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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
Providing the ingredients
for a playful life
Disclaimer INVESTMENT DISCLAIMER 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 make such an offer or solicitation. 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”) has not made any representation to prospective investors regarding the offering and the risks relating to an investment therein. FORWARD-LOOKING STATEMENTS 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 Beans Inc. 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 assumptions of 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 as of which any such information became publicly available or which may affect the significance or accuracy of any information contained in any such information and summarized herein. 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 TSX Venture 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 other factors and events described in this presentation. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the 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 others: the non-completion of the RTO, including due to the Company failing to receive, in a timely manner and on satisfactory terms, the necessary TSX-V and/or other regulatory or shareholder approvals; the Company failing to enter into a definitive agreement in connection with the RTO; the Company been unable to close it’s financing initiatives as a result 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 as expected 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 as a 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 statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this website. 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 these beliefs, estimates and opinions or other circumstances should change, except as may be required by applicable law. March 25, 2016
PEEKABOO BEANS METRICS vs. INDUSTRY METRICS
PB INDUSTRY
Average Sales Per Soiree $750 $450
Average Order Size $148 $70
Average Guest Ordering 80% 70%
Average Revenue per
ctive tylist per onth $624 $400
KEY PERFORMANCE INDICATORS KEY GROWTH TRENDS
F2014 F2015 TRAILING 6 • Sales increased 14% to 3.5M - FY15
MONTH YTD1
FY16 sales to date tracking higher than the same period last year
Sales $3M $3.5M $1.9M • Stylists sales network grew by 41% FY15, and is tracking to our
FY16 goal
Stylists numbers
at period end 528 744 876 • Recruitment is up 358% from March 2016 compared to
March 2015
Soirees 3,133 3,547 2,087 • Investment in infrastructure done, therefore a highly scalable
business
Avg Customer Order $110 $125 $148 igni cant success in ust 2 years ith primary focus in
Western Canada
*09/30 year end
1
YTD - March 31, 2016 • Funds required to replicate Eastern Canada and Western US,
ith continued gro th in e isting mar ets
DESIGN - PRODUCTION - DELIVERY peekeanboo
ba s TM
• Peekaboo Beans designs and • Production starts at the factory. • The first look at the seasonal catalogue is
manufactures four seasonal lines with released to Play Stylists for sample
• First set of proto samples are sent to ordering
Fall (Sept) being the biggest season in Peekaboo Beans offices 10 months
sales. before collection launches. • Sneak Peeks are given to customers to
• Fittings take place and changes are sent encourage seasonal Soiress bookings.
SPRING back to the factory for final proto • Over 600 Soirees* will be hosted in the
SUMMER samples to be created. first few weeks of a collection launch
FALL
WINTER • Second set of proto samples are recieved. through our catalogue and showcased
product samples
• Catalogue creation begins 6 months before
launch • A spike in enrollement happens during a
• Final PO is confirmed with the factory. new collection launch.
• All design happens in house at the
Peekaboo Beans head office in Richmond, BC. • 3 months before the official launch, the • $800 is the average sales at a Soiree
• Budget and collection theme planning factory starts production of over 50,000 pieces during a collection launch.
and abides by our eithical standards.
begins approximatley 13 months before • Orders placed at Soirees are processed,
a collection launches • 3 weeks before launch, the collection packaged and shipped out from our
shipment is recieved at the Peekaboo Richmond, BC warehouse and delivered to
• First draft of specs are sent to the factory Beans Warehouse in Richmond, BC.
8 weeks later. customers across Canada.
• The direct selling industry in Canada was worth $2.8 billion in 2008 and employed 900,000 independent consultants and generating $1.4 billion to
Canada’s national income .
• Direct sales in the US is a $30 billion industry and has over 15,000,000 independent .
• Peekaboo Beans has over 700 independent consultants, referred to as “Stylists” which have earned over $1,500,000 in commissions since 2010.
* Stylists orders are generated from “soiree” parties that Stylists hold in hostess’s homes to sell Peekaboo Beans’s children playwear.
Core Ingredients
PLAY
MISSION Providing the ingredients for a playful life.
VISION Leaving a legacy of happy, healthy beans.
FAMILY HEART SHARE VILLAGE
ideas and people and embrace
enable our employees and
Stylists the opportunity to bring
THE "WE ARE EXTREMELY
EXCITED BY THE PAMPERED
WARREN CHEF. DORIS CHRISTOPHER
BUFFETT HAS CREATED FROM
WAY SCRATCH AN ABSOLUTELY
WONDERFUL BUSINESS,"
said Buffett, at the time
of his investment in Pampered Chef
Direct Sales Model - Proven Success
THE STELLA NATURA
PAMPERED ORIFLAME AVON TUPPERWARE IMMUNOTEC VORWERK4 INFINITUS
& DOT2 COSMETICS3
CHEF1
LOCATION US Sweden US US CDN US Brazil Germany Malaysia
FOUNDED 1980 1967 1932 1946 1996 2003 1969 1883 1992
OMX BM&F
LISTED NYSE: BRK.A Nasdaq: ORI NYSE: NYSE: TSXV: Bovespa: Private
AVP TUP IMM Private Private
SDB NATU3
Household Nutritional Household Health
PRODUCT Kitchenware Cosmetics Cosmetics
furnishings products
Jewelry Cosmetics
appliances products
SALES REPS5 60,000 3,473,000 6,000,000 2,900,000 80,000 50,000 718,000 591,156 unknown
VALUATION US $900M 900M US $2B US $3B C $28M US $370M US $12B unknown unknown
REVENUE unknown 1.3B US $9B US $2.3B C $85M US $1B US $3B 2.8B US $2.6B
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
Natura Cosméticos S.A. is a Brazilian manufacturer and marketer of beauty products that sells products through representatives in many countries across the world. The company was
founded in 1969 by Luiz Seabra, and became a public company listed on São Paulo Stock Exchange in 2004. Currently the company is the second largest Brazilian cosmetics company by
revenue. Number of independent sales representatives is as of 2007.
4
As of December 31, 2014.
5
Number of Independent Sales Representatives
Direct-Sales
COMPONENTS OF A SUCCESSFUL DIRECT SALES COMPANY
PRODUCT I love this
Ethically manufactured and aligned with
product.
the Okeo-tex Standard 100, our clothing
is designed to support healthy
development in all stages of childhood.
Wow, I can’t believe
COMPENSATION PLAN I can make money
New compensation plan implemented selling this product.
November 2014 has proven to be
successful in motivating growth behavior.
Founder
I believe in the
Management MANAGEMENT leadership, and I belong
Regional A culture based company in this community.
Sales Managers that reinvented the way that
Stylists mothers shop, work and play.
Direct Sales Network - Case Study
JANE BEAN
Stylist since 2012
Earns $37,000 annually by dedicating
15 hours a week to her business
33
61
157
2-4 $10,800 $26,920 Average soiree
2-4soirees
soirees $29,000 personal downline $750 in sales
per
per month
month personal commission commission Industry standard
15 hours per week sales 15-35% commission
on personal sales
2-12% commission
on downline sales $400 in sales
BASIC LEVEL STYLIST MATURE LEVEL STYLIST DIRECTOR LEVEL STYLIST
Revenue Growth
REVENUE GROWTH IN DIRECT SELLING IS SIMPLE. INCREASE ONE FACTOR
AND REVENUES GROW, INCREASE TWO OR THREE AND EXPERIENCE HYPER GROWTH.
$
REVENUE = NUMBER x AVERAGE
REVENUE
x RETENTION
OF STYLISTS PER STYLIST RATE
i i i
RECRUIT STYLISTS INCREASE REVENUE RETENTION RATE
THROUGH TRAINING AND PER STYLIST
=
Primary reasons
MARKETING
GROWTH • 1,200 Stylist = Fiscal 2016
•2,000 Stylist = Fiscal 2017
Training our Stylists to
create the “Perfect” Soiree
why Stylists join and stay
with Peekaboo Beans are
party. culture and significant
• 4,000 Stylist = Fiscal 2018 income opportunity.
HYPER
GROWTH = + $ +
A DIRECT-SALES COMPANY WILL EXPERIENCE HYPER GROWTH WHEN THE RIGHT
COMBINATION OF FACTORS WORK EFFECTIVELY.Power of Direct Sales
TRAINING = Growth in Stylists TRAINING = Increased average order
• Corporate
Sales Manager WE TRAIN TO THE PERFECT PARTY
• Corporate
• Regional Sales
Manager
• 30 Sales leaders
• 90 new recruits
• 2,000 Stylist
10 Guests at a Soiree
by F2017
8 Buying guests
2 Future bookings
1 Warm recruiting lead
850 Stylists (As of today) 1,150 Stylists (New recruits by F2017)
WESTERN PROVINCES EASTERN PROVINCES SALES BY TERRITORY
2014 2015 YTD 2014 2015 YTD
19%
New Recruits 144 153 76 47 63 52
Sales $ 2,520,811 2,802,729 1,432,921 528,178 667,137 452,966
Soirees 2,532 2,785 1,499 601 762 588 81%
Total Stylists 390 542 620 137 200 256Why stylists stay
INDEPENDENCE EQUITY OWNERSHIP
WORK LIFE BALANCE
RECOGNITION & PURPOSE
HEALTH & WELL BEING
BEANAHOLIC & STYLIST
TESTIMONIALS
INCOME OPPORTUNITY
CLOTHE KIDS FOR FREE
COMMUNITY & CULTURE PERSONAL DEVELOPMENTProfibility
Peekaboo Beans Conservative Projections General Industry Standards
20 m 7,000 EARLY STAGE % OF REVENUE
17.5m 6,500 COGS 29%
15m 6,000 SELLING EXPENSE 26%
PERSONNAL 17%
12.5m 5,500
MARKETING 21%
Sales, Cost of sales and Operatings costs
10 m 5,000 OVERHEAD COSTS 6%
9m 4,500 NET PROFITS 1%
(stylists - Bar graph)
8m 4,000
(in millions)
Early stage - Investment to move
7m 3,500 through this stage has been made.
6m 3,000
5m 2,500 GROWTH TARGETS % OF REVENUE
4m 2,000 COGS 29%
SALES SELLING EXPENSE 38%
3m 1,500
* *
OF SA
LES PERSONNAL 7%
*
COST
2m 1,000 MARKETING 3%
*
OPERATISNG
*
COST OVERHEAD COSTS 6%
1m 500 NET PROFITS 17%
0 0
F2014 F2015 F2016 F2017 F2018 Growth stage - Capital will be used to
move to mature stage revenue.
Early Stage Growth Stage
* assumes an industry average of 50% active Stylist rate, compared to our 66% actual active rateUse of Proceeds
$5 million for strategic growth in eastern Canada and
penetration into western USA. Funding will be utilized for:
Inventory - $2,500,000: Funds will be used to finance the lead-time and apparel
production deposits necessary for seasonal catalogues.
Inventory
Recruiting and Training - $750,000: These funds will be used for 5 key hires for growth and expansion. VP of
Recruiting, VP of Training and Regional Sales Managers, whose focus is to identify and train our Stylists to become
sales leaders. Once leaders are in place, Peekaboo will start moving from organic growth to accelerated growth.
Marketing - $750,000: Marketing funds will be used in two distinct categories. The first category consists of getting key
Recruiting personnel out in the field holding local meetings geared toward product demonstration and Stylist training. Major
Training expenses include travel and facilities. The second category consists of investing in brand awareness through campaigns
promoting the importance of play to child development and providing a parenting educational component at Soirees.
Software and Systems - $250,000: Funds will be used to augment and expand software capabilities to help
Stylist's manage their sales teams and other online office applications that Stylists use to run their businesses.
Improvements will allow for timely data and metrics to improve communication and better management deci-
sions. Additional funds will be used to develop mobile apps for training, selling, and recruiting and virtual Soirees.
US Build Out and Infrastructure - $500,000: Logistics, taxation, legal, compliance, distribution, research and
Other development.
Working Capital - $250,000Management
TRACI COSTA, CEO, Director. DAVE RATCLIFFE, perations ana er
Traci founded Peekaboo Beans in 2006. Peekaboo Beans has Dave is responsible for logistics, fulfilment, warehousing and
since become the largest direct selling childrenswear retailer in customer service. He works with the warehouse and customer
Canada. Traci is a Top Forty under 40 award winner (2010), service team to provide the best possible customer care experience.
Women of Distinction award winner (2015) and recipient of the Dave has over 20 years of operations experience.
Richmond Chamber of Commerce Business Excellence Award
(2015).
NIKKI MAYER, General Manager (2011), Director. BRETT RHEDD, Finance
Previously, Nikki owned and operated several lululemon As member of the Advisory team for Squire, and with collegiate
athletica Inc (NASDAQ: LULU) franchise stores in Whistler, degrees, Brett is a business strategy and finance consultant that
British Columbia and Bellevue, Washington, USA. She was the supports direct selling companies with high level guidance for their
first to launch a lululemon franchise in the US market and accounting, direct sales, business processes, CFO outsource
gained recognition for having the highest gross retail sales per compensation plans, partnerships, operations, market expansion,
square foot. start-ups and financial modeling needs.
SANDRA BUTLER, Sales Manager MICHAELA STAPF, Produ tion, esear h and eve opment
Sandra is the owner of Sandra Butler Coaching. She has a BA Honours With 30 years of production experience, Michaela manages and
in Psychology and certification in Adult Education and with over 15 co-ordinates the off-shore production of the Peekaboo Beans brand
years of experience as a Direct Sales trainer. She guides and as well as maintaining communication and standards regarding our
motivates the direct sales leaders and their teams. ethical manufacturing.
SHELLEY LYONS, ar etin ana er CALLI LIPP, Lead Designer
Shelley Lyons has 15 years experience in marketing and manage- After graduating in 2007 with an honours diploma in Fashion Design
ment positions. Previous to Peekaboo Beans, Shelley was Marketing from Kwantlen Polytechnic University she joined Peekaboo Beans as
Manager for the OPUS Hotel, voted one of the top hotels in the world lead designer. Creating seasonal collections she aims to empower
by Condé Nast Traveler and Travel & Leisure. Shelley is responsible for children to be children and to do what they do best, and that is play.
driving marketing and branding initiatives for Peekaboo Beans. She Her designs boast both imagination and playfulness. With two
leads the Marketing team in developing strategies and tools for young children of her own, imagining life through the eyes of a child
Stylists to grow their business and initiatives to increase overall brand comes second nature to her.
awareness of Peekaboo Beans.Board of Directors
TRACI COSTA
• CEO, Director.
• Mrs. Costa founded Peekaboo Beans in 2006. Peekaboo Beans has since become the largest childrens apparel direct sales retailer in Canada.
• Mrs. Costa is a Top Forty under 40 award winner (2010), Women of Distinction award winner (2015) and recipient of the Richmond Chamber of Commerce Business
Excellence Award (2015).
DARRELL KOPKE
• CEO and founder of institute B, a business advisory and accelerator firm focusing on for-profit social impact benefit corporations.
• Former CEO of Kit and Ace Designs Ltd., a global designer and retailer of technical luxury apparel and accessories.
• Member of the group of founders of lululemon athletica Inc (NASDAQ: LULU).
JAN GILMORE
• Principal, Jan Gilmore & Associates LLC, a direct selling training and consultancy firm whose clients include established direct selling leaders, Avon Products, Inc., Oriflame
Cosmetics S.A., Thirty-One Gifts LLC and Dove Chocolate Discoveries, a trademark for Mars Incorporated direct sales channel.
• Previously, Executive Vice President of The Pampered Chef, Ltd, a global direct sales company and was responsible for the company’s entry and launch into the Canadian
market. The Pampered Chef was acquired by Warren Buffett's Berkshire Hathaway Inc. in 2002 to add to Berkshire’s direct selling investments in Kirby Vacuum Cleaner
and World Book Encyclopedia.
NIKKI MAYER
• General Manager (2011), Director.
• Previously, Mrs. Mayer 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.
GLENN JOHNSON
• Founder and director of Endurance Wind Power, a manufacturer of advanced wind turbines operating in North America and UK. Endurance was named Profit
Magazine's "Top 100 Fastest Growing Companies" (2012).
• Previously, Mr. Johnson founded Comsource Broadband Technologies Corp. a North American based communications distribution Company.
• Mr. Johnson was recognized as Ernst and Young's "Entrepreneur of the Year", Pacific Region (2013), and as one of Business in Vancouver's Top Forty under 40.You can also read
