Social Enterprise Fashion Industry Greece www.soffa.gr

Pitch Deck

Who are we? • DO u know

– how the people that make your clothes work n live?

– 30m people trapped in modern slavery; trafficking

– Pollution caused by producing your clothes?

– Greek youth unemployment 60%

• Do you know the returns n size of impact investors? You can create value n still make significant profits.

• Let’s Break the Chain!

• SOFFA is the Social and Sustainable Factory of Europe

• We Produce @no one’s expense

Social Investment Market • In the next decade the market could reach from $400m to 1 trillion with potential

profits of $183m to $667m for just the five segments of affordable urban housing, rural access to clean water, maternal health, primary education, and microfinance (JPMorgan, 2010).

• US 99 impact/social investors had committed $8bil in 2012 in the market with the objective to commit $9bil in 2013, estimates revealed that in the next decade impact/social investments would constitute 5-10% of portfolios (JPMorgan, 2013).

• In 2011 Boston Consulting Group alone invested £165m in social investments (Neville and Moules, 2012).

• 2011 SRI were €6.7tril of these the size of impact investment was €8.75b (Eurosif, 2012); of these 55% is microfinance, 19% social business entrepreneurs funds, 18% community investments, and 8% other alternative investments.

• The SRI funds in Europe are 6% of all retail investments which are 31% of all invested assets;

• Composition SRI funds: 33% equity, 51% bonds, 9% alternative assets, like hedge funds and venture capitals which decreased from 12% over the increase of liquid monetary assets which are 7%.

• UK is global leader in the SRI market, its value was €1,235b in 2011 is a world center for social investment (Eurosif, 2012).

• UK up to 2008 £754b invested in these funds in the UK (UKSIF Cohen, 2010).

What we are looking for?

• Impact investors and socially responsible institutional partners

The Challenge

The fashion industry is the world's second-largest polluter, right behind oil.

30m people trapped into trafficking the fastest-growing form of international crime and it comes second behind drugs

Unemployment ratios: • EU(28) 9.8% (2015); • Greece 25.8% (2014) • Spain 23.4%.

Youth unemployment rates are double; • ΕU(28) 21.2% (2015), • Eurozone 22.9; • Spain 50.9%, • Greece 50.6 (2014), • UK 20.5% (2013), • Netherlands from 9.5% 2012 to 11.4%

Jan2014.

Youth unemployed below 23 years old face high risks for their future, including: salary penalties up to 15% till their 40s, severe risks of facing physical and mental illnesses, as well as higher risks of dying in an earlier age.

European Production flew to the cheap labour countries around the globe leaving behind high rates of unemployment, causing bankruptcy to complementary suppliers in the supply chain and gradual extinction of traditional technical professions from many local European economies.

Growing entry of new designers and artists in the fashion industry. These professionals are mostly artisans, struggling with • fierce competition, • facing very high marginal costs of

production, • having small scales, • being very locally oriented unable to reach

other geographical markets • and isolated from the wider

entrepreneurship ecosystem.

The Challenge

The Solution ‘Producing @no one’s expenses’ Break the Chain Stop Trafficking Now It consists of three interconnected tiers based on a social cooperative ownership model; on research and innovation: • SOFFA Factory an automated production line for clothing, footwear n

accessories targeting the repatriation of production in Europe; • SOFFA Textile, an open source online and offline sustainable textile

marketplace fighting for the protection of the environment; • SOFFA Hub an online n’ offline incubator of young fashion entrepreneurs

battling against youth unemployment & offering to SOFFA customers access to a vast pull of innovative designs, services and innovations. – SOFFA in the war against trafficking ‘Breaks The Chain in the fashion industry’

by providing work integration to survivals victims of trafficking. – SOFFA enhances economic and social equality in urban cities its premises are

situated in a semi abandoned derelict building which partially serves as the local high school in a deprived neighborhood in Athens facing poverty, exclusion and unemployment.

– SOFFA Replication Build on Strategy: future stages for licensing & social franchising of the model to other industries n geographical markets

The Team

• Dr Fiori Zafeiropoulou CEO Also Founder The Nest Social Coop Incubator; Founder Zita Social Ltd UK (est. 2003); Minority Equity Stake Zita Group Ltd Gr. Past start-up CEO for Neobeauty Cosmetics. Expert in Sectorial incubators. Board Member of the global movement Fashion Revolution in Greece. Visiting Lecturer Social Entrepreneurship @Athens University of Economics & Business. Cand Post-Doc Social Investment Market, PHD Social Entrepreneurship, MBA, BSc (Ec). • Vaggelis Banias CFO Certified financial executive (B.Sc., M.Sc., Dipl. ACCA) with thorough experience in market analysis, financial planning, corporate governance, accounting and tax strategies. He is also social entrepreneur and co-founder of Befriend and Offer www.bando.gr • Natasha Athanasiadou Head of Sustainable Sourcing and Development Also Founder & CEO Generation Generous Ethical Label www.generationgenerous.com HQ London. The Country Coordinator of the global movement Fashion Revolution in Greece. MPhil Cambridge University; BSc, Diploma in Accessories Design and Merchandising in NABA Milano & London School of Fashion. Worked in fashion industry. Expertise sustainable fabric development and worldwide sourcing • Fiori P Zafeiropoulou Head of Design. She is also Founder & CEO Grace Atelier De Luxe Designer n Fashion Entrepreneur bags, bridal gowns, eveningwear, jewelry & accessories having a workshop, a gallery and a design studio http://www.graceatelierdeluxe.com/ BSc in Industrial Production & Engineering. Fashion Design & Footwear London College of Fashion. • Nicholaos Moustakas. Head of Footwear Production. Footwear designer and Maker with with extensive knowledge in the footwear industry. BA Product and Furniture Design and Diploma in Footwear Design Cordwainers College. Currently working as a bespoke shoe maker in the West End of London. • Georgina Kostara Head of Sales & Clothing Production. Past Founder & CEO Clothing Manufacturing Unit with International Wholesales. Past founder of Retail Fashion Store & e-shop. BA Product Development London College of Fashion & Styling St Martins www.georginakostara.com • Sotiris Tassiopoulos Sports/Casual Footwear Designer. Footwear design and development diploma (EL.KE.DE).Head designer for Caan sports company(F/W 2011).Head designer and founder of Danza Muerte dancing shoes.12 time finalist at kicksguide shoe design contest.2nd place at Song Seung Heon international shoe design contest. • Stratis Camatsos Head of Investment & Fund Raising. Certified Lawyer in New York City and years of experience in Brussels on European law. Is a 3 times Award Winner Social Entrepreneur EVO3 Olive Oil- Plant A Tree for Every Bottle • Leonidas Skerletopoulos Programme Designer & Coach. Certified Coach, Marketer. Co-founder The Nest Social Coop Head of North of Greece. Special Advisor at Evros Chamber of Commerce on Incubators and Entrepreneurship. Member of Co-ordinators at International Social Marketing Association. Co-Founder UpLo Urban Initiative. BSc Communications, PgDMS, MBA (Marketing) • John Foundis Head of Digital Marketing Fashion & Luxury Oriented Digital Marketing Expert. Founder of FaShionFReaks.gr (2011), Style-D-Network.com , #DFBI Athens and member of the Fashion Revolution in Greece. Global PR & Marketer manager of the jewelry brand NOILENCE. Digital Marketing partner at H&M Greece & P&G (2014). • Lila Michalatou Incubation Coordinator & Community Creator Εxperience in E-learning programs. Scholarship in MBA International at Innovation & Entrepreneurship. Founder ‘Stylescent’ online fashion community

Advisory Board Committee • Petros Kokkalis, co-Founder Organization Earth NGO & Aephoria Incubator, Vice

President Kokkalis Foundations, President Athens Institute Technology & Athens Tech. Elected Member of Piraeus City Council http://www.petroskokkalis.gr/bio/

• Nikos Vasilatos Principal IFC Asset Management Fund of World Bank prior VP Investment banking Credit Suisse

• Constantina Mavraki Structured Finance Manager Noble Group No 76 Fortune Global 500 prior Executive Director Enerinvest Partners Fund, Partner MorganStanley

• Dr Kim Poldner Lecturer Wageningen University, Netherlands & Founder of ecofashionworld.com; PhD in ethical fashion entrepreneurship; Initiator of the first eco fashion store in The Netherlands.

• Thodoris Rakintzis Lawyer qualified to practice before the Supreme Court and member of the Athens Bar. Theodore is a partner in Kyriakides – Georgopoulos Law Firm specializing in corporate and general commercial law, M&A, securities, capital markets and real estate Law. He has published numerous articles in the international legal press and speaks English, French and German t.rakintzis@kglawfirm.gr

• Dimitris Raftopoulos Treasurer and Financial Director of the European Centre for Women and Technology, European Commission Expert & Gender Equalities

Partners

• Zita Group Producers & Wholesalers, Footwear Industry, Balkan region www.zitagroup.gr

• Fashion Revolution world non profit movement raise transparency on supply line of fashion industry ‘who made my clothes’ Fashion revolution day on the 24th of April every year ater Rana Plaza disaster accident on 24/04/13 killed 1133 people www.fashionrevolution.org

• Wageningen University Netherlands leading on sustainability. www.wageningenur.nl

• Brunel University London & its Incubator the Innovation Hub www.brunel.ac.uk • Athens University of Economics & Business (AUEB), & its incubator ACEin

www.acein.aueb.gr • SPOLECZNA AKADEMIA NAUK Lodz Poland www.swspiz.pl University of Social Sciences

• The Nest Social Coop Hellenic Centre on Social Entrepreneurship & Innovation www.thenest.org.gr

• Authenticitys Social Enterprise, Barcelona Spain is an online tourism platform www.authenticitys.com

• EOLAS Sevilla Spain. Quality Project Management contractor for the EU

SOFFA SBUs- 3 TIERS SOFFA Factory- SOFFA Textile- SOFFA Hub

• Our competitive advantage – we are the Sustainable and Social Factory of Europe

• Our goal – to achieve 90% production in its premises from sustainable

n recyclable materials in the next 5 years • Target group

– Primarily: Established multinational brands and high street chains launching a sustainable collection, e.g. Puma, Nike, Zara, IKEA etc.

– Secondarily: Sustainable start up brands and designers; Fabric wholesalers and shops; Fashion experts and specialists; Fashion students and graduates; Conscious consumers seeking purchases supply chain info

Unique Offering SOFFA Factory & SOFFA Textile

– SOFFA Factory; automated high quality n just in time management production in Europe

– SOFFA Fashion Hub; incubates offer access to unique designs, multiple collections, new techniques, innovative services coming from a vast array of fashion designers n’ startuppers

– SOFFA Textile USP we offer an online platform based on full supply chain transparency characterized with open source public interaction. • access to unique sustainable textiles, certifications, origin and location

information, specialized sustainable materials consultancy for brands and designers as well as sourcing and management services

• access to truly sustainable, transparent n ethical production processes by offering the opportunity through an actual offline showroom to both tier customers -wholesalers and the end consumer- to interact, comment, ask questions and get into discussions with that first part of the supply chain, creating connections and relationships.

• sustainable textile showroom visitors can experiment, experience, and gain knowledge about sustainable fashion and textiles through a more than 600 samples of sustainable materials from partners globally and other international producers as well as factory tutorials, skype enabled global factory visits, personal stories events and meeting the producers’ events, specialized magazines and experiential fashion exhibitions.

Unique Offering SOFFA Hub

• SOFFA Hub is an online n’ offline e-learning capacity building and mentoring platform, offering to its beneficiaries:

– work integration through startup support to unemployed young fashion entrepreneurs being web entrepreneurs, eco entrepreneurs, community entrepreneurs, social entrepreneurs or student entrepreneurs from digital artists, bloggers and marketers, to designers, producers and buyers

– free access to machinery n production facilities

– access to raising capital and resources

– access to international, jointly developed, distribution channels and exhibition floors in the big international fashion fairs

– use and development of sustainable, organic, and recycled materials in the fashion industry to promote the use of pioneering sustainable eco-conscious materials for the sake of our planet

– social innovation and collaborative development of innovative products

– the revival of older or lost industry techniques and traditional professions

Market

• In 2014, the overall size of the Textile & Clothing industry in the EU-28 represents a turnover of 165 billion € and investments of around 4 billion €.

• The European apparel retail industry had total revenues of $412.5bn in 2014 • The performance of the industry is forecast to accelerate, with an anticipated CAGR of 2% • EU external trade 43 billion € of T&C products exported & 99 billion € imported from Third markets. Expansion

of the global apparel industry is forecast to reach 3.6% • The global apparel industry - encompassing clothing, textiles, footwear and luxury goods - reached approximately

$2,560 trillion in 2010. The apparel, luxury goods and accessories portion of the market, which accounts for over 55% of the overall market, is expected to generate $3,180 billion in 2015, with a yearly growth rate in excess of 4%. – World textile and apparel trade is expected to reach US$805bn by 2015 from US$650bn in 2010. – womenswear accounts for 50.0% of the global demand while the remaining market share is divided between menswear (34.5%),

clothing accessories (3.9%), babies' garments (2.8%), gloves and mittens (2.3%), headgear (2.0%), other garments (4.1%) and parts of garments and clothing accessories (0.5%).

– Brazil, China, Italy, Japan and the United States represent the largest apparel markets – the strongest annual growth is forecast to occur in Tanzania (17.5%), Bangladesh (14.3%), Ethiopia (13.4%), Cambodia (13.1%)

and Yemen (12.6%). – Rivalry within the industry is no more than moderate – The e-commerce explosion has been particularly pronounced in China, where the channel's share more than doubled from 3% in

2011 to 7% in 2012. factors: convenience n discounts – The global menswear industry is expected to exceed $402 billion in 2014, representing over 14% expansion in five years. The

leading market sub segment is clothing and footwear, with over 58% of the market. The Americas have a 35% stake in the overall market.

– The global womenswear industry is expected to exceed $621 billion in 2014, representing over 12% yearly growth. The leading market sub segment is clothing retailers, with over 64% of total market value. The EU has a more than 37% stake in the world market, which is relatively fragmented and highly competitive.

Sustainability Market

Sustainability, environmental and social concerns front line of global agenda • Awareness of the FAIRTRADE Mark continues to be high in 2014, at a level

of 78%. Estimated retail sales of Fairtrade products in 2013: exceeded £1.7 billion, a 12% increase on sales of £1.53 billion in 2012.

• Total ethical spending in the UK is worth £54 billion (2012) • Average household spend on ethical products/services was £754 (2009) • Demand for ethical consumer goods and services defy recessionary

pressures and grew by more than 12% in 2012 (UK economy grew 2%) • Consumers product choice based on CSR reputation 55% (2007) • Between 2007- 2009 ethical consumption grew by 18%, • Global brands enter the market, like H&M and PUMA.

Competition – Industry Overview

• Online textile marketplaces Direct Competitors. Not offering

Production – C.L.A.S.S (US) – LE SOUK (US) – The Sustainable Angle (UK) – OFFSET WAREHOUSE (UK) – INTERLOOM (GER) – LEBENKLEIDUNG (GER)

• Production from sustainable materials. Not offering sustainable production – Asian factories (unethical working conditions) – Small scale artisans in developed economies – NGOs small scale artisan production in Latin America n Asia,

Business Model

• Income Raised

– Trading activities for selling products • New Product: Label ‘Zita Hellas snickers the rebirth’

– Trading activities for selling sustainable textiles online and offline – Returns from Trading activities of incubated designers n entrepreneurs – Sustainable Consulting services offered to labels – Seminars, workshops, events, film screenings, exhibitions – Sustainable sourcing management services – Licensing (Social franchising) of the sustainable social factories model n’

know-how in other industries and other geographical markets – EU Programmes n National Procurement for Incubation & Work

Integration & Transfer of Know-How to European consortia – Global Sponsorship from Foundations n Corporates CSR

Tracking • SOFFA Hub In Pipeline. Secured funding for 2 yr. end 2016 launch first

incubation cycle; Spring 2017 end of cycle n’ Global Sustainable Award Competition – we Raised 210K through a European Grant for the design of the incubation process

that will be launched simultaneously in 5 EU countries: Greece, UK, Netherlands, Spain and Poland.

– SOFFA is the Project Manager of a consortium it designed with its other 6EU Partners, (see in partners)

• Infrastructure & Machinery: Raised 100k (50% matching) through a National Grant for its investment proposal to renovate and equip SOFFA premises and is now submitting a new investment proposal for 300k (50% matching) through a new National Grant for investing on creating SOFFA’s factory automated production lines

• Premises: Secured free use of 4500sq.m premises in Patissia, Athens • Place- Channel Alliance: Entered in a sales contractual alliance with Zita Group to use its

distribution channels in the Balkan region for the sales of all three SOFFA tiers labels n services • Social Movement: Fashion Revolution Global Movement in Greece was founded in 2013 by

Members of SOFFA Team

SOFFA New Product Development

• Launch the rebirth of ‘Zita Hellas’ sustainable snickers label targeting Greece, Cyprus and the Balkan region.

• Zita Hellas began production in the 30s • Was the peripheral leader in the Balkan region in sportswear from the 70s till

early 90s. • All production was centralized in our automated factory in Athens. • Zita Hellas label withdrew from the market in 1996 • We did a launch in summer 2014-2015 of a limited collection with Zita Group

• Labels Versace V1669, Navy Marine & Giacomo Carlo of Zita Group footwear collection – Currently being manufactured in competitor sites

• Labels of SoFFA’s founding team incl. Grace n’ Generation Generous – Currently being manufactured through own production processes

Next Milestones- SOFFA Factory • Next 9 months Goals: Launch Label ‘Zita Hellas’ & raise 60k for planning and organising SOFFA

– Income raising activities: Zita Hellas label

• Christmas 2015 launch a ‘Public Design Competition’ through social media

• outsource production to Zita Group’s producers and

• sell through Zita Group’s sales force

– Plan & Organisation of SOFFA includes

• Mapping of Suppliers, Competitors, Targeted Customers, Shows & Negotiate Contracts

• Marketing n Communication Plan & Financial Plan & & Production Line

• Design generic collection Nicholas n Fiori shoes bags clothes & targeted to big brands web based selling campaign

– Fund Raising Activities & Apply for European Calls (Foundations, Horizon SME Instrument, Erasmus Plus, Balkan Med Interrreg)

• 9 month- 15 months: 400k investment (50% secured) to build production line n renovate building

– Renovate the building 100k already secured 50% through National grant

– Purchase new automated machinery n build the production line

– Full time employment of Nicholas & Georgina heads of production; Employ first personnel to produce samples; Training by turnkey partner on machinery

– Identify Trafficking Camps, Train n Recruit

• 15 months – 2 years:

– Produce samples

– Sales Campaigning: Participate in fairs with SOFFA Hub participants, Zita Group sales force in Balkan Region

– Production only based on orders

– Employ CFO and production work force

Next Milestones- SOFFA Textile • Next 9 months: Alpha phase

– Focus on income generating activities • offer sourcing for label ‘Zita Hellas’ • offer sourcing of sustainable textiles through third parties platforms and ‘how to become a sustainable

label’ consulting • set up offline actual fabric library in our Athens Office within SOFFA & run training workshops

– Develop the online platform of the sustainable textile market place & build content • online database for materials, factory data and stories and member interaction upon an open source

data system

– Establish strategic partnerships with competitors in order to start from a higher basis for development (already in process currently)

– Establish additional individual sustainable factory partnerships. – Detailed plan of action (detailed cost, time plan, market research, marketing, PR) and hiring of

first employees and outsourced partners. – Define and build all the online and offline service packages including workshops, seminars,

consulting packages etc.

• 9 months – 1 year: Beta Phase – Pilot Launch Platform – Marketing of our products and services online, at tradeshows, industry events and magazines.

SOFFA Social Return & Social Impact

• Repatriating Production in Europe/ Creating Job Positions in Europe; raising European GDP n taxation fighting unemployment n loss of traditional industry techniques

• SOFFA in the War against Trafficking ‘Breaks The Chain in the fashion industry’ by providing work integration to survivals victims of trafficking; reinvesting its profits in employing n’ training survivals victims of trafficking and keeping them away from slavery as they move out of the host countries

• SOFFA Battling Youth Unemployment; reinvesting its profits in incubating unemployed young fashion talents and creating competitive hubs of creativity that will stand alone successfully within the EU and world markets

• SOFFA Against Economic and Social Inequalities in urban cities; its premises are situated in a semi abandoned derelict building which partially serves as the local high school in a deprived neighborhood in Athens facing poverty, exclusion and unemployment. It integrates the local community thus creating a hub of active volunteers.

• SOFFA Social Governance; democratic and collaborative structure. Its goal is to test, develop and promote a culture of social entrepreneurship factories based on the co-sharing of both activities n’ ownership.

• SOFFA SoFraM; Scaling of impact through the social franchise model in new geographical areas n’ industries