Kathryn Arnold [email protected] 323.610.2029 EVOLUTION AT SEA Ø Evolution at Sea (EAS) produces heightened vacation experiences on cruise ships for alpha-influencers and music lovers to interact with global thought leaders, game changers and musical icons. Ø Evolution At Sea is about creating a community of like-minded people who are up to making a difference on a global scale. A % of profits will benefit our philanthropic partners. MARKET OPPORTUNITY Ø EAS is a highly profitable business model in the $37.1 Billion Cruise Industry.* Ø EAS is the only cruise on the market combining global thought leaders and speakers with Grammy level music targeting the $209 Billion LOHAS (Lifestyle of Health and Sustainability) market. • The cruise industry is the fastest growing segment of the travel industry –7.2% annual growth rate since 2010. http://www.iceenterprise.com. • A RadioInk.com article reported that the "Tom Joyner Fantastic Voyage" March 2013 cruise generated $6.6 million in revenue representing 30% ROI.* BUSINESS ADVANTAGES Ø EAS’s management team has produced over 51 full ship charters including the highly successful Rock Legends Cruise, The Superbowl and the 2016 Summer Olympics in Rio; over 150 Grammy affiliated concert events; and 15 global leadership conferences including Skoll World Forum, Endeavor Global and Tedx. Ø Proprietary relationships with the cruise lines, talent and a national network of travel agents, mitigates the financial risks ensuring a high level of execution and sales. Ø Projected 6+ cruises annually will build brand recognition, customer loyalty and consistent revenue. Ø The financial results will provide the investor significant returns, multiplied over a 5-7 year period.† * See P&L for single cruise in Appendix I † See 5 year projections p. 13 2 TABLE OF CONTENTS ________________________________________________________________________ I. Concept Page 4 II. Industry Overview Page 5 III. The Competition Page 5 IV. Target Market Page 7 V. Management Team Page 7 VI. Marketing Strategy Page 9 VII. Sponsorship Opportunities Page 10 VIII. Foundational Partners Page 12 IX. Financial Information Page 13 a. Use of Funds Page 13 b. Revenue Generation Page 13 c. 5 Year Projections Page 14 d. ROI Page 14 X. Timeline Page 14 XI. Financial Mission Page 15 XII. Conclusion Page 16 Appendix II: Team Bios Page 17 3 I. THE CONCEPT Evolution at Sea (EAS) produces heightened vacation experiences for alpha-influencers and music lovers to interact with global thought leaders, game changers and musical icons. Within an intimate setting on a magnificent cruise ship, Grammy level music and leading edge content will inspire social transformation and large-scale impact so participants will be prepared to take action once at home. Think global leadership conference meets music festival at sea. Under the stewardship of icons such as Richard Branson and Deepak Chopra, and inspiring music by artists such as Will.I.Am, John Legend, and Sarah Mclachlin, participants will be inspired, entertained and empowered while having the time of their life at sea. EAS takes the successful cruise model and takes it to a new level by integrating music into each phase of the programming. The cruises include up to 20 musical performances in traditional and non-traditional venues (theatres, on deck, on the beach, impromptu, etc.), a dozen world class speakers and trainers, roundtable discussions, interactive forums, meet and greet cocktail events, and several exclusive parties for VIP passengers and entertainers—all aboard a floating universe with gourmet meals, daily fitness programs, workshops, high adventure and every other amenity a cruise can offer. Imagine… “Day In the Life” on an EAS Cruise: 8:00 Wake up in a beautiful, exotic location surrounded by blue-green waters 9:00 Meditation &Yoga with Deepak Chopra 10:00 Breakfast with new friends and family 11:00 Interactive discussion with Richard Branson and Will.I.Am on the Power of Education, and Music’s Influence on Learning and Retention 12:00 Choice of discussions between “Business Innovation on Climate Change” or “Micro-Finance Programs in Developing Nations” 1:00 VIP excursion with Branson to one of Virgin Unite’s in country programs 5:00 Sunset Swim 7:00 Evening dinner 9:00 Main Stage Concert with Earth Wind & Fire 11:00 After hours session with John Legend in the Cigar Lounge Your choice. Your style. Your vacation. The programming, with its unique access to talent and sense of community, turns each cruise into a once in a lifetime opportunity for attendees—One they will want to repeat year after year. No cruise on the market brings together business, social impact and music to create this level of vacation experience. 4 EAS’ business model capitalizes on the growing popularity of entertainment cruises: 77.2% of agents say Specialty Cruising is a growing sales opportunity inside the total worldwide cruise industry, est. at $37.1 billion for 2014. Cruise Market Watch Our 12 to 18 month marketing campaign becomes a tremendous asset for every partner involved. Together with our content marketing team, we will generate exposure and buzz on and offline during the months leading up to and after the cruise, turning our communication strategy into a powerful promotion and income generator. EAS’ goal is to produce 6+ cruises annually in the U.S. and abroad, expand our product line to new target markets while building brand recognition and revenue growth. Our exit strategy is to sell the company to a cruise line or live event promoter within 5-7 years. ‡ Management is seeking to raise Capital of $3 Million in the form of a convertible note to secure talent, charter ship, launch operations, implement marketing/promotion activities and execute conference and music production for the first 2 years of the company, to include 2 cruises. II. INDUSTRY OVERVIEW The cruise/programming concept is a multi-million dollar idea. It combines a superlative travel experience with top entertainment. According to themecruisefinder.com, there are over 500 themed cruises listed at anytime, creating a $2 Billion addressable market in the U.S. alone. Music themed cruises range from a Soul Train Tribute Cruise, R Kelly Dance Cruise, Steam Punk, The Law of Attraction and the ultimate Smooth Jazz Cruise with Natalie Cole. These cruises are extremely successful and can sell out in 1-4 weeks and often more than 1 year in advance.§ The cruise industry is the fastest growing segment of the travel industry –7.2% annual growth rate since 1990. http://www.iceenterprise.com “About half of the people who go on a cruise for the first time take a themed cruise,” quoted Carolyn Spencer Brown, the editor in chief of Cruise Critic. Participants come back year after year to enjoy their favorite music along with thousands of ‡ See Financials on p. 12,13,14 § Examples of year in advance sell outs include Dave Koz, Smooth Jazz, New Kids on the Block 5 other fans, in some of the most beautiful places in the world. The NY Times “Cruise Issue” March 16, 2014 stated, “the cruise industry is an industry that shows no signs of slowing down.” EAS will also access the “self-improvement market.” The self-improvement market was estimated in 2012 to be worth $11.7 Billion, and is forecasted for average yearly gains of 5.5% from 2010-1014. MarketdataEnterprises Yoga/self-improvement/transformational vacations are favored by active types who want to go deeper into their practice while enjoying all the perks, beauty and relaxation of a vacation. People can vacation alone yet plug into an instant, like-minded community. III. THE COMPETITION The competition actually comprises some of the best success stories in the industry, and proves the popularity of the market and the opportunity for new players. The competition lies in both the entertainment cruise arena, as well as other options for self-improvement seminars, world forums and interactive conferences. 6 One of the most active music theme cruise companies in the industry is SixthMan (with 12 cruises in 2013-2014.) SixthMan concentrates on B level entertainment, that when programmed together on one ship, translates into a great experience for lovers of a specific genre—Rock Boat, Kid Rock, Simple Man, Live Loud. Other companies specialize in one or two bands, and have built businesses around repeat customers for that band—Dave Koz Cruise, Smooth Jazz Cruise, Rick Springfield, New Kids on the Block and Tom Joyner’s R&B Cruise. A RadioInk.com article reported that the "Tom Joyner Fantastic Voyage" March 2013 cruise generated $6.6 million in revenue. (Representing a 30% profit margin.) In addition to music cruises, there are Food & Wine cruises, Gaming and Technology cruises, Political cruises, Sports cruises, Wellness cruises and Movie cruises. The list is quite extensive and amounted to over 500 themed cruises in 2014. Outside of the cruise market, other options for the LOHAS market are: • Global Though Leader Conferences (Ted, Skoll) • Wellness travel and spa retreats. • Voluntourism • Yoga Retreats • Self Help Seminar Competitors in the transformation space actually can become our marketing partners. EAS will build joint-venture relationships with our speakers and other successful self- improvement organizations to expand our marketing reach exponentially. EAS competitive advantages: proprietary relationships inside the cruise industry to bring pricing down; inside the music industry to provide insider access to some of the biggest names in music; strategic partners in social entrepreneurship and impact investing that create an environment that people want to be a part of at a price point that is competitive. PRICE POINTS: • World Economic Forum – Davos $72,000 + Food/Accommodations • Ted Conference $ 8,000 + Food/Accommodations • SXSW Interactive $ 1,475 + Food/Accommodations • Dave Koz Smooth Jazz Cruise $1675 – $6900 All Inclusive • Evolution at Sea $1969 – $7800 All Inclusive 7 IV.