Splish Investor Ppt Final V2

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.

Introducing SplishIntroducing SplishIntroducing SplishIntroducing Splish

Splish is the first certified green salon on the planet. Taking thelead, the founders Matt and Andrea Walsh created a superiorservice process, environmentally friendly and socially responsiblesalon system. After developing the pilot facility, solid leadershipteam, franchise system, training program, growth model,expansion and business strategy Splish is poised to enter itsexpansion phase.


Splish:Splish:Splish:Splish: Creating the Blueprint for a Green

and Sustainable Hair Salon Business

expansion phase.

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

Green MovementGreen MovementGreen MovementGreen 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 sellenvironmentally responsible products and services

• 70% indicate that they are paying attention to what companies aredoing with regard to the environment


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.

Salon Industry in USSalon Industry in USSalon Industry in USSalon 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


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

The ChallengeThe ChallengeThe ChallengeThe 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


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

No franchised salon is focusing on the No franchised salon is focusing on the No franchised salon is focusing on the No franchised salon is focusing on the

$17 billion green salon market!$17 billion green salon market!$17 billion green salon market!$17 billion green salon market!

Splish Solution and VisionSplish Solution and VisionSplish Solution and VisionSplish 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


• Splish line of products for retail and professional use

• Niche dominance in the eco-friendly salon market

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

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

Revenue ModelsRevenue ModelsRevenue ModelsRevenue 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 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.

Competitive AnalysisCompetitive AnalysisCompetitive AnalysisCompetitive 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


Salon Name Units Cost to Build Salon Size Expected 5 Year

Annual Revenues

Splish 1 $75,000-$250,0006-8 chairs

1200-1500 sq ft $480,000+

Regis Salons 1071 $175,000-$235,0008-10 chairs

Up to 2000 sq ft $461,000

Super Cuts

(Franchise)2136 $120,000-$200,000

8-10 chairs

Up to 2000 sq ft$269,000

Cost Cutters

(Franchise)865 Not Disclosed

8-10 chairs

Up to 2000 sq ft $282,000

History and AchievementsHistory and AchievementsHistory and AchievementsHistory 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


Growth PlanGrowth PlanGrowth PlanGrowth 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

Salon Recycle LocationsSalon Recycle LocationsSalon Recycle LocationsSalon 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


� Colorado Candidate stores

• Highlands Ranch

• Boulder Area

• Aurora

• Longmont

• Denver

Splish Splish Splish Splish ProformaProformaProformaProforma

Financial SummaryFinancial SummaryFinancial SummaryFinancial Summary

$ US Historical Y1 Y2 Y3 Y4 Y5Total

Proforma

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


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

~ Mohandas K. Gandhi

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

Full Financial package upon requestFull Financial package upon request

ManagementManagementManagementManagement

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

� COO/Andrea Walsh: Extensive background in customerservice holding executive positions in several Fortune 500companies, 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 thefranchise industry

Use of FundsUse of FundsUse of FundsUse of FundsThe 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 salons in Colorado

�Series A, $1,000,000 US

• Open a corporate headquarter salon in


• 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 SplishSplishSplishSplish Salons ~Matt Walsh

Proposal and Proposal and Proposal and Proposal and

ValuationsValuationsValuationsValuations

� 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


When one tugs at a single thing in nature, he finds

it attached to the rest of the world.~John Muir

•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

ExitsExitsExitsExits

�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


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)

For More InformationFor More InformationFor More InformationFor More Information

United States501 Montgomery StreetSan Francisco, CA 94111

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

InternationalSuite 1201, Bldg 21717 Xizang Nan LuShanghai 200011 China

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


F: 1 415 954 8598

Jonathan C. MillerManaging [email protected]: +86 138 88141754

F: 86 21 6316 5799

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

Documents

Splish Investor Ppt Final V2