View
412
Download
1
Category
Tags:
Preview:
Citation preview
Corporate Presentation
2012
www.princemexico.com.mx
www.princemexico.com.mx
Legal DisclaimerThis presentation contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this presentation which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, financial projections, commencement of commercial activities, joint ventures, strategic collaborations, achieving positive EBITDA, leveraging partnerships, extension of supply chain, future growth with current customers, business strategy, sales of Prince products, growth of sales and growth of the global market. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 8-K filed July 6, 2012 and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
www.princemexico.com.mx
Vision
The primary goal is to become a significant player in the sporting goodssectors within Mexico and eventually distribute Prince products into
South America.
With necessary financing, our objective is to create sales of roughly$1,900,000, $7,500,000 and $15,000,000 over the upcoming years 2013-
2015, respectively.
www.princemexico.com.mx
Overview
Exclusive distribution rights to sell Prince brand name products in Mexico and Latin America
Incorporated in 2008, and has reach strong sales growth to $525,000 annually
Seeking financing of $1.5 million to increase inventory for larger customers
www.princemexico.com.mx
The Market
Mexico is the largest country for importing sporting goods in Latin America
Over 60% market share valued at USD $266 million
Annual 1.1% population growth (equal to 1.1 million people)
Prince is a world recognized racquet and apparel branded company
Both Mexico and South America have much room for growth
www.princemexico.com.mx
History
The Prince brand was established by US based company Prince Sports Inc. in theearly 1970s
The company began with the first ever invented tennis ball machine
Later moved into highly innovative tennis racquets and equipment for otherSports
Sports include: Tennis, Squash, Racquet Ball (Ektelon), Viking Athletics and Golf
Today the Prince brand has hundreds of products sold throughout the world
www.princemexico.com.mx
Location
Central location within Mexicofor ease of distribution throughout the country
Prince Mexico &South America HeadOffice
www.princemexico.com.mx
Product Description
A strong reputation for its innovative technology over the years
Large product line including racquets, clothing, apparel and accessories
Racquets are built with a larger sweet spot, innovative string technologyand an improved weight/power ratio compared to other competitor racquets
Association with professional tennis players
Reputation as one of the worlds leading brands, and the innovative technology that goes into its products.
www.princemexico.com.mx
Product Description – EXO3 Racket
Currently an example of one of Princes best-selling tennis racquets is the PrinceEX03 Tour 100 tennis racquet
The current flagship EX03 racquet captures over 26% of wasted energy on impact,providing a stronger hit
Its patented graphite energy bridge is built-in to its innovative design, which cutsframe vibration by 20%, improved spin and boasts a 83% bigger sweet-spot thanother racquets
Prince racquets also use larger holes rather than grommets which reduce vibrationand increase the sweet spot
www.princemexico.com.mx
Top Professional Athletes Choose Prince
Some of the top ranking tennis athletes in the world choose Prince:
Player Racquet Nationality RankMike Bryan EXO3 Rebel 95 USA 1
Bob Bryan EXO3 Rebel 95 USA 1
David Ferrer EXO3 Tour 100 ESP 5
John Isner EXO3 Warrior USA 10
Marion Bartoli EXO3 Warrior FRA 11
Taylor Townsend (Junior) EXO3 Tour 100 USA 1
Kimmer Coppejans (Junior) EXO3 Rebel BEL 1
www.princemexico.com.mx
Professional Athletes – ATP
Player Racquet Nationality Rank
Pablo Andujar EXO3 Tour 100 ESP 40Facundo Arguello EXO3 Rebel 95 ARG 229Ruben Bemelmans EXO3 Rebel 95 BEL 121Alex Bogomolov EXO3 Tour 100 USA 62Johan Brunstrom EXO3 Rebel 98 SWE 80Rik De Voest EXO3 Tour 100 RSA 171Juan Carlos Ferrero EXO3 Tour 100 ESP 66Marcelo Granollers EXO3 Tour 100 ESP 25Christopher Kas EXO3 Rebel 95 GER 40Xavier Malisse Diablo BEL 57Julien Roier EXO3 Tour 100 AHO 20Viktor Troicki EXO3 Tour 100 SER 23James Ward EXO3 Rebel 95 UK 254Albert Montanes EXO3 Tour 100 ESP 114
www.princemexico.com.mx
Professional Athletes – WTA
Player Racquet Nationality Rank
Marion Bartoli EXO3 Warrior FRA 11Mona Barthel EXO3 Tour 100 GER 39Jana Cepelova EXO3 Black 100 SVK 103Daria Gavrilova EXO3 Tour 100 RUS 241Daniela Hantuchova EXO3 Tour 100 SVK 35Patricia Mayr EXO3 Tour 100 AUT 151Shahar Peer EXO3 Warrior ISR 57Lisa Raymond EXO3 Tour Lite USA 1Silvia Soler-Espinosa EXO3 Tour 100 ESP 59
www.princemexico.com.mx
Who’s Next Campaign – Junior Players
Prince’s Who’s Next Campaign focuses on the next professional athletes:Player Racquet Nation Player Racquet NationTaylor Townsend EXO3 Tour 100 USA Jozef Kovalik Ozone Tour SVKKimmer Coppejans EXO3 Rebel BEL Jason Kubler Ozone Tour AUSRomain Arneodo EXO3 Rebel FRA Josie Kuhlman EXO3 Rebel 95 USABrooke Austin Original Graphite USA Oleksander Lebedyn EXO3 Rebel 95 RUDAndre Biro EXO3 Rebel 95 HUN Polina Leikina O3 Speedsport RUSCarlos Boluda EXO3 Tour 100 ESP Robert Levine EXO3 Rebel 95 USAHunter Callahan EXO3 Rebel 95 USA Patricia Martins EXO3 Black 100 PORJordan Daigle EXO3 Tour 100 USA Oliver Nagy EXO3 Rebel 95 SVKAndie Daniell EXO3 Ignite Team USA Hernus Pieters EXO3 Ignite Team RSAJulia Elbaba O3 White USA Enzo Py EXO3 Black 100 FRAOliver Golding EXO3 Rebel 95 UK Omar Salman EXO3 Rebel 95 BELJuan Sebastian Gomez EXO3 Rebel 95 COL Charlene Seateun EXO3 Black 100 FRAJaden Grinter EXO3 Rebel 95 NZL Ronnie Schneider Original Graphite USARichel Hogenkamp EXO3 Rebel 95 NED Frederico Silva EXO3 Graphite PORWhitney Kay O3 White USA Chanelle Simmonds EXO3 Black 100 RSAIrina Khromacheva Ozone Seven RUS Chantal Skamlova EXO3 Black 100 SVK
www.princemexico.com.mx
Customer Benefits
Leading Edge Technology – Patented technology that offers consistent innovationand edge over competitors brands
Trusted brand – sponsors top tennis professionals
Convenience – Customers can purchase Prince products online 24/7, or through alarge range of popular retail outlets
Attractive Packaging – Prince brand products come in high-quality, well-designedpackaging for maximum appeal for customers
www.princemexico.com.mx
Expansion – In Mexico
Huge upside expansion potential in Mexico
Required increase in inventory
Larger retailers will not negotiate or discuss orders unless the product is in theirwarehouse, in Mexico
Goal is to ship 4 containers per year, or once per quarter
www.princemexico.com.mx
Current Customers
WalMart Mexico wholly owned subsidiary of Walmart USA, over 2000 locations
Sears Mexico wholly subsidiary of Grupo Carso, owned by Carlos Slim Helu
Liverpool department store chain in Mexico, over 195 locations
Marti large sport store in Mexico with hundreds of locations
www.princemexico.com.mx
Financing
Minimum of USD $1.5 – 5 million
Purchase more inventory to supply the growing demand of our major retail clients
$1.5 million worth of product per container shipment every quarter
Payment is received every 90 days with larger retailers
Short term goal is to distribute one container per quarter
www.princemexico.com.mx
Financing
Issuing up to 6M shares @ $0.25 (or 14% of company)
Values company at $10.5 million.
Based on 2013 projected revenues company will have earnings of $2M
A conservative 10X earnings multiple values company at $20M
Many companies that market themselves well have 20X multiples or higher
www.princemexico.com.mx
Financial ProjectionsPrince Mexico Pro-forma Income Statement
Total Total Total Total TotalPeriod Starting: 2011 2012* 2013* 2014* 2015* Net Sales $527,788 $559,785 $7,500,000 $15,000,000 $22,500,000 Cost of Sales $388,384 $480,067 $5,250,000 $10,500,000 $15,750,000 Gross Profit $139,404 $79,718 $2,250,000 $4,500,000 $6,750,000
Expenses Administrative and selling
expense$200,886
$300,657$220,975 $276,218 $345,272
Total Expenses $200,886 $300,657 $220,975 $276,218 $345,272 Net Income -$219,795 -$91,742 $2,029,025 $4,223,782 $6,404,727
*Pro-forma figures
www.princemexico.com.mx
Expansion – South America
Planning to distribute certain Prince products with the following countries:
BrazilColombiaPeruEcuadorVenezuela
Expansion into these markets will simultaneous with expansion in MexicoIf inventory not available, will service larger retail clients in Mexico first
www.princemexico.com.mx
Accomplishments
Successfully surpassed Prince Sports Inc. (USA) sales requirements 5 years straight
Successfully introduced products to new tennis clubs and larger retail chains
Completing RTO transaction to go public and access funding for expansion
Building relationships and selling to largest retailers in Mexico
WalMart Mexico, Sears Mexico, Liverpool, Marti
www.princemexico.com.mx
Management & TeamFco. Duncan A. Forbes Mol. IIIDirector Generalfduncan61@princemexico.com.mx
Paul RomeroGeneral Managementpaul_hromero@princemexico.com.mx
Paloma BarraganAdministrationpbarragan@princemexico.com.mx
Hugo Barajas SanchezSystems and Logistics Managersistemas@princemexico.com.mx
Lucia RodriguezAccounts Receivablelucia.rodriguez@princemexico.com.mx
Sergio AlvarezHead of Warehousesalvarez@princemexico.com.mx
Marcos MéndezSales Squash City and Metropolitan Areammendez@princemexico.com.mx
Dieguez AndoniCity and Metropolitan Area Salesadieguez@princemexico.com.mx
www.princemexico.com.mx
Management & TeamAntonelloDistributor Baja California Surbali_italtropico@yahoo.com
Alberto GallegosMarketing and Sales Manageralberto.gallegos@princemexico.com.mx
Thais RomeroSales Executivet_romero@princemexico.com.mx
Allan FletesSales Executiveafletes@princemexico.com.mx
Olga VasquezDF Salesolga.vazquez@princemexico.com.mx
Francisco ColoresDF Salesfcolores@princemexico.com.mx
Enrique PrietoDistributor Culiacanquiqui.prieto@princemexico.com.mx
Gustavo PrietoDistributor Culiacantavo.prieto@princemexico.com.mx
www.princemexico.com.mx
Share Structure
Issued & Outstanding:43,000,000
Restricted: 22,000,000
Float (free trading): 21,000,000
www.princemexico.com.mx
Why Prince?
Dedicated team with proven results over the past 5 years
Sales Growth with positive cash flow expected soon
Geographic Location
Large growth opportunity through expansion in Mexico and South America
www.princemexico.com.mx
Corporate Information
Lopez Cotilla No. 829 Int. 1 Col. Americana C.P. 44160Guadalajara, Jal., Mexico
(+52) (33) 3827 0727
info@princemexico.com.mx
www.princemexico.com.mx
Recommended