Conclusion

2. britta wickham ecommerce & finance david lam tech expert lynnfield mitchell ceo product & brand ghazaleh heydari operations & logistics katrina Warren marketing & communications 1 Conclusion Conclusion

3. why now? • growth of ecommerce • condo-dwelling is on the rise in North America • trend towards micro-apartments • a new category in furniture emerges 2 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

4. problem identification: • limited options for small space furniture • getting purchases into home is a challenge (doorways, hallways, elevators) • delivery is a hassle • need for space optimizing furniture • condos offer limited space, storage, & lighting 3 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

5. our solution: smallhaus • modular, multi-functional furniture • furniture fit for small spaces • an easy, user-friendly experience from site to set up 4

6. products: • high quality • modular • maximize space (items for < 800 • sqft) • focus on items that can be flat packed • explore customizable options in future to involve customer categories: dining room, living room, bedroom, patio 5

7. Suppliers: • smallhaus provides international suppliers with access to North American market • suppliers will not be undercut to create positive relations • committed to CSR: source product from environmentally conscious & ethically responsible supplier • align with smallhaus vision • A2 / & Tradition / DeskStore / Casala / Dk3 / Ekdahls / Infiniti / Munto / Treku 6

8. market opportunity: 1.66 million • number of homes 750 ft2 or smaller (US cities)1 • percentage of homes with residents age 25-44 (US cities)1 • average amount spent on furniture per household2 • 1American Housing Survey 2011 • 2 Consumer Expenditure Survey 2012 36% $522/year $313 million 7

9. our target customer: • young professionals and dual-income-no-kids • between 25 and 44 • living in a small apartment or condo 8 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

10. a day in the life: 1 2 3 4 4 5 4 4 6 9 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

11. how will we attract customers: • engaging website • build a brand experience • one-way communication • two-way communication 10

12. how will we attract customers: • engaging website • build a brand experience • one-way communication • two-way communication 11

13. marketing spend by channel 12 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

14. differentiation: • small space furniture ONLY • high quality modular & convertible furniture • pop-up showrooms • advanced visualization features 13

15. 3d visualization: • using sayduck to develop the smallhaus augmented reality apps. • the apps will be free for users 14

16. business model: • hybrid of 2 successful models: • a. providing North American access to international suppliers • b. cutting out middle men & operating with very lean inventory • innovative data management 15

17. operations: warehouses/shipping • 2015: Vancouver • 2016: San Francisco • 2017: Toronto & NYC • warehoused product: ships in 1-2 wks • direct from supplier: ships in 3-4 wks • flat rate shipping • no hassle returns 16

18. operations: HR 17

19. financial projections: ~5% market penetration by 2019 18

20. financial projections: operating expenses 19

21. financial projections: fundingmilestones • Seed Funding$500k • Series A$2.5M 2014 2015 2016 2017 2018 2019 3 12 21 34 40 43 • Staff • Warehouses 0 1 2 4 4 4 • Pop Up Locations 0 1 4 8 8 8 • Geo’s Targeted 1 1 4 8 15 20 20 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

22. thank-you 21

23. appendices: 22 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

24. financial projections: headcount and payroll growth Incentivized to shop again transaction completed 24 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

25. financial projections: sales per channel 25 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

26. financial projections: sales ($) per category 26 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

27. financial projections: sales (units) per category 27 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

28. financial projections: monthly cash flow (2015/2016) • Seed Funding$500k • Series A $2.2M 28 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

29. financial projections: revenue & expenses growth *expenses inclusive of operating and salary costs 30 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces

30. website: Incentivized to shop again transaction completed 37

31. targeted marketing plan: Incentivized to shop again transaction completed 39

32. packaging: Incentivized to shop again transaction completed 41

33. local delivery designer shop online @ smallhaus Incentivized to shop again designer completes made-to- order product customized satisfied with finished product customer receives finished product transaction completed completes purchase & makes payment selects product (may use 3d visualization) shipped to customer order is sent customer warehouse receives order not satisfied with finished product not customized shops @ smallhaus showroom Incentivized to shop again return issued process map: local delivery product shipped to warehouse product is advertised online for resale 28 Conclusion Conclusion Conclusion there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces there are limited options for purchasing furniture fit for small spaces