1. BE BE, Inc.
BE Inspiring. BE Extraordinary. BE You.
Annual Report 2018

2. Table of Contents
Dear BE Stakeholder,
In 2018, we had three main objectives 1) reclaim our position of being a market leader 2) maximize the profit of all stake-
holders and 3) strive for innovation. Despite our competitors becoming more aggressive and a recent migration to our
niche market we have maintain our role as a leader by seeking out new ways of growing and identifying new opportuni-
ties to be a foot ahead of the competition.
Due to our persistence to BE the best that we can BE we recorded high profits and revenues to further illustrate our
global presence and leadership in the footwear industry. Based on our recent financial statements, we increased our
competitive advantage by realizing an EPS of $7.57 and shared our wealth to our shareholders by issuing dividends of
$4.93 per share. In the past years we decided not to invest in the private label segment due to the costs that were asso-
ciated with this segment and because we felt this took away from what we really wanted to do; which is to provide shoes
to a niche market allowing them to BE all that they can BE.
In this last fiscal year BE expanded our corporate social responsibility to include expenditures in energy efficiency. We
believe by becoming environmentally conscience then we our providing a better world for our children and a brighter
future. Furthermore, as we continue to prosper, we our evolving our corporate strategy to focus on people, planet, and
profit because what decisions we make in the board room affect everyone who has some connection to our company.
The past increase in our market share can be attributed to a recent shift in energy efficiency making us a more beloved
brand than we already are.
To compete directly with our competition in the internet segment we decided to lower our price, to capture the market
once again. By altering our approach we are further illustrating how we are committed to a focused- differentiation strat-
egy while being a low-cost provider as well. We want to encourage all athletes of the world to excel and have the ability
to BE great; we believe this is possible when more people have access to our product.
Lastly, to our shareholders and investors we want to say thank you for staying faithful to us and supporting us financially
and socially in our endeavors. We are committed to meeting your expectations and to stay profitable in future years to
come. We affirm that our business strategy of focused differentiation with a low-cost provider twist is the best strategy for
our company to remain successful, give back to our stakeholders, and be an industry leader.
Best,
Gabriel R. Malcolm Alexis K. Bailey Nicole M. Liston
Chief Executive Officer Chief Financial Officer Chief Marketing Officer
BE
Letter to Ours Shareholders
BE
Letter to our Share Holder...................................................................................................................................................................1
Take a look at Be..........................................................................................................................................................................................2
BE,Inc. Strategic Vision...........................................................................................................................................................2
Footwear Strategy........................................................................................................................................................................................3
Private Label Strategy...........................................................................................................................................................3
Be Workforce...................................................................................................................................................................................4
Social Responsibility................................................................................................................................................................4
Production Strategy...................................................................................................................................................................................5
Financial Strategy.........................................................................................................................................................................................5
Financial Summary........................................................................................................................................................................................6
Company Performance.........................................................................................................................................................................7
Looking Forward............................................................................................................................................................................................9
Financial Statements...............................................................................................................................................................................10
Income Statement....................................................................................................................................................................10
Balance Sheet............................................................................................................................................................................11
Statement of Cash Flows.................................................................................................................................................12
1

3. BE, Inc. was founded in 2000 by an amazing group of
college students of Dominican University of California.
Alexis Bailey, Gabe Malcolm, and Nicole Liston rolled
up their sleeves and worked on creating BE SHOES,
Inc. for a Shoe Industry Competition. From being suc-
cessful in the competition, they decided to share BE
SHOES, Inc. to the world.
BE, Inc. has grown immensely and has provided their
everyday athletic footwear to people worldwide.
Currently, we are distributing BE across the North
American, Europe-Africa, Asia-Pacific, and Latin Ameri-
can regions.
At BE we want be people to BE inspiring, BE extraordi-
nary, and BE who you are. We will be the BEst shoe for
those who BElieve in us. BE shoes will continue to provide
its consumers with affordable priced shoes. We will find
a middle ground of providing our consumers with quality
shoes while keeping it affordable for the everyday person.
Here at BE shoes, we are aiming to be the number one
shoe of choice for people from around the world.
To fit the needs of the BE people, we wanted to accom-
modate the lifestyle of our target market by providing a shoe
that meets both quality and affordability. BE, Inc. imple-
mented the focused differentiation strategy with a low cost
twist. We took a few steps in accomplishing this strategy by
providing a narrow product line that consists of 50 models.
To ensure quality, we allocated our resources on enhancing
the styling feature of our shoes. One of the factors consum-
ers take into consideration when purchasing a shoe is Style
and Quality ratings. BE has set its standards to strive for a
minimum S/Q rating of five stars. Furthermore, we invested in
TQM/Six Sigma to ensure quality of producing our shoes
and to reduce the number of rejected pairs.
Differentiating our shoes was not enough to penetrate the
market. For this reason, we adopted some low-cost quali-
ties to our strategy. To decrease our manufacturing cost,
we invested in best practice training, TQM/ Six Sigma, and
upgraded our plant. The result of these investments was our
workers were able to produce our shoes with a minimal rejec-
tion rate. Our low rejection rates demonstrated that our work-
ers were able to produce our shoes without wasting materi-
als. Thus, the cost of our materials were relatively low. Since
we lowered our manufacturing costs, we were able to lower
the price of our shoes as well. Our low prices have assisted in
inducing our consumers not to switch to rival brands.
The goal of our strategy was to create a product that made
us different from our competitors and to focus on our target
consumers that were looking for a quality and affordable
shoe that fits their lifestyle.
BE PEOPLE
Chief Executive Officer
Gabriel R. Malcolm
A Look at BE
Our Vision
Footwear Strategy
Private Label Strategy
In 2018, BE, Inc. did not focus on the private label segment. Instead, we pushed our efforts succed in the internet and
wholesale markets. In the early years, BE invested in private label with the hopes of increasing profits. In 2013, we
captured majoity of the market shares in Asia-Pacific and Latin America regions. However, allocating our resources in
the private label had a negative affect on the upcoming years. The following are negative factors on our investment in
private label:
>Manufacturing costs are highest in the industry
>Rejection rates are highest in the industry
>Material cost are highest in the industry
Overall, the private label segment did not have a postive affect on our long-term goals.
1 2 3 4 5 6 7 8
N.A 11 12 14.7 16 19.6 15.7 12.5 12.1
E.U 9.8 10.5 14 18.4 18.5 12.2 10.3 9.1
A.P 10 10 17.3 19.5 20.8 17 14.7 14.5
L.A 10 8.5 16.4 10.9 8.8 6.7 6.7 6.2
0
5
10
15
20
25
MarketShare%
Internet Segment Market Shares
1 2 3 4 5 6 7 8
N.A 9.7 15.2 12.9 13.4 17.7 19.7 17.7 18.6
E.U 11 15.2 13.9 20 17 13.9 13 12.1
A.P 10.6 1.3 15.1 18.6 17.4 19.4 20 20.8
L.A 10.5 13.3 13.8 7.9 9 5.9 5.4 6.6
0
5
10
15
20
25
MarketShare%
Wholesale Segment Market Shares
BE, Inc. Market share from Year 2011- 2018 in
the Internet Segment and WholesALE sEGMENT
2 3
Alexis K. Bailey
Chief Financial Officer
Nicole M. Liston
Chief Marketing Officer

4. Our workers are the essential ingredients to our recipe for
success. Through their productivity and efficiency, BE were
able to provide shoes to our customers in the four regions.
Not only do we want BE people to be inspired by our
company, we want our workers to feel inspired as well. For
this reason, we invested in best practices training and
work ethics training for all employees. Along with training,
we rewarded our employees with incentive pay for every
non-rejected pair. By providing training and incentive pay
for our workers, we strived to aim for low rejection rates, low
labor cost, and an increase in work productivity.
In order to stick to our focused differentiation strategy with
a low-cost provider twist, we wanted to provide all of these
different elements-training and good compensation- to
our workers by spending less on our part. Finding a middle
grand to reduce our spending and giving our workers the
best, we decided to upgrade our facilities to reduce our
rejection rates. On average, we compensated our work-
ers in our North American plant with an incentive pay of 43
cents per non-rejected pair; whereas, we compensated our
workers in our Asian-Pacific plant with an incentive pay of 25
cents per non-rejected pair. The combination of our plant
upgrade and incentive pay have positively affected our
rejection rate. From year 2011- 2018, we managed to keep
our rejection rate low compared to the industry high. In
addition, we were able to provide our workers with best
practice training, work ethics training, and incentive pay
while maintaining a low labor cost throughout the years.
Be WorkForce EB
At BE we understand to become a global leader and influence the industry we need to spend money however, we
also acknowledge that for a company to be profitable we cannot spend more than we make. We have tried to find the
happy balance between expanding our brand appeal to the four market segments we sell our shoes in (North America,
Europe-Africa, Asia-Pacific, and Latin America) to ensuring our company has enough capital to continue providing our
customers with our product. That is why at BE we paid off our second loan in its entirety in 2011, and stayed away from
taking out anyone more loans to fund expansion activities. This allowed us to spend what would have been monthly pay-
ments and interest on marketing efforts to other countries in future years.
While we have experienced negative amounts of interest paid in the 2015 to 2018, we have stronger competition in
our segmented market thus, is a direct correlation with our decline in net sales in 2016 and 2017. Furthermore, in the later
years we have been issuing dividends to create a demand for our stock, and illustrate to our investors that we may be a
small company but we are able to compete against our rivals. To continue demand for our product we have consistently
decreased the price of shoes in each of our four markets while still offering the same quality, this has allowed our company
to capture a fair share of the market. Overall, at BE we have maintained a high credit rating, pleased our investors, and
has continued to hold large sums of cash on hand to enter our new year with.
Finance Strategy
Production Strategy
Social Responsibility
0
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3
4
5
6
7
8
9
10
2011 2012 2013 2014 2015 2016 2017 2018
Percentage
Years
BE Shoes Rejection Rate vs. Industry
BE Shoes, Inc. Rejection Rate Industry-High Rejection Rate
This graph illustrates BE Shoes Recjection Rate compared
to the overal Indsutry Highest Rejection rate.
BE, Inc. desires to be viewesd as a respectable company.
We are aware of our impact on our workers, consumers, and
the environment. Our corporate social responsibility is to
ensure that our employees act ethical when making deci-
sions in our company. For this reason, we have invested on
ethics training. Also, we have implemented a work diversity
program that will positively affect our hiring process by
offering equal opportunities to work for our company. Our
social responsibility to our environment is imporant aswell.
Through our desire of having a lowcost quality shoes, we
have invested in best practices and ethics training to
ensure our workers are mindful of not wasting material. In
the recent year, we have become more enivronmentally
conscience; therefore, we invested in energy efficiency.
BE people deserve a shoe that meets their styling feature and affordable needs. Our production strategy was to create
a shoe that matched the needs of our consumers and the company’s focused differentiation strategy with a low-cost
twist. At BE, we purposely offered a few number of models to create a product line that caters to our target market. In
our Internet and Wholesale markets, we manage to limit our product line to 50 models. Limiting the models has allowed us
to spend more on styling features and superior material. To ensure that the production of our shoes was done properly,
we invested in best practices training and TQM/Six sigma. The result of these investments led to low-rejection rates, which
contributed to lowering material costs.
In the recent years, we upgraded our North America and Asia-Pacific plants to reduce rejection rates by 50% and up-
graded our equipment to boost S/Q ratings by one star. These plants have helped us reduce the cost when deciding
to increase our S/Q ratings and other factors that contribute to lowering our rejection rates. Furthermore, this has allowed
us to have enough funds to provide our workers with incentive pay. In comparison to the overall industry, we had the
lowest manufacturing costs.
4 5

5. At BE we have experienced strong financial standings over the
course of the past eight years; needless to say we have not always
had successful years; particularly in 2012 and 2014. In 2012 our
net income was $10,068 which directly affected our earnings per
share. In 2012, our earnings per share decreased to an all-time
low and were valued at $1.01. Due to our shares of stock’s value
decreasing by $1.64 our return equity was equally affected.
Surprisingly, our ROE increased to 15.35% it was not until 2014 that
we witnessed our lowest return on equity which was reported at
6.30%. By 2014 our company only had $14,696 in net income and
our earnings per share decreased to $1.48. However, in the past
three years we have recovered to exceed our average earnings
per share and return on equity. In 2017, our EPS appreciated to
$5.49 and we had a reported net income of $43,528. After our
slight dip in 2014 we have continued to grow each year. We have
continued to meet investor expectations with our earnings per share
and made strong efforts to do the same with our ROE.
Company PerformanceFinancial Summary
BE, Inc. have grown in every aspect of our operations. Our company has done well to analyze our failures and turn them
into strengths. In 2011 and 2012, BE experienced a performance drought due to the low demands of our shoes. The
reason for this failure was how we allocated our resources to various segments of our company:
>Allocating an immense amount of our resources to CSR
>Offering free shipping in our internet segment
>High usage of superior materials
In 2013 we took many steps to improve our market share and increase our profit margins. Private-label production had
become too expensive to continue to operate and we wanted to put all of our efforts into our whole sale products.
2014 was a good year for us because even though we had steady growth; being second in market share for two years
in a row put our company in a strong competitive position.
In 2015, we lead the global sales in the internet and wholesale segment which made BE the industry market leader. BE
set aside a large budget for advertising thus, becoming our competitive advantage against our competitors. In 2016,
we were able to penetrate most of the market shares under our wholesale segment in all four regions’ by lowering our
prices, increasing retail outlets, and increasing our advertising. In 2018, BE concentrated on lowering rejection rates,
keeping manufacturing cost low, and enhancing the features of our shoes.
Key Growth Areas
After our initial struggles in years 2011 to 2012
we were able to capture our market share and
have a surge of growth in 2013. The competitive
setting in our industry was causing our self and
our competitors to maintain a high S/Q rating in
combination with lower prices thus, causing some
companies to be operating with a loss. We were
one of the first companies to sacrifice an S/Q rat-
ing of eight down to a five in order to be the first
mover. In 2013, we also started to purchase back
our stocks and pay dividends to show our devo-
tion to our current investors. In 2014 to 2015 we
grew at a slower rate by being able to execute
our strategy to a level and thus allow us to be a
leader in the industry.
5 5
6
7
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5 5 5
0
1
2
3
4
5
6
7
8
Yr. 11 Yr. 12 Yr. 13 Yr. 14 Yr. 15 Yr. 16 Yr. 17 Yr. 18
BE, Inc. S/Q Ratings (Year 2011-2018)
SQ Rating
6 7

6. Company Performance Looking Forward
BE, Inc. has grown within the last ten years by creating a shoe that is fit for the everyday person. The low-cost quali-
ties we implemented into our strategy has helped us increase the demand for our shoes. Regardless, BE, Inc. has more
room to grow in many areas. Our short term goals for our company is to continue finding ways to cut costs. Thus, utiliz-
ing funds to enhance our shoe quality and to create a better working environment for our employees. Another short-
term goal BE has is to increase the incentive pay for our employees. We found that incentive pay has helped lower
rejection rates and increase productivity. If we can continue to lower our rejection rates and increase productivity,
this can reduce the number of wasted materials and increase the number of shoes we can provide to our consumers.
In order to remain competitive in the shoe industry, we will find cost efficient ways to increase our S/Q ratings. Lastly,
we would like to fuel our company financially by continuing to issue dividends and repurchase stock.
There are many aspects we need to improve on to fulfil our strategic vision of providing a quality and an afforad-
able shoe. In the long run, we would like to gain the position of being the market leader in this industry. Expanding our
brand global appeal is another step for our company’s long term development. BE will aim to find new celebrity
contracts to appeal to other consumers. Lastly, we will look to expand our shoe line. Adding more options for our
customers may increase our profits, sales and customer satisfaction.
Our company plan is to remain competitive and strive to reach our short-term and long-term goals. BE will continue to
remain competitive by offering the best price, while maintaining a high quality shoe. It is our goal to continue to meet
and exceed investor expectations. Furthermore, BE will also find ways for the company to operate in a way that is
beneficial for our environment.
Stock Analysis
BE’s stock price underwent steady growth even
though we experienced a few years of turmoil. In
those two years our stock price would not reflect
our typical growth trend. Thus, we focused on
repurchasing stock as to increase the EPS which
congruently caused our stock price to rise steadily.
Over the course of the past years we focused on
keeping and maintaining a strong credit rating
despite our SQ bursting in 2014. After 2014 we
were able to deliver to our investors’ expectations
especially in years 2017 to 2018. In 2017, our in-
vestors expected a stock price of $45 our ending
stock price that year was $75. In the following year
our stock was worth over $150 per share.
Three Year Plan
BE’s projections for our stock price were conserva-
tive because we were anticipating the competi-
tion level to continue to grow at a rate stronger
than in the previous years. Our strongest category
is our stock price which increased dramatically in
2018. Our EPS followed the same trends as our
stock price; which doubled in our last fiscal year.
However, we did not meet our expectations of
continuing to grow our image rating due to the
competition and the amount of money we needed
to invest in our operations.
$30.00$27.92
$15.88
$39.48
$21.31
$58.87
$71.21
$77.34
$152.22
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
Yr.10 Yr. 11 Yr. 12 Yr. 13 Yr. 14 Yr. 15 Yr. 16 Yr. 17 Yr. 18
Stock Price
Stock Price
$3.51 $4.88 $3.75 $5.50 $4.08 $7.57
70
61
75
59
85
58$63.00
$71.21
$68.00
$77.34 $73.00
$152.22
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
Target Actual Target Actual Target Actual
2016 2017 2018
Investor Expectations From 3 Year Plan
EPS
ROE
Credit Rating
Image Rating
Stock Price
BE
8 9

7. Total Revenue
Cost of Pairs Sold
Gross Profit
Operating Expenses
Warehouse Expenses
Marketing Expenses
Adminstrative Expenses
Operating Profit
Income from Continuing Operations
Interest Expenses
Income Taxes
Net Profit from Continuing Operations
Year Ended December 31,
2018
($000s)
$405,771.00
$(203,486.00)
$202,285.00
$27,006.00
$73,752.00
$9,594.00
$413.00
$-
$24,599.00
$57,398.00
2017
($000s)
$289,479.00
$(139,946.00)
$149,533.00
$21,907.00
$56,411.00
$9,264.00
$232.00
$-
$18,655.00
$43,528.00
Income Statement
E
Balance Sheet
For the Year Ending on December 31, 2018
Assets
Cash
Accounts Receivables
Footwear Inventory
Net Plant Investment
Construction Work in Progress
Total Assets
Liabilities
Accounts Payable
Overdraft Loan Payable
1-Year Bank Loan Payable
Current Portion of Long-Term Loans
Long Term Bank Loans Outstanding
Total Liabilities
Stockholder Equity
Common Stock
Additional Capital
Retained Earnings
Total Stockholder Equity
Total Current Assets
Total Fixed Assets
Total Current Liabilities
Beginning Balance
$000s
$12,918.00
$76,964.00
$1,412.00
$91,294.00
$156,950.00
$-
$156,950.00
$248,244.00
$000s
$12,014.00
$-
$-
$-
$12,014.00
$-
$12,014.00
Change in Yr. 18 $000s
$7,582.00
$(30,454.00)
$259,102.00
$236,230.00
10 11

8. Statement of Cash Flows
Cash Provided by Operations
Beginning Cash Balance
Cash Flows
Total Available Cash from All Sources
Cash Used by Operating Activities
Cash Used by Investing Activities
Cash Used by Financing Activities
Total Cash Outlays
Net Cash Balance
Receipts from Sales
Bank Loans
Stock Issues
Sale of Existing Capacity
Loan to Cover Overdrafts
Interest on Previous Year's Cash Balance
Payments to Materials Suppliers
Production Expenses
Distribution and Warehouse Expenses
Marketing and Adminstrative Expenses
Plant Upgrade Options Initiated
Purchase of Used Plant Capacity
Construction of New Capacity
Energy Effficiency Initiatives
Repayment of Principal Bank Loans
Overdraft Loans
Interest Payments
Stock Repurchase
Income Tax Payments
Dividend Payment to Stockholders
Charitable Contributions
1, 5, and 10-Year Loans
Total Cash Used by Operating Activities
Total Cash Used by Investing Activities
1, 5, and 10-Year Loans
Overdraft and Bank Loans
Total Cash Used by Financing Activities
Year Ended December 31,
2018
$12,161.00
$303,261.00
$-
$-
$-
$-
$413.00
$315,835.00
$49,097.00
$57,006.00
$39,342.00
$65,112.00
$210,557.00
$-
$-
$-
$4,000.00
$4,000.00
$-
$-
$-
$-
$26,382.00
$24,599.00
$37,379.00
$-
$88,360.00
$302,917.00
$12,918.00
2017
$10,553.00
$292,059.00
$-
$-
$-
$-
$232.00
$302,844.00
$53,139.00
$54,812.00
$38,341.00
$65,675.00
$211,967.00
$-
$-
$-
$-
$-
$-
$-
$-
$-
$44,982.00
$18,655.00
$79.00
$-
$63,716.00
$290,683.00
$12,161.00
12