cent...... 5.094 3.184 4.457 5.731 7.004 7.004 6.368 5.094 3.184 4.457 4.457 7.641 63.675 f Allowances ...... 750 750 750 750 750 750 750 750 750 750 750 750 9.000 f Traveling expenses ...... 0 0 3.000 0 0 3.000 0 0 3.000 0 0 3.000 12.000 f Trade fair ...... 0 0 4.000 0 0 0 0 0 4.000 0 0 0 8.000 f Revision and consulting ...... 0 7.500 0 0 0 0 0 0 0 0 0 7.500 15.000 f Purchased assistance ...... 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 12.000 f Other administrative cost ...... 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 24.000 8.844 14.434 15.207 9.481 10.754 13.754 10.118 8.844 13.934 8.207 8.207 21.891 143.675

Housing expenses: f Rent ...... 40.000 40.000 40.000 40.000 40.000 40.000 40.000 40.000 40.000 40.000 40.000 40.000 480.000 f Heat and electricity ...... 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 24.000 f Maintenance ...... 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 18.000 f Insurance ...... 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 12.000 f Cleaning ...... 500 500 500 500 500 500 500 500 500 500 500 500 6.000 f Security ...... 500 500 500 500 500 500 500 500 500 500 500 500 6.000 f Other housing expenses ...... 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 12.000 46.500 46.500 46.500 46.500 46.500 46.500 46.500 46.500 46.500 46.500 46.500 46.500 558.000 Other operating expenses: f ASP on Point of sale syst...... 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 36.000 f Operation insurance ...... 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 12.000 f Other operating expenses ...... 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 36.000 f Depreciation ...... 10.833 10.833 10.833 10.833 10.833 10.833 10.833 10.833 10.833 10.833 10.833 10.833 130.000 17.833 17.833 17.833 17.833 17.833 17.833 17.833 17.833 17.833 17.833 17.833 17.833 214.000 Financial income and exp: f Financial inc. and index ...... 0 0 0 0 0 0 0 0 0 0 0 0 0 f Financial exp. and index ...... 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL EXPENSES 239.141 208.102 233.294 251.987 277.678 280.678 264.834 239.141 207.602 226.294 226.294 301.025 2.956.074

PROFIT ...... 100.459 4.148 63.856 130.063 189.272 186.272 159.666 100.459 4.648 70.856 70.856 208.375 1.288.930

Cash in the beginning 1.600.000 61.292 76.273 150.962 291.858 491.963 689.068 859.567 970.859 986.340 1.068.029 1.149.718 Need of cash (228.308) (197.269) (222.461) (241.154) (266.845) (269.845) (254.001) (228.308) (196.769) (215.461) (215.461) (290.192) Payments from sales 339.600 212.250 297.150 382.050 466.950 466.950 424.500 339.600 212.250 297.150 297.150 509.400 Investments (1.650.000) 0 0 0 0 0 0 0 0 0 0 0 Long term debt 0 0 0 0 0 0 0 0 0 0 0 0 Down payment of loans 0 0 0 0 0 0 0 0 0 0 0 0 61.292 76.273 150.962 291.858 491.963 689.068 859.567 970.859 986.340 1.068.029 1.149.718 1.368.926

Cost of goods sold: Mark up ...... 3,50 Turnover incl.VAT 5.263.800 Markup incl VAT 4,34

Salary and related exp.: A Daily manager ...... F 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 300.000 B Store assistant ...... F 15.500 15.500 15.500 15.500 15.500 15.500 15.500 15.500 15.500 15.500 15.500 15.500 186.000 C Store assistant (50%) ...... F 7.750 7.750 7.750 7.750 7.750 7.750 7.750 7.750 7.750 7.750 7.750 7.750 93.000 48.250 48.250 48.250 48.250 48.250 48.250 48.250 48.250 48.250 48.250 48.250 48.250 579.000 Salary related exp. 15% ...... 7.238 7.238 7.238 7.238 7.238 7.238 7.238 7.238 7.238 7.238 7.238 7.238 86.856 55.488 55.488 55.488 55.488 55.488 55.488 55.488 55.488 55.488 55.488 55.488 55.488 665.856

Marketing: Work schedule: Monday Tuesday Wednesday Thursday Friday Saturday Sunday Shopp.centers % of turnover 1,50% A 100,00% 10:00-12:00 AAAAAC+D+E B 100,00% 12:00-13:00 A+B A+B A+B A+B A+B C+D+E Inventory: Depreciation C 60,00% 13:00-15:00 A+B A+B A+B A+B A+B C+D+E Inventory ...... 1.000.000 5% D 60,00% 15:00-18:00 A+B A+B A+B A+B+C A+B+CC+D+E Cost of inventory in days ...... 0,20 E 30,00% 18:00-20:00 B+C B+C B+C B+C+E B+C+E 350,00% ASP: Software ...... 6.000 Server &service agreem...... 5.000 11.000

Initial cost: Jan Feb Mar Apr Maí Jún Total Fittings up 230.000 230.000 Walls 90.000 90.000 Paint 5.000 5.000 Parket 20.000 20.000 Kitchen 8.000 8.000 Lights 10.000 10.000 Electrician 10.000 10.000 Shelves for inventory 20.000 20.000 Logo's etc. 20.000 20.000 Iron grid 50.000 50.000 Furniture and fittings 463.000 00000463.000

3 TV's 160.000 160.000 Cashiers with scanners 0 0 Scanner 0 0 Stereo 5.000 5.000 Telephone and Fax 7.000 7.000 Computer 10.000 10.000 Internet connection etc. 5.000 5.000 Computers and equipment 187.000 00000187.000

650.000 00000650.000 STORE ANALYSIS:

Sales analysis of shoes sold: jan feb mar apr may jun jul aug sep okt nov des Total

Seasonal ch. 8,00% 5,00% 7,00% 9,00% 11,00% 11,00% 10,00% 8,00% 5,00% 7,00% 7,00% 12,00% 100,00% Budg. sales 336.000 210.000 294.000 378.000 462.000 462.000 420.000 336.000 210.000 294.000 294.000 504.000 4.200.000 Sales pr. day 12.923 8.077 11.308 14.538 17.769 17.769 16.154 12.923 8.077 11.308 11.308 19.385 Shoes pr. day 23 14 20 26 31 31 29 23 14 20 20 34

Budg.sales pr.yr. Sh. pr. yr. Sh.pr. month Sh.pr. week Sh. pr. day Sale pr. day

4.245.000 7.434 620 155 26 14.690 Excl. VAT 565 Aver. sales price pr. shoe excl.VAT 18.200 Incl.VAT 700 Aver. sales price pr. shoe incl.VAT 1,24 VAT Break even analysis/Sensitivity analysis/internal pricing: 55,74% 90,00% 100,00% 110,00% 120,00% 130,00% 140,00% 150,00% Nr. of sold shoes 4.144 6.691 7.434 8.177 8.921 9.664 10.408 11.151

Income Total 2.366.224 3.820.561 4.245.000 4.669.067 5.093.891 5.518.144 5.942.968 6.367.221 Per item 571 571 571 571 571 571 571 571

Variable. costTotal 741.776 1.197.689 1.332.618 1.463.683 1.596.859 1.729.856 1.863.032 1.996.029 Per item 179 179 179 179 179 179 179 179 31,35% 31,35% 31,35% 31,35% 31,35% 31,35% 31,35% 31,35%

Fixed cost Total 1.623.456 1.623.456 1.623.456 1.623.456 1.623.456 1.623.456 1.623.456 1.623.456 Per item 392 243 218 199 182 168 156 146 68,65% 42,56% 38,18% 34,85% 31,87% 29,42% 27,32% 25,57%

Profit/loss Total 992 999.416 1.288.926 1.581.928 1.873.576 2.164.832 2.456.480 2.747.736 Per item 0 149 174 193 210 224 236 246

Return on investment: Inventory 1.000.000 Profit pr.yr.1.288.930 Investments 650.000 1.650.000 ROI 78,12% NORIS GRUPPEN A/S DEPRECIATION REPORT

Purch Value Purchased Sold Value Earlier Depr. No. Depreciation Depreciation Accumulated Booked year 1/1 200X 31/ 12 200X depreciation % Mon cleared Depreciation value

2002 Kvadrat, Furniture and fittings ...... 2001 400.000 400.000 49.733 20,00 12 80.000 129.733 270.267 Kvadrat, Computers and equipment ...... 2001 200.000 200.000 36.933 20,00 12 40.000 76.933 123.067 Söregate, Furniture and fittings ...... 2001 600.000 600.000 49.733 20,00 12 120.000 169.733 430.267 Söregate, Computers and equipment ...... 2001 300.000 300.000 36.933 20,00 12 60.000 96.933 203.067 Triaden, Furniture and fittings ...... 2002 0 200.000 200.000 20,00 10 33.333 33.333 166.667 Triaden, Computers and equipment ...... 2002 0 50.000 50.000 20,00 10 8.333 8.333 41.667 Storgate, Furniture and fittings ...... 2002 0 150.000 150.000 20,00 8 20.000 20.000 130.000 Storgate, Computers and equipment ...... 2002 0 50.000 50.000 20,00 8 6.667 6.667 43.333 Byporten, Furniture and fittings ...... 2002 0 500.000 500.000 20,00 3 25.000 25.000 475.000 Byporten, Computers and equipment ...... 2002 0 150.000 150.000 20,00 3 7.500 7.500 142.500 Oslo City, Furniture and fittings ...... 2002 0 300.000 300.000 20,00 2 10.000 10.000 290.000 Oslo City, Computers and equipment ...... 2002 0 50.000 50.000 20,00 2 1.667 1.667 48.333 Property and equipment 1.500.000 1.450.000 0 2.950.000 173.332 412.500 0 585.832 2.364.168 Furniture and fittings 1.000.000 1.150.000 0 2.150.000 99.466 288.333 0 387.799 1.762.201 Computers and equipment 500.000 300.000 0 800.000 73.866 124.167 0 198.033 601.967

2003 Kvadrat, Furniture and fittings ...... 2001 400.000 400.000 129.733 20,00 12 80.000 209.733 190.267 Kvadrat, Computers and equipment ...... 2001 200.000 200.000 76.933 20,00 12 40.000 116.933 83.067 Söregate, Furniture and fittings ...... 2001 600.000 600.000 169.733 20,00 12 120.000 289.733 310.267 Söregate, Computers and equipment ...... 2001 300.000 300.000 96.933 20,00 12 60.000 156.933 143.067 Triaden, Furniture and fittings ...... 2002 200.000 200.000 33.333 20,00 12 40.000 73.333 126.667 Triaden, Computers and equipment ...... 2002 50.000 50.000 8.333 20,00 12 10.000 18.333 31.667 Storgate, Furniture and fittings ...... 2002 150.000 150.000 20.000 20,00 12 30.000 50.000 100.000 Storgate, Computers and equipment ...... 2002 50.000 50.000 6.667 20,00 12 10.000 16.667 33.333 Byporten, Furniture and fittings ...... 2002 500.000 500.000 25.000 20,00 12 100.000 125.000 375.000 Byporten, Computers and equipment ...... 2002 150.000 150.000 7.500 20,00 12 30.000 37.500 112.500 Oslo City, Furniture and fittings ...... 2002 300.000 300.000 10.000 20,00 12 60.000 70.000 230.000 Oslo City, Computers and equipment ...... 2002 50.000 50.000 1.667 20,00 12 10.000 11.667 38.333 Transport vehicle ...... 2003 250.000 250.000 20,00 10 41.667 41.667 208.333 Karl Johann, Store 8, Furniture and fittings ...... 2003 600.000 600.000 20,00 10 100.000 100.000 500.000 Karl Johann, Store 8, Computers and equipment ...... 2003 300.000 300.000 20,00 10 50.000 50.000 250.000 Sandvika, Store 9, Furniture and fittings ...... 2003 600.000 600.000 20,00 8 80.000 80.000 520.000 Sandvika, Store 9, Computers and equipment ...... 2003 50.000 50.000 20,00 8 6.667 6.667 43.333 Storo Storsenter, Store 10, Furniture and fittings ...... 2003 600.000 600.000 20,00 6 60.000 60.000 540.000 Storo storsenter, Store 10, Computers and equipment ...... 2003 50.000 50.000 20,00 6 5.000 5.000 45.000 Bergen Storsenter, Store 11, Furniture and fittings ...... 2003 600.000 600.000 20,00 2 20.000 20.000 580.000 Bergen Storsenter, Store 11, Computers and equipment ...... 2003 50.000 50.000 20,00 2 1.667 1.667 48.333 Property and equipment 2.950.000 3.100.000 0 6.050.000 585.832 955.001 0 1.540.833 4.509.167 Furniture and fittings 2.150.000 2.400.000 0 4.550.000 387.799 690.000 0 1.077.799 3.472.201 Computers and equipment 800.000 450.000 0 1.250.000 198.033 223.334 0 421.367 828.633 Vehicles 0 250.000 0 250.000 0 41.667 0 41.667 208.333 2004 Kvadrat, Furniture and fittings ...... 2001 400.000 400.000 209.733 20,00 12 80.000 289.733 110.267 Kvadrat, Computers and equipment ...... 2001 200.000 200.000 116.933 20,00 12 40.000 156.933 43.067 Söregate, Furniture and fittings ...... 2001 600.000 600.000 289.733 20,00 12 120.000 409.733 190.267 Söregate, Computers and equipment ...... 2001 300.000 300.000 156.933 20,00 12 60.000 216.933 83.067 Triaden, Furniture and fittings ...... 2002 200.000 200.000 73.333 20,00 12 40.000 113.333 86.667 Triaden, Computers and equipment ...... 2002 50.000 50.000 18.333 20,00 12 10.000 28.333 21.667 Storgate, Furniture and fittings ...... 2002 150.000 150.000 50.000 20,00 12 30.000 80.000 70.000 Storgate, Computers and equipment ...... 2002 50.000 50.000 16.667 20,00 12 10.000 26.667 23.333 Byporten, Furniture and fittings ...... 2002 500.000 500.000 125.000 20,00 12 100.000 225.000 275.000 Byporten, Computers and equipment ...... 2002 150.000 150.000 37.500 20,00 12 30.000 67.500 82.500 Oslo City, Furniture and fittings ...... 2002 300.000 300.000 70.000 20,00 12 60.000 130.000 170.000 Oslo City, Computers and equipment ...... 2002 50.000 50.000 11.667 20,00 12 10.000 21.667 28.333 Transport vehicle ...... 2002 250.000 250.000 41.667 20,00 12 50.000 91.667 158.333 Karl Johann, Store 8, Furniture and fittings ...... 2003 600.000 600.000 100.000 20,00 12 120.000 220.000 380.000 Karl Johann, Store 8, Computers and equipment ...... 2003 300.000 300.000 50.000 20,00 12 60.000 110.000 190.000 Sandvika, Store 9, Furniture and fittings ...... 2003 600.000 600.000 80.000 20,00 12 120.000 200.000 400.000 Sandvika, Store 9, Computers and equipment ...... 2003 50.000 50.000 6.667 20,00 12 10.000 16.667 33.333 Storo Storsenter, Store 10, Furniture and fittings ...... 2003 600.000 600.000 60.000 20,00 12 120.000 180.000 420.000 Storo storsenter, Store 10, Computers and equipment ...... 2003 50.000 50.000 5.000 20,00 12 10.000 15.000 35.000 Bergen Storsenter, Store 11, Furniture and fittings ...... 2003 600.000 600.000 20.000 20,00 12 120.000 140.000 460.000 Bergen Storsenter, Store 11, Computers and equipment ...... 2003 50.000 50.000 1.667 20,00 12 10.000 11.667 38.333 NORIS GRUPPEN A/S DEPRECIATION REPORT

Purch Value Purchased Sold Value Earlier Depr. No. Depreciation Depreciation Accumulated Booked year 1/1 200X 31/ 12 200X depreciation % Mon cleared Depreciation value

Store 12, Furniture and fittings ...... 2004 400.000 400.000 20,00 12 80.000 80.000 320.000 Store 12, Computers and equipment ...... 2004 50.000 50.000 20,00 12 10.000 10.000 40.000 Store 13, Furniture and fittings ...... 2004 600.000 600.000 20,00 12 120.000 120.000 480.000 Store 13, Computers and equipment ...... 2004 50.000 50.000 20,00 12 10.000 10.000 40.000 Store 14, Furniture and fittings ...... 2004 400.000 400.000 20,00 12 80.000 80.000 320.000 Store 14, Computers and equipment ...... 2004 50.000 50.000 20,00 12 10.000 10.000 40.000 Store 15, Furniture and fittings ...... 2004 600.000 600.000 20,00 12 120.000 120.000 480.000 Store 15, Computers and equipment ...... 2004 50.000 50.000 20,00 12 10.000 10.000 40.000 Property and equipment 6.050.000 2.200.000 0 8.250.000 1.540.833 1.650.000 0 3.190.833 5.059.167 Furniture and fittings 4.550.000 2.000.000 0 6.550.000 1.077.799 1.310.000 0 2.387.799 4.162.201 Computers and equipment 1.250.000 200.000 0 1.450.000 421.367 290.000 0 711.367 738.633 Vehicles 250.000 0 0 250.000 41.667 50.000 0 91.667 158.333 2005 Kvadrat, Furniture and fittings ...... 2001 400.000 400.000 289.733 20,00 12 70.267 360.000 40.000 Kvadrat, Computers and equipment ...... 2001 200.000 200.000 156.933 20,00 12 23.067 180.000 20.000 Söregate, Furniture and fittings ...... 2001 600.000 600.000 409.733 20,00 12 120.000 529.733 70.267 Söregate, Computers and equipment ...... 2001 300.000 300.000 216.933 20,00 12 53.067 270.000 30.000 Triaden, Furniture and fittings ...... 2002 200.000 200.000 113.333 20,00 12 40.000 153.333 46.667 Triaden, Computers and equipment ...... 2002 50.000 50.000 28.333 20,00 12 10.000 38.333 11.667 Storgate, Furniture and fittings ...... 2002 150.000 150.000 80.000 20,00 12 30.000 110.000 40.000 Storgate, Computers and equipment ...... 2002 50.000 50.000 26.667 20,00 12 10.000 36.667 13.333 Byporten, Furniture and fittings ...... 2002 500.000 500.000 225.000 20,00 12 100.000 325.000 175.000 Byporten, Computers and equipment ...... 2002 150.000 150.000 67.500 20,00 12 30.000 97.500 52.500 Oslo City, Furniture and fittings ...... 2002 300.000 300.000 130.000 20,00 12 60.000 190.000 110.000 Oslo City, Computers and equipment ...... 2002 50.000 50.000 21.667 20,00 12 10.000 31.667 18.333 Transport vehicle ...... 2003 250.000 250.000 91.667 20,00 12 50.000 141.667 108.333 Karl Johann, Store 8, Furniture and fittings ...... 2003 600.000 600.000 220.000 20,00 12 120.000 340.000 260.000 Karl Johann, Store 8, Computers and equipment ...... 2003 300.000 300.000 110.000 20,00 12 60.000 170.000 130.000 Sandvika, Store 9, Furniture and fittings ...... 2003 600.000 600.000 200.000 20,00 12 120.000 320.000 280.000 Sandvika, Store 9, Computers and equipment ...... 2003 50.000 50.000 16.667 20,00 12 10.000 26.667 23.333 Storo Storsenter, Store 10, Furniture and fittings ...... 2003 600.000 600.000 180.000 20,00 12 120.000 300.000 300.000 Storo storsenter, Store 10, Computers and equipment ...... 2003 50.000 50.000 15.000 20,00 12 10.000 25.000 25.000 Bergen Storsenter, Store 11, Furniture and fittings ...... 2003 600.000 600.000 140.000 20,00 12 120.000 260.000 340.000 Bergen Storsenter, Store 11, Computers and equipment ...... 2003 50.000 50.000 11.667 20,00 12 10.000 21.667 28.333 Bergen, Store 12, Furniture and fittings ...... 2004 400.000 400.000 80.000 20,00 12 80.000 160.000 240.000 Bergen, Store 12, Computers and equipment ...... 2004 50.000 50.000 10.000 20,00 12 10.000 20.000 30.000 Trondheim, Store 13, Furniture and fittings ...... 2004 600.000 600.000 120.000 20,00 12 120.000 240.000 360.000 Trondheim, Store 13, Computers and equipment ...... 2004 50.000 50.000 10.000 20,00 12 10.000 20.000 30.000 Trondheim, Store 14, Furniture and fittings ...... 2004 400.000 400.000 80.000 20,00 12 80.000 160.000 240.000 Trondheim, Store 14, Computers and equipment ...... 2004 50.000 50.000 10.000 20,00 12 10.000 20.000 30.000 Stockholm, Store 15, Furniture and fittings ...... 2004 600.000 600.000 120.000 20,00 12 120.000 240.000 360.000 Stockholm, Store 15, Computers and equipment ...... 2004 50.000 50.000 10.000 20,00 12 10.000 20.000 30.000 Store 16, Furniture and fittings ...... 2005 400.000 400.000 20,00 10 66.667 66.667 333.333 Store 16, Computers and equipment ...... 2005 50.000 50.000 20,00 10 8.333 8.333 41.667 Store 17, Furniture and fittings ...... 2005 600.000 600.000 20,00 8 80.000 80.000 520.000 Store 17, Computers and equipment ...... 2005 50.000 50.000 20,00 8 6.667 6.667 43.333 Store 18, Furniture and fittings ...... 2005 400.000 400.000 20,00 6 40.000 40.000 360.000 Store 18, Computers and equipment ...... 2005 50.000 50.000 20,00 6 5.000 5.000 45.000 Store 19, Furniture and fittings ...... 2005 600.000 600.000 20,00 2 20.000 20.000 580.000 Store 19, Computers and equipment ...... 2005 50.000 50.000 20,00 2 1.667 1.667 48.333 Property and equipment 8.250.000 2.200.000 0 10.450.000 3.190.833 1.844.735 0 5.035.568 5.414.432 Furniture and fittings 6.550.000 2.000.000 0 8.550.000 2.387.799 1.506.934 0 3.894.733 4.655.267 Computers and equipment 1.450.000 200.000 0 1.650.000 711.367 287.801 0 999.168 650.832 Vehicles 250.000 0 0 250.000 91.667 50.000 0 141.667 108.333 2006 Kvadrat, Furniture and fittings ...... 2001 400.000 400.000 360.000 20,00 12 0 360.000 40.000 Kvadrat, Computers and equipment ...... 2001 200.000 200.000 180.000 20,00 12 0 180.000 20.000 Söregate, Furniture and fittings ...... 2001 600.000 600.000 529.733 20,00 12 10.267 540.000 60.000 Söregate, Computers and equipment ...... 2001 300.000 300.000 270.000 20,00 12 0 270.000 30.000 Triaden, Furniture and fittings ...... 2002 200.000 200.000 153.333 20,00 12 26.667 180.000 20.000 Triaden, Computers and equipment ...... 2002 50.000 50.000 38.333 20,00 12 6.667 45.000 5.000 Storgate, Furniture and fittings ...... 2002 150.000 150.000 110.000 20,00 12 25.000 135.000 15.000 Storgate, Computers and equipment ...... 2002 50.000 50.000 36.667 20,00 12 8.333 45.000 5.000 Byporten, Furniture and fittings ...... 2002 500.000 500.000 325.000 20,00 12 100.000 425.000 75.000 Byporten, Computers and equipment ...... 2002 150.000 150.000 97.500 20,00 12 30.000 127.500 22.500 NORIS GRUPPEN A/S DEPRECIATION REPORT

Purch Value Purchased Sold Value Earlier Depr. No. Depreciation Depreciation Accumulated Booked year 1/1 200X 31/ 12 200X depreciation % Mon cleared Depreciation value

Oslo City, Furniture and fittings ...... 2002 300.000 300.000 190.000 20,00 12 60.000 250.000 50.000 Oslo City, Computers and equipment ...... 2002 50.000 50.000 31.667 20,00 12 10.000 41.667 8.333 Transport vehicle ...... 2002 250.000 250.000 141.667 20,00 12 50.000 191.667 58.333 Karl Johann, Store 8, Furniture and fittings ...... 2003 600.000 600.000 340.000 20,00 12 120.000 460.000 140.000 Karl Johann, Store 8, Computers and equipment ...... 2003 300.000 300.000 170.000 20,00 12 60.000 230.000 70.000 Sandvika, Store 9, Furniture and fittings ...... 2003 600.000 600.000 320.000 20,00 12 120.000 440.000 160.000 Sandvika, Store 9, Computers and equipment ...... 2003 50.000 50.000 26.667 20,00 12 10.000 36.667 13.333 Storo Storsenter, Store 10, Furniture and fittings ...... 2003 600.000 600.000 300.000 20,00 12 120.000 420.000 180.000 Storo storsenter, Store 10, Computers and equipment ...... 2003 50.000 50.000 25.000 20,00 12 10.000 35.000 15.000 Bergen Storsenter, Store 11, Furniture and fittings ...... 2003 600.000 600.000 260.000 20,00 12 120.000 380.000 220.000 Bergen Storsenter, Store 11, Computers and equipment ...... 2003 50.000 50.000 21.667 20,00 12 10.000 31.667 18.333 Bergen, Store 12, Furniture and fittings ...... 2004 400.000 400.000 160.000 20,00 12 80.000 240.000 160.000 Bergen, Store 12, Computers and equipment ...... 2004 50.000 50.000 20.000 20,00 12 10.000 30.000 20.000 Trondheim, Store 13, Furniture and fittings ...... 2004 600.000 600.000 240.000 20,00 12 120.000 360.000 240.000 Trondheim, Store 13, Computers and equipment ...... 2004 50.000 50.000 20.000 20,00 12 10.000 30.000 20.000 Trondheim, Store 14, Furniture and fittings ...... 2004 400.000 400.000 160.000 20,00 12 80.000 240.000 160.000 Trondheim, Store 14, Computers and equipment ...... 2004 50.000 50.000 20.000 20,00 12 10.000 30.000 20.000 Stockholm, Store 15, Furniture and fittings ...... 2004 600.000 600.000 240.000 20,00 12 120.000 360.000 240.000 Stockholm, Store 15, Computers and equipment ...... 2004 50.000 50.000 20.000 20,00 12 10.000 30.000 20.000 Store 16, Furniture and fittings ...... 2005 400.000 400.000 66.667 20,00 12 80.000 146.667 253.333 Store 16, Computers and equipment ...... 2005 50.000 50.000 8.333 20,00 12 10.000 18.333 31.667 Store 17, Furniture and fittings ...... 2005 600.000 600.000 80.000 20,00 12 120.000 200.000 400.000 Store 17, Computers and equipment ...... 2005 50.000 50.000 6.667 20,00 12 10.000 16.667 33.333 Store 18, Furniture and fittings ...... 2005 400.000 400.000 40.000 20,00 12 80.000 120.000 280.000 Store 18, Computers and equipment ...... 2005 50.000 50.000 5.000 20,00 12 10.000 15.000 35.000 Store 19, Furniture and fittings ...... 2005 600.000 600.000 20.000 20,00 12 120.000 140.000 460.000 Store 19, Computers and equipment ...... 2005 50.000 50.000 1.667 20,00 12 10.000 11.667 38.333 Store 20, Furniture and fittings ...... 2006 400.000 400.000 20,00 10 66.667 66.667 333.333 Store 20, Computers and equipment ...... 2006 50.000 50.000 20,00 10 8.333 8.333 41.667 Store 21, Furniture and fittings ...... 2006 600.000 600.000 20,00 8 80.000 80.000 520.000 Store 21, Computers and equipment ...... 2006 50.000 50.000 20,00 8 6.667 6.667 43.333 Store 22, Furniture and fittings ...... 2006 400.000 400.000 20,00 6 40.000 40.000 360.000 Store 22, Computers and equipment ...... 2006 50.000 50.000 20,00 6 5.000 5.000 45.000 Store 23, Furniture and fittings ...... 2006 600.000 600.000 20,00 2 20.000 20.000 580.000 Store 23, Computers and equipment ...... 2006 50.000 50.000 20,00 2 1.667 1.667 48.333 Property and equipment 10.450.000 2.200.000 0 12.650.000 5.035.568 2.005.268 0 7.040.836 5.609.164 Furniture and fittings 8.550.000 2.000.000 0 10.550.000 3.894.733 1.708.601 0 5.603.334 4.946.666 Computers and equipment 1.650.000 200.000 0 1.850.000 999.168 246.667 0 1.245.835 604.165 Vehicles 250.000 0 0 250.000 141.667 50.000 0 191.667 58.333 2007 Kvadrat, Furniture and fittings ...... 2001 400.000 400.000 360.000 20,00 12 0 360.000 40.000 Kvadrat, Computers and equipment ...... 2001 200.000 200.000 180.000 20,00 12 0 180.000 20.000 Söregate, Furniture and fittings ...... 2001 600.000 600.000 540.000 20,00 12 0 540.000 60.000 Söregate, Computers and equipment ...... 2001 300.000 300.000 270.000 20,00 12 0 270.000 30.000 Triaden, Furniture and fittings ...... 2002 200.000 200.000 180.000 20,00 12 0 180.000 20.000 Triaden, Computers and equipment ...... 2002 50.000 50.000 45.000 20,00 12 0 45.000 5.000 Storgate, Furniture and fittings ...... 2002 150.000 150.000 135.000 20,00 12 0 135.000 15.000 Storgate, Computers and equipment ...... 2002 50.000 50.000 45.000 20,00 12 0 45.000 5.000 Byporten, Furniture and fittings ...... 2002 500.000 500.000 425.000 20,00 12 25.000 450.000 50.000 Byporten, Computers and equipment ...... 2002 150.000 150.000 127.500 20,00 12 7.500 135.000 15.000 Oslo City, Furniture and fittings ...... 2002 300.000 300.000 250.000 20,00 12 20.000 270.000 30.000 Oslo City, Computers and equipment ...... 2002 50.000 50.000 41.667 20,00 12 3.333 45.000 5.000 Transport vehicle ...... 2002 250.000 250.000 191.667 20,00 12 33.333 225.000 25.000 Karl Johann, Store 8, Furniture and fittings ...... 2003 600.000 600.000 460.000 20,00 12 80.000 540.000 60.000 Karl Johann, Store 8, Computers and equipment ...... 2003 300.000 300.000 230.000 20,00 12 40.000 270.000 30.000 Sandvika, Store 9, Furniture and fittings ...... 2003 600.000 600.000 440.000 20,00 12 100.000 540.000 60.000 Sandvika, Store 9, Computers and equipment ...... 2003 50.000 50.000 36.667 20,00 12 8.333 45.000 5.000 Storo Storsenter, Store 10, Furniture and fittings ...... 2003 600.000 600.000 420.000 20,00 12 120.000 540.000 60.000 Storo storsenter, Store 10, Computers and equipment ...... 2003 50.000 50.000 35.000 20,00 12 10.000 45.000 5.000 Bergen Storsenter, Store 11, Furniture and fittings ...... 2003 600.000 600.000 380.000 20,00 12 120.000 500.000 100.000 Bergen Storsenter, Store 11, Computers and equipment ...... 2003 50.000 50.000 31.667 20,00 12 10.000 41.667 8.333 Bergen, Store 12, Furniture and fittings ...... 2004 400.000 400.000 240.000 20,00 12 80.000 320.000 80.000 Bergen, Store 12, Computers and equipment ...... 2004 50.000 50.000 30.000 20,00 12 10.000 40.000 10.000 Trondheim, Store 13, Furniture and fittings ...... 2004 600.000 600.000 360.000 20,00 12 120.000 480.000 120.000 Trondheim, Store 13, Computers and equipment ...... 2004 50.000 50.000 30.000 20,00 12 10.000 40.000 10.000 NORIS GRUPPEN A/S DEPRECIATION REPORT

Purch Value Purchased Sold Value Earlier Depr. No. Depreciation Depreciation Accumulated Booked year 1/1 200X 31/ 12 200X depreciation % Mon cleared Depreciation value

Trondheim, Store 14, Furniture and fittings ...... 2004 400.000 400.000 240.000 20,00 12 80.000 320.000 80.000 Trondheim, Store 14, Computers and equipment ...... 2004 50.000 50.000 30.000 20,00 12 10.000 40.000 10.000 Stockholm, Store 15, Furniture and fittings ...... 2004 600.000 600.000 360.000 20,00 12 120.000 480.000 120.000 Stockholm, Store 15, Computers and equipment ...... 2004 50.000 50.000 30.000 20,00 12 10.000 40.000 10.000 Store 16, Furniture and fittings ...... 2005 400.000 400.000 146.667 20,00 12 80.000 226.667 173.333 Store 16, Computers and equipment ...... 2005 50.000 50.000 18.333 20,00 12 10.000 28.333 21.667 Store 17, Furniture and fittings ...... 2005 600.000 600.000 200.000 20,00 12 120.000 320.000 280.000 Store 17, Computers and equipment ...... 2005 50.000 50.000 16.667 20,00 12 10.000 26.667 23.333 Store 18, Furniture and fittings ...... 2005 400.000 400.000 120.000 20,00 12 80.000 200.000 200.000 Store 18, Computers and equipment ...... 2005 50.000 50.000 15.000 20,00 12 10.000 25.000 25.000 Store 19, Furniture and fittings ...... 2005 600.000 600.000 140.000 20,00 12 120.000 260.000 340.000 Store 19, Computers and equipment ...... 2005 50.000 50.000 11.667 20,00 12 10.000 21.667 28.333 Store 20, Furniture and fittings ...... 2006 400.000 400.000 66.667 20,00 12 80.000 146.667 253.333 Store 20, Computers and equipment ...... 2006 50.000 50.000 8.333 20,00 12 10.000 18.333 31.667 Store 21, Furniture and fittings ...... 2006 600.000 600.000 80.000 20,00 12 120.000 200.000 400.000 Store 21, Computers and equipment ...... 2006 50.000 50.000 6.667 20,00 12 10.000 16.667 33.333 Store 22, Furniture and fittings ...... 2006 400.000 400.000 40.000 20,00 12 80.000 120.000 280.000 Store 22, Computers and equipment ...... 2006 50.000 50.000 5.000 20,00 12 10.000 15.000 35.000 Store 23, Furniture and fittings ...... 2006 600.000 600.000 20.000 20,00 12 120.000 140.000 460.000 Store 23, Computers and equipment ...... 2006 50.000 50.000 1.667 20,00 12 10.000 11.667 38.333 Store 24, Furniture and fittings ...... 2007 400.000 400.000 20,00 10 66.667 66.667 333.333 Store 24, Computers and equipment ...... 2007 50.000 50.000 20,00 10 8.333 8.333 41.667 Store 25, Furniture and fittings ...... 2007 600.000 600.000 20,00 8 80.000 80.000 520.000 Store 25, Computers and equipment ...... 2007 50.000 50.000 20,00 8 6.667 6.667 43.333 Store 26, Furniture and fittings ...... 2007 400.000 400.000 20,00 6 40.000 40.000 360.000 Store 26, Computers and equipment ...... 2007 50.000 50.000 20,00 6 5.000 5.000 45.000 Store 27, Furniture and fittings ...... 2007 600.000 600.000 20,00 2 20.000 20.000 580.000 Store 27, Computers and equipment ...... 2007 50.000 50.000 20,00 2 1.667 1.667 48.333 Property and equipment 12.650.000 2.200.000 0 14.850.000 7.040.836 2.125.833 0 9.166.669 5.683.331 Furniture and fittings 10.550.000 2.000.000 0 12.550.000 5.603.334 1.871.667 0 7.475.001 5.074.999 Computers and equipment 1.850.000 200.000 0 2.050.000 1.245.835 220.833 0 1.466.668 583.332 Vehicles 250.000 0 0 250.000 191.667 33.333 0 225.000 25.000

7.087.202 24.073.535 1.268.635 4.007.562 225.000 558.332 8.580.837 28.639.429 NORIS GRUPPEN A/S

Long-term debt Year 2003: Loan information No. loan Insurance Texti Bal. 01.01.03 New loans Downpaym. Book.ind. Unb. Index Bal. 31.12.03 Due paym. Pmt. 2004 Pmt. 2005 Pmt. 2006 Pmt. 2007 Pmt. 2008 Pmt. Later Interest due Int. currency Exch.r Inter. Pmt. 1 Bank ...... 1.200.000 240.000 960.000 240.000 240.000 240.000 240.000 240.000 -240.000 NOK 15,00% Samtals 1.200.000 0 240.000 0 0 960.000 0 240.000 240.000 240.000 240.000 240.000 -240.000 0 0

Linear payments 15% Months. Nominal val Down pmt. Interest Pmt. 1.1.2003 1.200.000 20.000 15.000 35.000 1.2.2003 1.180.000 20.000 14.750 34.750 1.3.2003 1.160.000 20.000 14.500 34.500 1.4.2003 1.140.000 20.000 14.250 34.250 1.5.2003 1.120.000 20.000 14.000 34.000 1.6.2003 1.100.000 20.000 13.750 33.750 1.7.2003 1.080.000 20.000 13.500 33.500 1.8.2003 1.060.000 20.000 13.250 33.250 1.9.2003 1.040.000 20.000 13.000 33.000 1.10.2003 1.020.000 20.000 12.750 32.750 1.11.2003 1.000.000 20.000 12.500 32.500 1.12.2003 980.000 20.000 12.250 32.250 163.500 240.000 1.1.2004 960.000 20.000 12.000 32.000 1.2.2004 940.000 20.000 11.750 31.750 1.3.2004 920.000 20.000 11.500 31.500 1.4.2004 900.000 20.000 11.250 31.250 1.5.2004 880.000 20.000 11.000 31.000 1.6.2004 860.000 20.000 10.750 30.750 1.7.2004 840.000 20.000 10.500 30.500 1.8.2004 820.000 20.000 10.250 30.250 1.9.2004 800.000 20.000 10.000 30.000 1.10.2004 780.000 20.000 9.750 29.750 1.11.2004 760.000 20.000 9.500 29.500 1.12.2004 740.000 20.000 9.250 29.250 127.500 240.000 1.1.2005 720.000 20.000 9.000 29.000 1.2.2005 700.000 20.000 8.750 28.750 1.3.2005 680.000 20.000 8.500 28.500 1.4.2005 660.000 20.000 8.250 28.250 1.5.2005 640.000 20.000 8.000 28.000 1.6.2005 620.000 20.000 7.750 27.750 1.7.2005 600.000 20.000 7.500 27.500 1.8.2005 580.000 20.000 7.250 27.250 1.9.2005 560.000 20.000 7.000 27.000 1.10.2005 540.000 20.000 6.750 26.750 1.11.2005 520.000 20.000 6.500 26.500 1.12.2005 500.000 20.000 6.250 26.250 91.500 240.000 1.1.2006 480.000 20.000 6.000 26.000 1.2.2006 460.000 20.000 5.750 25.750 1.3.2006 440.000 20.000 5.500 25.500 1.4.2006 420.000 20.000 5.250 25.250 1.5.2006 400.000 20.000 5.000 25.000 1.6.2006 380.000 20.000 4.750 24.750 1.7.2006 360.000 20.000 4.500 24.500 1.8.2006 340.000 20.000 4.250 24.250 1.9.2006 320.000 20.000 4.000 24.000 1.10.2006 300.000 20.000 3.750 23.750 1.11.2006 280.000 20.000 3.500 23.500 1.12.2006 260.000 20.000 3.250 23.250 55.500 240.000 1.1.2007 240.000 20.000 3.000 23.000 1.2.2007 220.000 20.000 2.750 22.750 1.3.2007 200.000 20.000 2.500 22.500 1.4.2007 180.000 20.000 2.250 22.250 1.5.2007 160.000 20.000 2.000 22.000 1.6.2007 140.000 20.000 1.750 21.750 1.7.2007 120.000 20.000 1.500 21.500 1.8.2007 100.000 20.000 1.250 21.250 1.9.2007 80.000 20.000 1.000 21.000 2.9.2007 60.000 20.000 750 20.750 3.9.2007 40.000 20.000 500 20.500 4.9.2007 20.000 20.000 250 20.250 19.500 240.000 36.600.000 1.200.000 457.500 1.657.500 457.500 1.200.000 Year 2003 2004 2005 2006 2007 INCOME: Sales: Pr.month Pr.day Incl. MVA Kvadrat, Sandnes...... 6.290.328 6.290.328 6.290.328 6.290.328 6.290.328 524.194 17.473 21.667 Söregate, Stavanger...... 5.806.452 5.806.452 5.806.452 5.806.452 5.806.452 483.871 16.129 20.000 Triaden, Lörenskog...... 2.903.220 2.903.220 2.903.220 2.903.220 2.903.220 241.935 8.065 10.001 Storgate, Oslo...... 3.387.096 3.387.096 3.387.096 3.387.096 3.387.096 282.258 9.409 11.667 Byporten, Oslo...... 9.677.424 9.677.424 9.677.424 9.677.424 9.677.424 806.452 26.882 33.334 Oslo City, Oslo...... 5.806.452 5.806.452 5.806.452 5.806.452 5.806.452 483.871 16.129 20.000 Store 8, Karl Johan...... 4.838.710 5.806.452 5.806.452 5.806.452 5.806.452 806.452 26.882 33.334 Store 9, Sandvika Storsenter...... 3.870.968 5.806.452 5.806.452 5.806.452 5.806.452 483.871 16.129 20.000 Store 10, Storo Storsenter...... 2.903.226 5.806.452 5.806.452 5.806.452 5.806.452 483.871 16.129 20.000 Store 11, Bergen Storsenter...... 967.742 5.806.452 5.806.452 5.806.452 5.806.452 483.871 16.129 20.000 Store 12, Bergen...... 4.032.260 4.838.712 4.838.712 4.838.712 403.226 13.441 16.667 Store 13, Trondheim...... 3.225.808 4.838.712 4.838.712 4.838.712 443.548 14.785 18.333 Store 14, Trondheim...... 2.419.356 4.838.712 4.838.712 4.838.712 403.226 13.441 16.667 Store 15, Stockholm...... 806.452 4.838.712 4.838.712 4.838.712 443.548 14.785 18.333 Store 16...... 4.032.260 4.838.712 4.838.712 403.226 13.441 16.667 Store 17...... 3.548.384 5.322.576 5.322.576 443.548 14.785 18.333 Store 18...... 2.419.356 4.838.712 4.838.712 403.226 13.441 16.667 Store 19...... 887.096 5.322.576 5.322.576 443.548 14.785 18.333 Store 20...... 4.032.260 4.838.712 403.226 13.441 16.667 Store 21...... 3.225.808 4.838.712 443.548 14.785 18.333 Store 22...... 2.419.356 4.838.712 403.226 13.441 16.667 Store 23...... 806.452 4.838.712 443.548 14.785 18.333 Store 24...... 4.032.260 403.226 13.441 16.667 Store 25...... 3.225.808 443.548 14.785 18.333 Store 26...... 2.419.356 403.226 13.441 16.667 Store 27...... 887.096 443.548 14.785 18.333 Total 46.451.618 67.580.656 87.338.724 107.258.080 126.693.572 No. of stores 10 14 18 22 26 Other income: Accessories...... 450.000 630.000 810.000 990.000 1.170.000 45.000 1.500 450.000 630.000 810.000 990.000 1.170.000

Inventory: Aver.inv.pr shop Inventory at year end ...... 11.800.000 14.000.000 18.000.000 22.000.000 26.000.000 1.000.000

EXPENSES: Markup Purchases: 70% 30% Cost of goods sold ...... 17.664.002 25.698.671 33.212.005 40.786.673 48.177.342 3,75 2,50 Freight and distribution ...... 353.280 513.973 664.240 815.733 963.547 2% Cost of inventory ...... 236.000 280.000 360.000 440.000 520.000 2% 18.253.282 26.492.644 34.236.245 42.042.406 49.660.889 Salary and related expenses: Sal.pr.m. Ratio Chairman ...... 720.000 720.000 720.000 720.000 720.000 60.000 1 Director ...... 720.000 720.000 720.000 720.000 720.000 60.000 1 Partner ...... 480.000 480.000 480.000 480.000 480.000 40.000 1 Controler ...... 360.000 360.000 360.000 360.000 360.000 30.000 1 Logistic manager ...... 150.000 300.000 300.000 300.000 300.000 25.000 1 Daily man. Kvadrat ...... 360.000 360.000 360.000 360.000 360.000 30.000 1 Year 2003 2004 2005 2006 2007

Store assistant, Kvadrat ...... 216.000 216.000 216.000 216.000 216.000 18.000 1 Store assistant, Kvadrat ...... 108.000 108.000 108.000 108.000 108.000 18.000 0,5 Store assistant, Kvadrat ...... 108.000 108.000 108.000 108.000 108.000 18.000 0,5 Store assistant, Söregate ...... 151.200 151.200 151.200 151.200 151.200 18.000 0,7 Store assistant, Söregate ...... 151.200 151.200 151.200 151.200 151.200 18.000 0,7 Store assistant, Söregate ...... 129.600 129.600 129.600 129.600 129.600 18.000 0,6 Daily man., Triaden ...... 234.000 234.000 234.000 234.000 234.000 19.500 1 Store assistant, Triaden ...... 43.200 43.200 43.200 43.200 43.200 18.000 0,2 Store assistant, Triaden ...... 64.800 64.800 64.800 64.800 64.800 18.000 0,3 Daily man., Storgate ...... 240.000 240.000 240.000 240.000 240.000 20.000 1 Store assistant, Storgate ...... 216.000 216.000 216.000 216.000 216.000 18.000 1 Store assistant, Storgate ...... 108.000 108.000 108.000 108.000 108.000 18.000 0,5 Daily man., Byporten ...... 264.000 264.000 264.000 264.000 264.000 22.000 1 Store assistant, Byporten ...... 216.000 216.000 216.000 216.000 216.000 18.000 1 Store assistant, Byporten ...... 108.000 108.000 108.000 108.000 108.000 18.000 0,5 Store assistant, Byporten ...... 108.000 108.000 108.000 108.000 108.000 18.000 0,5 Store assistant, Byporten ...... 108.000 108.000 108.000 108.000 108.000 18.000 0,5 Daily man., Oslo City ...... 276.000 276.000 276.000 276.000 276.000 23.000 1 Store assistant, Oslo City ...... 216.000 216.000 216.000 216.000 216.000 18.000 1 Store assistant, Oslo City ...... 108.000 108.000 108.000 108.000 108.000 18.000 0,5 Daily man., Store 8, Karl Johan ...... 230.000 276.000 276.000 276.000 276.000 23.000 1 Store assistant, Store 8, Karl Johan ...... 180.000 216.000 216.000 216.000 216.000 18.000 1 Store assistant, Store 8, Karl Johan ...... 90.000 108.000 108.000 108.000 108.000 18.000 0,5 Store assistant, Store 8, Karl Johan ...... 90.000 108.000 108.000 108.000 108.000 18.000 0,5 Store assistant, Store 8, Karl Johan ...... 90.000 108.000 108.000 108.000 108.000 18.000 0,5 Daily man., Store 9, Sandvika Storsenter ...... 184.000 276.000 276.000 276.000 276.000 23.000 1 Store assistant, Store 9, Sandvika Storsenter ...... 144.000 216.000 216.000 216.000 216.000 18.000 1 Store assistant, Store 9, Sandvika Storsenter ...... 72.000 108.000 108.000 108.000 108.000 18.000 0,5 Daily man., Store 10, Storo Storsenter ...... 138.000 276.000 276.000 276.000 276.000 23.000 1 Store assistant, Store 10, Storo Storsenter ...... 108.000 216.000 216.000 216.000 216.000 18.000 1 Store assistant, Store 10, Storo Storsenter ...... 54.000 108.000 108.000 108.000 108.000 18.000 0,5 Daily man., Store 11, Bergen Storsenter ...... 46.000 276.000 276.000 276.000 276.000 23.000 1 Store assistant, Store 11, Bergen Storsenter ...... 36.000 216.000 216.000 216.000 216.000 18.000 1 Store assistant, Store 11, Bergen Storsenter ...... 230.000 276.000 276.000 276.000 276.000 18.000 0,5 Daily man., Store 12, Bergen ...... 200.000 300.000 300.000 300.000 25.000 1 Store assistant, Store 12, Bergen ...... 144.000 216.000 216.000 216.000 18.000 1 Store assistant, Store 12, Bergen ...... 72.000 108.000 108.000 108.000 18.000 0,5 Daily man., Store 13, Trondheim ...... 150.000 300.000 300.000 300.000 25.000 1 Store assistant, Store 13, Trondheim ...... 108.000 216.000 216.000 216.000 18.000 1 Store assistant, Store 13, Trondheim ...... 54.000 108.000 108.000 108.000 18.000 0,5 Daily man., Store 14, Trondheim ...... 150.000 300.000 300.000 300.000 25.000 1 Store assistant, Store 14, Trondheim ...... 108.000 216.000 216.000 216.000 18.000 1 Store assistant, Store 14, Trondheim ...... 54.000 108.000 108.000 108.000 18.000 0,5 Daily man., Store 15, Stockholm ...... 50.000 300.000 300.000 300.000 25.000 1 Store assistant, Store 15, Stockholm ...... 36.000 216.000 216.000 216.000 18.000 1 Store assistant, Store 15, Stockholm ...... 18.000 108.000 108.000 108.000 18.000 0,5 Daily man., Store 16, ...... 250.000 300.000 300.000 25.000 1 Store assistant, Store 16, ...... 180.000 216.000 216.000 18.000 1 Store assistant, Store 16, ...... 90.000 108.000 108.000 18.000 0,5 Daily man., Store 17 ...... 200.000 300.000 300.000 25.000 1 Store assistant, Store 17 ...... 144.000 216.000 216.000 18.000 1 Year 2003 2004 2005 2006 2007

Store assistant, Store 17 ...... 72.000 108.000 108.000 18.000 0,5 Daily man., Store 18 ...... 150.000 300.000 300.000 25.000 1 Store assistant, Store 18 ...... 108.000 216.000 216.000 18.000 1 Store assistant, Store 18 ...... 54.000 108.000 108.000 18.000 0,5 Daily man., Store 19 ...... 50.000 300.000 300.000 25.000 1 Store assistant, Store 19 ...... 36.000 216.000 216.000 18.000 1 Store assistant, Store 19 ...... 18.000 108.000 108.000 18.000 0,5 Daily man., Store 20 ...... 250.000 300.000 25.000 1 Store assistant, Store 20 ...... 180.000 216.000 18.000 1 Store assistant, Store 20 ...... 90.000 108.000 18.000 0,5 Daily man., Store 21 ...... 200.000 300.000 25.000 1 Store assistant, Store 21 ...... 144.000 216.000 18.000 1 Store assistant, Store 21 ...... 72.000 108.000 18.000 0,5 Daily man., Store 22 ...... 150.000 300.000 25.000 1 Store assistant, Store 22 ...... 108.000 216.000 18.000 1 Store assistant, Store 22 ...... 54.000 108.000 18.000 0,5 Daily man., Store 23 ...... 50.000 300.000 25.000 1 Store assistant, Store 23 ...... 36.000 216.000 18.000 1 Store assistant, Store 23 ...... 18.000 108.000 18.000 0,5 Daily man., Store 24 ...... 250.000 25.000 1 Store assistant, Store 24 ...... 180.000 18.000 1 Store assistant, Store 24 ...... 90.000 18.000 0,5 Daily man., Store 25 ...... 200.000 25.000 1 Store assistant, Store 25 ...... 144.000 18.000 1 Store assistant, Store 25 ...... 72.000 18.000 0,5 Daily man., Store 26 ...... 150.000 25.000 1 Store assistant, Store 26 ...... 108.000 18.000 1 Store assistant, Store 26 ...... 54.000 18.000 0,5 Daily man., Store 27 ...... 50.000 25.000 1 Store assistant, Store 27 ...... 36.000 18.000 1 Store assistant, Store 27 ...... 18.000 18.000 0,5 7.656.000 10.042.000 12.746.000 15.242.000 17.738.000 1.942.500 71 Salary related expenses ...... 1.148.400 1.506.300 1.911.900 2.286.300 2.660.700 0,15 8.804.400 11.548.300 14.657.900 17.528.300 20.398.700

Office cost: Telephone and fax ...... 120.000 168.000 216.000 264.000 312.000 Postal expenses ...... 60.000 84.000 108.000 132.000 156.000 Brochures, magazines etc...... 60.000 84.000 108.000 132.000 156.000 Stationary ...... 60.000 84.000 108.000 132.000 156.000 Computer equipment etc...... 72.000 100.800 129.600 158.400 187.200 Homepage ...... 24.000 33.600 43.200 52.800 62.400 Misc. office cost ...... 60.000 84.000 108.000 132.000 156.000 456.000 638.400 820.800 1.003.200 1.185.600

Administrative cost: Marketing ...... 1.886.750 2.891.450 3.846.150 4.900.850 6.155.550 Allowances ...... 90.000 126.000 162.000 198.000 234.000 Traveling expenses ...... 120.000 168.000 216.000 264.000 312.000 Trade fair ...... 80.000 112.000 144.000 176.000 208.000 Revision and consulting ...... 150.000 210.000 270.000 330.000 390.000 Year 2003 2004 2005 2006 2007

Purchased assistance ...... 120.000 168.000 216.000 264.000 312.000 Other administrative cost ...... 240.000 336.000 432.000 528.000 624.000 2.686.750 4.011.450 5.286.150 6.660.850 8.235.550

Housing expenses: Pr. period Pr.month Rent, Kvadrat ...... 411.996 411.996 411.996 411.996 411.996 103.000 34.333 Rent, Söregate ...... 600.000 600.000 600.000 600.000 600.000 150.000 50.000 Rent, Karl Johann ...... 0000000 Rent, Triaden ...... 228.000 228.000 228.000 228.000 228.000 57.000 19.000 Rent, Storgate ...... 408.000 408.000 408.000 408.000 408.000 68.000 34.000 Rent, Byporten ...... 1.010.004 1.010.004 1.010.004 1.010.004 1.010.004 252.500 84.167 Rent, Oslo City ...... 780.000 780.000 780.000 780.000 780.000 195.000 65.000 Rent, Store 8, Karl Johan ...... 841.670 1.010.004 1.010.004 1.010.004 1.010.004 252.500 84.167 Rent, Store 9, Sandvika Storsenter ...... 266.664 399.996 399.996 399.996 399.996 100.000 33.333 Rent, Warehouse ...... 160.000 240.000 240.000 240.000 240.000 60.000 20.000 Rent, Store 10, Storo Storsenter ...... 199.998 399.996 399.996 399.996 399.996 100.000 33.333 Rent, Store 11, Bergen Storsenter ...... 66.666 399.996 399.996 399.996 399.996 100.000 33.333 Rent, Store 12, Bergen ...... 333.330 399.996 399.996 399.996 100.000 33.333 Rent, Store 13, Trondheim ...... 266.664 399.996 399.996 399.996 100.000 33.333 Rent, Store 14, Trondheim ...... 199.998 399.996 399.996 399.996 100.000 33.333 Rent, Store 15, Stockholm ...... 66.666 399.996 399.996 399.996 100.000 33.333 Rent, Store 16 ...... 333.330 399.996 399.996 100.000 33.333 Rent, Store 17 ...... 266.664 399.996 399.996 100.000 33.333 Rent, Store 18 ...... 199.998 399.996 399.996 100.000 33.333 Rent, Store 19 ...... 66.666 399.996 399.996 100.000 33.333 Rent, Store 20 ...... 333.330 399.996 100.000 33.333 Rent, Store 21 ...... 266.664 399.996 100.000 33.333 Rent, Store 22 ...... 199.998 399.996 100.000 33.333 Rent, Store 23 ...... 66.666 399.996 100.000 33.333 Rent, Store 24 ...... 333.330 100.000 33.333 Rent, Store 25 ...... 266.664 100.000 33.333 Rent, Store 26 ...... 199.998 100.000 33.333 Rent, Store 27 ...... 66.666 100.000 33.333 Heat and electricity ...... 240.000 336.000 432.000 528.000 624.000 Maintenance ...... 180.000 252.000 324.000 396.000 468.000 Insurance ...... 120.000 168.000 216.000 264.000 312.000 Cleaning ...... 60.000 84.000 108.000 132.000 156.000 Security ...... 60.000 84.000 108.000 132.000 156.000 Other housing expenses ...... 120.000 168.000 216.000 264.000 312.000 5.752.998 7.846.650 9.758.634 11.670.618 13.582.602

Other operating expenses: Leasing and ASP ...... 360.000 504.000 648.000 792.000 936.000 Operational insurance ...... 120.000 168.000 216.000 264.000 312.000 Other operating expenses ...... 360.000 504.000 648.000 792.000 936.000 840.000 1.176.000 1.512.000 1.848.000 2.184.000 BUSINESS PLAN 2003 -2007 NORIS GRUPPEN A/S 2002 2003 2004 2005 2006 2007 Total

PROFIT AND LOSS ACCOUNT

INCOME:

Sales ...... 46.451.618 67.580.656 87.338.724 107.258.080 126.693.572 435.322.650 Accessories ...... 450.000 630.000 810.000 990.000 1.170.000 4.050.000 46.901.618 68.210.656 88.148.724 108.248.080 127.863.572 439.372.650

EXPENSES:

Operating expenses: Cost of goods sold ...... 18.253.282 26.492.644 34.236.245 42.042.406 49.660.889 170.685.466 Salary and related expenses ...... 8.804.400 11.548.300 14.657.900 17.528.300 20.398.700 72.937.600 Office cost ...... 456.000 638.400 820.800 1.003.200 1.185.600 4.104.000 Administrative cost ...... 2.686.750 4.011.450 5.286.150 6.660.850 8.235.550 26.880.750 Housing expenses ...... 5.752.998 7.846.650 9.758.634 11.670.618 13.582.602 48.611.502 Other operating expenses ...... 840.000 1.176.000 1.512.000 1.848.000 2.184.000 7.560.000 Depreciation ...... 955.001 1.650.000 1.844.735 2.005.268 2.125.833 8.580.837 37.748.431 53.363.445 68.116.466 82.758.645 97.373.178 339.360.165

Profit before financial income and expenses ...... 9.153.187 14.847.211 20.032.258 25.489.435 30.490.394 100.012.485

FINANCIAL INCOME AND EXPENSES:

Interest earned and indexation ...... 112.500 507.500 1.027.500 1.782.500 2.757.500 6.187.500 Interest expenses and indexation ...... ( 210.786) ( 200.244) ( 190.792) ( 182.651) ( 176.081) ( 960.554) ( 98.286) 307.256 836.708 1.599.849 2.581.419 5.226.946

Earnings before taxes ...... 9.054.901 15.154.467 20.868.966 27.089.284 33.071.813 105.239.431 Income tax ...... ( 2.535.372) ( 4.243.251) ( 5.843.310) ( 7.585.000) ( 9.260.108) ( 29.467.041)

NET EARNINGS ...... 6.519.529 10.911.216 15.025.656 19.504.284 23.811.705 75.772.390 NORIS GRUPPEN A/S 2002 2003 2004 2005 2006 2007 Total

BALANCE SHEET - ASSETS

FIXED ASSETS:

Property and equipment: Furniture and fittings ...... 1.762.201 3.472.201 4.162.201 4.655.267 4.946.666 5.074.999 24.073.535 Computers and equipment ...... 601.967 828.633 738.633 650.832 604.165 583.332 4.007.562 Vehicles ...... 0 208.333 158.333 108.333 58.333 25.000 558.332 2.364.168 4.509.167 5.059.167 5.414.432 5.609.164 5.683.331 28.639.429 Investments: Investments: ...... 0 0 6.700.000 15.900.000 29.800.000 48.100.000 100.500.000 0 0 6.700.000 15.900.000 29.800.000 48.100.000 100.500.000

Fixed assets 2.364.168 4.509.167 11.759.167 21.314.432 35.409.164 53.783.331 129.139.429 CURRENT ASSETS:

Inventory ...... 5.900.000 11.800.000 14.000.000 18.000.000 22.000.000 26.000.000 97.700.000

Receivables: Accounts receivable ...... 100.000 100.000 300.000 500.000 700.000 900.000 2.600.000 Prepaid expenses ...... 600.00000000600.000

Cash and Cash equivalents: Bank deposits for rent guarantees ...... 750.000 2.250.000 3.450.000 4.650.000 5.850.000 7.050.000 24.000.000 Bank deposits ...... 0 520.916 596.705 692.583 740.720 832.560 3.383.484 Current assets 7.350.000 14.670.916 18.346.705 23.842.583 29.290.720 34.782.560 128.283.484

ASSETS TOTAL 9.714.168 19.180.083 30.105.872 45.157.015 64.699.884 88.565.891 257.422.913 NORIS GRUPPEN A/S 2002 2003 2004 2005 2006 2007 Total

BALANCE SHEET - CAPITAL AND LIABILITIES

STOCKHOLDERS EQUITY:

Capital stock ...... 100.000 9.190.909 9.190.909 9.190.909 9.190.909 9.190.909 46.054.545 Overvaluation account ...... 950.000 950.000 950.000 950.000 950.000 950.000 5.700.000 Retained earnings ...... 86.782 6.606.311 17.517.527 32.543.183 52.047.467 75.859.172 184.660.442 Stockholders equity 1.136.782 16.747.220 27.658.436 42.684.092 62.188.376 86.000.081 236.414.987

LONG-TERM LIABILITIES:

Loans from shareholders ...... 2.050.000000002.050.000 Den Norske Bank, overdraft ...... 1.000.000 1.000.000 1.000.000 1.000.000 1.000.000 1.000.000 6.000.000 Den Norske Bank ...... 1.200.000 960.000 720.000 480.000 240.000 0 3.600.000 4.250.000 1.960.000 1.720.000 1.480.000 1.240.000 1.000.000 11.650.000 Current maturites of long-term debt ...... ( 240.000) ( 240.000) ( 240.000) ( 240.000) ( 240.000) 0 ( 1.200.000) Long-term liabilities 4.010.000 1.720.000 1.480.000 1.240.000 1.000.000 1.000.000 10.450.000

CURRENT LIABILITIES:

Accounts payable ...... 4.100.000 200.000 400.000 600.000 800.000 1.000.000 7.100.000 Other payables ...... 227.386 272.863 327.436 392.923 471.508 565.810 2.257.926 Current maturites of long-term debt ...... 240.000 240.000 240.000 240.000 240.000 0 1.200.000 Current liabilitites 4.567.386 712.863 967.436 1.232.923 1.511.508 1.565.810 10.557.926

Liabilities total 8.577.386 2.432.863 2.447.436 2.472.923 2.511.508 2.565.810 21.007.926

KHOLDERS EQUITY AND LIABILITIES TOTAL: 9.714.168 19.180.083 30.105.872 45.157.015 64.699.884 88.565.891 257.422.913 NORIS GRUPPEN A/S 2002 2003 2004 2005 2006 2007 Total

STATEMENT OF CASH FLOWS

OPERATING ACTIVITIES:

Net earnings ...... 6.519.529 10.911.216 15.025.656 19.504.284 23.811.705 75.772.390 Adjustm. to reconcile net earnings to net cash provided Depreciation ...... 0 955.001 1.650.000 1.844.735 2.005.268 2.125.833 8.580.837 Working capital provided by operating activities 0 7.474.530 12.561.216 16.870.391 21.509.552 25.937.538 84.353.227

Changes in operating assets and liabilities Current receivables, change ...... ( 1.450.000) ( 900.000) ( 1.400.000) ( 1.400.000) ( 1.400.000) ( 1.400.000) ( 7.950.000) Current liabilities, change ...... 4.327.386 ( 3.854.523) 254.573 265.487 278.585 294.302 1.565.810 Inventory, change ...... ( 5.900.000) ( 5.900.000) ( 2.200.000) ( 4.000.000) ( 4.000.000) ( 4.000.000) ( 26.000.000) Changes in operating assets and liabilities ( 3.022.614) ( 10.654.523) ( 3.345.427) ( 5.134.513) ( 5.121.415) ( 5.105.698) 51.969.037

Net cash (used in) provided by operating activities ( 3.022.614) ( 3.179.993) 9.215.789 11.735.878 16.388.137 20.831.840 19.584.847

INVESTMENT ACTIVITIES:

Equipment, change ...... ( 2.364.168) ( 3.100.000) ( 2.200.000) ( 2.200.000) ( 2.200.000) ( 2.200.000) ( 14.264.168) Investments, change ...... 0 0 ( 6.700.000) ( 9.200.000) ( 13.900.000) ( 18.300.000) ( 48.100.000) Net cash used in investing activities ( 2.364.168) ( 3.100.000) ( 8.900.000) ( 11.400.000) ( 16.100.000) ( 20.500.000) ( 62.364.168)

FINANCING ACTIVITIES:

Capital stock, change ...... 1.136.782 9.090.909000010.227.691 Long term debt, change ...... 4.250.000 ( 2.290.000) ( 240.000) ( 240.000) ( 240.000) ( 240.000) 1.000.000 Net (used in) provided by financing activities 5.386.782 6.800.909 ( 240.000) ( 240.000) ( 240.000) ( 240.000) 11.227.691

INCREASE IN CASH ...... 0 520.916 75.789 95.878 48.137 91.840 832.560

CASH AT YEAR BEGINNING ...... 0 0 520.916 596.705 692.583 740.720 2.550.924

CASH AT YEAR END ...... 0 520.916 596.705 692.583 740.720 832.560 3.383.484 NORIS GRUPPEN A/S 2002 2003 2004 2005 2006 2007 Total

KEY FIGURES AND FINANCIAL RATIOS:

EBIDTA ...... 10.108.188 16.497.211 21.876.993 27.494.703 32.616.227

Current ratio: Current assets / Current liabilities ...... 1,61 20,58 18,96 19,34 19,38 22,21

Equity ratio: Stockholders equity / Total assets ...... 0,12 0,87 0,92 0,95 0,96 0,97

Internal value of share capital: Capital stock / Stockholders equity ...... 11,37 1,82 3,01 4,64 6,77 9,36

Return on equity: Profit / Stockholders equity ...... N/A 38,93% 39,45% 35,20% 31,36% 27,69%

Profit in percentage of turnover: Profit / Turnover ...... N/A 13,90% 16,00% 17,05% 18,02% 18,62%

PRESENT VALUE: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6.... Discount rate ...... 1,10 1,21 1,33 1,46 1,61 0,20 Profit pr. year ...... 6.519.529 10.911.216 15.025.656 19.504.284 23.811.705 23.811.705 NPV ...... 5.926.845 9.017.534 11.297.486 13.359.099 14.789.879 119.058.525 Accumulated NPV ...... 5.926.845 14.944.379 26.241.865 39.600.964 54.390.843 173.449.368 BREAKEVEN With 2003 as base year

2003 Change in income...... 70,00% 75,00% 80,69% 90,00% 100,00% 110,00% 130,00% Budgeted income...... 32.831.133 35.176.214 37.844.916 42.211.456 46.901.618 51.591.780 60.972.103 Fixed budgeted expenses...... 37.846.717 37.846.717 37.846.717 37.846.717 37.846.717 37.846.717 37.846.717 Profit margin -5.015.584 -2.670.503 -1.801 4.364.739 9.054.901 13.745.063 23.125.386

Breakeven

70.000.000

60.000.000

50.000.000

40.000.000 Budgeted income

NOK Fixed budgeted expenses 30.000.000

20.000.000

10.000.000

0

% % % ,00% ,00% ,69% ,00% 0,00 0,00 0,00 70 75 80 90 10 11 13 % change in income MARKETING VS. INCOME

2003 2004 2005 2006 2007 Budgeted income...... 46.901.618 68.210.656 88.148.724 108.248.080 127.863.572 Marketing...... 1.886.750 2.891.450 3.846.150 4.900.850 6.155.550 4,02% 4,24% 4,36% 4,53% 4,81%

Marketing vs. income

140.000.000

120.000.000

100.000.000

80.000.000 Budgeted income

NOK Marketing 60.000.000

40.000.000

20.000.000

0 2003 2004 2005 2006 2007 Year PROFIT MARGIN

2003 2004 2005 2006 2007 Budgeted income...... 46.901.618 68.210.656 88.148.724 108.248.080 127.863.572 Budgeted expenses...... 37.846.717 53.056.189 67.279.758 81.158.796 94.791.759 Profit margin 9.054.901 15.154.467 20.868.966 27.089.284 33.071.813 Profit margin in %...... 19,31% 22,22% 23,67% 25,03% 25,86%

Profit margin

140.000.000

120.000.000

100.000.000

80.000.000 Budgeted income

NOK Budgeted expenses 60.000.000

40.000.000

20.000.000

0 2003 2004 2005 2006 2007 Year