Splish Bp Ppt Final V1.2

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Confidential-All information is proprietary to Splish Salon Systems, Inc. Investor Presentation This presentation is prepared for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the Company or any related or associated company. Any such offer or solicitation will be made only by means of the Company's confidential Offering Memorandum and in accordance with the terms of all applicable laws.

description

Splish is the first certified "green" salon on the planet. Taking the lead, the founders Matt and Andrea Walsh created a successful pilot location, superior service process in an environmentally and socially responsible hair salon system

Transcript of Splish Bp Ppt Final V1.2

Page 1: Splish Bp Ppt Final V1.2

Confidential-All information is proprietary to Splish Salon Systems, Inc.

Investor Presentation

This presentation is prepared for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the Company or any related or associated company. Any such offer or solicitation will be made only by means of the Company's confidential Offering Memorandum and in accordance with the terms of all applicable laws.

Page 2: Splish Bp Ppt Final V1.2

Confidential-All information is proprietary to Splish Salon Systems, Inc.

Introducing Splish

Splish: Creating the Blueprint for a Green and Sustainable Hair Salon Business

Splish is the first certified green salon on the planet. Taking the lead, the founders Matt and Andrea Walsh created a superior service process, environmentally friendly and socially responsible salon system. After developing the pilot facility, solid leadership team, franchise system, training program, growth model, expansion and business strategy Splish is poised to enter its expansion phase.

Splish’s threefold revenue stream—corporate salon revenue, product sales and franchising—is enhanced by its environmentally friendly sustainable hair salon business. Splish uses earth friendly products, responsible construction practices, recycling and creates green jobs.

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Green Movement

According to the 2009 Cone Consumer Environmental Survey, for all Americans •  35% have higher interest in the environment •  35% have higher expectations for companies to make and sell environmentally responsible products and services •  70% indicate that they are paying attention to what companies are doing with regard to the environment

In the US, almost 80 million consumers will seek products and services from eco-friendly and sustainable businesses • LOHAS (Lifestyle of Health and Sustainability): 43 million, dedicated to personal and planetary health • NATURALITES: 34 million, focused on natural/organic consumer packaged goods with a strong health focus

The total size of the natural and organic markets will exceed $490 Billion by the end of 2010.

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Salon Industry in US

•  About 80,000 hair care salons (75,000 beauty salons; 5,000 barbershops)

•  The total size of the natural and organic markets will exceed $490 Billion by the end of 2010

•  Global Salon Industry Annual sales of near $168 billion •  The most important demographic of the salon guest is

and will be both the Baby Boom and the Gen-Y generations

Competition •  Highly fragmented: the 50 largest companies hold just 15

percent of the market •  The large majority of salons are independently owned •  Largest player is Regis with over 13,000 corporate or

franchised owned establishments

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The Challenge

 Growing environmental hair care market but no standardized, franchised, business model for delivering against such demand

 Entrepreneurs sense the value and prestige of being in this space but don’t know how to develop the idea

 No other franchised salon company is focusing on the eco-friendly segment

No franchised salon is focusing on the $17 billion green salon market!

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Splish Solution and Vision

 Splish provides an eco-friendly, social-responsible franchise system in the hair salon and beauty industry. The company has developed:

•  A franchise system for providing an uncompromised 5-star experience at a 3-star price

•  Splish line of products for retail and professional use

The Splish vision: “To own the eco-friendly market

in the hair salon industry through responsible corporate and franchised salon growth.”

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Revenue Models

 Corporate store revenues •  Average annual revenue of $500K US

for a 6 chair salon •  Average net margin at 17%

  Franchise store •  Franchise fee ($5000-$25,000 one-time fee) •  Franchise royalty (average $30K US per 6 chair salon,

6% of salons gross revenues)

 Splish branded product sales. For corporate or online sales this represents a gross profit margin of 3 X cost of goods. For franchise sales, this represents a 40% markup of cost of goods.

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Competitive Analysis

 Regis – 6% of U.S. market   Independent Salon – Majority of the competitors  Other franchised salon – most of them are targeting to the

lower end market

Salon Name Units Cost to Build Salon Size Expected 5 Year Annual Revenues

Splish 1 $75,000-$250,000 6-8 chairs 1200-1500 sq ft $480,000+

Regis Salons 1071 $175,000-$235,000 8-10 chairs Up to 2000 sq ft $461,000

Super Cuts (Franchise) 2136 $120,000-$200,000 8-10 chairs

Up to $269,000

Cost Cutters (Franchise) 865 Not Disclosed

8-10 chairs Up to 2000 sq ft $282,000

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History and Achievements

 October 2007, first salon in Conifer, CO  October 2009, Platinum Certified by the National

Association of Eco-Friendly Salons & Spas  November 2009, received the Green Seal of Approval

from Green Americas Green Business Network

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Growth Plan

 Headquartered in Keystone, CO   Focus on Colorado state and develop a growth hub  Short term:

•  Recycle existing salon using environmentally friendly finishes and construction practices.

•  Increase valuation of company with corporate salons •  Build brand reputation and solidify franchise model

  Long term growth is based on growing the franchise model

•  Expand across the US •  Control growth by creating growth hubs in targeted

areas for example: New York City/Long Island; Greater San Francisco Bay; San Diego; Orange County, CA; Miami/Tampa Bay; Washington DC; Seattle & Portland

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Salon Recycle Locations

 Criteria •  Location must be a high traffic quality location •  Demographics must have sustainable traffic flow •  Potential to be recycled—Previous Salon

 Colorado Candidate stores •  Highlands Ranch •  Boulder Area •  Aurora •  Longmont •  Denver

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Splish Proforma Financial Summary

There is a sufficiency in the world for man's need but not for man's greed.

~ Mohandas K. Gandhi

$ US Historical Y1 Y2 Y3 Y4 Y5 Total Proforma

Gross Revenue 301,935 1,170,000 1,590,000 1,669,500 1,752,975 1,840,624 8,023,099

Net Revenue 150,097 877,500 1,192,500 1,252,125 1,314,731 1,380,468 6,017,324

EBITA -25,434 292,500 397,500 417,375 438,244 460,156 2,005,775

Net EBITA -25,434 333,450 699,950 856,325 1,013,694 1,224,406 4,127,825

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Management

 CEO/Matt Walsh: Highly experienced entrepreneur, built and sold three businesses including a brokerage firm, a stock trading software company and a spa

 COO/Andrea Walsh: Extensive background in customer service holding executive positions in several Fortune 500 companies, started the spa business with Matt

 Chemist/Product Marketing/ Melissa Christenson: Chemist with MBA, seasoned innovator, strong research & development expertise and marketing savvy

 Vice-President /Franchise Operations /Emily Logsdon: Enormous working knowledge of both the salon and the franchise industry

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Use of Funds The summary use of funds is below, a detailed UOF is provided to investors on request.

 Bridge Capital, $300,000 US •  Acquire and recycle 2-3 existing salon in Colorado

 Series A, $1,000,000 US •  Open a corporate headquarter salon in

Boulder, Colorado •  Initial marketing for each new store •  Develop and implement a strategic

marketing and advertising plan •  Ongoing development of exclusive Splish hair care

product line Our goal is to repurpose existing salons into Environmentally friendly Splish Salons ~Matt Walsh

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Proposal and Valuations

When one tugs at a single thing in nature, he finds it attached to the rest of the world.

~John Muir

  Funds Previously Invested: Use of Funds

  Cash $ 627,500 US * Open Pilot Store * Develop Splish System

  First Close:

 Bridge $ 300,000 US w/ 10% equity Use of Funds

• Close March 29, 2010 * Initiate Growth Phase * Prove Franchise Model * Increase Value

  Series A

  Seeking $1,000,000 US w/ 20% equity Use of Funds

  Pre-Money $4 ,000,000 USD * Growth Phase * Expand market share

Close A Round June 30, 2010 * Support Franchise expansion

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Exits

 Potential acquisition examples: •  Regis: would buy Splish to augment their company

and provide an eco-friendly salon model, grow through acquisition

•  Consumer Growth: have had preliminary discussions and established goals to be acquisition target

•  Blackstone group: have had preliminary discussions and established goals to be acquisition target

•  Estee Lauder: might be interested in acquiring rights to Splish line of products and distribution network

 IPO option •  Future valuation calculated between:

•  $24,000,000 (normalized EBITA) and •  $33,000,000 (EBITA * 8)

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For More Information

United States 501 Montgomery Street San Francisco, CA 94111

P: 1 415 992 7614 F: 1 415 954 8598

Jonathan C. Miller Managing Partner [email protected] M: +86 138 88141754

International Suite 1201, Bldg 2 1717 Xizang Nan Lu Shanghai 200011 China

P: 86 21 6316 5799 F: 86 21 6316 5799

Skip Canevit Partner [email protected] M: 86 138 1868 7774 Skype: shanghai-skip