Investor Pitch Deck - Brag Selvarajan

Investor Pitch Deck

Formal Menswear Concept: Made-to-Measure, Made in America

Arbor Brook

New York Style.

Detroit Sensibility.

Arbor Brook | New York Style. Detroit Sensibility.

Well-fitting and high-quality menswear is not affordable for the majority of Americans

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Problem: No good options for formal menswear

▪ Confusing: Pricing is not well-correlated to quality or fit amongst traditional menswear brands

▪ Expensive: Quality menswear is expensive and often requires time-consuming alternations

▪ Low quality: Affordable options have off-shore manufacturing, long lead times, and poor quality control

Sources: Arbor Brook survey results, GQ Style, Forbes


The Arbor Brook startup concept is well-positioned to change how American men shop online for formal attire

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Solution: Arbor Brook company concept

▪ Made-to-Measure tailoring- Perfect fit through laser cut fabrics- Simple & accurate measurement inputs

▪ “Made in America” consumer brand- Quality direct-to-consumer product- User friendly online portal experience- Fast domestic shipping

▪ High-end tailoring at affordable prices- Fine all-natural materials- Designed and Made in America- $499+ price point

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Our team of Stern MBA graduates has a diverse background and a relevant skillset to menswear manufacturing

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Team: Our Co-founders

Brag Selvarajan, COOSupply Chain▪ Senor Consultant at Roland Berger▪ BS Chemical Engineering, MBA▪ Six-Sigma Black Belt certified

Fun fact: Our founders came up with the idea for Arbor Brook during a Business School study abroad in Shanghai


Arbor Brook’s fully customizable suits are made using all natural materials and offer a perfect fit guarantee

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Product overview: Made-to-Measure suit solution for the American man

▪ Perfect Fit Guarantee- Easy-to-use measurement input- Laser cut wool (exact measurements, minimal waste)- Local tailoring credit for final alteration ($30)- Returns are donated to “Dress for Success” non-profit

▪ All Natural Materials- 100% wool fabrics (Super 110s+ quality)- Bemberg linings (cotton cellulose-based fiber)- Horsehair canvas construction interfacing - Authentic Bullhorn buttons

▪ Fully customizable- Details of each suit are fully customizable- Examples: Fabric pattern, lining color, monograms,

button functionality, belt loops vs. suspenders, etc.

Price point: $499 - $699 depending on customizations

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Our competitive advantage stems from sourcing contracts, proposed location, and focused branding

Sources of Competitive Advantage

Low cost sourcing: Materials

▪ Branding signals quality and fast shipping to customers

▪ Almost no direct competitors manufacture domestically

▪ Tagline Signals a fashionable product without a pricing premium

Differentiation: Made in America

Attractive location: Detroit

▪ Easy access to low-cost distribution▪ Available low-cost real estate▪ Low labor and utility costs

▪ Wool fabric & thread from India- Low-cost source of high quality

wool fabrics- Sourcing contract signed

▪ Horsehair canvas from Italy- Global low cost source- Italian components imbue

quality feel to consumers- Bulk purchase contacts made

▪ Bemberg linings from Japan- Best price-per-performance

Bemberg fabric in the world- Sourcing contract in-progress

▪ Bullhorn buttons from Illinois- Low-cost Midwest beef

industry byproduct- Bulk purchase contacts made

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Competitive Advantage


Arbor Brook’s unique brand positioning will enable growth despite a declining overall men’s suit market in the US

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Market growth: US sales of men’s suits | $mm, 2017-2022

1048 1157

698 496

582568

2328 2220

2017 2022

Made in America: -0.5%

Total: - 0.9%

Made in Europe: -6.6%

Made in Asia: +2.0%

CAGR (2017-2022):Regional Breakdown

Made-to-Measure: +17.6%

Total: - 0.9%

Bespoke: -0.8%

Off-the-rack: -5.2%

CAGR (2017-2022):Product Breakdown

16301248

466

447

233

525

2328 2220

2017 2022

Made-to-measure is by far the fastest growing segment in the US men’s suit market, rapidly capturing share from Off-the-rack products

Sources: Statista, U.S. Imports, Macy’s, GQ Style, Textile Insight Magazine

Suits that are Made in America show strong lasting power amongst US consumers despite pricing pressure from Asian imports


The resulting Serviceable Obtainable Market for Arbor Brook suits will be $375 mm by 2022

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Addressable market size: Arbor Brook | $mm, 2022

2,220mm

525mm

Total Addressable Market

Serviceable Available Market

Serviceable Obtainable Market

375mm

Market size adjusted for buyers who favor low price (-$175 m) and American-

made (+$25 m)

Size of the Made-to-Measure

market in 2022

Total size of the US men’s suit market in 2022

Sources: Statista, Macy’s, GQ Style, Arbor Brook survey results


We have defined a clear go-to market approach to capture Arbor Brook’s Serviceable Obtainable Market

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Business model: Go-to market approach

Market

▪ Formal menswear

▪ Made-to-measure

suiting

▪ All natural fiber

attire

Customer

▪ Young

professionals

▪ Savvy affluent

buyers

▪ Graduate students

▪ Demographics:

- US resident

- Ages: 22-35

- Income: $70k+

Product

▪ High quality suits

at affordable price

points

▪ Customer friendly

online shopping

experience

▪ Perfect fit

guarantee

Channel

▪ Online retail portal

▪ On-Campus

measuring events

for MBA and JD

students

▪ Corporate tie-ins

and bulk orders

(e.g. monograms,

matching suits)


As part of our strategy, Arbor Brook will target an untapped segment within the crowded formal menswear marketplace

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Competitive Landscape: Formal menswear industry

Made-to-Measure Off-The-Rack Target Market

Co

nte

mp

ora

ryN

eu

tral

Tra

dit

ion

al

Mass Market Attire Designer Clothing Luxury Fashion

<$200 $500 $800 >$1,100

Combatant

Gentleman

Indochino

Knot Standard

Express

Men

H & M

J. Crew

Ludlowe

Charles Trywitt

Black Lapel

Alton Lane

Suit Supply

Ryan

Seacrest

Ermenegildo Zegna

Armani

Hugo BossCentury 21

Jos. A Bank &

Men’s Wearhouse

Van Heusen

Tommy

Hilfiger

Banana

Republic

Stafford

Calvin Klein

Kenneth Cole

Michael Kors

Ralph Lauren

BarneysBloomingdales

Tailor 4

Less

My.Suit

LVMH

Gucci

Bironi

Burberry

Tom Ford

Brooks Brothers

Saks Fifth Ave CanaliProper Suit

Sources: Arbor Brook market research, Industry experts, Macy’s, GQ Style


Our consumer survey results indicate that there is a strong interest in affordable high-quality menswear

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Market validation: Survey results | Sample size = 221 responses

Sources: Arbor Brook survey (221 respondents: 195 Americans, 26 Internationals | 136 Urban, 85 Rural | 210 Male, 11 Female )

Given identical pricing, where would you like your suits to be manufactured?

44% of respondents selected “Made in the United States”

USA

44%Europe

31%

Other

10%

Asia

15%

What is the price you are willing to pay for a well-fitted suit (including tailoring)?

40% of respondents selected “$400 - $550”

What type of materials would you prefer your suit to be made out of?

64% of respondents selected “Natural Materials”

Natural

64%

Blends

27%

Synthetic

9%

What is your expectation on the longevity of a suit? How long do you expect it to last?

35% of respondents selected “24 – 36 months”$400-550

40%

$550-700

31%

>$700

8%<$250

12%

$250-400

24%

24-36mo

35%

>36mo

19%

<6mo

6%6-12mo

18%

12-24mo

22%


Our 3-year financial projections indicate that Arbor Brook will become profitable by Quarter 6

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Financial Projections: 3 year cash flows | Est. 2017-2019, $ k, units

Cash flows ($ k)

Profitable operationSetup phase

(734)(591)

(268)(135) (25)

241 545

943

1,430

2,077

2,707

3,371

Start date: ▪ Facility and equipment ordered▪ Marketing campaign running▪ Website framework setup

Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Year

Suits Sold / QTR - - 300 750 1,350 2,250 3,450 4,800 6,750 9,000 11,250 13,500

Year 1 Year 2 Year 3


We are looking for 18 months funding to reach profitable operations at ~1,000 suits sold or $540 k revenues per month

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Investment requirements: Financials

Initial investment opportunity

$2.5 mmPost-investment

valuation

$12.5 mmEquity share

20%

Expected Year 3 Net Profit

$9.6 mm


Please contact any of our co-founders for more information on Arbor Brook

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Contact information: Our Co-founders

Brag Selvarajan, COOSupply Chain▪ [email protected]▪ +1 (203) 243 - 7448

Thank You

Arbor Brook

New York Style.

Detroit Sensibility.

Investor Pitch Deck - Brag Selvarajan

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