Porsonal / Confidential
ALFINA 6.009,
‘Mrs Barbara Vii Vranigar
Director
Strojarske ules 2
4226 Biri
Slovenia
‘August 18th, 2015
Dear Mrs Vil Vranis
following the presentation of the ALPINA Business Audit on May 6th, 2018, we finally
Clariied the remaining outstanding issues on Thursday 21 May, 2015, together with
you, Mina Stepec and Petra Pogacnik at the DUTS offces in \ubfana. At tis
‘meeting we also discussed the three diferent scenarios with regard to the ALPINA,
bushess development DUTB as the owner of the company will be confronted with
Scenario 1 would be the immediate sale of ALPINA as distressed company
‘sacsficng any potential value enhancement. Scenario 2 could be the existing
business pian fled by ALPINA management and resulting In a tather moderate
improvernent in EBITDA over § years. In this scenario it could be appropriate to ask
the Management Boars for investment of equity in order to have their focus clearly on
raising EBITDA potentiaL Scenario 3 as presented by ADMETAM represents the
Implementation of a comprehensive, demanding, short-term improvement program
over 6 month based upon a potential EBITDA improvement of § Mil Euro (best case)
It became clear that our proposal wil require significant corrective action led by the
ce.
Nevertheless, DUTE as the new owner of the company has decided to go for
Scerario 3 and to implement the improvement program a8 proposed as soon ae
possble, Potential valuation impacts we have already explained at our presentation
‘menfoned above, ADMETAM has therefore been requested to provide a detailed
project plan and organisation including project fee which stould considera fat fee as
‘well a8 a performance related bonus or variable fee. The variable element wil
‘depend on the achievement of spectic targets as defined ir Annex {‘The ADMETAM team will mainly consist of consultants already presert at ALPINA:
Dr. Armin Mueller (Partner, Project Man.’ CFOY Strategy’ Product Retail’ Re-
corganisation), Hans-Bernd Lipinsk! (Partner, Supply Chain’ Operations! Production
Footprint) Inventories), Isabella Her! (Partner, Seles! Marketing! Operations!
Collection development), Colin Richter (Consultant, Financiale/ Overhead Cost!
Contoling/ Working Capital’ Calculation), and Una Kolar (Consukant. Market