Your best franchise opportunity

Your baby gifts everywhere

1

Who are we ?

• Spanish company with more than 20 years of experience

•Leader in the Spanish baby gifts sector

•E-commerce business

•Large catalogue containing over 300 different products

•Expanding international company

•A very reliable business: there will always be births !

2

3

Elena Gomez del Pozuelo

Founder

Consolidated Internet entrepreneur with 25 co-

founded companies. Expert in e-commerce and digital marketing. President of

Adigital

Sara Fernandez de la Aldea

Entrepreneur with over 22 years experience in product design, logistics, import and

export. Large account management director.

Prestigious Spanish lawyer with over 17 years of experience as a leader in the legal department of

PWC. He currently is General Councilor of SEAT and member of

the Board of the Volkswagen Group in Spain.

Founder/General Council

Luis Comas

Founders

Founder

Our Team

Founder CEO Founder

WarehouseDesign

PurchasesCC Production Admin Sales International Marketing

Product Manager

Eva GarcíaPaula EsonoSonia Vera

Elena Flocea

Leticia Rodera

Paloma Munuera

Laura Gómez

José Sánchez

Elena Sánchez

Elisa Helguero

Fernanda Baldissera

Anna Castilla

Rocío Carrera

Sara Fernández de la Aldea

Elena Gómez del Pozuelo

Sergio Sánchez

Social Media

4

Business Timeline

5

INTERNATIONALIZATION

AND WHOLESALE

OPENING

Creation of exclusive franchises and subsidiaries

REBRANDING

From “La Cigüeña del Bebé” to

“BebeDeParis”.

PHYSICAL STORE

La Cigüeña del Bébé S.L. opens in

Barcelona with a shop

E-COMMERCE

Elena Gómez del Pozuelo joins the business.

Opening of the Barcelona showroom

1994 2012 2014 2015

Strengths

6

-20 years experience in the baby gifts industry.

-Own brand: design in Spain and production in Spain and China.

-65% margin on the product, for franchisees.

-Market knowledge and e-commerce experience.

-Bellboy service in major cities, contributes to the"premium" brand image.

-Quality service and spectacular presentation in 24h.

-International and very fast deliveries.

-Specialized in corporate sales.

-100% customer satisfaction.

Business

1

A baby is born.

2

The customer buysa gift online or

through his phone.

3

We preparethe gift.

4

We deliver it to the hospital or a

home address.

7

Why are we different?

Visionto create the 1st world network in

baby gifts

Productperfection, glamour, elegance

Service

Competitorsthere is no other international network

in baby gifts

fast, exclusive, 100% customer satisfaction, our own bellboy

8

Our Target

The company targets companies and people who want to send a gift to the new parents (retail). No physical shops, only e-commerce.

A new commercial line has been opened by wholesaling to multi-brand shops (wholesale).

9

Customer Profile: retail

Bebedeparis has a fixed clientele, divided into LargeAccounts or Multinational Companies and Small andMedium-Sized Companies, with over 12.000 customersonly in Spain.

These customers have made special agreements with us,as their Human Resources policies include providing acourtesy gift for employees, customers and businesspartners when they give birth.

The Human Resources Department, or GeneralManager’s Assistant are normally in charge of buyingthe gift baskets.

Some companies may prefer to order their baskets over the phone. The web page also includes a hotline in each country attended by a direct sales person.

31%

36%

33%

Large Accounts - Multinational Companies

Small and Medium-Sized Companies

Individuals

10

Some of our retail customers

11

Some of our wholesale customers

12

Competitors

13

Our competition is the international flowers delivery networks

Our Objective

14

Creating the 1st international baby gifts network

Local markets are very fragmented. There is no international network of baby gifts.

Internationalization plans

bebedeparis is now looking for exclusive international franchisee partners in eachcountry. The company has prepared a compelling business strategy aimed at bringingsuccess to both franchisor and franchisee.More than 80 different domains have already been registered worldwide and we havethe trademark in 40 countries.

.com

.cn

.com.ar

.com.br

.es

.fr

.it

.jp

.mx

.us

.pe

.co.uk

.de

.cl

.ma

.in

.tw

.at

.be

.dk

.hu

.ec

.pl

.pt

.cz

.se

.ae

.us

.com.ve

.ch

.nl

.hk

.ca

Mexico, 2016Saudi Arabia, 2016

Spain, 1994

France, 2016UK, 2016

15

Benefits of a bebedeparis franchise

1. The future is online: sales on e-commerce andmobile commerce in Europe 2015: €477 billion and isexpecting to increase to €540 in 2016 and €609 in2017.

2. Country exclusivity: possible franchisee income isvery high: ranging from €0.25 million to €20 million,covering 2-5% of births in the country in 5 years. Theturnover in each country depends on 3 factors:•The number of births per year.•Internet penetration and development of•e-commerce in the country.•Purchasing power

16

3. No high street retail store is needed: only a local warehouse (around 300 sqm) on the outskirts of a large city) with no major investment outlay.

4. A secure business: not subject to fashion, regulatory changes, etc. Babies will alwaysbe born and companies and friends will always send gifts to new parents!

5. Provided stock: the Franchisor will produce all theproducts needed by the franchisees network.Franchisees do not have to worry about products. Theyonly have to place their orders 2/4 times a year toFranchisor (3 months in advance). There is no stockleftovers, because our gifts are always fashionable.

6. Only one size products: in bebedeparis we sell only1 size of baby clothes (3/6 months), and always usetraditional colors: blue, pink, white and grey.

Benefits of a bebedeparis franchise

17

7. Exclusive, unique and best quality products at very reasonable prices: the franchiseewill order all the products he may need for the next three months. Only the first order willcover the first 6 months and it will be settled by the franchisor.

8. Possibility to work with baby shops: due tothe big margin in products, the Franchisee canalso become the exclusive distributor of all thebebedeparis products not only by retail but alsoby wholesaling to baby shops.

9. We provide our franchisees with our clientcontacts in other countries: in Spain we alreadyhave very big multinational companies workingwith us, that could become customers in othercountries.

Benefits of a bebedeparis franchise

18

10. Franchise Network: every franchisee invests around 13% of its turnover in its own digitalmarketing to get orders online in his country. The sum of all franchisees’ investments will benefiteveryone. For example, there will be Spanish companies with employees in other countries, suchas Mexico. The order is paid in Spain but the franchisee in Mexico will dispatch it and get paid bythe company in Spain.

11. Digital Marketing: the company will help thefranchisee in the process of choosing an agencyof Digital Marketing. He will have a contractualobligation to spend a 9-15% of his annual incomefor his own digital marketing to promote its ownsales.

12. Website: the Head Office provides eachfranchisee with its own web in its own language.e.g.: www.bebedeparis.fr, www.bebedeparis.de,etc.

Benefits of a bebedeparis franchise

19

13. Big margin: a very profitable investment. The recommended retail price is 3.10 timesthe purchase price. Franchisees have a 65% margin on their sales, which is one of thegreatest margins on sales in European Franchises. Depending on the country, franchiseescould start making profit in their second year.

FRANCHISE IN

USA

20

Relevant

-Economical capacity. The starting investment is more or less €680.000.-Business experience and contact network in the entrepreneurship sector of his country.-Entrepreneurship character and capacity to develop an economical activity.-Communication and business skills, specially with clients, suppliers and employees.-Disciplinary spirit but with capacity to be creative and innovative.-Perseverant.-Working capacity and being able to work towards targets.-Demonstrated abilities in management and an educational background on business, mkt or similar.

It’s a plus

-Knowledge and experience in the e-commerce or digital marketing sector.-Having an operative warehouse.

Irrelevant

-Sex or age of the candidate are absolutely irrelevant.

Franchisee Profile

21

Business Keys

-Margin: 65% on retail sale (the best conditions in all the sectors).

-Target: 70% sales of retail (companies, hospitals, online particular...) and 30% wholesales(shops, agreements...).

-No stock break: the collection is permanent and the headquarter has a disposable stock inthe warehouse through all the season.

-Assessment: personalised, continuous and technical.

-Support and continuous communication amongst all the departments and the central.

-Initial training (both theoretical and practical) as well as recycling seminaries.

-Integration in a consolidated company in the childhood fashion business, with over 20years of experience and in continuous growth.

22

USA Market

-Consumers: Both final clients and consumers are extremely demanding. Each baby receives23 to 37 presents during 6 first months of life.

-Births: 4.200.000 babies were born last year. Fecundity rate of 1.931 babies per woman.

-Purchasing power per capita: $53.000

-Estimated growth rate: 0,77%

-Nº of companies with more than 10 employees: 2.709.302

-Nº of workers of private companies: 136.338.000

-Buyer Expectations:

• Fast Delivery

• Cash Payments

• Mobile Interface

23

USA Market

-Competitors: In USA there is a lot of specialised competitors: baby baskets gifts, baby boxesgifts, baby gifts… Not much specialist in corporate gifts. The largest one: babybasket.comNot much glamour in boxes and gifts. No one brings the gifts with a bellboy. No internationalnetworks with companies in other countries. The biggest companies in USA send the basketsonly inside the USA

24

USA Market

USA: the best country in the world for our

business:

The number of births is very high.

The ecommerce is very well developed: more

than $300.000M

The nº of companies with more than 10

employees is extremely high.

Baby gift baskets usually include:

Baby clothes in pastel colours

Accessorize baby products

Soft Toys

Toiletry products

Gifts for mothers

Nappie cakes

Internet Champion: annual amount spent per e-shopper is $2.466

Online baby-products business are one of the most successful in retail landscape: according to IBIS world. Online sales for baby products grew at annual rate of 14,5% from 2008 to 2013, to $5.6 billion.

Star products: consumer electronics, digital products and fashion & accessories are the most purchased items online.

Bringing-up-baby: industry accumulated turnover of $23 billion.

25

USA Market

Our estimations in 5 years time for USA

-Baby gifts for approximately : 100.800 orders

-% of total amount of births served in five years time: 2%

-Possible income estimations in 5 years time: €12.096.000

-Average order price taking into account PPC and e-commerce development: €120

Legal Warning: The estimations hereby shown are based on the bebedeparis experience in Spain, under no circumstance these

estimations imply a contractual or legal binding between the franchisor and the franchisee. Furthermore the franchisee

acknowledges and assumes that the success of the business and objectives herby shown depends entirely on the franchisee

performance.

26

Franchise Conditions

-Entrance Fee: €400.000 (see next slide)

-Estimated warehouse and office adjustment costs: €30.000 (initial investment: civil works,furniture, uniforms…)

-Estimated equipment: €22.000 (office equipment, printing machines, embroidery machine,company car…Most of them can be leasing)

-Customization of IT pack: €10.000 (website in the native language, back office, etc… If it is in 2languages, it will be €20.000)

-Initial stock for the first six months: from €75.000

-Digital marketing investment on its website: 15% of the total incomes per year (minimum€10.000€/month during the first year)

-Royalties: 3% of the total invoice will be invoiced to the Madrid headquarters every 3 months

Initial Investment: €680.000

27

ENTRANCE FEE INCLUDES:

1. Business and brand exclusivity in the country for 10 years (renovation each 5 year).

2. Transfer of know-how from a proven business in Spain.

3. Operations manuals: a general manual, an operations management manual, a humanresources manual, an equipment and maintenance manual and a legal manual.

4. 65% margin on retail sale, the most favourable conditions in all the sectors.

5. There is no breaking of the stock as the collection is permanent.

6. The central has a disposable stock in the warehouse through out all the season.

7. System of personalised, continuous and technical assessment.

8. Support and continuous communication amongst all the departments and the central.

9. Initial training (both theoretical and practical) as well as recycling seminaries.

10.Integration of a consolidated company in the childhood fashion business.

Franchise Conditions

28

Elisa Helguero

International Business Development

Phone +34 639 94 85 21

ehelguero@bebedeparis.com

For any doubts or suggestions feel free to contact us:

29

Your baby gifts everywhere

30