Slide 1MissionHighlightsManagementProducts and CompetitionMarket and marketingFinancial projectionExit strategySlide 9Replica wood furniture for today’s service industriesStephanie Dalquist, CEO10 December 2002Mission•Pioneer in recycled lumber industry•Manufacturer of high quality replica wood furniture•Supplier to the growing hotel and restaurant trades–10% annual growth in the United States–A better image at the right priceHighlights•High quality replica wood tables–Recycled HDPE from Clean Tech, Inc., Dundee–Injection molding manufacturing•Product lifespan of 30 years for MSRP of only $400•Total investment of $1.2M, returned over four years •Expected annual growth of 20%, with a 5-year profit of $1.7M and $9.3M after 10 years•Committed management and engineering teamManagement•Dedication and experience–Stephanie Dalquist, CEO, MIT –Christine Flower, CFO, MBA from University of St. Thomas, former resort co-owner–Ash Woodlands, CTO, Renew Plastics–Birch Forrest, Eva Green, and Connie Firus of University of Michigan EngineeringProducts and Competition•Initial offerings–Replica mahogany dining table to seat six–Dining chairs, coffee tables•Much more to offer than the competition–Formica® costs $700, lasts only 5 years–Mahogany veneer costs $1000, lasts only 3 years–Real woodgrain texture–Durable finishMarket and marketing•Trade show attendance•Sales and informational website at http://www.realgreenindustries.com•Trade magazines–Restaurant Business, Nation’s Restaurant News, Hotels•Influential science periodicals–MIT’s Technology Review, New York TimesFinancial projection•$1.2M investment•Return a product clients want: multi-attribute•$1.7M 1st phase profit•Prices good even under less optimistic probabilitiesOne machine, 12,000 units$400/unit (2002)Evaluate 1st phase (2007)Add one machine,24,000 units$500/unitAdd two machines,36,000 units$500/unitAdd no machines,12,000 units$500/unithighmediumlowExit strategy•Merger with large manufacturer like IKEA•Development of new facilities near other recycling facilities•Go public and continue