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The Tao of Kirei

 Pronounced “Key’-ray,” Kirei is
the Japanese character signifying
          “beautiful.”

  We have chosen Kirei as the
name for our company to reflect
our dedication to the principles
 of elegant, sustainable design.
Green Building - The Bright Spot
Rapid growth of the green                      Mainstream understanding of the economic benefits from
building sector amid a general                 going green - not only a "heart and soul" sales pitch
return of construction activity
"Eco-friendly, sustainable
construction companies are
also on a tear, with annual
revenue increases of 28.9% since
2002 and an 18.3% boost expected
this year. Governments have begun
implementing more building codes
that mandate energy-efficient
designs; building owners are finding
that green certification earns their
structures more acclaim.The
industry is expected to grow
22.8% a year going forward,
eventually making nearly $287.8
billion in revenue by 2017.“
Los Angeles Times 4/18/12
http://www.latimes.com/business/money/la-fi-
mo-fastest-growing-industries-ibisworld-
20120418,0,7808981.story
Kirei Company History:
Growth, Hiccup, Return to Growth
•   2002 Kirei founded with first product - Kirei Board
•   2002-2008 Continuous growth, addition of 3 new products, Bamboo, Wheatboard and
    Coco Tiles
•   2009 Economic downturn, 75% drop in revenue
•   2010 Flat year as economy recovered
•   2011 Return to growth – 40% revenue growth, 2 new products added ; Kirei Windfall
    and Hemp Panels
•   2012 20% growth Q1 vs Q1 2011
Who Uses Kirei Design Materials?
Kirei customers include the biggest names in:
     Architecture
     Interior Design
     Retail Design
     Commercial Design
     Hotel/Restaurant Design
     Health Care
     Multifamily Residential
     Institutional
     Government
Who is Kirei? (The People)
John Stein – “The Marketing Guy”
• Founder
• 15+ years experience in marketing, brand
  management and product development

Eric Fagan - “Done Right”
• VP Operations
• Oversees distributor relationships and sales
  management
• 15 years of distribution and sales experience
  at Prana apparel company to $20MM sales,
  managed company through sale to Fortune
  500 company

Staff
• In-house Bookkeeping, accounting, marketing
  and sampling assistants
• Outsourced marketing creative and PR

              Low overhead growth required as company expands
Who is Kirei? (The Distribution Partners)
Distribution Partners
Kirei’s distribution partners are Best-in-Class
lumber and specialty panel distributors covering
all major markets in the US and Canada
    Infrastructure
          • Warehouses
          • Truck fleets
          • In-house Customer Service
          • Fast, easy, inexpensive fulfillment by
             well-known, respected local partners

   Rep Force
        • A&D focused reps – bring product to
          specifiers, monitor projects in local      Kirei’s Distribution Partners
          markets
        • Fabrication reps – manage actual            Mckillican              Royal Plywood
          product purchase through to delivery        Richelieu               Aetna Plywood
                                                      Rocky Mountain          HJ Oldenkamp
                                                      Architectural           Hood Distribution
                                                      Products                Metro Hardwoods
                                                                              Eco Supply Center
Who is Kirei? ( The Marketing Platform)
 Marketing Platform
 • Product Development
 • Brand Creation
 • Collateral Production
 • Product introduction and
   sampling
 • PR Campaigns
 • Trade Shows
 • Online/Social Marketing

    “Find and create
    innovative new
    products, develop a
    story that resonates
    with the market, then
    put samples in the
    hands of decision
    makers”


     The result: Rapid introduction of new products to the interior design market
Competitors
While Kirei aims to develop exclusive materials with protectable IP, Kirei competes in a $6 Bn
    marketplace of mainstream and “eco-friendly” building materials. The niche market can be
    narrowed to Interior Design materials and then to competitors in the “green” space.

Competition for surface materials can range from paint on the low end to, $100-sq foot high end
   designer wallcoverings and tile. Kirei products fit in the mid-to-high end of the spectrum..

Major Mainstream competitors include:
     Armstrong, Hunter Douglas, Architectural Systems Incorporated, 3Form, Arborite, Wilsonart

Major “Green” competitors include:
    Plyboo, Teragren, Pioneer Woodworks, Cali Bamboo, Richlite
    (These tend to be category-specific, concentrating on a single product such as bamboo or
    reclaimed wood, versus Kirei’s curated collection across categories which protects againsta
    single product going out of fashion or falling to increased competition)
Financials:
Past performance, future promise

2008-  Jan -    Jan -   Jan -    Jan -    Jan -
Curren Dec       Dec     Dec      Dec     Jun,
t       08       09      10       11       12


                        1,004,   1,542,
2012-
Total  2,093,   826,2   362.0     969.6   830,7
2015
Income 693.59   50.68        7        0   67.08
Projec
Gross 888,68
ted             285,5   340,0    535,1    296,1
Profit   4.03   53.85   57.04    20.59    16.79
With
Future Plans with Investment
Added Inventory
  Kirei currently misses sales opportunities due to lower-than-desired inventory
  levels. Simply by increasing inventory we would capture additional sales volume

New Products With IP
  Kirei is in development of several new exclusive products. Additional capital
  would speed development and introduction of these new products

Expanded Sales/marketing Reach
   Addition of dedicated regional reps to perform presentations, manage individual
   territories and track projects will lead to more lead generation, better project
   monitoring, fewer missed opportunities and increased sales

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Kireiinvestordeck 8 12

  • 1.
  • 2. The Tao of Kirei Pronounced “Key’-ray,” Kirei is the Japanese character signifying “beautiful.” We have chosen Kirei as the name for our company to reflect our dedication to the principles of elegant, sustainable design.
  • 3. Green Building - The Bright Spot Rapid growth of the green Mainstream understanding of the economic benefits from building sector amid a general going green - not only a "heart and soul" sales pitch return of construction activity "Eco-friendly, sustainable construction companies are also on a tear, with annual revenue increases of 28.9% since 2002 and an 18.3% boost expected this year. Governments have begun implementing more building codes that mandate energy-efficient designs; building owners are finding that green certification earns their structures more acclaim.The industry is expected to grow 22.8% a year going forward, eventually making nearly $287.8 billion in revenue by 2017.“ Los Angeles Times 4/18/12 http://www.latimes.com/business/money/la-fi- mo-fastest-growing-industries-ibisworld- 20120418,0,7808981.story
  • 4. Kirei Company History: Growth, Hiccup, Return to Growth • 2002 Kirei founded with first product - Kirei Board • 2002-2008 Continuous growth, addition of 3 new products, Bamboo, Wheatboard and Coco Tiles • 2009 Economic downturn, 75% drop in revenue • 2010 Flat year as economy recovered • 2011 Return to growth – 40% revenue growth, 2 new products added ; Kirei Windfall and Hemp Panels • 2012 20% growth Q1 vs Q1 2011
  • 5. Who Uses Kirei Design Materials? Kirei customers include the biggest names in: Architecture Interior Design Retail Design Commercial Design Hotel/Restaurant Design Health Care Multifamily Residential Institutional Government
  • 6. Who is Kirei? (The People) John Stein – “The Marketing Guy” • Founder • 15+ years experience in marketing, brand management and product development Eric Fagan - “Done Right” • VP Operations • Oversees distributor relationships and sales management • 15 years of distribution and sales experience at Prana apparel company to $20MM sales, managed company through sale to Fortune 500 company Staff • In-house Bookkeeping, accounting, marketing and sampling assistants • Outsourced marketing creative and PR Low overhead growth required as company expands
  • 7. Who is Kirei? (The Distribution Partners) Distribution Partners Kirei’s distribution partners are Best-in-Class lumber and specialty panel distributors covering all major markets in the US and Canada Infrastructure • Warehouses • Truck fleets • In-house Customer Service • Fast, easy, inexpensive fulfillment by well-known, respected local partners Rep Force • A&D focused reps – bring product to specifiers, monitor projects in local Kirei’s Distribution Partners markets • Fabrication reps – manage actual Mckillican Royal Plywood product purchase through to delivery Richelieu Aetna Plywood Rocky Mountain HJ Oldenkamp Architectural Hood Distribution Products Metro Hardwoods Eco Supply Center
  • 8. Who is Kirei? ( The Marketing Platform) Marketing Platform • Product Development • Brand Creation • Collateral Production • Product introduction and sampling • PR Campaigns • Trade Shows • Online/Social Marketing “Find and create innovative new products, develop a story that resonates with the market, then put samples in the hands of decision makers” The result: Rapid introduction of new products to the interior design market
  • 9. Competitors While Kirei aims to develop exclusive materials with protectable IP, Kirei competes in a $6 Bn marketplace of mainstream and “eco-friendly” building materials. The niche market can be narrowed to Interior Design materials and then to competitors in the “green” space. Competition for surface materials can range from paint on the low end to, $100-sq foot high end designer wallcoverings and tile. Kirei products fit in the mid-to-high end of the spectrum.. Major Mainstream competitors include: Armstrong, Hunter Douglas, Architectural Systems Incorporated, 3Form, Arborite, Wilsonart Major “Green” competitors include: Plyboo, Teragren, Pioneer Woodworks, Cali Bamboo, Richlite (These tend to be category-specific, concentrating on a single product such as bamboo or reclaimed wood, versus Kirei’s curated collection across categories which protects againsta single product going out of fashion or falling to increased competition)
  • 10. Financials: Past performance, future promise 2008- Jan - Jan - Jan - Jan - Jan - Curren Dec Dec Dec Dec Jun, t 08 09 10 11 12 1,004, 1,542, 2012- Total 2,093, 826,2 362.0 969.6 830,7 2015 Income 693.59 50.68 7 0 67.08 Projec Gross 888,68 ted 285,5 340,0 535,1 296,1 Profit 4.03 53.85 57.04 20.59 16.79 With
  • 11.
  • 12. Future Plans with Investment Added Inventory Kirei currently misses sales opportunities due to lower-than-desired inventory levels. Simply by increasing inventory we would capture additional sales volume New Products With IP Kirei is in development of several new exclusive products. Additional capital would speed development and introduction of these new products Expanded Sales/marketing Reach Addition of dedicated regional reps to perform presentations, manage individual territories and track projects will lead to more lead generation, better project monitoring, fewer missed opportunities and increased sales

Editor's Notes

  1. Kirei has been bringing designers innovative sustainable design materials since 2002
  2. Kirei is dedicated to making green design beautiful, functional and sustainable. Our name stems from the multiple meanings of the Japanese word “Kirei” which means beautiful, but also “Clean”, “Pure” and “Truthful”. Each of our materials must fulfill the principles of beauty, functionality and sustainability.
  3. Kirei has been bringing designers innovative sustainable design materials since 2002