•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

FluteOffice - Introduction

1

we take this

and make this

FluteOffice

2

FluteOffice

• 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

FluteOffice Background

First mover advantage in a market sector set for explosive growth 3

FluteOffice FluteOffice Cardboard waste value chain

Paper

manufacturer

Manufacturer /

packer / filler

Converter

Corrugated

board

manufacturer Retailer or

business

customer

Distribution

centre

Waste collection

centre

Forestry

products

FluteOffice

facility

Original

assembly

Refurbishment /

re-manufacture

20%

80%

Low value chain: recycling High value chain: upcycling

Present

Future Closed loop

4 FluteOffice creates a completely new and sustainable loop in the cardboard waste value chain

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

FluteOffice FluteOffice Products (all fully sustainable)

5 Core product range almost complete and now ready for rapid extension

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!

FluteOffice Clear differentiation

6 Does everything a conventional product does with none of the drawbacks

• 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

FluteOffice FluteOffice The market

7 Global opportunity is huge and model can be easily transferred

FluteOffice FluteOffice Main competitive threats

Converters / packaging

companies

Furniture

manufacturers

FM

companies

Cardboard

manufacturers

FluteOffice

• 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

8 The motivation for others to compete will only emerge slowly

• 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 FluteOffice Barriers to competitor activity

9 FluteOffice’s head start will enable it to command the high ground and diversify from an enviable position of strength

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 FluteOffice Marketing strategy

10 FluteOffice does not need to spend large sums on advertising and trawling for new customers

Marks & Spencer Stockley Park HQ

Kettering NHS Trust Medical Records

Office

Costa Coffee Paris HQ

European Medical Journal

European Medical Journal

Tribal DDB London

European Medical Journal

Kettering General Hospital

Administration Offices

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

Rod Fountain Founder & CEO

Mary Dorrington Ward Founder & Creative Director

Esmael Teixeira COO

Cameron Fry Lead Designer

Kim Dutfield Manufacturing Advisor

Dr. Martin Blake Strategic Advisor

Bob Latham Paper Industry Advisor

FluteOffice Management & Advisors

Ross Irvine CFO

22 FluteOffice team is highly experienced and well supported by market leading experts

Financial forecast

FluteOffice FluteOffice

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

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

FluteOffice Investment

24

• 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

FluteOffice FluteOffice Summary

25 Rapid value generation achievable from a game-changing business with real traction

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