Patrick Vandaele CEO

• Who is Virtus

• First steps on the Lithuanian market …. experiences

• First conclusions … do’s and don’ts

Core business and values

• Virtus realizes “custom made” interiors mainly for the retail sector

• We try to achieve an optimal balance between design, functionality, production efficiency and choice of materials in combination with a flexible and cost-effective implementation.

Our strengths….end to end project management

•Technical (drawings) preparation •Projectmanagement •Sector knowledge•Flexibility•Modern and performant production lines•Ambitious and skilled production and assembling teams

Location

• Situated in Mechelen since 2002• 800 m² offices and showroom• 7000 m² production space • 7000 m² storage• 75 collaboraters• Turn-over of 11,0 Mio€ in 2014

A few of our customers..

Brantano, JBC, Damart,Krëfel,…Telenet, Base,Pizza Hut, lunch Garden, Leonidas,,, Q8,…., Fun, BricoPress shop, Sweet paradise, Colruyt,…..Elewijt center, Bulo,.. ING,

WWHY Why Lithuania ?

Competitive offer to one of our key customers

WWHY

First steps in LT

• our competitor(s)….

• Visit companies specialized in wood and/or metal production

• The right local contact(s)…Agent…

WWHY

First steps in LT

• Visit our competitor(s)….

• companies specialized in wood and/or metal production

• The right local contact(s)…Agent…

WWHY

First steps in LT

• Visit our competitor(s)….

• Visit companies specialized in wood and/or metal production

• The right local contact(s)…Agent…

First steps in LT

A lot of potential partners for

metal or wood productions, but ….,

•Do we speak the same (technical) language ?

•What is their speciality,

what are they good at ?

•Prices ?

•Production capacity ?

•Quality norms ?

->Proto-types

First steps in LT

Production partners around main cities as Vilnius and Kaunas , and other regions…

•Distance from the airport…

•Purchase price…

•Company structure…

•Communication,quality,follow-up..

WWHY

First steps in LT

Production split B & LT …..

•Flexibility…………………………..N•Wood & Metal……………………..Y “laminates,massive wood,(hand made) metal parts”•Custom made Y/N “Recurrent orders”

Today 5% of wood and metal production of Virtus is outsourced to LT

WWHY

First steps in LT

Accessories & side products •Textile•Furniture fittings•Glass / Plexy

15% of these articles are purchased in LT

A few examples

WWHY

First steps in LT

•purchase prices …………. production : raw material + 1/3 manhour side products : 30 to 70% cost price advantage •Paiement conditions…. 50 % prepaiement – 50% before delivery

WWHY

First steps in LT

Transport (cost)…… •Van : +/- 400 €•Truck (trailer) : +/- 1200 to 1700 €

WWHY

First steps in LT

• a local agent / projectmanager• Research / Visits • Be very specific• Presence• Respect of planning• Proto-types• Quality control

WWHY

First steps in LT

Own production company or working with partners ?

•Volumes•Standard / custom made / recurrency•Frequency•…

Today…Working with LT partners is the best option for Virtus

WWHY

First steps in LT

Company typeLiability capital

Shareholders or members Remarks

Private limited liability company(UAB) Limited

Minimum (€2896.20)Divided into shares

Up to 250 shareholders. Shareholders are natural persons or legal entities

Most common company type.

Creation of a company (costs, what form, ….)

•Among many different company forms the most popular one is : Private limited liability company(UAB)..

• VILIT-Solutions – trading company with office in Vilnius

• 2 independent contractors : Administration / Project manager

• Total cost : 25K€ / y

First steps in LT

• Lithuania is the easiest place for business among the Baltic states.

• Lithuania is strategically located as the gateway between important markets.

• Transport center with links to Europe and Scandinavian countries

The Lithuanian market…Key advantages For Virtus

The Lithuanian market…Key advantages For Virtus

• Lithuania imposes low corporate taxes • Labor and secondary costs such as accountancyand office space, are among the lowest in Europe

• Production opportunities and partnerships

• Good conditions also for lower volumes

• Proximity and low transport costs

Thanks…..Questions ?