Multitasking Clothes To Fit Multisport Athletes. Co-Founders Kelly Sennatt Jordan Esten

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1 Multitasking Clothes To Fit Multisport Athletes Co-Founders Kelly Sennatt Jordan Esten

2 BeFit Team Kelly Sennatt T 12 Jordan Esten T 12 Experienced triathlete 2005 Graduate of Dartmouth College Director at UBS Wealth Management Currently working on a triathlon role-up strategy for Tuck First Year Project College athlete 2006 Graduate of Carnegie Mellon Univ Investment Banker at Robert W. Baird Significant experience raising capital for startup and growth companies

3 The Market Participation in Triathlons. 0.8 million 1.09 million 1.20 million The Average Triathlete is in their late 30 s earns $126,000 per year spends their discretionary income on triathlon spends $285 per year on triathlon clothing trains 9-12 hours/week seeks personal challenge has high expectations of themselves and their gear...continues to grow Sources: SGMA/Sports Marketing Survey and the Tribe Group/USA Triathlon Survey

4 The Need

5 What we heard from Tuck Triathletes

6 The Products Unit Breakdown Launch line: BeFit Selling Price Women s Swimsuit $80 Selling Price Biking / Running Tights $130 Swimsuits Hybrid run/tri shorts Hybrid run/tri tights Long sleeve top Short sleeve top Sleeveless top Production Material Gross Profit Margin $35 $15 $ % Production Material Gross Profit Margin $60 $18 $52 40% All products will come for men and women in numbered sizing Bottoms will come in three lengths: short, regular, long Color scheme will be black, gray, white with small colored accents and discrete logos

7 The Customer Why Tri Dabblers Entry-level everything Personal challenge Weight loss/fitness Complete 1 st triathlon Target Customers Competitive and Aspirational Participants Personal challenge Desires continuous improvement Structured training Training Only Line Serious Competitor Performance at any price Achieve personal best Qualify for big races Results for club team Needs Generic training clothes Need 1-2 technical pieces for race day Mix of generic, tech and tri-specific gear Several race outfits Begin upgrading Close to pro level tri & sport-specific gear Buys multiples in the best quality Purchase Price Recommendations of friends or local shop Versatile pieces Fit, style, sportspecific use Performance Multi-use, versatility Most advanced and technical Race day credibility Look to gear to save time Budget* To start: $1,000 Per year: $ To start: $2,000-5,000+ Per year: $ To start: $12,000+ Per year: $1,000+ *clothes and gear only; excludes race fees, coaching and travel

8 The Operating Plan Production & Design Partner with industry experts in design, sourcing and production Marketing Athlete outreach, online promotion through social media, tradespecific advertising Sales Sales staff at events so customers can see the product plus online storefront driven by fit and sport

9 Competitive Landscape Competitors Tri- Specific Niche Player BeFit Customer Base Pro Athletes Multiple Sport Apparel Players Performance and Participation Emphasize style and comfort Emphasize technical look Ath-leisure

10 Growth Opportunities Stage 2 Stage 3 Stage 4 Running, Swimming and Cycling Use core base in triathlon to reach participants in our component sports Fitness and Training Reach the segment looking to improve their daily workout experience, both inside and outside the gym, regardless of their sport International Expansion Use our international business experience and contacts to grow primarily in Europe and Asia

11 Financials Triathlon Market Market Participants 1,607,848 1,768,633 1,945,496 2,140,046 2,354,050 Market Growth 10.0% 10.0% 10.0% 10.0% 10.0% Average Spend $285 $285 $285 $285 $285 Market Size $458,236,680 $504,060,348 $554,466,383 $609,913,021 $670,904,323 BeFit Market Share 0.1% 0.5% 1.0% 2.0% 3.0% BeFit Financials Revenue $458,237 $2,520,302 $5,544,664 $12,198,260 $20,127,130 COGS $297,854 $1,537,384 $3,271,352 $6,953,008 $11,271,193 Includes growth in triathlon market, and excludes Stages 2,3,4 Comparables UA LULU Gross Profit $160,383 $982,918 $2,273,312 $5,245,252 $8,855,937 Margin 35.0% 39.0% 41.0% 43.0% 44.0% 50% 54% SG&A $229,118 $882,106 $1,829,739 $3,781,461 $6,038,139 R&D $68,736 $189,023 $249,510 $487,930 $805,085 EBIT ($137,471) ($88,211) $194,063 $975,861 $2,012,713 Margin -30.0% -3.5% 3.5% 8.0% 10.0% 15% 21% Sources: Tribe Group/USA Triathlon Survey, Management Estimates, SEC Filings

12 Next Steps Firm quotes from potential design and manufacturing partners More in-depth financial planning Create sample line of 3-4 pieces and test with athletes Test launch during summer race season Refine line then launch web sales and wider marketing campaign