The Tao of Kirei

Pronounced “Key’-ray,” Kirei is the Japanese character signifying

“beautiful.”

We have chosen Kirei as the name for our company to reflect our dedication to the principles of elegant, sustainable design.

Green Building - The Bright Spot

Rapid growth of the green building sector amid a general return of construction activity

"Eco-friendly, sustainable construction companies are also on a tear, with annual revenue increases of 28.9% since 2002 and an 18.3% boost expected this year. Governments have begun implementing more building codes that mandate energy-efficient designs; building owners are finding that green certification earns their structures more acclaim.The industry is expected to grow 22.8% a year going forward, eventually making nearly $287.8 billion in revenue by 2017.“

Los Angeles Times 4/18/12

http://www.latimes.com/business/money/la-fi-mo-fastest-growing-industries-ibisworld-20120418,0,7808981.story

Mainstream understanding of the economic benefits from going green - not only a "heart and soul" sales pitch

Kirei Company History: Growth, Hiccup, Return to Growth

• 2002 Kirei founded with first product - Kirei Board

• 2002-2008 Continuous growth, addition of 3 new products, Bamboo, Wheatboard and Coco Tiles

• 2009 Economic downturn, 75% drop in revenue

• 2010 Flat year as economy recovered

• 2011 Return to growth – 40% revenue growth, 2 new products added ; Kirei Windfall and Hemp Panels

• 2012 20% growth Q1 vs Q1 2011

Who Uses Kirei Design Materials?

Kirei customers include the biggest names in:

Architecture

Interior Design

Retail Design

Commercial Design

Hotel/Restaurant Design

Health Care

Multifamily Residential

Institutional

Government

Who is Kirei? (The People)

John Stein – “The Marketing Guy”• Founder• 15+ years experience in marketing, brand

management and product development

Eric Fagan - “Done Right”• VP Operations • Oversees distributor relationships and sales

management• 15 years of distribution and sales experience

at Prana apparel company to $20MM sales, managed company through sale to Fortune 500 company

Staff• In-house Bookkeeping, accounting, marketing

and sampling assistants• Outsourced marketing creative and PR

Low overhead growth required as company expands

Who is Kirei? (The Distribution Partners)

Distribution Partners Kirei’s distribution partners are Best-in-Class lumber and specialty panel distributors covering all major markets in the US and Canada

Infrastructure• Warehouses• Truck fleets• In-house Customer Service • Fast, easy, inexpensive fulfillment by

well-known, respected local partners

Rep Force• A&D focused reps – bring product to

specifiers, monitor projects in local markets

• Fabrication reps – manage actual product purchase through to delivery

Mckillican

Richelieu

Rocky Mountain Architectural Products

Royal Plywood

Aetna Plywood

HJ Oldenkamp

Hood Distribution

Metro Hardwoods

Eco Supply Center

Kirei’s Distribution Partners

Who is Kirei? ( The Marketing Platform)

Marketing Platform • Product Development• Brand Creation• Collateral Production• Product introduction and

sampling• PR Campaigns• Trade Shows• Online/Social Marketing

“Find and create innovative new products, develop a story that resonates with the market, then put samples in the hands of decision makers”

The result: Rapid introduction of new products to the interior design market

Competitors

While Kirei aims to develop exclusive materials with protectable IP, Kirei competes in a $6 Bn marketplace of mainstream and “eco-friendly” building materials. The niche market can be narrowed to Interior Design materials and then to competitors in the “green” space.

Competition for surface materials can range from paint on the low end to, $100-sq foot high end designer wallcoverings and tile. Kirei products fit in the mid-to-high end of the spectrum..

Major Mainstream competitors include: Armstrong, Hunter Douglas, Architectural Systems Incorporated, 3Form, Arborite, Wilsonart

Major “Green” competitors include:Plyboo, Teragren, Pioneer Woodworks, Cali Bamboo, Richlite(These tend to be category-specific, concentrating on a single product such as bamboo or reclaimed wood, versus Kirei’s curated collection across categories which protects againsta single product going out of fashion or falling to increased competition)

Financials: Past performance, future promise

2008-Current

Jan - Dec 08

Jan - Dec 09

Jan - Dec 10

Jan - Dec 11

Jan - Jun, 12

Total Income

2,093,693.59

826,250.68

1,004,362.0

7

1,542,969.6

0830,767.08

Gross Profit

888,684.03

285,553.85

340,057.04

535,120.59

296,116.79

Total Expense

794,626.22

431,195.84

248,653.21

456,742.95

193,470.61

Net Income

43,186.82

-156,473.70

73,476.12

65,747.58

91,204.03

2012-2015

Projected

With $500k investment 2012 2013 2014 2015

Total Income

1,800,000.0

0

2,345,000.

00

3,000,000.

00

3,750,000.

00

Gross Profit

675,000.00

926,275.00

1,185,000.

00

1,500,000.

00

Total Expense

517,000.00

657,150.00

792,500.00

982,250.00

Net Income

114,363.00

269,125.00

392,500.00

517,750.00

Future Plans with Investment

Added Inventory Kirei currently misses sales opportunities due to lower-than-desired inventory levels. Simply by increasing inventory we would capture additional sales volume

New Products With IPKirei is in development of several new exclusive products. Additional capital would speed development and introduction of these new products

Expanded Sales/marketing ReachAddition of dedicated regional reps to perform presentations, manage individual territories and track projects will lead to more lead generation, better project monitoring, fewer missed opportunities and increased sales