RĪGAS EKONOMIKAS AUGSTSKOLA STOCKHOLM SCHOOL OF ECONOMICS IN RIGA

Silvano Fashion Group Project in Accounting and Finance

Strupiša Ieva ZandersoneMāra Cornez Alexandre Kieffer Pierre-Louis

May, 2010

Contents Presentation ...................................................................................................................................................... 3 History .............................................................................................................................................................. 4 Historical analysis ............................................................................................................................................. 5 Resource Structure and Growth................................................................................................................................5 Profitability (Figure 1) .............................................................................................................................................6 Margins and Profit ...............................................................................................................................................6 Return on Equity ..................................................................................................................................................6 Return on Asset ....................................................................................................................................................6 Return on Capital Employed ................................................................................................................................6 Return on Net Assets............................................................................................................................................7 Profit per employee ..............................................................................................................................................7 Financial Position (Figure 2) ...................................................................................................................................7 Liquidity (Figure 3) ..................................................................................................................................................8 SWOT Analysis ...............................................................................................................................................10 Strengths .................................................................................................................................................................10 Weaknesses ............................................................................................................................................................10 Opportunities ..........................................................................................................................................................11 Threats ....................................................................................................................................................................11 Scenario and forecasting ...................................................................................................................................12 Evaluation model ..............................................................................................................................................13 Comparison of results .......................................................................................................................................14 P/E ratio ..................................................................................................................................................................15 P/B ratio ..................................................................................................................................................................15 PMB : Permanent Measurement Bias .....................................................................................................................15 Work Cited........................................................................................................................................................17 Appendices .......................................................................................................................................................18

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Presentation The joint stock company Silvano Fashion Group is a well-known international distributor and producer of women’s apparel and lingerie in Eastern region of the Europe. The headquarters of the company is located in Minsk (Belarus), but the company has representation offices in Riga (Latvia), Moscow (Russia) and Tallinn (Estonia). The mission of the company is related not only with customers satisfaction, but also with comfort, positive emotions and confidence of stockholders and employees. They work on their products being personality encouraging and self-esteem boosting. They try to make their products in a way that each customer could find something specially for them, high lightening their personality (Silvano Fashion Group, 2010). Now the production takes place in Latvia (by lingerie production company Lauma Lingerie) and Belarus (by the company Milavitsa). The products are distributed in all the three Baltic countries, as well as in Russia, Belarus and Ukraine, where the company claims to have around 200 million possible customers. Silvanio Fashion Group owns a brand portfolio consisting of five brands which are target for different customer segments. Milavitsa is the best-known brand in Russia, meant for women between 25 and 45 years, sold mostly in CIS countries. Alisee is lingerie brand for higher class, stylish women which are 25 – 45 years old. Aveline is a brand targeting lower middle class women in Russia, Ukraine and some other CIS countries. Lauma Lingerie and Laumelle are both coming from Latvian company “Lauma”. Lauma Lingerie is for 25 to 45 years old middle class ladies in Baltic States and Russia. Laumelle is a brand targeting 17 – 25 years old girls, mainly in Russia and Baltic States (Silvano Fashion Group, 2010). The company is heading towards becoming the leader of women’s lingerie market in Eastern and Central Europe. Their goal is to provide their production mainly through their own retailers and retail networks. The company is still growing and developing in order to become more efficient and to reach its future objectives, ensuring their clients with excellent products, qualitative service and personal attitude. Competitors.Silvano Fashion Group is facing number of competitors operating both in the countries they are selling their products, in countries they are planning to expand to, as well as large international companies. In Latvia one of main competitors are V.O.V.A. and Shante Ltd., what is underwear producer established in 2001 and have already partners in Russia (Shante, 2004). In Estonia main competitor is company Linette, which was originally established already in 1940 and now is cooperating with Swedish company, offering women lingerie with Swedish quality and comfort. They are exporting their products to different countries and have 8 specialized Linette stores in Estonia as well as their goods in different retail stores (Linette). Lithuanian competitor UtenosTrikotazas AB was established in 1967. In year 2005 sales of the company amounted 121,4 million litas, what is equivalent to 34,5 million euro. They are selling their products in such countries as Lithuania, Sweden, Spain, Germany, Finland and many others. UtenosTrikotazas has 20 retail stores in Lithuania and Ukraine (Utenos Trikotazas AB).

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One of competitors in Russia is company Valeria, which is operating in Russian and CIS market for over 80 years. They have wide target market, producing different kinds of lingerie, including eco-lingerie. Valeria has numerous awards in different congresses and exhibitions. The company has also specialized shops in Moscow and Kolomna(Valeria). Although Milavitsa is considered to be the largest women lingerie manufacturer in Belarus, there are also some a bit smaller apparel producers like Tarusa JSC which operates under trademark Milady and is focusing on high quality underwear (Papova, 2010). In Ukraine one of the most successful competitors is TPP Ltd Universal (subdivision Fashion Lingerie House Ajour). It was established in 1997 and their annual revenues are 1 – 2 million USD (TPP Ltd Universal, 2009). Moreover, there are number of international competitors, e.g., Triumph, GAIA (exclusive lingerie’s producer) and others. Moreover, there are always possibilities to order lingerie and underwear in internet shops.

History The development of Silvano Group can be seen below, where the history of the company is graphically shown. Silvano Fashion Group has merged from joining together (in 2006) three cloth and lingerie producers – PTA (later acquired by Klementi) in Estonia, previously mentioned Milavitsa in Belarus and Lauma in Latvia (Silvano Fashion Group, 2010). Figure 1Silvano Fashion Group History

Source:Silvano Fashion Group, retrieved from www.silvanofashion.com

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Historical analysis Resource Structure and Growth As Silvano Fashion Group experienced huge changes in 2006, it’s more reasonable to look at time periods before merger and after, focusing on year 2006 and later. Year 2004 was not so successful for company, sales decreased from 8 219 000 EUR to 7 319 000 EUR (by 11%), number of employees was reduced by 7%, assets were cut by half, while personnel expenses remained approximately at the same level (2853 and 2815 thousands EUR respectively). However, everything changed with the year 2006, as parts of three big companies were joined together under one company – Silvano Fashion Group. That is obvious, why there was such a huge increase in the number of employees, sales and their resource structure. The utmost increase was observed in assets. There was an enlargement by 1465%. The smallest effect was on sales; there was an increase “only” by 269%. That could be explained by the fact that at balance closing day assets of all three companies together were taken into account. However, as merging process took some time, then sales for Silvano Fashion Group as merger of three companies was not for 12 month, but smaller time period, thus we can’t expect huge increase straight away. Moreover, company had to internally adjust and get used to new profile. Overall, joining under one name was a good idea, as already next year sales increased more than two times (from 27014 thousands EUR to 98580 thousands in 2007). Year 2008 was not so outstanding, as sales increased only by 10%, but it might be still a good result as 2008 was the time when financial crisis started and some companies were making losses. It is important to note that debt and equity has increased more than assets over time (in percentage terms relatively to existing); in 2008 amount of debt almost doubled. Number of employees has slightly increased from year to year indicating the expansion of the company. Administrative costs don’t differ a lot from distribution costs. (in year 2006: distribution costs 3776 thousands EUR, administrative – 2686 thousands EUR; 2009: 11464 and 10226 correspondingly). For a distribution company administrative costs are relatively high. Cost of Goods sold amounts on average for 43% of sales. In year 2008 distribution costs increased significantly due to the slight increase in rent and utilities, as well as personnel costs. They acquired land and buildings through business combinations (increased ownership of Milavitsa in 2008) and transfers and reclassifications. Figure 0. Resource

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Profitability (Figure 1) Margins and Profit Gross Margin Due to the merger between PTA-Klementi and Silvano in 2006, the gross margin of the new company - has been rising until 2008 (2005: 9,3%, 2006: 14,71%, 2007: 15,82%). Indeed, in 2008 Silvano was subjected to an increase of both administrative and distribution costs in comparison with 2007 - respectively +29% and +58% - which led to a negative gross margin at the end of 2008: -5,92%. Profit Margin: Through these calculations, we can observe that the company has had on average, a relatively high profit margin especially in 2007 (12,12%). Therefore, it is possible to say that Salvino has had a low turnover of capital. On the contrary, in 2008, the profit margin dropped reaching -7,02% and that was a possible threat: currently the decline in sales has erased profits and as a result, has led to a net loss. Finally, in 2009 the profit margin was still negative but went up again to -3,20%. Operating Margin: High level of Operating Margin in 2006 (18,69%) and in 2007 (20,85%) allowed to the company to pay its fixed costs (for instance interest on debt). The ratio of 2,73% in 2008 emphasizes the fact that Silvano bears more financial risks. In 2009, the company still had a low ratio just a little bit higher than in 2008: 5,01%. Return on Equity Through its equity, Silvano is able to generate a return valuated at 20,34% on average. In 2005, the company reached a very high ratio due to the low equity: 64,12%. The merger entailed a growth in asset and therefore a growth in equity which led to a lower ratio thereafter. Actually, the growth in net income has not been proportional to the growth in equity. Finally, a negative net income both in 2008 and 2009 means irrevocably a negative ROE: respectively -12,13% and -2,03%. Return on Asset Despite the ROA of 10,42% in 2006 which is lower than previous years’, the return on asset was quite high until 2008 (19,66%). It is generally agreed that the higher the ROA number, the better, insofar as with lower investment the company is able to generate more money. A negative net income both in 2008 and 2009 implied a negative ROA: respectively -10,35% and -3,75%. Return on Capital Employed ROCE allows evaluating the efficiency and profitability of a company’s capital investments. Thus, it can be concluded that Silvano reached high profitability in 2007 with a ROCE equal to 23,80%. Nevertheless, the financial crisis in 2008 led to a negative ratio due to a negative profit margin. The average ROCE of the company is 7,37%.

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Return on Net Assets Similarly to the return on capital employed the RONA decreased between 2007 and 2008. With a ratio equal to approximately 53% for these two years, we can conclude that the company used its net assets in an effective manner in order to generate a profit. A drop in operating margin in 2008 led to a strong decrease of RONA which reached 2,73%. Profit per employee High profit per employee was reached in 2006 of about 9,53 thousands per employee. This emphasized a strong increase in comparison with 2005 (1,40 thousands). Since 2008 Silvano has been facing a negative profit per employee, respectively -1,86 thousands in 2008 and -0,23 thousands in 2009.

Figure 1. OM, ROE, ROA, TOA, RONA and PE

Financial Position (Figure 2) The calculations of E/A, D/E, Dib/E and E/sales ratios show, how Silvano Fashion Group is financed. As E/A ratio has been rather high during the last three years of operating it can be concluded that the company is mostly financed by equity (80% in 2007 and 65% in 2008). The ratio of interest bearing debt to equity in 2004 was enormous (393%) which means that the company’s assets were financed by debt, however the situation changed over the years and if looking at years 2007 and 2008 the ratio is around 10%. This can be explained by the fact that the three companies in 2006 were merged together and started to share the financial structure, while the ratio of 393% is for the Estonian branch PTA alone.

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The equity to sales ratio which shows by how much the sales increase with every monetary unit increase in equity, was stable in years 2004 and 2005 (around 13%) but it sharply increased in 2006, reaching 149% and then decreased in 2007 and 2008 to 56% and 46% respectively. This again can be explained by the enlarging of Silvano Fashion Group when due to companies’ merger the amount of shareholders could have increased.

Figure 2. Financial Position

Liquidity (Figure 3) The first ratio used to measure the liquidity of Silvano is the current ratio. This ratio compares the current assets to the current liabilities and thus we can see whether the company has enough resources to face up the debts. In theory a current ratio of 2 is usually good. As we can see here the current ratio is above 2, with a peak at 3,63 in 2006 and 2007. However in 2005, it was only 0,95 but in this year as we mentioned in description, the company was not operating at the same level it is now – after merger in 2006. Then, we use the quick ratio, also called “Acid test”. In this case it measures the ability of the firm to pay its debt immediately. This ratio compares the current assets minus the inventory (which is illiquid) to the current liabilities and to be good it should be above 1. Here, again excepted 2005, it is below 1. There are huge differences in the quick ratio, which indicates the importance of inventory in the company. When we look at liquid assets as percentage of sales, this number is very disparate, after the merger of companies in 2005, the liquid assets represented 47% of sales in 2006, compared to only 2% in 2005. This ratio decreased in 2007 and 2008 to reach a more “normal” level of 5%. This should not indicate that there was a problem with liquidity; the 2006 ratio was just “abnormal”. The inventory turnover is globally very low, around 2 or 3 days. Generally it is better than high ratio, because high ratio implies investment with a return of 0. However, such a low ratio could be due to the fact that the company is overstocking (too high inventory, too low sales), or that the operations are really efficient. The average of account receivable ratio is around 37 days over the period. However, the time of receiving payments from customers has been increasing since 2007, and in 2009 reached 47 days. It is not very good to improve their liquidity. It is almost the same conclusion for the account payable. After a peak at 41 days in 2006, the ratio rose from 51 days in 2008 to 109 days in 2009. However in this case it is good for the liquidity because Silvano has more time to pay the creditors.

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The interest coverage ratio has been over 1 in all years except in 2008 when it was -1,46 due to the losses. Coverage ratio in 2006 amounted to 60 and 120 in 2007 and 10 in 2009. This implies that payments related to expenses obligations is not an important concern when looking at overall liquidity. Finally, by looking at the cash, we see that Silvano had some problem during the financial crisis in 2007 and 2008. Indeed the cash flow was -1293 and -6270 respectively. But this situation reversed in 2009 with +5871. All things considered it is not that bad concerning the liquidity.

Figure 3. Liquidity

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SWOT Analysis Figure 2 SWOT analysis Strengths  Wide target market  Set of well-known brands  Geographical dispersion  Experience gained over decades

Weaknesses  Lack of central management  Weakly distributed between the countries they are operating in  Too big proportion of minority shareholders Opportunities Threats  Opportunities to enlarge the market  No possibilities for innovations  Economic recovery  Large number of better known and more prestigious competitors  Opportunities to take over other small companies and brands  Producing countries Source: By authors

Strengths As mentioned before, Silvano Fashion Group is a well-known women apparel and lingerie production and distribution company. It has several strengths and advantages. First of all the company during times has acquired different well-known brands like Lauma Lingerie and Laumelle, Alisee and other. Set of well-known brands creates good reputation for it. Additionally, some of the brands initially were created in companies which are relatively old and stable already (e.g., Belarus Milavitsa was established in 1908), thus when Silvano Fashion Group acquired part of the company, they acquired also experience, which was gained over decades. Moreover, the brands they have are targeting different auditoriums starting from young, 18 years old women, ending with higher class stylish women who may be up to 45 year old. The wide target market is a huge advantage for the company. They are graphically dispersed as operating in such countries as Belorussia, Russia, Latvia, Estonia and others. That creates potential for high earnings.

Weaknesses There are a number of weaknesses that the Silvano Group faces. The company lacks central management since it is nowadays built on a combination of smaller companies, it still holds the divisions of the small companies by focusing on certain production lines, style and previously developed strategies. This can lead to too dispersed goals and future development. Also the company is operating its sales mostly in the same country where the product is produced. The export strategy and possible exchange of differentiated goods is limited. Another weakness is the enormous number of minor shareholders. There are almost 1000 shareholders with shareholdings that are < 0,1% of all the shares. This affects the attitude

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towards the company and possible gains from participation by the shareholders in the business development.

Opportunities Currently Silvano Fashion group is operating in Eastern Europe and Asia mainly. However, they can open new their own shops in other countries, like Bulgaria, Romania, Armenia, Moldova and others as they are currently operating in Post soviet countries and they can follow this trend. They can take over other already existing small apparel and lingerie production companies, their brands and thus enter new markets. Moreover, as currently economy just starts to recover from crisis in many countries, it is a great possibility to expand as costs will be relatively lower and a lot of competitors are vanished due to low performance.

Threats The Silvano Fashion Group faces several threats. Lack of innovation opportunities limits the business to certain production types and forces to adapt similarly to other competitors which in turn affects the business environment. Another threat is that there is a number of well known and developed brands in Western Europe (for example, Femilet in Denmark), United States of America and other huge producers that create and sell the same goods of high quality and fashion style. The authors of the report consider the small number of producing and selling countries as a possible threat as well since Silvano Fashion Group has good quality products and are able to face a bigger market, however, they are still leaving their business processes in the same countries. Moreover, the countries they are operating now are developing countries what limits potential earnings (price should be set accordingly).

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Scenario and forecasting In this report, we are going to provide a realistic scenario as regards Silvano Fashion, an Estonian lingerie company. Our evaluation equity will be based on this scenario, and in order to do so, we need to make some assumptions about the major variables which are the following : -

-

-

-

-

-

Sales: In order to obtain the expected growth of total sales, we have divided the total sales in three main sectors : women’s apparel, lingerie and other. First of all, we expect the women’s apparel growth to be 15% in 2010 and decreases towards 9%, and stays at this level in steady state. Furthermore, the growth in lingerie is estimated to be nearly the same in the future, around 5% Finally, for other sales, the growth is evaluated to be 60% because the rate was relatively higher that the growth of sales of woman’s apparel. These services are just at the beginning of life cycle, thus growth was relatively much higher and decreases faster. In general the growth in steady state is expected to be around 10%. Costs: On average, on the last four years, the gross margin (cost of goods sold divided by sales) was approximately 43%. Then we assume that this level remains constant in the future. Thus, the level of cost of goods sold will represent 43% of sales in our model. Other operating incomes and expenses: For the other operating incomes, in general it represents around 1,5% of the sales, then we use this number for the forecasts. As regards the expenses, that is to say distribution and administrative costs and other expenses, this should represent around 36% of the sales in the future. Investments in intangible and tangible We have computed the mean of accumulated acquisitions of tangible and intangible over the past 4 years. By increasing this number by about 10% every year, we can assume that the acquisition of intangible in 2010 will be 900 and after, it will be smoother (200, 220, 240…). For the tangible, the total acquisition in 2010 will be 0 and will also be smoother thereafter (2050, 2260, 2470…). Interest expenses and interest revenues Interest expenses and interest revenues were given in the annual report and they were used to calculate interest rates. Interest rates applied for the company in 2008 were used further as constant for forecasts. The overall tax rate was 33,04% for the company in 2009, we assume that this rate will stay constant in the future. Dividends :

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-

-

The payout ratio was around 3% before 2009, hence, dividends in 2010 are likely to be 150. In case of a drop of net income, dividends will not be diminished, the company cannot afford this even if it is a small company, because it is not good as regards investors. We assume that no repurchase of shares or new issue will be made. Account receivable and payable When we compute the mean on the last 4 years,the average account receivable is 37 days and 60 for account payable. In 2009, there was a big rise due to the crisis (47 days for receivables and 109 for payables), but those numbers should not last thereafter. So we have taken the mean for the forecasting. Based on historical data, the average turnover was 2, and it will remain the same over the period.

Evaluation model In this section, we will provide an evaluation of the stock price of Silvano and we will compare what we have found with the current stock price on the market. Two models will be used in order to achieve this analysis : the dividend discount model and the residual income model. In the Dividend Discount Model (DDM), we evaluate the company stock by using predicted dividend and discount them back to present value. Share prices are estimated with this formula : ∑

(

)

(

)

Where is the dividend at year , is the required rate of return, and value of all future dividend at horizon .

is the

In the Residual Income Model, we use both the book value of the company and the present value based on accounting profits. In other words, it is the sum of the book value of equity at the time of valuation, the present value of residual income and the difference between the book and market value at horizon. Share prices are estimated with this formula : ∑

(

) (

)

(

)

Where is the book value at time 0, and are respectively the market value and book value at horizon . is the return on equity at the year . In order to use those two models, we need first to describe all the required inputs. - The risk free interest rate : since there is no bond market in Estonia, we have decided to take the average 10 years government bond in Sweden. The rate found was 2,83% - The Beta : for Silvano Fashion Group, we have found the following beta : 1,5 - Equity risk premium : for Estonia, the equity risk premium is estimated to be 5,85%

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-

Required rate of return : we calculated the required rate of return with the CAPM model : ( ) Using the previous inputs, we have

Comparison of results

Figure 4. Share price of Silvano 2005-2010 This graph shows the share’s value of Silvano Fashion Group for the past 5 years. The price increased in 2006 and 2007, due to high profits in these 2 years. In 2008, the negative result (-6407) has led to a dramatic decrease of the value of the stock, to a low point at 0,20€ in 2009. The enhancing of economic climate led to a relatively better result in 2009, even if it was still negative (-912), and previsions are also good for 2010. The price increased and is now at 1,20€. As we can see, prices are extremely volatile, in 2007 there was a peak at almost 7€, and a low point at 0,2€. In the last year the price increased by more than 500%... We assume that dividends are paid at the end of the year. We have made our evaluation at the beginning of 2010 (1 january). Hence the price we have found is approximately 0,46€. The stock price was around 0,78€ (+70%) on the first of January. In order to compare the current prices we need to compute the present value of our estimation at the actual date (8 May). We discount future dividends by the respective number of days, and we find a new price of 0,48€. Compared to this price, the real one is 150% higher. 14

We think that such a difference between the theoretical and the real price can be explained by - The “real” price could be different from the theoretical one due to some inefficiency on the market. The first reason is that this stock is very volatile and is prone to speculation. There is not a lot of trade on the market, and thus the price can fluctuate very quickly. A change of investors’ behavior can lead to a loss or gain of confidence. Now, investors are more willing to invest their money in stocks than in the previous year. This is market inefficiency and can stop prices to converge to their fundamentals. - Moreover in our estimation, our payout ratio is very low as regards the previous years. Therefore, the growth (in steady state) is fully dependent on the ROE level (in steady state). Added to this, our required rate of return is in the same range that our ROE. Thus, a small variation of the ROE entails a significant price variation.

P/E ratio In the last two years, that is to say 2008 and 2009, earnings were negative, thus we could not calculate this ratio. However if we follow our prevision for 2010, earnings could be 4222, and a valuation of equity : 18424. A P/E ratio of 2010 could be 4,4. In steady state (horizon 2014), (

)

. If we assume that the payout ratio is

6%, the required rate of return is 11,6% and the growth is 10,3%, then the ratio would be around 4,7.

P/B ratio The P/B ratio can be calculated with the following formula : For 2010, this ratio is around 0,5 and approximately the same in steady state. This could mean that the company is overvalued.

PMB : Permanent Measurement Bias This ratio can be computed with the following formula : We have just found a P/B ratio less than 1, thus the PMB is negative (-0,5). By comparing the results with the data we found on internet, in the same industry (apparel), there are some important points to be explained.

Apparel

Price/Current EPS

Price/Forward PE

Expected Growth

Payout

Beta

19.64

16.31

10.45%

20.35%

1.30

Figure 5.Data for apparel, from the Stern School of New York

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Those results are taken from the Stern School of New York, and represent American companies, but this should also be a good way to compare Silvano Fashion’s results. First of all, the beta appears less important than the 1,5 we have found for Silvano. The payout ratio is more important. This could be explained by the fact that Silvano is still a young company, more risky (higher beta), and distribute less dividend than mature companies. The growth we have is approximately the same, but for Silvano the growth could be more important because as we said, it is not a mature company. The price earnings ratio is really low compared to the sector, around 4 or 5 times less. In general it means that investors expect higher return when P/E is high. By taking a ROE of 11%, it means that ( ) , we can conclude that the future profitability will be a little bit lower than currently. Overall to conclude this part, we must say a word about the Silvano Fashion Group. This group is not a mature group. Few years ago, it was just a small entity named Klementi. In 2005/2006, this group expended and after some acquisition, took the name of Silvano. The group started to grow exponentially before the crisis, and started to distribute some dividends. Those dividends represented around 3/5% of the net income. With the crisis those dividends were cut. The point is that our model is very sensitive to the change in dividends and that it could lead to some problems in the evaluation of equity. In fact it is a very common problem to evaluate equity of start-up or not fully matured companies. We think that Silvano Fashion is still in this category, and thus it is very hard to evaluate correctly this company. Finally, our model is very sensitive to any change of ROE, due to the fact that ROE is approximately the same than and that payout ratio is low, so the difference between and growth is small. If we increase the ROE by 1%, the will be very low and the valuation of equity will be very high. With a 12% ROE we will have a share price of approximately 2 (400% more than the previous price).

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Work Cited 1. Linette. (n.d.). About Us. Retrieved http://www.linette.ee/index.php?pid=44&lang=3

May

8,

2010,

from

Linette:

2. NASDAQ OMX. (n.d.). Benchmark Bonds. Retrieved May 5, 2010, from NASDAQ OMX: http://nordic.nasdaqomxtrader.com/trading/fixedincome/Sweden/benchmark_bonds_turnove r_list/ 3. NASDAQ OMX. (2010, May 5). Silvano Fashion Group. Retrieved May 5, 2010, from NASDAQ OMX: http://www.nasdaqomxbaltic.com/market/?instrument=EE3100001751&list=2&pg=details& tab=trading

4. Papova, N. (2010). Tarusa JSC. Retrieved May 9, 2010, from TradeAegea.com: http://www.tradeaegea.com/default.cgi/action/viewcompanies/companyid/388540/ 5. Reuters. (n.d.). Silvano Fashion Group AS. Retrieved May 9, 2010, from Reuters: http://www.reuters.com/finance/stocks/overview?symbol=SFGAT.TL

6. Shante. (2004). Par mums. Retrieved http://www.shante.lv/parmums.html

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8,

2010,

from

Shante

Lingerie:

7. Silvano Fashion Group. (2010). Brand Portfolio. Retrieved April 15, 2010, from silvano Fashion group: http://www.silvanofashion.com/business/brand-portfolio.html 8. Silvano Fashion Group. (2010). History. Retrieved April 17, 2010, from Silvano Fashion Group: http://www.silvanofashion.com/company/history.html 9. Silvano Fashion Group. (2010). Mission. Retrieved April 17, 2010, from Silvano Fashion Group: http://www.silvanofashion.com/company/mission.html 10. TPP Ltd Universal. (2009, February 9). Tpp Ltd Universal. Retrieved May 8, 2010, from EC21 Global B2B Marketplace: http://lyudmilaya.en.ec21.com/company_info.jsp 11. Utenos Trikotazas AB. (n.d.). About Us. Retrieved May 8, 2010, from Utenos Trikotažas: http://www.utenostrikotazas.lt/page.asp?DL=E&EditionID=101&TopicID=1 12. Valeria. (n.d.). О нас. Retrieved http://test.bravovaleria.ru/index.php

May

17

8,

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from

Valeria

Lingerie:

Appendices year PE/A EMPL SALES A D E

Growth % 2005 101% -14% -11% -51% -59% -12%

2006 -87% 598% 269% 1465% 397% 3961%

2007 -14% 19% 265% 34% 22% 38%

2008 10% 14% 10% 11% 94% -10%

2009 -22% -32% -30% -47% -20%

Liquidity year Current ratio Quick Ratio Cash availability Interest coverage ratio Cash Flow (in EUR)

2005 0,95 0,24 0,02 2,87

2006 3,63 2,28 0,47 60,22

2007 3,64 2,07 0,12 119,32

2008 2,09 1,02 0,05 -1,46

2009 2,82 1,60 0,13 10,30

Average 3,04 1,74 0,19 47,09

-36

12631

-1293

-6270

5871

2734,75

1,90

3,07

2,46

1,87

2,32

50

32

35

47

37

41

39

51

109

60

0,98

1,62

1,47

1,12

1,33

Inventory Turnover Receivables (credit 21 days) Payables (credit days) 1,45 Total Asset Turnover

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