AS Silvano Fashion Group is an international apparel distribution group involved in design, manufacturing and marketing of women’s apparel and lingerie. In addition, the Group provides a limited volume of sewing services to other manufacturers of women’s apparel.

The Group operates the PTA, Oblicie, Milavitsa, Lauma, Amadea and Splendo retail chains which distribute the PTA, Milavitsa, Alisee, Lauma and Laumelle brands in Estonia, Latvia, Lithuania, Russia, Belarus, Ukraine and Poland. The Group’s products are also distributed through wholesale channels.

The manufacturing capacity of the Group is comprised of Milavitsa, a lingerie factory located in Minsk (Belarus), Lauma Lingerie, a lingerie factory located in Liepaja (Latvia) and Klementi, a women’s apparel factory located in Tallinn (Estonia). Multiple production facilities in different countries and a diversified multi-brand retail chain add versatility and flexibility to the operations of the Group.

Strategic Objectives

The strategic goal of the Group is to become a leading retailer of lingerie, women’s apparel and accessories (with its own flexible production facilities) in the markets of the Baltic states, Russia, the rest of the CIS and, in the longer term, Central and Eastern Europe. The Group is planning to develop and fine-tune its business model based on vertical integration of retailing and manufacturing functions across a variety of brands and sectors (such as lingerie, apparel and related merchandise). The Group intends to ensure that most of its products are exclusively available at and sold through the Group’s retail network with differentiated mark-ups reflecting the positioning of each product. This strategy should eventually increase the overall revenues and profits of the Group and create additional value for its shareholders.

The Group intends to achieve these objectives by rapidly expanding and strengthening its existing retail network in existing markets, entering new geographical regions, developing intra-group synergies, and pooling resources and know-how between the various Group companies.

Organisation

SP ZAO Milavitsa, established in 1908 and based in Minsk, Belarus, is the largest lingerie sewing factory in Europe. The company manufactures over 17 million lingerie pieces per year, and employs over 2,000 employees.

Milavitsa branded products have the highest brand recognitions in Russia, Belarus and Ukraine and in some other countries. Sales are generated through distributors and dealers, with an emphasis placed on sales through aggressively expanding Oblicie retail stores in Russia and Milavitsa franchised stores.

Milavitsa has been gradually decreasing the volume of tolling orders, placing emphasis on production of lingerie under its own brand. Part of sewing is already outsourced to other Belarusian companies.

AS Lauma Lingerie, based in Liepaja, Latvia, was established in October 2005 as a split-off of Lauma AS lingerie operations. Its manufacturing capacity is ca 2 million pieces of intimate apparel items per year. The company employs over 350 workers.

Lauma Lingerie is the leader of the intimate apparel industry in the Baltics. Lauma Lingerie produces high ‘value added’ lingerie, focusing on the upper-middle price segment. Quality is owned to the long experience of the company’s in-house designer team. In the CIS markets Lauma has strengthened its client relationships and achieved a good brand recognition for its lingerie products.

In 2006 Lauma Lingerie restructured its product portfolio into two main brands – Lauma Lingerie and Laumelle, and opened its first Lauma Lingerie retail outlet in the Baltics. With the roll-out of Oblicie chain retail network will constitute an increasing share of revenues in the future.

PTA Grupp AS (formerly AS Klementi), based in Tallinn, is an apparel retailer, wholesaler and manufacturer which started operations back in 1938. The company runs retail operations under the PTA brand in the Baltic states, and established wholesale contracts to sell PTA branded collections in Scandinavia. It employs over 300 people.

Since 1997 PTA is listed on the Tallinn Stock Exchange.

The PTA collection includes women's blazers, skirts, trousers, blouses, waistcoats, leisurewear, uniforms and working wear, and accessories. Goods are marketed under the PTA brand.

About 30% of PTA products are currently produced in own production unit, 70% of production is outsourced to the Far East and Turkey.

Currently the group is operating over 30 PTA stores in Estonia, Latvia, Lithuania, Ukraine and Russia with retail space over 6,000 sqm.

ZAO Linret, a retail company, was established in Moscow, Russia to operate retail stores under the Oblicie brand in May 2005 with a main focus on well-recognized brand names of Lauma Lingerie and Milavitsa. Presently Linret has got over 35 Oblicie stores in Moscow, St. Petersburg, Astrakhan, Volgograd, Kazan, Kaliningrad, Rjazan, Jaroslavl , Nizhni Novgorod, Toljatti, Naberezhnye Chelny, Ekateringburg, etc.

By PTA entering Silvano Fashion Group , Linret is on a way of operating new stores of PTA in Russia.

In November 2006 Silvano Fashion Group acquired Splendo Polska Sp. z o.o., a multibrand lingerie retail chain operator in Poland. Currently Splendo and Oblicie stores in Poland are operated in Warsaw, Gdansk, Krakow, Poznan, etc. The acquisition of Splendo marked an entry to the Polish retail market by Silvano. It was also an opportunity to increase the brand awareness of Milavitsa and Lauma on the Polish market, which previously had been sold through wholesale in a limited way.

In September 2007 SFG acquired UAB Linret LT, a lingerie retail chain operator with 16 lingerie retail outlets in Lithuania (4 in Vilnius, 3 in Klaipeda, 4 in Siaulai, 3 in Kaunas, 1 in Mazeikai and 1 in Utena) totalling 877 square metres in area. The shops are operated primarily under the name of Amadea Line. This acquisition significantly boosted the Group’s presence in Lithuania (3 retail outlets before the acquisition). The newly acquired retail outlets already had strong ties to the Group, with over 40% of revenue generated from sales of Lauma Lingerie branded products. Starting from 2008 the product portfolio also includes Milavitsa branded lingerie.

It is the intention of Silvano to look for additional expansion opportunities on the market.