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Tim Lagerpusch (Founder and CEO, SugarTrends GmbH) held this presentation on SugarTrends at the 2014 SME Assembly in Naples, Italy. Find out more at: http://blogs.ec.europa.eu/promotingenterprise/

TRANSCRIPT

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Tim LagerpuschFounder and CEO SugarTrends GmbH

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The Internet has everything, butOn SugarTrends you will always find something special and you can trust on it:

Consumers love SugarTrends …

Why we need SugarTrends

On SugarTrends the lifestyle consumer will find special products from great small stores around the world and thus saves time for searching while receiving high quality & service

Our stores love SugarTrends …

People looking for something special

The nice Independent Local Shops

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Some Shop Examples

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The market

The Market is big

In Germany about 8M customers await us that frequently buy high quality, luxuary and organic products. Many are already buying online, many more will join because of our unique service

>2M stores

300K matching

stores

10K Member stores

Total available Market:• $15T retail market• 20% high quality• ~10% online

Serviceable/ Targeted available Market• Independent small stores• Matching products quality & style• Sales $200K p.a.

Signed stores

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The Internet has everything, butOn SugarTrends you will always find something special:

• Collection of special beautifulproducts

• Service from experienced& reliable stores

• Trust in quality & delivery

• Technology & Design for a great shopping experience

Consumers love SugarTrends …

As a gift or

For yourself

Why we need SugarTrends

We all love it

• Access to new global customers

• Economies of scale for shipping, payment & tech. costs

• Exclusive store network

• Great solutions for online sales& easy CM, processing and handling

Our stores love SugarTrends …

People looking for something special The nice Independent Local Shops

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AccessoriesGourmet

Home & Deco

+Fashion

+Art

+Furniture+Jewelry

Ø Shopping Cart €

# purchases

1

2

3

4

14

+Netherlands+Skandinavia+tbd.

+Austria+Swittzerland

Germany

+UK+tbd

+US

+BRICS

t

$35

$65

$95

$125

$160

Year 1 Year 2

Year 35k

0.15M

0.6M

1M €

25M €

50M €

Year 4 Group 1 Group 2 Group 4 Group 5

# Annual marketing & sales budget

$130 Jewelry

6 . M a r k e t E n t r y

Market entry strategy

Our market entry starts actively in Germany with products from $65-$180, which are easy & cheap to ship. With an increasing trust & investment we will expand our product portfolio and enter new countries

Group 3

increase of product depthand focus of marketing etc.

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The Network Effect

Scaling Marketing Potential

We join them

Each shop has a fan-community

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Status Quo – Performance (1/2)

SugarTrends is international with for example 82 stores in 14 EU countries. 30% of our customers are already shopping from the USA, Australia or Brazil

18 Countries

36 Cities

101 Stores

~1.500 Products

9.000 unique visitors p.m.45% international users30.000 USD in sales

European overview1

Germany >40 stores 13 cities >700 products

Portugal 10 stores 2 cities >300 products

Italy 7 stores 6 cities >80 products

Spain 6 stores 1 city >60 products

1 SugarTrends also has stores located in 2 non-European cities: New Delhi and Sydney, First inquiries from the US and Hong Kong

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11T e a m

Christian Schwarzkopf Tim Lagerpusch

Customers Creative CEO Consulting, ITe.g. SAP, Siemens Management Consulting>50 Consulting projects since 2005(e.g. Lufthansa, BASF, Masterfoods)Supporting more than 200 Startups as MDat Center for Innovation & Entrepreneurship

Stores Networking CEO Consulting, Logisticse.g. Deutsche Bank, Booz & Company>50 Consulting projects since 2005(e.g. VBL SCHUFA, Volaris)Supporting more than 200 Startups as MDat Center for Innovation & Entrepreneurship

• The founders are experienced entrepreneurs (IT, Consulting, Logistics, Coaching)• Our team members are international with various profound expertise

We are an experienced, international Team…

The FoundersWorking together since 2001

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Professional full integrationof the stores (Selection, CM, Marketing)

Anonymus

Comparison of some international Online-Marketplaces with special products 1. Selection of the finest products

Easier for consumers

2. Stores work for us Operational & cost advantage

3. Wide high class portfolio Increased shared of wallet High conversion

4. Focus on independent labels Less price competition

5. First store owner community Sustainability

Our USP combination

Competition

Through an invitation only policy of qualified stores and their integration in the operations,SugarTrends will build up a strong market position with its wide product portfolio

Further national concepts

JUNIQUE

WideProduct Categories

SmallProduct Portfolio

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Key

KP

I

• Breakeven in 3rd year possible• Investment:

• Seed: $0,15M• Series A: $2.5-4M• Series B: $6.5-13M• Series C: tbd.

  Year 1 Year 2 Year 3 Year 4

Sales $270 K $12.61 M $65.29 M $152.92 M

# Visits/month 0,01 M 0,36 M 1,5 M 2,8 M

# Orders/year 3 K 0,13 M 0,56 M 1,07 MInternal revenues $26 K $1.69 M $9.91 M $27.17 M

Conversion 1,8% 2,8% 3,0% 3,0%

ø shopping cart $80 $95 $120 >$130

Employees 14 38 55 82# Stores 300 700 2.000 5.000Commission & Fees 10% 13% 15% 18%

• >$200K Self-financing• 4,000 visitors p.m.• Conversion Rate ~1% (Q2 2014)• No marketing spending so far• 101 stores, 50 in the pipeline

Financials

In order to grow and establish SugarTrends internationally, several investment rounds are necessary. We would like to start in Q4 2014 with a Series A of over 2.5M USD

2014 2015 2016 2017 2018 $-20,000,000

$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

Revenues Costs

EBIT

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www.sugartrends.com

10 Euro Friends-Discount“SME2014”

the network of the nicest independent shops

Next Steps

Hope to see you….