1 2 COMPANY PROFILE FOUNDED 2006 HEADQUARTERS Richmond, British - - PowerPoint PPT Presentation
1 2 COMPANY PROFILE FOUNDED 2006 HEADQUARTERS Richmond, British Columbia FOUNDER & CEO Traci Costa PRODUCT Ethically manufactured clothing and accessories for infant to child, size 0 to 10 RETAIL PRICE RANGE $20 - $100 MISSION
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FOUNDED 2006 HEADQUARTERS Richmond, British Columbia FOUNDER & CEO Traci Costa PRODUCT Ethically manufactured clothing and accessories for infant to child, size 0 to 10 RETAIL PRICE RANGE $20 - $100 MISSION Providing the ingredients for a playful life
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3 INVESTMENTDISCLAIMER The offering described on this presentation is not, and under no circumstances is to be construed as, a public offering of the securities described herein. The offering is not being made, and any subscription pursuant to such offering does not constitute an offer to sell or the solicitation of an offer to buy such securities in any jurisdiction where, or to any person whom, it is unlawful to makesuchanoffer orsolicitation. The securities comprising the offering are speculative securities and involve a high degree of risk. Prospective investors not willing and able to risk a loss of their entire invested capital must not consider purchasing these securities. Prospective investors are encouraged to and should obtain independent legal, tax and investment advice with respect to the offering. Peekaboo Beans Inc. (the “company”) hasnot madeanyrepresentation to prospectiveinvestorsregardingthe offering andthe risksrelating to aninvestmenttherein. FORWARD-LOOKINGS TA TEM EN TS The information provided on this presentation is provided Solely for General knowledge purposes. This presenation is not intended to be a comprehensive review of all matters and developments concerning Peekaboo BeansInc. the Company. Except for statements of historical fact contained herein, the information presented in this presentation consti- tutes "forward- looking statements" or "information" (collectively "statements"). These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptionsof management. The Company has obtained certain information contained in this presentation concerning the industry in which it operates from publicly available information from third party sources. The Company has not verified the accuracy or completeness of any information contained in such publicly available information. In addition, the Company has not determined if any such third party has omitted to disclose any facts, information or events which may have occurred prior to or subsequent to the date asof which any such information became publicly available or which mayaffect the significanceor accuracyof anyinformation contained in anysuchinformation andsummarizedherein. Any statements that express or involve predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as"expects", "is expected", “striving”, "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results “can”, “shall”, "may", “should”, "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Such forward-looking statements, including, but not limited to, those with respect to: timing and completion of a reverse takeover of a T S XVenture Exchange (the “TSX-V”) listed company by the shareholders of the Company (the “RTO”), including timing and receipt of TSX-V and/or other regulatory approvals therefor; the ability of the Company to raise capital in the public market in order to execute its initiatives, including deployment and achievement of its goals to grow in a strategic way; financial information regarding the Company and/or its intended use of funds, including the timing of development of new systems, products and collections, development of more resources and training, more marketing and PR; composition of the board of directors and management at completion of the offering and RTO; financial forecasts; the long-term success of the Company through the operation of its business; capital expenditures, timelines, and
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may causethe actual plans, results, performance or achievements of the Company to be materially different from any future plans, results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among
shareholder approvals; the Companyfailing to enter into adefinitive agreement in connection with the RTO;the Companybeen unable to close it’s financing initiatives asaresult of failure to complete and that additional financing may not be available to the Company on acceptable terms or at all; that are shares may never become publicly traded; the Company’s strategic plans failing to materialize asexpected or a commercial market for its products failing to develop; the failure of the Company to develop new software, products and collections; actual operating costs, total cash, transaction costs, administrative costs and other costs of the Company differing materially from those anticipated; risks related to international operations in China; risk of not meeting financial forecasts as a result of operational performance and/or market factors; that the Company may not meet its targets; and failure of any person to accept an offer of employment with, or consent to serve asa director or executive officer of the Company. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-look- ing statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made, and the Company undertakes no obligation to update any forward-looking statement if thesebeliefs, estimates andopinionsor other circumstancesshouldchange,exceptasmayberequired byapplicablelaw. June,2017
DISCLAIMER
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2017, with significant growth coming in following quarters based on US expansion efforts and 100% growth in 2018
Shareholders = 2,780,828
average of $450 (66% greater than industry average)
(111% greater than industry average)
2016 (165% in Q3)
with a fully functional us stylist portal.
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MISSION Providing the ingredients for a playful life VISION Leaving a legacy of happy, healthy human beans
SHARE VILLAGE
We initiate positive change and we play it forward. Play Stylists to donate a portion of their commission to Canadian non- profit charity, Playground Builders, and Peekaboo Beans matches everydonation.
HEART FAMILY
We welcomew welcome different views, ideas and people and embrace the challenge for solutions and innovations. We strive for perfection, but value our imperfections as they are opportunities to learn and grow. We are creating a new family-centric work culture to enable our employees and Stylists the opportunity to bring work, play and family together.
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DISTRIBUTION
Peekaboo Beans sells its product through a powerful direct sales force, with a growing field of over 1,200 "Stylist's" across Canada. Stylists can sign up on-line and buy a pop up shop in a box "kit" at a low cost of $199-399. They get immediate access to a back end dashboard where they set up their own branded website and can train 24/7 on all things Peekaboo Beans.
PRODUCTION
Peekaboo Beans contracts manufacturers, it’s apparel collections, and adheres to a strict code of manufacturing ethics. Peekaboo Beans ensures its product is safe of harmful dyes and chemicals. Peekaboo Beans produces 6 new collections a year.
DESIGN
Peekaboo Beans designs an award winning lifestyle brand of children's apparel from their home
promise is safety, function and fun all in one.
MEDIA HIGHLIGHTS
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8 TRACI COSTA, CE CEO, Director.
Traci founded Peekaboo Beans in 2006. Peekaboo Beans has since become the largest direct selling childrenswear retailer in
Chamber of Commerce Business Excellence Award (2015).
SHELLEY LYONS, MarketingManager
Shelley Lyo ns has 15 years experience in marketing and manage- mentpositions. PrevioustoPeekabooBeans,ShelleywasMarketing ManagerfortheO P U S Hotel,voted
responsiblefor driving marketing and branding initiatives for Peekaboo Beans. S h e leads the Marketing team in developing strategies and tools for Styliststogrowtheir businessandinitiativestoincreaseoverallbrandawareness ofPeekaboo Beans.
DAVERATCLIFFE, Operations Manager
Dave is responsible for logistics, fulfilment, warehousing and customer service. He works with the warehouse and customer serviceteamtoprovidethebestpossible
BRETT RHEDD, Finance
As member of the Advisory team for Squire, and with collegiate degrees, Brett is a business strategy and finance consultant that supports direct selling companies with high level guidance for their accounting, direct sales, business processes, CFO outsource compensation plans, partnerships, operations, market expansion, start-ups and financial modeling needs.
CALLI LIPP,LeadDesigner
Aftergraduatingin2007withanhonoursdiplomainFashionDesign fromKwantlen PolytechnicUniversityshejoinedPeekabooBeansa s lead designer. Creating seasonal collections she aims to empower childrentobechildrenandtodowhattheydobest,
childrenofherown,imagininglifethroughtheeyesofa child comessecond naturetoher.
NIKKI MAYER, General Manager (2011), Director.
Previously, Nikki owned and operated several lululemon athletica Inc (NASDAQ: LULU) franchise stores in Whistler, British Columbia and Bellevue, Washington, USA. She was the first to launch a lululemon franchise in the US market and gained recognition for having the highest gross retail sales per square foot.
SANDRA BUTLER, Sales Manager
Sandra is the owner of Sandra Butler Coaching. She has a BA Honours in Psychology and certification in Adult Education and with
motivates the direct sales leaders and their teams.
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TRACI COSTA
Canada.
Chamber of Commerce Business Excellence Award (2015). DARRELL KOPKE
NIKKI MAYER
and Bellevue, Washington, USA. She was the first to launch a lululemon franchise in the US market and gained recognition for having the highest gross retail sales per square foot. GLENN JOHNSON
Endurance was named Profit Magazine's "Top 100 Fastest Growing Companies" (2012).
Company.
Top Forty under 40.
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PRODUCT Ethically manufactured and aligned with the Okeo-tex Standard 100, our clothing is designed to support healthy development in all stages of childhood. COMPENSATION PLAN New compensation plan implemented November 2014 has proven to be successful in motivating growth behavior. MANAGEMENT A culture based company that reinvented the way that mothers shop, work and play.
I LOVE THIS PRODUCT!
Components of a Successful Direct Sales Company
Wow, I can’t believe I can make money selling this product. I believe in the leadership, and I belong in this community.
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All investments have been made to establish the 3 critical components of a hyper growth direct sales company. This is combined with superior sales metrics that out perform other direct sales companies.
PEEKABOO BEANS INDUSTRY
Average Sales Per Soiree
1$750
$450 Average Order Size
2$148
$70 Average Guest Ordering 80% 70% Average Revenue per Active Stylist per Month $838 $400
PRODUCT COMPENSATION PLAN MANAGEMENT AND OPERATIONS
PEEKABOO BEANS METRICS vs. INDUSTRY METRICS
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1 66% greater than the industry average 2 111% greater than the industry average
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GROWTH IN THE DIRECT SALES INDUSTRY The direct sales industry is a 36 billion dollar industry in the USA with 1 in 7 households having a business. 90% of sellers are women and 75% are educated up to a university level. HOW WE GROW
WE MOTIVATE AND TRAIN BEHAVIORS THROUGH ESTABLISHED DIRECT SALES PRACTICES:
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JANE BEAN’S POP UP SHOP
Actual Case Study of a Peekaboo Beans Stylist JANE BEAN Stylist since 2012 Earns $39,000 annually by dedicating 15 hours a week to her business
. 33 on JANE
BEAN’S 1st LINE
61 on JANE
BEAN’S 2nd LINE
157 on JANE
BEAN’S 3rd LINE
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14 14 Current Pop Up Shops Future Pop Up Shops
Our revenue comes from:
The balance comes from around the United States and other small cities within Canada. The power of direct sales is unlike traditional retail, as we can have pop up shops in virtually any small town and community and grow quickly and at low cost. TSX.V: BEAN
15 15 THE PAMPERED CHEF1 AVON TUPPERWARE IMMUNOTEC STELLA & DOT2 LOCATION US US
US CDN US
FOUNDED 1980 1932 1946 1996 2003 LISTED NYSE: BRK.A NYSE: AVP NYSE: TUP TSXV: IMM Private PRODUCT Kitchenware Cosmetics Household Furnishings Nutritional Products Jewelry SALES REPS3 60,000 6,000,000 2,900,000 80,000 50,000 VALUATION US $900M US $2B US $3B C $28M US $370M REVENUE Unknown US $9B US $2.3B C $85M US $1B
Proven Success
consultants and generating $1.4 billion to Canada’s national income.
households).
1 The Pampered Chef: Berkshire Hathaway Inc. purchased the company for approximately US $900M in 2002. 2 Stella & Dot LLC: Private equity firm, Sequoia Capital acquired 10% shareholding in the company for US $37-million in January 2011. 3 Number of Independent Sales Representatives
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PEEKABOO BEANS CONSERVATIVE PROJECTIONS
* Assumes an industry average of 50% active stylist rate, compared to our 66% actual active rate SALES, COST OF SALES AND OPERATING COSTS (in millions) STYLISTS – BAR GRAPH
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POWERFUL COST STRUCTURE OF DIRECT SALES
Peekaboo Beans is disrupting the traditional bricks and mortar storefront concept by creating pop up shops in every home and every community big or small. The power of this model is, as the top line revenue occurs, the company doesn't incur greater operational
THE FALL OF TRADITIONAL BRICKS AND MORTAR:
1. Gymboree declares bankruptcy and is closing 1,300 stores. 2. Ivivva announces it is closing 67 retail locations. 3. Kit and Ace spends 400 million to build North American retail locations and closes all US stores. 4. BCBG closes all North American retail locations. 5. American Apparel declares bankruptcy and closes operations.
PEEKABOO BEANS - THE RETAIL DISRUPTER
Conversely Peekaboo Beans doesn't compete or have the high cost infrastructure of traditional bricks and mortar. Peekaboo Beans connects mothers and empowers them to earn an income selling a product they love. The cost to Peekaboo Beans is virtually zero as we don't pay unless a product is sold. This model allows Peekaboo Beans to grow and scale quickly at low cost.
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GROSS PROFIT
I m p r o v e d g r o s s p r o f i t b y 1 0 % c o m p a r e d t o s a m e p e r i o d t h e y e a r b e f o r e .
COST OF GOODS
I m p r o v e d c o s t o f g o o d s s o l d b y 2 2 % c o m p a r e d t o y e a r o v e r y e a r .
STYLISTS
E x p a n d e d S t y l i s t s b y 2 7 % i n s e c o n d q u a r t e r – a n d a d d e d
i n t h e s u b s e q u e n t q u a r t e r . R e p r e s e n t i n g t h e b e s t s p o n s o r s h i p m o n t h t o d a t e . TSX.V: BEAN
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2017 2018 2019 2020 2021 2022 Sales Product Sales 3,591,338 9,329,677 13,619,364 18,320,552 26,091,002 37,157,199 Business Kit Sales 134,966 314,589 432,781 616,340 877,754 1,250,043 Hostess Rewards 291,332 802,693 1,185,423 1,554,087 2,213,234 3,151,952 Shipping and Handling 247,054 639,415 931,657 1,255,516 1,788,028 2,546,400 Returns and Allowances (85,882) (221,727) (323,385) (434,930) (619,400) (882,112) Total Sales 4,178,808 10,864,647 15,845,841 21,311,565 30,350,618 43,223,482 Cost of Sales Product 1,454,388 2,809,800 3,691,912 4,664,965 6,382,646 8,722,909 Business Kits 102,790 213,921 294,291 419,111 596,872 850,029 Hostess Rewards 326,292 802,693 1,185,423 1,554,087 2,213,234 3,151,952 Shipping and Handling 276,700 639,415 931,657 1,255,516 1,788,028 2,546,400 Merchant Fees 138,517 321,505 468,908 630,648 898,131 1,279,062 Packaging 20,867 48,221 70,261 94,684 134,844 192,036 Total Cost of Sales 2,319,555 4,835,555 6,642,451 8,619,012 12,013,756 16,742,388 Gross Profit 1,859,253 6,029,092 9,203,389 12,692,553 18,336,862 26,481,094 Gross Profit as % of Sales 44% 55% 58% 60% 60% 61% Selling Expenses (Revised) Commissions - Retail 545,909 1,363,074 1,958,596 2,727,971 3,959,526 5,826,782 Commissions - Team 322,976 950,646 1,578,719 2,350,934 3,570,475 5,312,065 Sales Incentives 50,430 185,316 265,519 248,699 360,976 531,206 Total Selling Expenses 919,315 2,499,036 3,802,834 5,327,604 7,890,977 11,670,053 Contribution Margin 939,938 3,530,056 5,400,555 7,364,949 10,445,885 14,811,041 Contribution Margin as % of Sales 22% 32% 34% 34% 34% 34% General and Administrative Expenses Compensation and Benefits 767,308 1,195,111 1,267,667 1,704,925 2,276,296 3,025,644 Marketing and Promotional 193,834 304,210 356,531 468,854 637,363 864,470 Events 15,000 54,323 79,229 106,558 151,753 216,117 Professional Services 145,220 108,646 158,458 213,116 242,805 324,176 Technology 56,282 135,808 237,688 319,673 364,207 475,458 Occupancy 83,151 86,917 110,921 149,181 212,454 259,341 General Business Expenses 174,760 76,053 110,921 149,181 212,454 302,564 Depreciation and Amortization 20,590 54,323 79,229 106,558 151,753 216,117 Public Company Expenses 240,000 120,000 120,000 120,000 120,000 120,000 Total General and Administrative Expenes 1,696,145 2,015,392 2,400,645 3,338,046 4,249,087 5,683,888 Net Operating Income (756,208) 1,514,664 2,999,910 4,026,903 6,196,798 9,127,153
PROJECTED STATEMENTS OF OPERATIONS
Fiscal years ended September 30, 2017 to 2022
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three critical components of a successful direct sales company:
sales companies
representatives, from coast to coast in Canada, that increases daily
exponential growth
partnerships and operational streamlining
business
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SHARE CAPITAL Shares Outstanding 10,159,424
Warrants Outstanding 4,888,687 Options Outstanding 855,000
Fully Diluted 15,903,111
WARRANTS OUTSTANDING As of May 25, 2017 EXPIRY AMOUNT EXERCISE PRICE
GROSS PROCEEDS IF EXCERSICED
Expire Sept 23, 2017 1,503,770 $1.25 $1,879,712.50 Expire Sept 30, 2017 1,848,687 $1.25 $2,310,858.75 Expire Oct 17, 2017 107,800 $1.25 $134,750,00 Expire May 12, 2019 1,428,430 $0.80 $1,142,744.00
TOTAL 4,888,687 $5,468,065.25
STOCK OPTIONS OUTSTANDING As of May 25, 2017 Expire May 12, 2027 885,000 $0.60 $513,000.00 CAPITAL STRUCTURE As of May 25, 2017 HOLDERS %
Executives & Directors 18 1,781,081 CDS & CO 35 3,594,108 Registered Shareholders 47 4,784,235
TOTAL 10,159,424
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