Turn Key Project In Seamless (Garments) Composite Factory

SEF 23 November 2005 “ Turn Key Project in Seamless (garments) composite factory” Luca Pastorello CF Rimoldi Member of the Board

- Seamlesswear - USE OF ANY TYPE OF FIBRES & YARNS MADE-TO-MEASURE READY-TO-WEAR GARMENTS MULTIFUNCTIONAL APPAREL

- Innovation Concept - A REVOLUTIONARY TECHNOLOGY IN THE GLOBAL APPAREL WORLD SEAMLESS 3D KNITTING WITH UP & DOWN WITH INTEGRATED ELASTIC WAIST-BAND

- Market of S eamlesswear - UNDERWEAR SPORTSWEAR ACTIVEWEAR NIGHTWEAR OUTERWEAR SWIMWEAR v v LEISUREWEAR BEACHWEAR TRAVELWEAR HOMEWEAR PRET-A-PORTER MEDICALWEAR

Worldwide Distribution Of Seamlesswear Factories (150 Factories In 78 Countries)

Seamlesswear Garments Demand For Production Of

Success Of Seamless Underwear Products (Women, Men & Children)

Seamlesswear Tremendous Evolution In The Global Underwear Market

Forecast Of Seamlesswear Statistics From Our Best Customers In The Global Underwear Market

- Italian Underwear Market Share - +32% GARMENTS SEAMLESS IN THE YEAR 2000 SEAMLESSWEAR PRODUCT WAS 3% IN THE YEAR 2004

Financial Example

Vertically Integrated Turn key projects for the manufacturing of 5500 seamless garments in 8 hours.

550.000 CF machines for stitching 1.320.000 12 Santoni machines Machine and Production Technology 150.000 Utilities - production 300.000 Utilities - general 1.000.000 Building Infrastructure Amount in Euro as price list Type of investment 72.000 Traveling and accomodation for foreign managers 200.000 Yearly salaries for foreign managers 100.000 Yearly salaries for workers Salaries 85.000 SRA machine for automatic pressing 500.000 Flainox machines for dyieng

Total: € 4.300.000 =

Total workers: 120

Total square meters needed: 2.000

40.000 Traveling and accomodation of foreign technicians for installation 20.000 Machines transportation Extra Costs others Elastics To be verified Yarn Inventories

Where Everything Starts: The Engineering Room

Engineering Concept

- Sampling: maximum 30 days from buyers’ input

- Garment technical specs

- Garment costings specs

- Manufacturing process: garment engineers to substitute quality control and production supervisors

- Master complexity of information through software in real time to have real time solutions

Financials Of An ER For Seamlesswear

- Santoni: 220.000 € ( 2 machines)

- CF: 180.000 € ( 14 machines + conveyors, full electrical and pneumatic installations, accessories)

- Flainox: 40.000 € ( full lab)

- Forms for pressing: 5.000 € ( 2 pieces)

TOTAL: € 445.000

- Including expenses for transportation, installation, training and foreign technicians

APPROX € 500.000

Space, Labour And Training For An ER In Seamlesswear.

- Space: max 500 square meters, taking also in considerations storages for yarn, trims etc.

- Labour:

1 technician for Santoni machines

1 technician for CF machines

1 yarn and dyeing expert

1 programmer for Santoni machines

1 designer if you want to propose your models

1 ER manager

1 CF APM Software manager and Times studies Engineer

2 sewing machines operators with high expertise.

TOTAL: 9 PEOPLE

Seamless Know-How Key Competitive Advantages - Reduction of labour costs - Reduction of working machines number - Reduction of industrial spaces - Reduction of energy costs - Reduction f yarns stock - Reduction of fabric stock - Reduction of sampling time - Reduction of fabric rejects - Reduction of sewing costs - Production reduction of finishing process costs - “just in time” production - Production of complete garments

Why Buyers Want To Source From CEI Countries

- Risk diversification: today main manufacturers – Israel and China

- Possibility of vertical integration

- Speed to Market

- Brand development in local markets

- Competitive local and labor costs

- Textile tradition

- Easy access to EU market

- Easy access to Russian market

Competitive Advantage

- In a garment world of hyper competition, seamless is the next new thing – buyers want and need to source seamless wear becasue the market is asking for it: