LOGISTICS AND INTERNATIONAL TRADING SOLUTIONS

Russia | Cyprus | Israel | Estonia | Kazakhstan | Latvia | Lithuania | Ukraine | Georgia | Belarus | Armenia | Azerbaijan
Chairman’s Message

Dear readers,
Welcome to the Filuet Group. We trust that you will find the contents of our corporate
brochure informative and hope to be given the opportunity in the near future to help you
realise your strategic and operational plans. Whether it be expanding into a new
international market, local logistical support or management of a business process, we are
certain that we can provide the level of service that you come to expect from your own
organisation and better.

The Filuet Group has a rich history and a very exciting

future ahead of it and I'm proud to be at the helm of a
group of companies once led by my father. To deliver
the best, you have to be the best! The Filuet team is
the best at what it does in providing innovative,
first-class solutions combined with superior, second
to none support.
Since the Group's founding in early 1992, both our
customer base and the range of services provided
have grown steadily.

Everyone has worked hard to get to where we are today, and is working even harder to
realize our common vision for the future.
We have everything we need: the people, the experience, the ideas, the financial health and
the business partners to reach the next level of our planned growth. More importantly, we
also have a single-minded will to succeed.
We know how important the services we provide are to helping you remain competitive in “Belief comes first”
our increasingly more global economy. We are proud to serve you and I want to encourage
you to feel free to contact Filuet at any time to discuss how we can better serve you today
and in the future.

Alex Rashkovan
Chairman, The Filuet Group

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 Introduction - Back to the present
The Filuet Group was first established in 1992 as a third party logistics service provider and international
trade facilitator. The Groups main business in those days was the importation, warehousing and local
distribution of various products from Africa and Europe into the Russian Federation, which at the time, was
emerging from communist rule.
As the business grew, we were approached by our first Direct Selling Company to manage their supply chain
in Russia. We had no hesitation in agreeing terms and beginning our business relationship. Although the
Direct Selling world could appreciate the potentials of a market like Russia, due to the political situation,
many feared to enter, and rightly so.
Over time our business grew steadily with our clientele mainly comprising large wholesale traders and direct
sellers. In 2005, we joined the DSA as a supplier member. With the advent of outsourcing, the industry
became flooded with new entrants all professing to be specialists in the field. As a result, operating margins
dropped as a direct consequence of the increased competition in the marketplace.

In late 2005, the Group identified a unique strategic opportunity to offer its’ services exclusively to the Direct
Selling industry. Given the Groups long standing history, knowledge and understanding of its Direct Selling
clients, coupled with our logistical & international trading experience, it seemed like the perfect fit.
Today, the Filuet Group is a contract logistics and international trade specialist, operational in over 10
countries and employing over 250 employees. We proudly serve some of the most well-known and
successful Direct Selling Corporations in the world and recently became a supplier member of the newly
formed DSA in Russia.

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 Direct selling is a dynamic, vibrant, rapidly expanding channel of distribution for the marketing and
sale of consumer products and services. Just about any product or service can be acquired through direct
selling somewhere in the world. These are marketed through independent sales representatives also
commonly known as consultants, distributors and other titles.

The Direct selling industry provides important benefits to:

a) Individuals who desire an opportunity to earn an income and build a business of their own.
b) Consumers who enjoy an alternative to shopping centres, department stores and malls.
c) The consumer market by offering innovative and distinctive products not readily available in
traditional retail stores.
Consumers benefit from direct selling because of the convenience and service it provides, including personal
demonstration and explanation of products, home delivery, and generous satisfaction guarantees. Direct
selling enhances the retail distribution infrastructure of the economy and serves consumers with a
convenient source of quality products.
According to the World Federation of Direct Selling Associations (WFDSA), the value of estimated retails sales
from the worldwide direct selling industry were in excess of $117 billion with more than 74 million registered Outsourcing can be defined as “the strategic use
distributors. These figures are only set to increase further as the industry expands and strengthens. of outside resources to perform activities traditionally
handled by internal staff and resources”. It is also
sometimes known as ‘facilities management’ and it is a Outsourcing
strategy by which an organisation contracts out major
The Direct Selling industry functions to specialised and efficient service providers,
who become valued business partners.
The origins of outsourcing as we know it today, began
to surface in the 1970’s and 1980’s where organisations
that were attempting to compete globally were
handicapped by a lack of agility that derived from
bloated management structures. To increase their
flexibility and creativity, many large companies
developed a new strategy of focusing on their core
business, which required identifying critical processes
and identifying and deciding which could be
outsourced.
There are a wide variety of reasons why an organisation
would decide to outsource. Below are some of the most
common:
• Reduce and control operating costs
• Improve host company focus
• Gain access to world capabilities
• Free internal resources for other purposes

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 Our Philosophy

Our business philosophy can be summed up quite succinctly as follows: lexibility
“Do what you do best and outsource the rest” We pay meticulous attention to our
clients’ needs and are able to adapt
- Tom Peters
our resources to meet them.
nnovation ocations
We consistently strive for innovative
solutions and new ways of doing
We have a physical presence in, and
an in depth local knowledge of, all
things in order to maximise our the markets in which we operate.
clients’ profitability and further
increase our quality service levels.

Our Core Values

No organisation, regardless of its size can possibly hope to excel in every aspect of its operation; yet in today's
competitive marketplace none can afford not to. So why do so many companies either under resource or
spend valuable time concentrating on areas of their business that could be handled more effectively and nderstanding xperience rustworthiness
efficiently by an expert third party organisation?
Having worked alongside Direct We have always maintained a policy Our reputation is based on our
At Filuet, our aim is to bring a different perspective, knowledge, experience and technology to your existing Sellers for almost two decades, we of recruiting and retaining the most unrelenting commitment to honesty
functions and work with you to reengineer them into new processes. We attempt to position ourselves as an have a thorough understanding of experienced and qualified staff as we and integrity. We are committed to
extension of, and part of our client. With both strategic and tactical capabilities, coupled with real world the requirements of our clients and appreciate that in order to offer and inspire trust and confidence amongst
supply chain experience, we are able to develop the process, people and technology required to add real the individual distributors that they provide quality services you must our staff, clients and partners and
value to your organisation. represent and serve. have quality human resources. always work on a transparent basis.

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 Our Vision

Our vision is to be the leading contract logistics service provider to large multi-national Direct Selling
Corporations, distinguished by the quality of its’ services and in depth knowledge of its’ clients and their
respective industries.

Our Mission
The Filuet Group’s mission is to deliver both tangible and intangible benefits to our customers by providing
world-class logistics solutions built on:
• Dedication to our clients and their businesses
• Outstanding quality, operational excellence and advanced information management
• A superior global network that integrates the Filuet Group’s diverse assets and expertise
• A flexible, agile and innovative organization
• A highly trained and professional workforce

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 Vologda
Cherepovets RUSSIA
Kirov
Head Offices
Tallinn St. Petersburg
CYPRUS - Limassol
ESTONIA
Yaroslavl Perm Tyumen
Nizhny Tagil
Riga Lobnya
Offices
LATVIA
Vladimir
Nizhny Novgorod Kazan ISRAEL - Tel Aviv
LITHUANIA Chelyabinsk

Vilnius Smolensk LATVIA - Riga

Kaliningrad Butovo Ufa
Minsk BELARUS - Minsk
Ulyanovsk Magnitogorsk
BELARUS Bryansk
GEORGIA - Tbilisi
Tolyatti
Penza ARMENIA - Yerevan
Voronezh Astana
Kiev KAZAKHSTAN -
Karaganda Almaty, Astana,
UKRAINE
Karaganda, Chimkent,
Actau, Atyrau
Volgograd
Atyrau KAZAKHSTAN RUSSIA -
Odessa Rostov-on Don
Moscow (Butovo),
Nizhny Novgorod, Kazan,
Stavropol Chelyabinsk, Rostov-on Don,
Actau Volgograd, Perm, Tolyatti,
Almaty
Chimkent Tyumen, Magnitogorsk,
Cherepovets, Stavropol,
GEORGIA Makhachkala
Tbilisi Smolensk, Yaroslavl
Ufa, Kaliningrad, Vologda,
ARMENIA AZERBAIJAN Ulyanovsk, Vladimir,
Yerevan Baku
Kirov, Voronezh,
Nizhny Tagil, St. Petersburg,
Bryansk, Makhachkala, Penza
UKRAINE - Kiev, Odessa

AZERBAIJAN - Baku

CYPRUS Geographical presence

Limassol
As can be seen from the diagram, our offices and operations are located
ISRAEL mainly in Russia & the surrounding CIS countries, the Baltics, Southern Ship to only
Europe and the Middle East.
Rishon LITHUANIA - Vilnius
ESTONIA - Tallinn

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 Services / Products 1. Contract logistics services

The Filuet Group offers a complete suite of logistics and international trading solutions specifically catered The Filuet Group delivers fully integrated logistics solutions tailored to the
for the ever changing needs of our clients. Whether you are looking for simple warehousing and distribution specific needs of our clients. Our diverse range of logistics services include
or a complete outsourced solution, we have the knowledge and experience to successfully manage your the following:
supply chain.
3rd Party Logistics Services (3PL)
We have 3 broad service categories as follows:
• Transportation by air, sea, road & rail
Contract logistics services
• Order fulfilment, including pick and pack
Global trading services
• Customs clearance
Total outsourcing solutions
• Distribution of orders and invoicing
• Product warehousing in secure, best practice facilities

Image of our logistics centre in Lobnya, Moscow

• Inventory control, including stocktaking and reordering

• Import/export documentation
• Packaging, ticketing and labelling for specific markets

4th Party Logistics Services (4PL)

• Logistics and process consulting
• Facilities management
• Inventory management & control
• IT consulting
• Human resource management

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 2. Global trading services 3. Total outsourcing solutions

In addition to our 3PL and 4PL services, we offer a full range of specialized Unlike many standard 3PL and 4PL logistics service providers, we are able to assist our clients in formulating
global trading services including the following: and executing a complete market penetration strategy in all the regions in which we operate.
Our total outsourcing solutions enable our clients to develop a market or region without necessarily having
• Order processing
a legal presence there by using our fiscally approved financial models, local infrastructure, experienced and
• Billing & invoicing dedicated teams combining our contract logistics and global trading services. The key advantages being:
• Payment collection
• Bank deposits & wire transfers • Time to market is a lot shorter
• Handling of back orders • Cost effective
• Product registration • Less administration
• Market research • Allows client to focus on their core business
• Fairs & exhibitions • Tax beneficial
• Translation of promotional materials
Our intention is to grow with our clients and ensure that they succeed in the short, medium and long term.
• Training of staff We offer two types of total outsourcing solution based upon either a limited trade distributor or an agency
• Virtual office model.

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 Corporate references

Our client list contains a rich blend of global Direct Selling Corporations in differing stages of their respective
organic growth cycles. At Filuet, we do our best to ensure that your growth aspirations are reached by taking
a ‘hand in hand’ approach.

"Filuet has been a strategic business partner for us in the development of our Russian and CIS
markets. They have provided outstanding warehouse and logistic support to ensure our
products reach our Russian consumers quickly and affordably.

Beyond these capabilities, their consultation and deep understanding of this complicated
business region has allowed us to grow quickly without much start up investment and
“Our company has been doing business continuously improve and expand our product and service offering to our members.”
with Filuet over the past two decades.
Throughout that time, Filuet has been Scott Davidson
a trusted and reliable partner. They CFO
take a “can do” attitude into each
project, consistently finding solutions
which best support our Distributors
needs, while meeting all our corporate
requirements.

I can say that in each case, they have exceeded my expectations in the quality of
management and execution of detail for each of the projects we have collaborated.
It is rare to find companies that truly fit the description of a “business partner.” Filuet
is one of those companies. We have tremendous respect for their ability to deliver
against their word and we have found that Filuet shows the same level of respect to
our Distributors and to our company’s mission and values.”
“Our product is sold in 92 countries all over the world and we work with many logistics service
providers. Through our vast experience, we have found Filuet to be the one that really stands
out from the crowd as a true “solutions” based company. Their innovative operational
approach coupled with their unique range of services makes Filuet the only choice when
looking to procure the services of a third party.”

Tom Harms Charlie Smith

Vice President, Strategic Planning COO

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 Expansion opportunities

When thinking about penetrating a new market, it is essential to consult with an expert who has physical
presence and extensive experience in the markets of interest. Cooperation with an expert can make the
difference between a valuable success and a costly failure.

Russia Saudi Arabia

Since the fall of the iron curtain and the establishment of the Commonwealth of Independent States in late A more speculative, yet ultimately more lucrative
1991, the Russian economy has grown into one of the most dynamic and fastest growing economies of the opportunity exists in the Middle East, and most notably
world. Coupled with a population in excess of 140 million, it is no surprise that the Direct Selling industry is in Saudi Arabia. Currently, the Direct Selling industry
really beginning to flourish. has not managed to significantly penetrate this region
however the fruits of a such a move are for all to see.
According to the World Federation of Direct Selling Associations (WFDSA), retail direct sales in 2010 were in
excess of $3 billion with over 4.9 million registered independent sales representatives. With forecast GDP for 2011 estimated at $579 billion
and GDP growth expected at a rate of 7.5%, the
With forecast Gross Domestic Product (GDP) for 2011 estimated at $1,894 billion and GDP growth expected
potential is there for the eventual domination of a
at a rate 4.8%, we believe the Direct Selling market in Russia will continue to grow for the foreseeable future
region.
and is a must for any serious international Direct Selling organisation.

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 Our Contact details

For any further information, please contact us as follows:

Head Office - Limassol, Cyprus

Company: Filuet Cyprus Ltd

Address: 1 Siafi Street, Porto Bello, Office 105,

3042 Limassol, Cyprus

Telephone: +357 25 029390

Fax: +357 25 029395

Email: info@filuet.com.cy

Website: www.filuet.com

Russian Office - Moscow, Russia

Company: Filuet RS LLC

Address: Fourth floor, Kutuzoff Tower Business Center,

8, Ivana Franko st., 121108, Moscow, Russia

Telephone: +7 (495) 787 63 78

Fax: +7 (495) 787 63 79

Email: info@filuet.ru

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