Enjoy Life in Style

Investor Presentation August 2015

Safe Harbor Statement

This presentation contains "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Securities Litigation Reform Act of 1995.

Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, and other factors.

Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking statements contained in this presentation.

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At a Glance – Nova LifeStyle

• Founded in 1996 as a result of a merger between Nova, and Diamond Sofa 

• IPO in 2011

• Rapidly growing designer, manufacturer and distributor of branded and third party modern LifeStyle furniture

• Industry innovator and niche leader in the U.S. and abroad, e-commerce presence in the U.S. and China.

• Quality OEM manufacturer, with a growing e-commerce presence in the U.S. and China.

• LifeStyle furniture brands include: Diamond Sofa, Colorful World, Giorgio Mobili, Bright Swallow and others

• Products manufactured in the U.S. and Asia and marketed worldwide

* As of August 2015

Ownership

At a Glance

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Shares Outstanding 24.0 million

Insiders a. 58%

Institutions a. 9.5%

Free Float a. 32.5%

Top Institutional Holders

Heights CapitalHudson bayVanguard GroupRBC CapitalGrace & WhiteSBAuer FundBlackrock Fund Advisors

Ticker (NASDAQ: NVFY)

Stock Price * $2.50

Shares Outstanding 24.0 million

Market Cap * $60.1 million

Avg. Daily Trading Volume (90 days)

259,500

Corporate Headquarters Commerce, CA

Employees 700

Chris Steadman - Director of Internet Sales• Responsible for all internet sales related transactions at Diamond

Sofa, with more than 20 years of sales experience

• 13 years of experience at QVC: in areas of Crafts and Leisure,

Cooking and Dining, Home Improvement, Home Accents and

Furnishing, Sports and Fitness

• Bachelor’s degree from Temple University

Global Leadership Team

Tawny Lam - President, Chairperson of the Board of Directors

• Joined in 2011

• CEO and co-founder in 1992 of Diamond Sofa in Commerce,

California

• Extensive experience in U.S. furniture product marketing

• Bachelor of Science in Business and Finance from California State

University, Los AngelesMark Chapman - VP, Marketing• Sales Manager of Diamond Sofa since 2004

• 20 years of experience in the furniture industry

• Previously Director of Purchasing for ACE TV Rentals, Central

Rents and Day Page

• Graduated from Augustan College with a Bachelor of Science

Degree in Business Administration Management and Marketing

Jeffrey Wong – CEO, Co-Founder•22 years of experience in the furniture industry

•Vice-Chairman, Dongguan Furniture Association

•Director, the International Furniture and Decoration (Hong Kong) Association

•Graduated from Hong Kong Victoria Technical College

Sammy Ho - CFO, Co-Founder• 19 years of experience in the furniture industry

• Bachelor's degree from St. Mary's University

• MBA from The Chinese University of Hong Kong in 1990

Michael Barton - California Sales Director

•30 years experience in furniture design, owned lighting design and manufacturer- Pacific Coast Designs from 1982 to 1991

•Sales team management for Good Companies Inc. from 1984 to 2006

Nova LifeStyle was formed through the merge of Nova Furniture, which was founded in 1993 by Jeffrey Wong (CEO), Sammy Ho (CFO) in China and Diamond Sofa, which was founded in 1992 by Tawny Lam (President) in the U.S.

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Investment Highlights

• Publicly-held home furnishing company with substantial exposure to both Asian and North American markets

• Distribution channels to fit different market needs: • B2B (Enterprise clients, wholesale)• B2C (franchise, E-commerce platform)

• Continuous creativity: Active participant in industry conventions with new design every year

• Low valuation compared to other publicly-traded home furnishing peers • (Trailing P/E at 3.75)

• Experienced management team

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Who is Nova LifeStyle?

• U.S. Based, Publicly-Held Home Furnishings Company

• Fully Integrated Design-To-Production Business Model: Customizable, Fast and Flexible

• Growing Customer Base: Customers in U.S., Europe and Asia

• Recurring Orders from Well-known Customers: Nebraska Furniture Mart, a Berkshire Hathaway Company in the U.S.

• Direct Access to China Middle Class through Wholesale and Franchise Store Locations

• Product Variety and Design: NOVA Brands Cover All Aspects of Household Furniture

• Leveraging Manufacturing Capabilities in China to Deliver Globally

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Our Brands, Products & Innovations

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Products:• Leather upholstered furnishings

• Living room seating, sofas, loveseats, recliners, sectionals and accent chairs

• Urban beds and latex sleep mattresses

• Coffee tables and bar stools

• TV stands, display shelving and room dividers

• Diverse bedroom and dining collections

• QwiK office cabinets and storage (USA only)

• Office furniture: desk, credenzas, cabinets, shelving and storage (Europe, UAE & Asia only)

USA Europe & UAE Asia

Delivering Modern LifeStyle Solutions to Customers

Milestones and Key Events: 2014 - Present

Jan

Began trading on the

NASDAQ

Signed agreement with Ping An Insurance Group, #62 on

Forbes Global 2000 list of the largest companies in the world

Aug

Secured commitment letters from over 100

quality furniture brands to be sold on e-

commerce site

Initiated development of Mobile App of

e-commerce site

Jul

Established partnership to open new franchise stores in China with Ablejoy, one

of China's largest franchise operators

Fulfilled initial purchase order

with IKEA China

Sep

Added to the Russell

MicroCap® Index

Jun

Mar

Began development of e-commerce site

aimed at the China market

Oct

Dec

Raised $8.95m in a registered direct

placement

IKEA Product

Line Expansio

n

Jan

Repeat Purchase

Orders from Nebraska

Furniture Mart

Feb

20152014

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Nova LifeStyle’s Annual Sales by Geography

North AmericaEurope

AsiaN. America revenues as a percentage of

total salesFY 2014

46%Sales increase in

N. AmericaFY 2014 vs. 2013

65%20%

Sales decrease in Europe

FY 2014 vs. 2013

14%Sales increase in

Asia FY 2014 vs. 2013

12%Europe revenues as

a percentage of total sales

FY 2014

23%Asia revenues as a percentage of total

salesFY 2014

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Sales: U.S. and Canada

Nova LifeStyle: US Sales and Distribution•Wholesale to numerous stores ranked in the top 100 furniture companies in the U.S. with both storefronts and e-commerce sales venues

•Showrooms: Los Angeles, CA, Las Vegas, Nevada; & High Point, North Carolina

•Key North American trade shows and conventions

•Canadian distribution through The Brick.

Growing North American Market Need• Furniture Today's Top 100 U.S. furniture stores posted a 7.8% increase in furniture, bedding and accessories sales in

2013

• Revenue grew to a combined $34.1 billion, up from $31.7 billion

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Sales: China and Other Asia Territories

Nova LifeStyle: China Sales and Distribution• Profitable and fast-growing franchising model

• Strategic store placement

• Direct design and manufacturing capabilities

• Key international trade shows and conventions

• E-Commerce websites: Tmall and JD.com

China Market• Higher profit margins through direct sales in China 100+ franchisees in China since 2010, with a future goal of 200 locations

• Chinese furniture factory orders rose 5% in June with shipments ticking up by 4% according to Furniture Today August 29, 2014

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Launch of Nova LifeStyle e-Commerce Site –

Only Dedicated Online Furniture Site in China

Sales: Europe, U.A.E. and Other Territories

Nova LifeStyle: European / Other Sales and Distribution•Strong presence in the European markets both in stores and on e-commerce websites

•Clients are primarily major retailers

•ODM / OEM capabilities

•Urban contemporary style in high demand

European Market Trends• According to Euromonitor International’s Aug 2014 report, e-commerce sales growth has soared by 127% in current value terms over the past five years

• Products compliment consumer preferences for “urban contemporary”, smaller homes and apartments and trend of loft-style open look

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Global Customer & Sales Channels

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Strong Manufacturing Capability

• Fully owned 1.1 million square foot manufacturing facilities in Dongguan, China

• Annual production capacity of approximately 316,000 units

• Updated production line, which meets IKEA's stringent specifications 

• 60,000 square foot warehouse that houses the QuickShip Program

• Over 700 talented, dedicated and creative staff

• Products and collections designed to appeal to consumer preferences in specific markets

• Flexible logistics, manufacturing and delivery capabilities

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State-of-the-art Production Facilities Woodworking

Powder Coating

German Schelling Cutting Machines German Schelling Cutting Machines

Board Pressing Board Pressing

Upholstery

Board SizingBoard Sizing

UV Automation

Warehousing and Distribution

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Marketing Strategy

• All furniture offerings supported by sample display showrooms, brochures and online marketing

• Franchise network in China to increase brand awareness among middle and upper middle-income consumer

• Participate in trade key exhibitions globally

• Multiple high profile advertising options to promote modern LifeStyle furniture

Nova Exhibits at the Las Vegas Market

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Near and Long Term Growth Initiatives (2015-2016)

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• Expand Partnerships and Increase Sales Contracts

• Create Innovative Designs Tailored to Each Market

• Launch Dedicated e-commerce Platform to Target the China Market

• Growth through Mergers and Acquisition

• Increase Sales of Higher-Margin Branded Products

• Leverage e-commerce platform currently in development

• Grow sales of high-margin “Made in U.S.A.” furnishings and latex mattress in China

• Grow sales of modern and stylish upholstered beds with American fabric

• Expand Global Distribution

• Further penetration of “Top 100” furniture stores in the US

• Increase e-commerce sales in China and the U.S.

• Increase direct sales of NOVA branded furniture via 200 franchises strategy

Revenues ($ in mm)

Net Income ($ in mm) Earnings per Share

Financial Snapshot – Annual Trends

2014 Revenue and Income Growth is a Result of Recent

Investment in Sales and Marketing Initiatives and the Acquisition of Bright Swallow

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Financial Snapshot – Quarterly Trends

Revenues ($ in mm)

Adjusted Net Income ($ in mm)*

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Second Quarter 2015 Corporate and Financial Highlights: Net sales were $29.2 million, an increase of 13% compared to the prior

year period.

Gross profit was $5.2 million, an increase of 4% compared to the prior

year period.

Gross margin was 18%, compared to 19% in the prior year period.

Adjusted net income*, which excludes the change in fair value of

warrant liability, increased to $1.6 million, or adjusted diluted EPS of

$0.07 per share, compared to $1.1 million, or adjusted diluted EPS of

$0.06 per share, in the prior year period.

In April 2015, the Company completed a $4.0 million registered direct

placement of common stock. 

* The Company reported a change in fair value of warrant liability of ($1.7 million), which impacted net income for the second quarter despite a 14.0% increase in operating income.

* Net loss was $0.1 million, or $0.01 per diluted share based on 22.0 million shares outstanding, compared to net income of $3.4 million or $0.16 per diluted share based on 20.5 million shares outstanding in the prior year period.

Peer Data – NVFY Performance / Valuation

Full Peer List of Furniture MakersSource: Company Filings / Bloomberg

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Ticker Name Price Mkt Cap Net Sales TTM Net Sales - 1 Yr Growth % NI TTM EPS EPS - 1 Yr Growth % P/ELZB La-Z-Boy Inc 25.08 1,274$ 1,425.4$ 5.0 70.8$ 1.35$ 17.1 19.61

LEG Leggett & Platt Inc 47.7 6,527$ 3,914.2$ 8.8 218.2$ 1.52$ 23.6 23.98

BSET Bassett Furniture Inds 31.89 347$ 384.3$ 6.1 16.4$ 1.54$ 83.3 20.14

HNI Hni Corp 49.28 2,186$ 2,353.1$ 7.9 73.0$ 1.61$ -2.8 23.95

MLHR Herman Miller Inc 28.48 1,704$ 2,142.2$ 13.8 97.4$ 1.62$ NA 16.3

FLXS Flexsteel Inds 39.74 296$ 456.7$ 13.6 22.2$ 2.89$ 10.7 13.77

ETH Ethan Allen Interiors Inc 30.59 886$ 754.6$ 1.1 37.1$ 1.28$ -12.8 20.99

STLY Stanley Furniture Co Inc 2.97 44$ 59.8$ 3.5 (1.5)$ (0.12)$ -30.2 13.92

HOFT Hooker Furniture Corp 24.42 264$ 243.9$ 7.0 13.3$ 1.23$ 58.1 19.85

Minimum 2.97 44$ 59.8$ 1.1 (1.5)$ (0.12)$ -30.2 13.77

Average 31.13 1,503$ 1,303.8$ 7.4 60.8$ 1.44$ 18.38 19.17

Median 30.59 886$ 754.6$ 7.0 37.1$ 1.52$ 13.9 19.85

Maximum 49.28 6,527$ 3,914.2$ 13.8 218.2$ 2.89$ 83.3 23.98

NVFY Nova Lifestyle Inc 2.54 61$ 99.0$ 25.98 8.2$ 0.40$ 61.5 7.34Comparison to Average Above Above Lowest in Peer Group

Investment Conclusions

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• Publicly-held home furnishing company

with substantial exposure to both Asian and

North American markets

• Various distribution channel to fit different

market needs: B2B (Enterprise Clients,

Wholesale) B2C (Franchise, E-commerce

Platform)

• Low valuation compared to other publicly-

traded home furnishing peers (Trailing P/E

at 7.3X)

Company Showroom at 2015 Las Vegas Market

ContactsNASDAQ: NVFY

Corporate Headquarters

6565 E. Washington Blvd.

Commerce, CA 90040 USA

Tel: (323) 888-9999

www.novalifestyle.com

IR Contact:

The Equity Group Inc.

Adam Prior

Tel: (212) 836-9606

Email: Aprior@equityny.com

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