GORGIA - The Biggest DIY Hypermarket Chain in South Caucasus

DIY DISTRIBUTION CORPORATE PREMIUM

THE BIGGEST DIY HYPERMARKET CHAIN IN SOUTH CAUCASUS

CONTENTS

DIY HYPERMARKET CHAIN-GORGIA

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GORGIA PREMIUM

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IKEA SHOP

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GORGIA DISTRIBUTION

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LOYAL CARD

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CORPORATE SALES

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CRAFTSMEN

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DESIGNERS AND ARCHITECTURES TEAM

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ANTA DEVELOPMENT

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WAREHOUSE

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LOGISTICS

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CATEGORIES

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FINANCIAL STATEMENT IN 2017

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MEDIA ABOUT US

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BRANDS IN OUR CHAIN

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GORGIA HOLDING FOUNDER

GIA GORGOSHADZE “Home improvement and DIY have a huge potential of development in GORGIA. It’s a top spending priority for consumers as people want better home and life.”

Despite the fact that Georgia has a developing market in DIY and home improvement sectors, GORGIA has potential to grow its business in those areas. Market research suggests that home improvement is one the top spending priorities for Georgian customers. Georgian customers are in need of finding right materials and tools for their homes. They usually use the social media networks to get advice about the places where to shop and find the home building materials.

By putting emphasis on customers’ interests, GORGIA can create business that answers their needs. GORGIA believes that home improvement has a great potential to become an equally great community. GORGIA, as a brand, was founded in 1998, in the seaside city of Batumi, with a simple idea to help people to improve their homes. After 19 years of its development, the brand turned into

one of the biggest companies in refurbishment industry in the Caucasus region.Today, GORGIA serves over 15 000 customers per day. During this year GORGIA plans to open two more branches with a new concept. It will continue to open more branches in different cities of Georgia as customers are waiting for its expansion. In 2018, GORGIA will provide new services including: new shopping channels and Fau-to-Face shopping experience between clients and salespeople to make shopping an easy experience. By adding a new concept with “friendly” merchandising, GORGIA wants to make the home improvement process easy, fast and smart. To achieve new goals, GORGIA puts emphasis on buildingsuccess as a company with support of its inspired and professional team. Without a strong team, it is difficult to achieve success.

Why Gorgia?

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20 years of experience

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Grow presence in the market

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Expand and developing new market segments

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Easy and friendly environment to shop

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Customer oriented culture

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Motivated and professional team

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DIY HYPERMARKET CHAIN-GORGIA

HYPERMARKET_ ZUGDIDI 2 000 m2

HYPERMARKET_ KUTAISI 3 000 m2

HYPERMARKET_ BATUMI 5 600 m2

DIY Gorgia has been created day by day for more than 20 years and now extends in 6 cities of Georgia; Gorgia was founded in 1998 and has become one of the first DIY retailer in Georgian market specialized in home fit out, building and construction materials; DIY hypermarket Gorgia is offering to customers best price for more than 51 000 sku in various categories and materials that meets the needs of local market; Over 6 000 000 customer contact every year in Gorgia DIY; It is place where everyone can find the products and specialized advice they need, whatever their desires or level of expertise may be; Our mission is to help customers with their home improvement projects with

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professional advice and expertise, combined with innovative services and strong price competitiveness; DIY Gorgia has two main advantages: the ability to offer customers everything they need under one roof and the ability to provide customers with a level of advice and service that is better than that offered by competitors. The Customer choose Gorgia DIY because they are given the unique chance to get expert advice for every project, the best price, several design options, a quiet and comfortable environment;

SERVICES • At-home services

GORGIA helps customers with installation needs. Installation services cover: kitchen cabins, windows, doors, roofing, bathroom appliances and much more.

• FREE 3D Bathroom Design!

GORGIA’S expert Designers are ready to help customers with any type of bathroom project. With this service they receive not only the design solution but also the final prices for the whole project for free.

• Free Heating Measure Service.

GORGIA has a special offer for its customers – free measurement service for each individual home which means: GORGIA’S partner craftsman comes and makes all measurements of house heating system for free and calculates the price of the project.

• FREE Paint mixing

Finding the right combination of colors to match the interior and personal preferences is important but difficult. Besides the standard paints and varnishes in HYPERMARKET GORGIA customers can select up to 2 000 different tones and produce the needed shades in Paint Mixing Studio for free. There are variety of colors inGORGIA’S catalogs at service desks.

• Home Delivery!

If you spend 1000 GEL and more at any hypermarket of GORGIA you will have an opportunity to receive a free delivery service.

• DIY Project Consultation

If customers need technical advice about DIY project, GORGIA’S qualified consultants will provide free product and price comparisons at any convenient time.

• Call Center

At GORGIA’S Call Center customers can get any technical or budget consultation about their DIY projects.

HYPERMARKET_ TBILISI 9 000 m2 HYPERMARKET_ TELAVI 5 442 m2

HYPERMARKET_ TBILISI 5 500 m2

HYPERMARKET_ MARNEULI 1 200 m2

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GORGIA PREMIUM TBILISI GORGIA PREMIUM BATUMI

GORGIA PREMIUM

is a new and exciting interior show-room in Georgia offering luxury home improvement brands of outstanding quality. GORGIA PREMIUM offers luxury and stylish products that are combined with functionality to answer different customers’ lifestyles.

GORGIA believes that your home should meet your expectations and style preferences as each style is shaped around Luxury and Comfort, from contemporary to modern.

All products are selected, for their quality, fabulous looks and affordability. GORGIA PREMIUM gives its customers a unique and unforgettable experience from world’s most famous interior brands such as:

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HUPPE, GROHE, NOBILI, STELLA, BATHVO, GEBERIT, ARMADI ART, BRONZE, WALL AND DECO, SKINWALL, DECOPRINT, NEWMOR, KT-EXCLUSIVE, ERSMANN, LUTECE etc.

At GORGIA PREMIUM consumers can always find new ideas about how to enrich their homes with beautiful, modern and classic furniture, kitchen, accessories, lighting, bathroom, tiles and flooring, doors and wallpapers.

IKEA SHOWROOM

IKEA shop Tbilisi 1 300 m2 shopping space Over 3 000 products Gorgia is always working to enhance and improve their market position by offering more to customers. In 2016, Gorgia Marketing department investigated customer’s needs and found out that customers were interested in new ways of shopping.

IKEA showroom was developed with this idea, to offer a new shopping experience for people who wanted to collaborate with GORGIA in a different way. To make shopping an easy experience, IKEA showroom was incorporated with HYPERMARMARKET Gorgia’ space;

“To create a better everyday life for the many people”, “ to offer a wide range of well-designed, functional home furnishing products at competitive prices that as many people as possible will be able to afford them”. This is IKEA vision and we work hard to achieve this; For now we offer about 2000 sku from IKEA STORE in our showroom and warehouse, but our customer is able to order any product from IKEA BRAND which will be delivered on - time.

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LOYAL CARD

DIFFER

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WWW.GORGIA.GE

ts c u d o r P K 0 4 Up To

Gorgia has introduced a loyal card recently. Our consumers will get discount approximately to the whole products ranges, which is up to 40 K. The advantage of this card is that- you don’t need any purchase to get it, our info desk managers are willing to give you it for free, in addition - discount is not fixed, but you will get numerous percentage discounts to different products from 2% to 70%. Every Cardholder will get exclusive

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rewards and suggestions. The Loyal Card will be a stored value card in future that’ll offer you greater convenience when you make your purchase at any Gorgia’s store in Georgia. The discount applies not only in Hypermarket, but also in Ikea, Gorgia Premium and Gorgia Express too. The creators of that project ar explaining that they are going to offer Georgian consumers more innovations in Future.

GORGIA DISTRIBUTION

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WE HELP YOU SAVE TIME

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WE SOURCE THE RIGHT PRODUCT

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WE DELIVER NATIONWIDE

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WE PROVIDE EXPERT ADVICE & SUPPORT

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WE OFFER TRADE ACCOUNTS

With one call we can source and price multiple products We have access to multiple manufacturers

GORGIA deli ver products to Georgia, Azerbaijan, Armenia, K azakhstan, Uzbekistan and Russia .

Whatever you need we’ll get it straight to you Our team are all from the building industry Discounts on often orders

The power of GORGIA in cooperation with you Gorgia is a leader Distributor Company. Our coverage model reaches every store through a combination of direct and indirect distribution. We cover the entire territory through an organizational structure designed to answer specific channel needs.

Gorgia distribution network includes about 1700 shops; Our goal is to build trust with our customers through professional and honest conduct and we believe this is what drives long-term success and stable relationship. Our sales team is professional and passionate about working together with customers by setting joint targets and allocating the appropriate resources to achieve these targets.

With over 20 years of experience our supply chain management is designed to allow suppliers and customers allocate resources accurately and on time, and ensure products are available for sales on the retail shelf.

Our supply chain teams make sure all products reach the shelf at the right time.

With extensive experience in import&export, customs clearing and local regulations, we offer the highest levels of service.

Our sales teams are of great experience in commercial conduction versus various types of retail chains, which is reflected in the execution of activities, in support of the brands, based on understanding the consumer’s profile.

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CORPORATE SALES

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Cooperation with GORGIA is always beneficial!

Loyalty program • Assistance of key account managers is available based on customer request.

• Huge assortment of products with project adjusted discounts • Special events organized by our suppliers or our company • Sharing information about market development and innovations.

• Offering technical support on site.

Delivery service Flexible delivery schedule on your site or in the office.

Next day delivery available on all in-stock items.

Faster Ordering & Pickup Orders by phone, or by email. Order pulling and order verification. Convenient payment option.

GORGIA has a huge experience in dealing with corporate clients since 1998.

Being customer centric organization is the first priority for the company. Customer centricity means understand each individual’s needs in depth and adjust the approach. Think less in terms of mass tactics, and more in terms of a personalized approach. Even the happiest customer has something they would change. Taking care of customers’ needs individually, bringing the value to their business leads to the customer loyalty. Loyal customers help us to grow steadily.

Today GORGIA cooperates with over 1.000 companies in construction field. GORGIA is proud of its excellent reputation in offering a range of high-quality construction and building materials to the building companies, public organizations on education, health and social care spheres, hotels and residential sectors. During 2016, GORGIA finished over 350 new projects. GORGIA builds long-term relationships with the corporate clients and helps them to realize their projects.

The company’s primary goal is the satisfaction of the client, relationships based on mutual respect, integrity and complete dedication. GORGIA achieves this as through the strict quality and cost control, as well on time delivery service.

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CRAFTSMEN

In GORGIA, there is a club of workers that unites different craftsmen that work in the divisions like heating engineer, floor and door specialist, construction and building material specialist, electric specialist, etc. These people work

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closely together to ensure the quality of work and its final result. Different trainings are offered throughout the year to these workers as a process of quality control. Around 9600 workers are registered as of today.

• In Tbilisi:

5860

• In Batumi:

1508

• In Kutaisi:

1691

• In Zugdidi:

416

• In Telavi:

128

DESIGNER AND ARCHITECTURES TEAM

More than 200 employees of GORGIA, designers’ team in Tbilisi and Batumi, partner with a premium division of the up and coming and well-established architects and designers.

The main orientations focus on the following areas: interior design, exterior design, architecture, construction and landscape design.

GORGIA offers trainings among the high-class companies and their top designers to build the brand awareness of the premium class designs. GORGIA takes into account needs and wants of customers, past experiences and new offers in order to stay on the top as a leader brand.

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,,Anta development“ is a subsidiary company of Gorgia Group. It specializes in construction, renovation and development of constructing environment. The company operates in Batumi and Tbilisi and considers to widen its activities throughout Georgia. Experienced civil engineers, constructing specialists, designers and other professionals are working on different projects.

The company’s trademark is: an elite apartment block in Batumi ,,Duo Towers”. The company aims to offer customers convenient and high-quality apartments.

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Warehouses TBILISI Tsereteli street ¹140 - 3685 m2 TBILISI Tskalsadeni street ¹7 - 5296 m2 TBILISI V. Vekua street ¹54 - 2500 m2 BATUMI F. Xalvashi street ¹302 - 26 6000 m2 BATUMI Chxaidze street ¹1 - 6000 m2 KUTAISI Chavchavadze street ¹8/4 - 2850 m2 ZUGDIDI Gvaramia ¹44 - 1500 m2 TELAVI Alazani avenue ¹75 - 1800 m2 MARNEULI 26 Maisi street ¹8 - 1000 m2

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LOGISTICS

RUSSIA NORWAY

BELARUS GERMANY CZECH BELGIUM REPUBLIC HUNGARY

UNITED KINGDOM

UNITED STATES OF AMERICA

SPAIN

ITALY

NORTH KOREASOUTH KOREA JAPAN

GREECE TURKEY PAKISTAN SAUDI ARABIA

INDIA

MALAYSIA

BRAZIL

GORGIA as one of the leading companies in the Caucasus region, is importing goods from all over the world and is actively working with different logistic companies. Due to special interests and needs GORGIA selects flexible partnerships with adapted companies, that offer high quality services from any part of the world with any type of transportation. A strong and long lasting partnership is one of the top priorities of the company.

That is why GORGIA deals with companies that

take care of company position and offer the customized service. GORGIA uses different types of transportations services (roadway, sea shipping line, railway and airway) from all over the world.

As of today, GORGIA has signed contracts with more than 100 logistic companies, for majority of them GORGIA is VIP clients („MSC” , “GEBRUD- ER WEISS” , “LAM SHIPPING” , “KTL” , “ EGT EXPRESS GEORGIA” , “ GOLD WAY GROUP” etc.)

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CATEGORIES

25,47 %

Tiles and Bathroom equipment Building Materials

16,41 %

Heating-Cooling and Water Supply

14,60 %

Paints

9,07 %

Flooring

8,35 %

Tools

5,93 %

Electricity and Lighting Furniture

4,55 % 3,80 %

Household equipment

2,50 %

Wall decoration

2,48 %

Door

2,39 %

Garden

1,18 %

Textile

1,13 %

Roofing

0,96 %

Metal

0,34 %

Auto Care

0,33 %

Elevator

0,31 %

Refurbishing

0,20 %

At this moment 18 different Product categories are represented in GORGIA CHAIN.1 You can see the statistic of the turnover part taken illustrated in the chart above.

This year we developed following categories: Garden, Textile, Household, Elevator, Refurbishing.

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FINANCIAL STATEMENT IN 2017

51 375

60 000 41 328

50 000 40 000

GORGIA CHAIN is constantly developing, from 2015 till 2017, the brand added 23 436 SKUs to its range. The numbers continue to grow based on customers’ needs.

27 939

30 000 20 000 10 000

2015w 2016w 2017w

2016w 2017w 2014w 2015w 2016w

The company position is strong and stable in the market. The chart illustrating our gain growth from previous years:

Since the year has not ended yet, the calculations of the first 9 months of 2016 through 2017 are presented accordingly. The index of gain as today.

From 2014 to 2015 the gain was 48%.

From 2015 to 2016 the gain was 24.4%.

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MEDIA ABOUT US

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BRANDS IN OUR CHAIN 4000 PARTNERS

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4000 PARTNERS

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(+995 32) 2 960 960

WWW.GORGIA.GE

Tbilisi Tsereteli ave.№140 Tbilisi “Gldani Plaza”,vekua str.№9 Batumi Chxaidze str.№1 Kutaisi Chavchavadze str.№8/4 Zugdidi “Rukhi Mall” Telavi Alazani str.№74 Marneuli Rustaveli str.№74

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