Eva & Paul Pitch - Fall 2013

September 2013

OUR BRAND Look good, feel good jeans for women 35+

“Organic, fair trade, luxurious AND the fit is perfect - on every woman I saw try them on!"

"Eva & Paul jeans are so comfortable! I didn’t want to change back into my other jeans!"

"They've got the style and quality of a modern jean with the flattering fit of the jeans I haven’t found in years!”

- Michelle High, Mother of two

- Anita Venkiteswaran, VP, Focus Financial Partners

- Talia Corren, Special Events Associate, Signature Theater

WHAT CUSTOMERS ARE SAYING:

THE PROBLEM

56% of women can’t find jeans that fit

8% seek professional shopping help

We’re not all young and impossibly skinny

THE OPPORTUNITY 1.  $19B DENIM MARKET

- Premium $4.2B, growing 44%

- 5.7M women aged 35-55 with annual incomes $150K+

2. SUCCESS OF NICHE & LIFESTYLE FITS

3. EMERGENCE OF RESPONSIBLE CONSUMERISM

THE SOLUTION Fit-focused flattering premium organic jeans for women 35+

LOOK GOOD

-  Innovative approach to fit, adjusting proportions & details for different sizes

-  Sophisticated minimal style, international details

FEEL GOOD -  Premium quality for comfort, no gap in the back

-  Socially responsible:

•  Organic and Fair Trade materials

•  Sewn in the USA

COMPETITION Unique combination of fit & premium quality for our demographic

Premium quality

Fit

Eva & Paul

AG, J brand – “jeggings”

Not Your Daughter’s Jeans

Lees, etc

Levi’s

GAP

Talbots

Seven for all Mankind

Rag & Bone

Citizens of Humanity

Banana Republic

Jones NY

Lucky

JCrew

Ralph Lauren

OUR TEAM

Pather Yang OPERATIONS

Patternmaker and

Operations Manager at Mandy Coon designs

Fashion Design, Fashion Institute of Technology

Christine Rucci DENIM DESIGN

30+ years denim experience

Launched own line

Consultant for C Wonder,

RRL, Tommy Hilfiger

Julia Kastner CEO/FOUNDER

Harvard Business School, CafeMom.com (marketing)

Kiva.org, NYC Government under Mayor Bloomberg

William Murcia DENIM PRODUCTION

10+ years at Jones Apparel Group, Hannibal Apparel,

TAL Group in Columbia, Thailand, & Malaysia

SOCIAL MISSION Socially responsible & eco production for premium branding

Certified organic denim from Arvind Ltd, India

Fair trade fabrics from Moral Fibre, India

Sample shops in NYC garment district

Final production at US factory – Texas, NC, or LA

Premium, ethical lifestyle branding

ORGANIC & FAIR TRADE SEWN IN THE USA PREMIUM JEANS

2013 Q3,4

250 pairs

Trunk shows and limited boutiques,

Kickstarter

Ecommerce & Boutiques

Department stores & ecommerce

2014

1.3K pairs

2015

3.4K pairs

2-3 online retailers signed up for drop-ship consignment

Article in WWD, brand ambassador Alysia

Rainer from Orange is the New Black

TRACTION

DISTRIBUTION

GROWTH

GO-TO-MARKET STRATEGY Gain traction through events & online, then expand channels

FINANCIAL MODEL Costs fall significantly with scale, driving higher margins

$195 Retail Price

$60 Cost

$85 Wholesale

29% margin 47% margin

53% margin

Gain traction 250 pairs

Build distribution 1,300 pairs

Grow sales 3,400 pairs

YEAR 1 YEAR 2 YEAR 3

$85 Wholesale

$195 Retail Price

$45 Cost

$40 Cost

$195 Retail Price

$85 Wholesale

2013  Q3,4   Year  1   Year  2   Year  3   Year  4   Year  5  

FINANCIAL PLAN

Net Revenues

Gross Profit

Operating Profit

$17MM

$13MM

$8MM

$7.6MM

$300K $118K $28K

Pairs of jeans: 1.3K 250 14K 86K 200K

$1.3MM

3.4K

LONG TERM VISION To become a multi-product lifestyle fashion brand

2008 Revenue, $950K

2011 Revenue, $16.6 MM

3-year growth, 1,750%

2009 Revenue, $4.9MM

2012 Revenue, $20MM

3-year growth, 410%

2004 Revenue, $41MM

2012 Revenue, $1.1B

8-year growth, 2500%

2006 Revenue, $38MM

2008 Revenue, $80MM

2-year growth, 210%

OUR ASK

1.  Driving traction through events & ecommerce: –  Design & inventory for limited jeans styles

–  Marketing & PR

–  3 full-time salaries

2.  Launching full ecommerce & wholesale: –  Inventory for full jean line

–  Enhanced website, sales & marketing

–  Additional jean design

–  4 full-time salaries

Raising $250-400K convertible note, then $1.25-2M for growth