worldwise education investor presentation

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Worldwise Education, Inc. a unique company that helps schools help themselves

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Page 1: Worldwise Education Investor Presentation

Worldwise Education, Inc.a unique company that helps schools help themselves

Page 2: Worldwise Education Investor Presentation

About Worldwise Education• Country’s leading publisher of student-

generated content

• Merchandise such as printed-art products, sold under our Artwork for Education® brand, showcase student artwork and generate revenue for schools

• Brand promise is the opportunity to purchase products that support education and opportunities that help kids learn

• Formed in 2004

• 14 employees

• Revenues this fiscal year close to $1 million

Page 3: Worldwise Education Investor Presentation

In The Beginning, We Knew…

• Schools are chronically underfunded and have been for a long time

• Parents spend $1.3 billion every year on school fundraisers and teachers’ out-of-pocket spending is $1.2 billion

• Back-to-school spending is over $18 billion

• Market for greeting cards is $8 billion

• Causes related to children and education receive more money every year than any other social program

• “How do we tap into and connect these parts?”

• We interviewed thousands of potential customers such as parents, teachers, principals, superintendents and retailers-large and small-and listened to them very carefully

Page 4: Worldwise Education Investor Presentation

What We Learned

• 72% of consumers surveyed indicate they would buy a product that supports a cause they care about if price, quality and convenience are comparable

• Parents cherish their children’s art

• Retailers value quality products that show they care about their immediate community

• Corporations value campaigns that improve their brand image

• Content providers value affinity media that keep them connected to their customers

Page 5: Worldwise Education Investor Presentation

Pathway Market Solution Artwork for Education®

• Innovative program that showcases student creativity and expression

• Combines compelling images with words to create a message that resonates with parents and consumers

• Content printed on greeting cards, reusable grocery bags and other merchandise

• Products sold over multiple channels, such as school fundraiser, traditional retailers, and online

Page 6: Worldwise Education Investor Presentation

Artwork for Education®

• Our library of digital content is sourced directly from participating schools

• Comprises more than 160,000 images and is growing every year

Page 7: Worldwise Education Investor Presentation

Artwork for Education ®

Information about the program, as well as credit to the artist and the school appears on the back of each card

E

Page 8: Worldwise Education Investor Presentation

Business Model

• Every product sold at wholesale prices. Gross margin is 65%-80% depending on product

• Schools purchase boxed sets at $12.50 and charge $20.50 to parents making $8.00 per box

• “Best-in-Class” chosen for stores

• Sold as single cards at $1.70 per card, includes $0.50 payable to the school

• Retailer charges $2.95 per card and keeps markup

• Bottom line is win-win-win for school/store/company

Page 9: Worldwise Education Investor Presentation

Current Customers

• Schools: 400+ across 14 states • Retailers

– 22 Whole Foods Markets (So CA)– Just approved in 31 more (Midwest)– 40 gift shops and specialty retail stores– New sales agreement in place with card reps

managing more than 25,000 children’s store and gift shop accounts nationwide

– In discussion with major retailer and distributor covering drug and grocery channels

• Online– 1000s of users at ArtworkForEducation.com

Over $1 million raised for schools to date!

Page 10: Worldwise Education Investor Presentation

Select Financial Information

FY2008 FY2009 FY2010 FY2011ALL SALES 803 953 5,018 11,395COGS 178 218 1,008 2,250SG&A 689 644 2,565 6,088Pretax Profit $ (89) $ 89 $ 1,444 $ 3,056

Schools 204 300 587 941Retail locations 0 100 1,500 5,000

Fiscal Year ends June 30Dollars in thousands

Page 11: Worldwise Education Investor Presentation

Big Plans: WEXchange.com

• Online community and distribution portal connecting teachers to sources of free or very low cost school supplies

• Envisioned as a “FreeBay” for teachers, the site is supported by subscription fees and premium ad placements

• Highly interactive site with features including the option to purchase products that feature artwork (similar to Flickr, Shutterfly.com or Café Press)

• Stealth mode. Scheduled launch is Spring 2010

Page 12: Worldwise Education Investor Presentation

Management Team

• Charles Paul, CEO - Former teacher, business owner and investment banker

• Maureen Feldman, School Channel Manager - Former art docent and senior sales executive leading companies such as For Woman Only Fitness and Jamm Extreme Music to prominent market leaders.

• Larry Castro, Retail Channel Manager - Personally responsible for over $250 million in sales with leading consumer products such as Sony Playstation, Disney Toys, and Power Ranger mega brands

• Ted Coté, Marketing Advisor: Lecturer, writer, and founder of CEO of IM/TMA, a premier southern California marketing organization. More than 15 years in sales, marketing, and business development.

Page 13: Worldwise Education Investor Presentation

Capitalization

• Amount raised to date

$650,000 from founders $1,236,500 from friends and family $1,886,500 total

• Seeking additional funding of $2 million $750,000 - new school reps and support$750,000 - retail fulfillment infrastructure$500,000 - 6/2010 launch WExchange

Page 14: Worldwise Education Investor Presentation

Summary

• Simple solution to a complicated problem

• Easily scalable channels generate recurring revenues for schools and double-bottom line for shareholders

• Exceptional return on investment

• Company delivers on its mission and sets an excellent example of how the market can be used as a solution to a social problem