Arenatote Co. Ltd. Business Strategy

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Worst-Case Scenario.……………...………………………………………………………………………….17

Sources and Uses of Funds.…………………………………………………………………………………..18

Pro-Forma Financial Statements (Expected Case)………………………………………………………..19

Annual Cash Flow, Income and Balance Sheets.…..………...………………………………….…………... 19

The Ask and the Offer …………………………………………………………………………..…………..20

Conclusion.……………………………………………………………………………………….…………...21

5) APPENDICES.………………..………………………..……………………………..….22

EXECUTIVE SUMMARY

ARENAtote Co., Ltd., a subsidiary of NUKE Co., Ltd., was established by a team of experienced entrepreneurs with passion in healthy lifestyle who share the same vision to improve athlete’s performance. With the support of the strong growth of healthy trend from 2015 - 2020 around 21.8% and forecast sales of sportswear in Thailand up to 4 Billion THB, there is high potential for market opportunity in this industry. Thus, this business plan introduces ARENAtote™ the first multi-purpose Foam Roller into Thai market and aims to be the first entering into Southeast Asia market in the future. As of now, the existing foam roller is used by professional athletes, therapists and recreational exerciser. We keen to educate people to know benefits of foam roller and develop our own foam roller by integrating with other equipment you need for exercise in order to commercialise for more widely use.

The whole package of ARENAtote™ consists of hollow carbon fibre core, foam with different density, dense and spacious mat, strap with unlockable hook, and high absorbent towel. We use premium material in each component to ensure we have the best product to offer to middle to high income women, aged 25-40 lived in the big cities of Thailand. Our business model at the first five years is to outsource our manufacturing process to Taiwanese third party manufacturer who have full expertises in producing sport equipment in large scale at short period of time. For selling platforms, ARENAtote™ will be sold via ARENAtote™ website (B2C) and wholesales (B2B) to gym, fitness and appropriate concept stores.

The management team comprises of expertises from diverse backgrounds - designer, knitwear guru, engineering and financial backgrounds. Everyone is doing MBA from the Top Business School in Thailand. With complementary experience and skills, we will be able to see our business from multiple angles and build this business plan to successful execution.

ARENAtote Co., Ltd. expects to generate total net profit of THB 18.4 million for the first five years. This plan expected to yield an investor’s NPV of THB 124.4 million at 30% discount rate and an IRR of 165%. The payback period is 4 years. Our expected total capital funding is THB 4 million. Our equity structure is 25% NUKE Co., Ltd., 25% Management Team, 49% external investors and less than 1% given to knowledgeable investors. Thus, we are looking for THB 2 million from venture capitalist. In return, they will receive 2 out of 7 seats on our Board of Directors, Shareholder agreement and Monthly performance contract to continue developing products with us. ARENAtote™ welcomes all investors to share our vision and opportunity to build the multi-purpose Foam Roller business together.

THE COMPANY AND THE PRODUCT

Company History, Mission and Objectives

ARENAtote Co., Ltd. (ARENAtote) was established as a subsidiary company of NUKE Co., Ltd, a Thai company base in Bangkok, Thailand with similar business model as Amazon.com for selling platform of female sportswear specifically under the name ‘FITCRAZE’ (https://fitcrazeth.com/). ARENAtote™ has been found as a subsidiary of NUKE to expand its business to consumer product under its new brand name to catch with the boom of healthy lifestyle trend. As entrepreneurs, our company desire to commercialize foam roller to be use in broad target market. Therefore, we initiate to add more value from a normal foam roller to our product called ARENAtote™, a multi-purpose Foam Roller, it is designed to combine other equipment in the roller, including a strap, mat, towel etc (See Appendix 1 for more details). These equipment adds value to the product, as ARENAtote™ does not need to be use just as foam roller but has other uses as well. By introducing the ARENAtote™ we will be the first mover to introduce all-in-one stretching equipment. Our mission is to “To Better Every Athlete’s Performance”.

The New Product or Service

ARENAtote™ is a multi-purpose Foam Roller that incorporates the following items together to a single item. See more details of each item in Appendix 2.

- ARENAtote™ core: The core structure is made from carbon fibre attached with lock mechanism for changing foam density. Distinctive characteristics of carbon fibre are light and strog.

- ARENAtote™ foam: The foam is made from three different density (Soft, Medium, Hard) and three colours (pink, black and silver) which allow customers to customise according to their preference.

- ARENAtote™ strap with unlockable hook: The strap can be used for yoga which can be hooked to foam roller for carrying and unhook for exercise. Three colour options are pink, black and silver.

- ARENAtote™ mat: The mat made luxuriously dense and spacious for comfort, with three colour options (pink, black and silver).

- ARENAtote™ high absorbent towel: The towel is made with innovative fabric e.g. chamois cloths. Three colour options are pink, black and silver.

MARKETING PLAN

Market Situation

Market Size, Market Niches, and Growth prospects

According to Euromonitor international 2016, by 2020, the forecast sales of Sportswear and gym accessories value in Thailand will be up to 4 Billion THB. The % Value Growth from 2015 - 2020 is around 21.8% and