Lender Presentation Kingston Decor 11/12/2018 Messing, Weiper, Rutt, Jao

Executive Summary Key Facts Kingston Decor KD is a very fast growing wholesaler of home decor KD is providing stable CFs in the past and the future Dedicated managment team Multiple triggers of growth KD‘s buisness model is very resistent against major risks Key Figures of KD Current Revenue (2007) $75M Current EBITDA $14M 11/12/2018 Messing, Weiper, Rutt, Jao

Key Risks and Mitigants Volatile Housing Market Can reduce Sales and EBITDA Growth Future CFs and Ratios like Fixed Chare are effected Large diversified customer base Due to focus on lower price products the impact of a downturn in the house market would be less harmfull High Customer Bargaining Power Can lead to loss of customers or lower margins Switching costs are low Very diversified product portfolio One Stop Shopping Center Diversified customer base Capital Expenditure for IT System An ineffective IT System would be sunk cost for KD and operative processes would not be optimized Low probabilty of failure Effective IT System has a high upside potential 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Transaction Overview 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Business Overview Fast growing full service importer and wholesaler of decor products Product Portfolio of over 8,000 products consisting of home decor, wall decor, floral accessories and accent furniture KD has 150 employees and 683.000 square foot facility including warehouses, a corporate office and showrooms. Historical Financial Performance Key values to customers „One stop shopping center“ Logistical support Palletizing Delivery choices Deliver tracking Low prices through sourcing in China Big inventory represents excellent product availability 11/12/2018 Messing, Weiper, Rutt, Jao

Industry and Competitive Position Market Overview The decor industry is large and highly fragmented industry experiencing steady growth Over the next five years: expected industry growth of 2% - 4% Overall market size of $60 bn in retail dollars (2007) Importers generate $25 bn of market size Macroeconomic drivers Real GDP Personal Consumption Expenditure Home Sales Home Décor Pricing 11/12/2018 Messing, Weiper, Rutt, Jao

Growth Strategy Main Triggers for Growth Organic Growth New China Facility Showroom Expansion IT System Direct Import Business Other Operational Optimization 11/12/2018 Messing, Weiper, Rutt, Jao

Management Bio Key Characteristics of the Management Team Senior managment team has on average 20 years of experience in the home decor branch Joint responsibilities in the management in order to achieve management diversity Robert Martinez CEO&COO Steve Mills Vice President of Sales Strong customer relationships Understanding of the market Andy Boots and James Woods Pricing and Financial Planning Customer and Vendor relationship management Warehouse expertise 23 years with the company Effiency management How to involve the existing management team in future business practice As an incentive to keep up the efficient management style the senior management will receive 5% equity share after the transaction Due to the broad experience is crucial to keep the current management team in charge 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis Three Scenarios: Upside Base Downside Forecasted Balance Sheet Forecasted Income Statement Multiple Analysis Debt Paydown Schedule 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Backup Slides 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Multiple Analysis 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis Income Statement Assumptions 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis Capital Expenditure 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis Balance Sheet Assumptions (Upside) 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis Balance Sheet Assumptions (Base) 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis Balance Sheet Assumptions (Downside) 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis Working Capital Requirements 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis Senior Debt Amortization 11/12/2018 Messing, Weiper, Rutt, Jao

Debt Assumptions Forecasted 3-Month LIBOR Year 2008 2009 2010 2011 2012 LIBOR -0.5% -1.4% -1.7% -1.6 -1.4 Senior Debt Interest Rate (LIBOR + 300bps) Year 2008 2009 2010 2011 2012 Rate 2.5% 1.6% 1.3% 1.4% 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Financial Analysis Mez Debt Amortization 11/12/2018 Messing, Weiper, Rutt, Jao

Credit Revolver Assumptions 11/12/2018 Messing, Weiper, Rutt, Jao

Messing, Weiper, Rutt, Jao Exit Strategy 11/12/2018 Messing, Weiper, Rutt, Jao