Multitasking Clothes To FitMultisport Athletes

Co-FoundersKelly SennattJordan Esten

Kelly Sennatt T’12

BeFit Team

• Experienced triathlete• 2005 Graduate of

Dartmouth College• 2005-2010

Director at UBS Wealth Management

• Currently working on a triathlon role-up strategy for Tuck First Year Project

Jordan Esten T’12

• College athlete• 2006 Graduate of

Carnegie Mellon Univ.• 2006-2010

Investment Banker at Robert W. Baird

• Significant experience raising capital for start-up and growth companies

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

Sources: SGMA/Sports Marketing Survey and the Tribe Group/USA Triathlon Survey

Participation in Triathlons….The Market

0.8 million

1.09 million

1.20 million

...continues to grow2007 2008 2009

The Need

What we heard from Tuck Triathletes…

The Products – Unit Breakdown

BeFit Women’s Swimsuit

$80Selling Price

$35Production

$15Material

$30Gross Profit

37.5%Margin

$130Selling Price

$60Production

$18Material

$52Gross Profit

40%Margin

Biking / Running Tights

Launch line:• Swimsuits• Hybrid run/tri

shorts• Hybrid run/tri

tights• Long sleeve top• Short sleeve top• Sleeveless top

All products will come for men and women in numbered sizingBottoms will come in three lengths: short, regular, longColor scheme will be black, gray, white with small colored accents and discrete logos

*clothes and gear only; excludes race fees, coaching and travel

The CustomerDabblers

“Entry-level everything”

Competitive and Aspirational Participants

Serious Competitor“Performance at

any price”

Why Tri• Personal challenge• Weight loss/fitness• Complete 1st triathlon

• Personal challenge• Desires continuous

improvement• Structured training

• 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, sport-specific use

• Performance• Multi-use, versatility

• Most advanced and technical

• Race day credibility• Look to gear to save

time

Budget* To start: $1,000Per year: $100-200

To start: $2,000-5,000+Per year: $250-500

To start: $12,000+Per year: $1,000+

Target Customers Training Only Line

Production & Design

Partner with industry experts

in design, sourcing and production

MarketingAthlete

outreach, online promotion

through social media, trade-

specific advertising

SalesSales staff at

events so customers can see the product

plus online storefront driven by fit and sport

The Operating Plan

Competitive LandscapeCompetitors

Customer Base

Emphasize style and comfort

Emphasize technical

look

Tri-Specific Niche Player

Multiple Sport

Apparel Players

Ath-leisure

Performance and Participation

Pro Athletes

BeFit

Running, Swimming

and Cycling

Use core base in triathlon to

reach participants in our component

sports

Growth Opportunities

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

Stage 2 Stage 3 Stage 4

Financials

Comparables

2012 2013 2014 2015 2016

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

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%

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%

Sources: Tribe Group/USA Triathlon Survey, Management Estimates, SEC Filings

15% 21%

50% 54%

UA LULU

Includes growth in triathlon

market, and excludes

Stages 2,3,4

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

Next Steps