PROSPECTUS

PLUMEN 04 OVERVIEW

05 AT A GLANCE

06 PRODUCTS

07 ACCESSORIES

09 REACH

10 SALES TO DATE

11 OUR RETAILERS

12 PROOF OF CONCEPT

13 ACHIEVEMENTS

14 FOUNDERS

15 ADVISORS

16 CURRENT TEAM

17 TIMELINE

19 THE MARKET

20 THE OPPORTUNITY

21 POISED TO CAPITALISE

22 THE LED OPPORTUNITY / THE SMART OPPORTUNITY

PLUMEN STRATEGY 24 PRODUCT ROADMAP

25 SALES

26 MARKETING

29 PROFIT + LOSS

30 CASH FLOW + BALANCE SHEET

31 FINANCIAL NOTES

32 SUMMARY

CONTENTS

PLUMEN 3

“Iconic” VOUCH MAGAZINE “Ingenious” FINANCIAL TIMES

PLUMENOVERVIEW

Light bulbs are changing. They no longer last a year, they last a decade. Soon, they will do more than just give light, they will automatically adjust to your needs while improving your well-being and security.

With increased performance, comes increased value. While the industry continues to be price focused, we’ve proven that if the design is right, people will pay more money than ever before for their light bulbs.

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LED and new Smart Lighting technology offer the chance to reinvent home lighting for the digital age.

Plumen is the world’s first designer low energy light bulb brand.

This is your chance to join us.

PLUMENAT A GLANCE

Launched in 2010, Plumen is an established business generating revenue in excess of £1m a year.

London is our home, but Plumen is global. We manufacture in China, ship to warehouses on three continents and sell to customers in 75 countries.

In a short time, we’ve inspired a lot of people to be energy efficient and have already sold over half a million products,

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PLUMEN 001ORIGINAL

PLUMEN 001 BABY

PLUMEN 002ORIGINALLED

PLUMEN DROP CAPPENDANT

PLUMEN 002ORIGINALLED

PLUMEN 001ORIGINALCFL

PLUMEN 001BABYCFL

PLUMEN DROP CAPPENDANT

PLUMEN DROP TOPGLASS SHADE

PLUMEN 002ORIGINALLED

PLUMEN 001ORIGINALCFL

PLUMEN 001BABYCFL

PLUMEN DROP HATMETAL SHADE

PLUMEN DROP CAPPENDANT

PLUMEN 002ORIGINALLED

PLUMEN 001ORIGINALCFL

PLUMEN 001BABYCFL

PLUMENPRODUCTS

We’re known for our award-winning light bulbs, but our product range includes pendants, shades and other lighting accessories.

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PLUMENACCESSORIES

We love seeing the different ways that people use their Plumen. To encourage people to get creative, we developed a whole range of pendants, shades and accessories that let you show off your Plumen in thousands of ways.

7 1 Drop Top Shade2 Bespoke Pendants3 Base Covers4 Drop Cap Chandelier

1

2 3

4

81 Drop Cap Pendant Range2 Third Party Accessories 3 Drop Hat Shades

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1

PLUMENREACH

Head Office + Design Studio Factories Warehousing Retail Sales

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PLUMENSALES TO DATE

Since launch, the UK has been Plumen’s proof of concept market. Our strategy here has seen consistent double-digit growth year after year, even with a small sales team and only a few products.

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Europe 23%

UK 44%USA 14%

ROW 19%

Plumen.com 18%

Commercial Projects 7%

Retailers 75%

A successful crowd-funding round will dramatically increase our product range and sales team allowing us to further invest in the UK growth and reproduce the same model in France, Germany and the USA.

SALES BY TERRITORY SALES BY CHANNEL

PLUMENOUR RETAILERS

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12PLUMENPROOF OF CONCEPT

£400,000

£200,000

£100,000

£0Y1 Y2 Y3 Y4 Y5

£75k£147k

£223k

£326k

£440k

£75,000

£50,000

£25,000

£0Y1 Y2 Y3 Y4 Y5

£21k£26k

£35k£45k

£95k

SALES GROWTH - MAJOR UK RETAILER

UK TURNOVER GROWTH

£300,000

PLUMENACHIEVEMENTS

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AWARDS PRESSMUSEUMS

PLUMENFOUNDERS

NICOLAS ROOPE CREATIVE DIRECTOR

Nik is the driving force behind our product and brand vision.

Outside of the lighting world, Nik is world-renowned as a design, digital and marketing innovator. As co-founder and Creative Director of Poke digital agency, he has helped shaped the online brand presence for the likes of Skype, EE, Topshop, Ted Baker, UBS, Mulberry, Tiffany’s and many more. Poke was sold to Publicis in 2013.

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MICHAEL-GEORGE HEMUS MANAGING DIRECTOR

MG is our Managing Director and has overseen the development of all areas of the business since the start. A serial entrepreneur, MG has over ten years experience in running product-based start-ups, with particular expertise in manufacturing and product development.

Outside of Plumen, he is one of the re-founders of Truman’s beer, the iconic East London brewer that was brought back to life in 2010 and is now based in Hackney Wick.

RONNIE RENTON CHAIRMAN

Ronnie has great experience in scaling businesses. He made his name at Games Workshop, where turnover grew from £10m to £150m in his time there. By the age of 28 he was MD of the UK sales operations – with 110 retail stores and sales of over £25m. He continued to rise further up the ranks while doing an Executive MBA from LBS.

In 2008 he founded Mantic Games, now one of Europe’s most successful Kickstarter companies, with two $1m+ campaigns and $5m+ raised.

FLEMMING VIKTOR ANDERSEN INVESTOR & MANUFACTURER

Flemming is the founder of our manufacturing partner and our sole investor to date. He has been one of our core supporters from day one.

With 20 years experience in the lighting industry, Flemming has grown his business from scratch to an annual turnover of $30m+. His core market is sales for supermarket own-brand lighting.

ASHLEIGH TENNANT MARKETING

Ashleigh is a marketing strategist with an amazing track record of growing online sales and communities.

Previously a Product Manager for Moo.com and WGSN, she moved on to become Director of Marketing for Wool & The Gang, where she helped grow their online community to more than 80,000.

JOHN MURPHY SALES

John was formerly MD of Megaman UK, where he grew sales from nothing to £25m in his 15 years at the helm of the business. He recently joined Plumen as an advisor and is helping shape the development of our sales strategy for the UK and Europe. His sales experience and network will play a big part in our growth over the coming years.

PLUMENADVISORS

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PLUMENCURRENT TEAM

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AARON CASEYMARKETING MANAGER

MICHELLE SHAWACCOUNT DEVELOPER

CAMILLE CARPENTIEROPERATIONS MANAGER

NISHIE JONGFINANCIAL CONTROLLER

CIARA RENTONSALES MANAGER

WILL LATTERTRADE SALES

GIORGIA FERRICUSTOMER SERVICES

LAURENCE ETILEDIGITAL MARKETING

BEN RAWLINGSPRODUCT DEVELOPER

BUSTER PALMANOPRODUCT DEVELOPMENT MANAGER

PLUMENTIMELINE - THE STORY SO FAR

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2015

2011

2013 2014

2016

001002 002 LED001 BABY

2007ResearchFirst prototype2008 2009

2010 2012

We wonDesign of The YearAward

Selling in more than 50 CountriesDevelopment

BEFORE INVESTMENT AFTER INVESTMENT

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2020

2017

2018

2019

005

003

004 SMART

The World Converts To Smart Lighting

Launch of Plumen 005

Open U.S. office

Plumen 003 Launch

Plumen 004 Smart Launch

Selling in more than150 Countries

Smart Plumen for every room in the house

New Launch

LED FILAMENTRANGE

PLUMENTIMELINE - THE FUTURE

BEFORE INVESTMENT AFTER INVESTMENT

PLUMENTHE MARKET

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TARGET ADDRESSABLE MARKET 2020

Source:The McKinsey Lighting Report 2012

$68bn LED Market

$30bn Residential Lighting $5bn Hospitality

£35bn of the $68bn of LED market

2016 2020

General Lighting Market $97bn $111bn

LED $40bn $68bn

Smart $3.66bn $8bn

MARKET SIZE

Hospitality$5bn

Residential$30bn

Hospitality$5bn

Residential$30bn

Of the $35bn of Residential Lighting and Hospitality

25% Europe 18% North America

43% = $15bn

PLUMENTHE OPPORTUNITY

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$68bn LED Market

$30bn Residential Lighting $5bn Hospitality

£35bn of the $68bn of LED market

Design Museum Tank, 2015 Installation displays 96 bulbs and copper Drop Cap pendants, in a dynamic wave-like formation that mirrors the sculptural qualities of the 002 bulb and the undulating river it neighbours.

The lighting industry is undergoing fundamental change driven by new technologies. LED has rapidly grown to be the dominant technology and is forecast to grow by a further 70% by 2020.

On top of this, Smart Lighting is developing fast, allowing bulbs to deliver further energy and cost savings, plus a whole lot more. It promises to be a huge sector of the market that will drive the replacement of bulbs in homes across the world.

Despite the benefits of energy saving technology, adoption has been slow, so slow that governments worldwide have introduced laws to ban incandescent technology and force their public to use energy efficient lighting. For us, saving energy should be something positive, that we all do willingly. To us, the problem was not people, it was product – a problem we decided to solve by starting Plumen.

PLUMENPOISED TO CAPITALISE

At Plumen, we know the power of design to disrupt and inspire. We’ve seen it with Dyson, Tesla, Sonos, Apple and Nest. We’ve seen it with the Plumen 001.

At its best, design inspires adoption of new technologies and can change the world.

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Smart speakers

Computers

Smart thermostats

Electric cars

?

PLUMENTHE LED OPPORTUNITY

Once again, the lighting industry’s response to LEDs has been to try and make them look just like what came before.

We think this is the wrong approach. We believe that there is so much more potential for LED and we’ve developed new, patentable formats that bring the best out of the technology.

With light bulbs now lasting decades, the design and light quality is more important than ever because you have to live with them for longer. In the future, people will usually change their bulbs when they renovate, which means design is going to be one of the primary drivers of sales.

22THE SMART OPPORTUNITY

Smart Lighting technology has the potential to completely change the way we all view the light bulb. No longer will they just give light; they will provide well-being and security, central to the Smart Home of the future.

The first Smart bulbs appeared a few years ago, but have not caught on. Being able to control your lights with your phone is useful, but not enough to justify the extra price, especially when your light switch disables them.

At Plumen, we’ve been waiting for a company to develop a technology that is truly smart, delivering real benefits to users. That company was Stack Lighting.

In April, we announced a partnership to develop Stack-enabled Plumen bulbs. Stack are pioneers in sensor-driven Smart lighting; their technology adjusts to your movements, learns how you use light and works with your body clock.

As we’ve seen before, design is critical to the adoption of new technology. Partnering with Stack puts Plumen in prime position to be at the forefront of the new Smart Lighting era.

The opportunity is huge because, if the product is right, the benefits are so compelling that we believe it will inspire households all across the world to switch all their light bulbs to Smart.

If Plumen can grab this opportunity, it can become one of the truly global designer light bulb brands of the 21st Century.

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PLUMEN STRATEGY

“Too cool to hide” VANITY FAIR

PLUMEN STRATEGYPRODUCT ROADMAP

Our approach to products is simple – deliver fantastic light quality through beautiful light bulbs that people want in their homes.

Our strategy is to create a full range of bulbs to cover all uses. To date, we have focused on centrepiece bulbs that have reinvented how people see the low energy light bulb. Signature products that demand attention.

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See our video for details of our new product launches

Or even better, come to the Plumen office on June 16th and see them for yourselves!

September 2016 October 2016

October 2017

Early 2018

September 2018 Mid2019

Plumen 003 SmartPlumen 002Plumen 003

Filament LED Range Plumen 004 SmartFilament LED Range

Plumen 005

Now, we’re broadening our offering by introducing our first luxury bulb at the high-end, along with a new range of filament LEDs at a competitive price point. Then, from 2017, Smart versions of our iconic designs will start hitting the market.

By 2020, we’re aiming to have a Plumen for every lighting need in the home.

PLUMEN STRATEGYSALES

Plumen has enjoyed strong sales across the world since we launched, but our focus has always been in the UK.

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UKIn the UK, we’ve been proactive in forming long-term partnerships and growth with retailers like John Lewis and Habitat. We’ve used it as our proof of concept market and seen double-digit growth every year.

WORLDWIDEInternationally, our sales have always been reactive; our amazing press coverage has driven retailers, distributors and agents to approach us but not built sustainable long-term sales.

Now we can take our UK sales strategy and replicate it in our focus markets of France, Germany and the USA. These are the territories where we will have our own sales teams as well as working closely with agents.

In all other markets, we will work with country specific distributors exclusively representing us in their territories

Installation and window display at John Lewis flagship store, Oxford Street, London.

PLUMEN STRATEGYMARKETING

INSPIRING YOU TO GET CREATIVE WITH LIGHTING

We see our bulbs as ingredients – great on their own, but you get the best out of them when they are combined with other lighting and displayed in fantastic interiors.

We’ve developed accessories to encourage people to get creative, but it’s seeing Plumen bulbs in action that offer the greatest inspiration.

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The Glowing Oak at Designers Block, 2015One of the most challenging installations we’ve ever done – a real oak tree, laced with Plumen, on the top floor of London’s oldest courthouse.

PLUMEN STRATEGYMARKETING

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PARTNERSHIPS

We love to partner with other like-minded companies. A perfect example is our collaboration with Made.com.

Last year, we designed two shades for the 001 that Made.com manufactured and launched with great success. Suddenly, the Plumen 001 was on posters all over the London Underground. This year, we’re launching five new products with them, all designed for the 002 LED.

The ‘Curated Items’ section on our site shows a few other collaborations we’ve done and there are a lot more in the pipeline!

1 Made.com collaboration 2 3D Printed shade by Formalized3D

PHOTOGRAPHY

We shoot all our products in as many different settings and scenarios as we can think of, sharing the results on Plumen.com, Facebook and Instagram. However, it’s our fans that deliver the most, shooting their Plumens in the most amazing ways and inspiring others to do the same.

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2

OUT & ABOUT

Our new products are perfect for bars, coffee shops, restaurants and hotels the world over. They offer beautiful, energy efficient lighting at an affordable price.

Even better, because our bulbs are designed to be shown off, every public space where they’re installed acts like a Plumen showroom. It’s a marketing dream – advertising without the costs.

PLUMEN STRATEGYMARKETING

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PR & ADVERTISING

To date, we’ve been really lucky with the response to our products – they’ve generated a lot of press without needing to spend much money on PR.

However, over the last year, we’ve been spending a bit of our limited budget on PR and the results have been great. So, we’re planning to use some of the investment raised to really ramp up our PR activity to make sure every journalist who should know about us does know about us.

On top of this, we’ll be investing 12-15% of our web sale revenues back into online advertising to grow the brand and sales further.

FINANCIALS PROFIT & LOSS

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FY20/2121 (F)FY19/20 (F)FY18/19 (F)FY 17/18 (F)FY 16/17 (F)FY 15/16 (F)

6,874,453

56%

9,859,307

4,296,533

56%

6,162,067

2,685,333

56%

3,230,092

1,528,329

53%

1,525,614

773,240

49%

1,064,522

585,575

45%

Total Sales

Total Direct Costs

Gross Profit %

1,183,117

913,683

1,920,175

675,093

702,833

1,477,058

371,661

413,741

847,164

212,938

319,452

659,493

116,439

203,922

399,407

Total Sales & Marketing

Total General & Administrative

Total Personnel

3,606,821

23%

53,124

3,458

3,550,239

1,545,799

16%

44,270

2,882

1,498,647

621,750

10%

34,054

2,217

585,479

69,197

2%

21,471

13,300

34,427

(439,507)

-

15,512

9,738

(464,757)

(240,821)

-

10,245

8,232

(259,298)

EBITDA

EBITDA %

Total Depreciation & Amortisation

Net Interest (Received/Paid)

Net Profit Pre-tax

15,774,891

1,892,987

1,096,420

2,304,210

FINANCIALS CASH FLOW + BALANCE SHEET

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FY21 (A+F)

2,615,221

0

0

5,336,314

FY20 (A+F)

1,042,479

(96,800)

0

2,721,093

FY19 (A+F)

385,227

(62,000)

(140,000)

1,775,414

FY18 (A+F)

(71,027)

(28,000)

1,500,000

1,592,187

FY17 (A+F)

(350,505)

(20,000)

550,000

191,214

FY16 (A+F)

(284,532)

(5,590)

269,594

11,720

Cashflow from (to) Operations

Cashflow from (to) Investing

Cashflow from (to) Financing

Ending Cash

Opening Cash

FY21 (A+F)

8,618,343

1,329,127

FY20 (A+F)

4,846,583

1,107,606

FY19 (A+F)

3,092,335

852,005

FY18 (A+F)

2,531,428

876,576

FY17 (A+F)

732,557

630,707

FY16 (A+F)

423,737

381,142

Total Assets

Total Liabilities

Balance Sheet

7,289,2163,738,9772,240,3311,654,851101,85042,595Ending Cash

2,249,794

5,039,422

2,249,794

1,489,183

2,249,794

(9,463)

2,249,794

(594,943)

749,794

(647,944)

249,794

(207,199)

Paid-in Capital

Retained Earnings

FINANCIALS NOTES

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USE OF FUNDSInvestment raised will go towards the following:• New Product Launches: Both new lines

are fully developed and ready to go into production. Key for us now is to deliver strong, far-reaching product launches that give both lines a platform for success.

• Key Hires: We will look to bolster our team with two experienced hires in Sales and Product Development to drive our growth and ensure we bring through new generations of ground-breaking products.

• Sales: Funds will be used to help us branch out into new European markets, finding and appointing agents to grow our sales through retail and hospitality channels.

• Smart: To complete the development work we have started on Stack-enabled versions of the Plumen 002 and the Plumen 003, ready for launch in 2017.

SALES GROWTH DRIVERSThe primary drivers behind forecast sales growth are new product launches, which will greatly broaden our market and sales channels, investment in our sales team and increased marketing activity.

Year 1• Launch of the Plumen 003 – RRP approx. £100. • Launch of the Filament Range. Five new

bulbs formats at prices ranging from £10-£30, generating much higher sales and opening high volume retailers accounts.

• Increased Sales team. • Online advertising – current ad spend is very

low. In each of the next three years we forecast to spend 12%-15% of web sales back into online ads.

• Year 2• Launch of first Smart Plumen bulbs.• Launch of 004 range.• Plumen 003 and Filament LED range enjoy

a full year of sales and greater market awareness.

Year 3Following a further equity raise, we will:• Open a US office and recruit a US based sales

and marketing team.• Open ‘Big Box’ retailers like Homebase and

Lowes for our mass market product ranges. • Recruit a sales team that is focused on

hospitality sales.• Double the size of our sales team.• Increase marketing spend to develop brand

awareness and sales.

GROSS MARGINSWe forecast our gross margins to increase over the next few years due to:• Increased product margins from new and

future product ranges.• Economies of scale savings as sales grow.

EQUITY INVESTMENTPast: Our sole external investment to date has been £250,000, which came from Flemming Viktor Andersen, the owner of our manufacturing partner E3 Light.

Future: We plan to raise a further £1.5m of equity investment in the first half of 2018, primarily to open an office in the USA and scale sales and marketing activities across the board.

EXISTING DEBTWe have an overdraft of £90,000.

There are Directors’ loans of just under £10,000, which will not be repaid in the next 12 months and there are no plans to repay in the foreseeable future.

PLUMEN STRATEGYSUMMARY

Opportunity – Lighting market is growing and undergoing disruption. New technology creating the need for a designer light bulb brand.

Plumen – A loved brand with a global infrastructure and established sales, ready to capitalise on the opportunity.

Team – Experienced with a strong track record in manufacturing, sales and marketing.

Product – New ground-breaking products ready to launch with pioneering Smart Plumen to follow.

Investment – raising £500,000.

We’re looking for investors who share our vision for the future of lighting and want to be part of the journey.

Join Us.

www.crowdcube.com/Plumen invest@plumen.com

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“The World’s most stylish lightbulb” REMODELISTA

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