FluteOffice - Introduction Global leader in upcycling of waste cardboard We convert low value waste streams of major organisations into high value products Huge financial and environmental saving Major clients demanding our services 1m invested to date Raising 2m to capitalise on this unique opportunity Expressions of interest for first 1m already received 1
FluteOffice we take this and make this 2
FluteOffice Background Valuable businesses are being built off the upcycling of waste According to Frost & Sullivan: The upcycling of waste is a mega trend of the next five years Leaders will emerge in the different domains (environment & building; energy and power; automation & transport; chemicals; materials; food) FluteOffice is the leader in upcycling of cardboard waste a very big waste stream FluteOffice is positioned at the heart of the rapidly emerging circular economy First mover advantage in a market sector set for explosive growth 3
FluteOffice Cardboard waste value chain Present Manufacturer / packer / filler Future Converter Distribution centre Closed loop Original assembly Corrugated board manufacturer Retailer or business customer FluteOffice facility Refurbishment / re-manufacture Forestry products Paper manufacturer Waste collection centre 20% 80% Low value chain: recycling High value chain: upcycling FluteOffice creates a completely new and sustainable loop in the cardboard waste value chain 4
FluteOffice Products (all fully sustainable) Paper Desk range (3 sizes, 4 heights) ** Table range (5 sizes) **(1) Two drawer pedestal ** Storage units (2 heights) **(1) Modular storage/stool/bench (cube/rectangle) ** Star chair LED Desk lamp LED Task light Desktop accessories Room divider/wall system Workpod Birch ply Desk divider screen ** Table range ** (1) Desk protectors ** Recycled Plastic Desk protectors ** Meeting chairs* Window blinds* Mixed Material Task chairs* Floor tiles* Wall boards/drywipe boards Computer screen arms* *Currently sourced from third parties ** Currently in production Core product range almost complete and now ready for rapid extension 5
FluteOffice Clear differentiation The Broken Model Heavy Huge amounts of extracted raw materials Expensive capital items No second hand value You re stuck with what you ve bought Long lead times Impossible to customise Expensive to re-configure 1.2m desks p.a end up in landfill The FluteOffice Solution Lightweight 100% sustainable materials Reduced capital cost with leasing options We buy it back Totally flexible change any time Rapid delivery Anything you want Simple to re-configure Enjoys everlasting life! Does everything a conventional product does with none of the drawbacks 6
FluteOffice The market Office furniture, shopfitting and exhibition markets have one thing in common: majority is made from mixed materials and currently not recycled Future European legislation on sustainable public procurement likely to accelerate the concept of upcycling Most furniture manufacturers designing for longevity but customers using products for less than six years on average and declining Business models evolving to more flexible working Total addressable market (selected parts of office furniture, shopfitting, exhibitions) billion: UK 1 Europe 7 North America 11 Asia Pacific 6 Rest of World 9 Global opportunity is huge and model can be easily transferred 7
FluteOffice Main competitive threats Converters / packaging companies Furniture manufacturers FluteOffice Cardboard manufacturers FM companies Packaging companies will be best placed to understand the value add opportunity of upcycling and have skills that could be upgraded to compete FM companies currently interested in refurbishment could migrate to upcycling Furniture manufacturers could offer re-manufacturing services for their products Cardboard manufacturers could try to compete once Flute s higher margins are visible The motivation for others to compete will only emerge slowly 8
FluteOffice Barriers to competitor activity First genuine mover in the closed loop for furniture with added value of waste upcycling Unique design and prototyping experience, knowledge and capability IP Protection and Patents in place over key designs and technology Control over manufacturing process New entrants would have to develop skill in furniture design, paper engineering and precision cardboard construction Strong relationships with and gateways to key clients FluteOffice s head start will enable it to command the high ground and diversify from an enviable position of strength 9
FluteOffice Marketing strategy TARGET CUSTOMERS Big generators of cardboard waste and committed to closed loop purchasing M&S, NHS, Kingfisher, Philips, Cisco, Unilever, BT, HP, Veolia, Vodafone, Mace, Carillion CHANNELS TO MARKET Direct to the biggest organisations like NHS Via facilities management companies like Helistrat (M&S) and Mitie Via construction industry supply specialists like TCi Via office supplies companies like Staples, Commercial Group, Viking Retail via Heals, John Lewis, B&Q Overseas agents in Germany, Netherlands, Australia TACTICS Bed-in with small number of exemplar clients and use them to help us broadcast our message to the market WORKING IN PARTNERSHIP WITH NHS / M&S FluteOffice does not need to spend large sums on advertising and trawling for new customers 10
Marks & Spencer Stockley Park HQ
Kettering NHS Trust Medical Records Office
Costa Coffee Paris HQ European Medical Journal
Tribal DDB London European Medical Journal
Kettering General Hospital Administration Offices European Medical Journal
Futerra Media London
Fairfood International Waterloo
More than 2,000 people in 75 organisations already work at FluteOffice desks
100k grant from Innovate UK
Winner of the prestigious FIRA Innovation Award
Retail range for sale in M&S, Heals and Made.com
FluteOffice Management & Advisors Rod Fountain Founder & CEO Mary Dorrington Ward Founder & Creative Director Ross Irvine CFO Esmael Teixeira COO Cameron Fry Lead Designer Kim Dutfield Manufacturing Advisor Dr. Martin Blake Strategic Advisor Bob Latham Paper Industry Advisor FluteOffice team is highly experienced and well supported by market leading experts 22
FluteOffice Financial forecast Year 1 Year 2 Year 3 Year 4 Year 5 Sales vol (units) 17,000 66,000 106,000 172,000 278,000 Turnover 1.5m 5.9m 10.1m 16.4m 26.5m Gross profit 0.3m 2.4m 4.6m 7.5m 12.2m Overhead 1.1m 1.7m 2.3m 3.8m 6.1m Profit(Loss) before Tax - 0.8m 0.6m 2.3m 3.8m 6.1m GP % sales 21% 40% 46% 46% 46% EBITDA -0.7m 0.9m 2.8m 4.3m 6.6m
FluteOffice Investment The Company is seeking to raise 2m for a 28.57% equity stake Have now received firm expressions of interest for 1m Main uses of funding: Move to new premises to allow volume production Invest in equipment to streamline production and design processes Employ key staff to support growth, particularly for manufacturing, sales operation and design resource Working capital 24
FluteOffice Summary First mover and disrupter in mega trend industry of waste upcycling Unrivalled experience in cardboard design, technology and prototyping Unique opportunity to leverage market leading position with blue chip customers Huge and rapidly growing demand for products from high profile companies Multi facetted growth profile Strong sustainability message Opportunity for exciting capital returns for early investors Rapid value generation achievable from a game-changing business with real traction 25
Better, much better, does not have to cost the earth. FURTHER INFORMATION Rod Fountain CEO rod@fluteoffice.com + 44 (0) 7957 424976 FluteOffice Ltd The Studio, Gardeners Cottage, Jayes Park Courtyard, Ockley, Surrey, RH5 5RR + 44 (0) 1306 400070 www.fluteoffice.com 26