Everyone · About Us Page 1 Technology for everyone • Mr. Enrique Cosío is a Technical Communications Engineer with 35 years’ experience in the world of electronics. • 1989:

Technology for Everyone

Investor Presentation

v13

About Us

Page 1

Technology for everyone

• Mr. Enrique Cosío is a Technical Communications Engineer with 35 years’ experience in the world of electronics.

• 1989: He started the import and distribution of electronic components of American and Asian brands (currently,

market leaders) in Spain. This earned him many contacts and technological alliances, which are still kept today

and which were key in the development of the telecommunications sector in Spain and Latin America.

• 1996: Mr. Cosío set up NPG and together with an American-Chinese multinational, they have been opening offices

in Spain, France, Portugal, Germany and Italy and have become the main shareholder in Europe.

• 1997 y 1998: NPG led the Telecommunications Sector (Modem Fax), being number 1 in sales in Spain,

Portugal and number 3 in France.

• 1998: Together with Telefónica, as hardware provider (modem), NPG played an important role in the development

of ADSL and Terra.

• 2002: Mr. Cosío began his solo journey heading NPG.

• 2009 - 2011: Number 1 in DTT receivers sales in Spain.

• NPG was the major supplier for the DTT receivers sold to the Public Administration.

• 2011: NPG entered the world of LCD and LED television by opening its assembly plant in Torrejón de Ardoz

(Madrid).

• 2012: NPG started up a new production plant and R+D Department in China.

• Currently, NPG’s sales network operates in Europe, Latin America and China, with headquarters in Spain,

Colombia and Canton.

• 152 people work permanently and up to 300 people occasionally in the NPG Group.

Technological Alliances We keep strong alliances with the main Chipset and Software Multinationals

Licences

Standards and Respect for the environment

We comply with all international standards and certification requirements

Alliances

Page 2


(in process)

DOLBY

(Previously Philips)

• Both DFC Group BVBA and Inversiones Norcen S.L. are 100% controlled by Mr. Enrique Cosío

NPG Shareholding Structure

Page 3


51%

49%

Before Investment

DFC Group Inversiones Norcen

38%

37%

25%

DFC Group Inversiones Norcen MAB

After Investment (* Approximate Values)

Competitive Advantages

Page 4


• NPG, leader and first manufacturer of Smart TV powered by Android

• The NPG Smart TV is customizable and adaptable to any customer and market

• Thousands of Android free apps for your TV

• Smart TV is being the trend for the next years

• The only Spanish manufacturer with its own R+D Department and 15 engineers (over 10% of the

staff)

• The only Spanish company with its own factories in China (Zhongshan) and Spain (Madrid),

designed according to the Japanese standards and production control.

• Local representation and after-sales service

With the NPG Smart TV you will have:

The best of TV The best of Internet

http://smarttv.npgtech.com/

NPG Spain Headquarters (Europe) Marketing and Sales

Engineering (R+D)

Technical Department and Call Centre

Factory

Total surface 6,690m2

Production capacity 90,000 units/month

Employees 60 – 110

Stocking capacity 1,330 pallets

NPG China (Asia) Marketing and Sales

Engineering (R+D)

Factory

Total surface 1,810m2

Production capacity 120,000 units/month

Employees: 100

In the pipeline:

Assembly line SMT with two state of the art

lines

Start-up of the TFT LED Panels assembly

line, based on OPEN CELL

DFC Portugal

Commercial Branch

DFC France

Commercial Branch

Where We Are?

Page 5


We Deal Mainly with Highly Demanded Products

Page 6


Sound and

Home Cinema Multimedia DTT Players

LED TV / Smart TV /

Plasma TV

Portable DVD

and TV

Tablets and

Smartphones Smart TV Box

Low Concentration and a Diversified Portfolio of Clients

Page 7


Top 10 Ranking Clients 2011-13

Nombre %

El Corte Inglés, S.A. 18,85

Ticnova Quality Team S.L. 10,95

Alcampo S.A. 9,85

Telecor S.A. 5,56

Alcampo Portugal 3,60

Bricodis S.A. (AKI) 2,55

Informática Megasur, S. L. 1,60

Carrefour S.A 1,52

Bcm-bricolage S.A. 1,31

Leroy Merlin S.L.U. 1,23

Evolución Cartera Clientes 2011-13

Año Cartera Clientes

2010 243 Clients

2011 292 Clients

2012 271 Clients

2013 284 Clients

• Average payment period – 45 days from date of invoice

• Overdue payment 0% - credit sales are guaranteed. If the riks is not covered by the insurance company,

sales are pre-paid.

NPG in Mass Media

Average of daily readers: more than 250.000

people see our adverts

We have the leadership in promotions that Spanish

written press launches for its readers.

Reasons:

Competitive price.

Quality. It’s critical for the newspaper thereby it’s

way of build loyalty and not a way of making money

(the low quality products and services generates

complaints).

Spanish publishing groups are potential distributors

of NPG products in Latin America

Page 8


Computers Magazines

Computers Journals

Telecommunications Sector Magazines

Consumer Electronics Journals

Other Media Press Promotions

We were leaders of the Spanish Analog Switchover – Sales Evolution

0

2

4

6

8

10

12

14

16

18

20

2005 2006 2007 2008 2009 2010 2011 2012

Analog

Switchover

in Spain

Mil

lio

n €

Page 9


DTT sales evolution of the main manufacturers (M€)

2008 (Total/DTT)

2009 (Total/DTT)

Personal Grand Technology (NPG) 6.98 5.6 19 17.5

Engel Axill 37.44 9.3 56 16.7

Philips Ibérica (Consumption and Lifestyle) 445 15.3 254 15.2

Gigaset Communications Iberia (Siemens-Gigaset) 34 15.4 42 12.8

Worldwide Sales Corporation (Best Buy) 16.32 6.14 27 12.11

Afax Suns (Sunstech) 28.15 5.6 26 8.1

Blusens Global Corporation 70 10.5 100 5.9

Lineas Omenex Metronic (Metronic) 7.07 5.2 9 4.2

Nevir 19.8 1.56 20 3.76

Fagor Electrónica 56 2.8 50 2.5

Infinity Sistem (Airis) 250 1.46 250 1.67

Televés (Consumption Devision) 105.63 1.68 95.7 1.5

Sanyo 45 2.9 11.3 0.7

Hauppauge 4.2 0.5 4 0.5

Grupo ETCO (Fersey) 7.5 0.3 7.8 0.3

Dexxon Spain 4 0.2 3.5 0.17

Sales Mix Evolution

0%

50%

100%

2009 2010 2011 2012

OTHERS 16" - 24" TV 26" - 40" TV Portable TV DTT Receivers

Page 10


Our company’s breakthrough was made

possible by taking advantage of the

Analog switchover in Spain.

We enter the TV segment immediately.

The result:

Doubled turnover comparing to 2008.

Entered a larger market segment and

more stable in the medium and long term.

We repeated our commercial strategy

successfully during the Analog switchover

in Portugal. % o

ve

r th

e s

ale

s in

€

Our Commercial Strategy – We Have Successfully

Implemented It in Portugal

The Analog switchover started on April of 2009 and was

completed on April of 2012.

We entered the market with DTT receivers and TVs,

simultaneously.

0

0,5

1

1,5

2

2,5

2011 2012

DTT Receivers TV Others

Sale

s in M

M €

In 2012 we changed

the sales mix and

experienced a sales

growth of 8% * There is an important difference

between Portugal and Spain: in Portugal

the pay television covers a 30% of the

market and it keeps on continuously

growing. It is more similar to Latin

America than Spain.

Page 11


Profitability by Sector – Products

Page 12


0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

14,00%

8.54% 7.23%

12.17%

EBITDA Sectors 2011-2013

Consumer

Electronics Press

Promotions

Computers

NAME

GROSS

MARGIN

Smart-multimedia 18.09%

TABLET PC 21.54%

SOUND BAR 13.29%

TV (16" - 24“) 13.75%

TV (29" - 40“) 12.89%

SMART TV 17.97%

PORTABLE TV 20.55%

DTT – SD 18.10%

DTT - HD 9.79%

MULTIMEDIA 20.02%

Margin by Product Range

Our Competitors

They aren’t the big brands

In Spain, LG, Samsung, Sony and Panasonic share a 73,3% of the TV

market

Besides them, there are plenty of competitors (Nevir, Thompson, Grundig,

Blaupunkt, Haier, I-Joy, Hisense, Toshiba…) who, at the most, cover a 2%

of the market. NPG is competing with them, successfully: we are growing

in a shrinking market.

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

2009 2010 2011 2012

Evolución ventas TV de NPG (miles de €)

0

500

1.000

1.500

2.000

2.500

3.000

CRT LCD PDP

Evolución del mercado de TV en España (millones de €)

Fuente: Gfk Forecast Diciembre 2013

Page 13


Market validation in Spain, considering that it reached the bottom and it

rounds about 1.300 millions of euros and 3,3 millions of devices.

Global Market Data

Page 14


Source: Gfk Forecast December 2013

100% Technological Expense in Spain,

2013:

• 82% Hardware (TV, Phones, Computers, etc.

• 18% Software

33%

23%

14%

13%

13%

13%

8%

6%

7%

4%

4%

4%

3%

4%

2012

2013

Adapted charts based on Gfk Forecast Diecember 2013

Page 15


Actors have been disappearing off: NPG gets to hold a larger market share - 1%.

There is a real possibility of reaching a 5% depending on the liquidity and

considering that we count on,

• Real market demand

• Innovating product with emerging perspectives

• New customers input (Worten, Darty Group, Mediamarkt, etc.)

30.60%

1.00%

4.10%

4.80% 8.00%

29.50%

4.10%

17.90%

TV SALES IN 2013

LG NPG OKI PANASONIC

PHILIPS SAMSUNG SONY OTHERS

28.30%

3.70%

5.20%

8.30% 27.40%

27.10%

TV 18" – 24’’ SALES IN 2013

LG NPG OKI PHILIPS SAMSUNG OTHERS

PTV/FLAT LCD Units

Brands segmentation PTV/FLAT LCD Sales Units %

18-23,9”

The small local brands hold a 25% of the small inches market (18’’-

24”) from which, NPG has a 3,7%.

Page 16


With Smart TV, NPG places itself among the first five brands holding a 2,2% of share market and operating a very strong penetration (16%)

on the IT channel.

39.60%

2.20%

32.30%

7.00%

4.80%

11.70% 2.40%

SMART TV SALES IN 2013

LG NPG SAMSUNG SONY PHILIPS PANASONIC OTHERS

54.20%

16.21%

21.40%

8.19%

SMART TV SALES IN 2013 IT CHANNEL

LG NPG SAMSUNG OTHERS

PTV/FLAT Spain December 2013

Smart TV Sales Units %

PTV/FLAT Spain December 2013

Smart TV Sales Units %


Page 17


Smart technology is gaining ground on the market (33.2%). Small inch Smart TV represents a 4%, shared by Samsung and NPG, where NPG holds a 22%.


67.20%

22.00%

5.30% 3.00% 2.50%

SMART TV 18" - 24" SALES IN 2013

SAMSUNG NPG OKI PHILIPS OTHERS

90.90%

36.40% 43.30%

70.60% 67.70%

60.70% 55.70% 24.50% 29.10%

9.10% 2.90% 1.00% 4.90% 3.20%

SALES EVOLUTION OF SMART TV

18" - 24" IN 2013

SAMSUNG NPG OTHERS

JAN-AGO 13 SEPT 13 OCT 13 NOV 13 DEC 13

NPG launched onto the Smart TV market in September, 2013. The fourth trimester of

the year, looses it temporarily , due to the stand-by produced by the flotation on the

MAB, foreseen for December. The first trimester of 2014, NPG regains the lost market.

PTV/FLAT Smart TV December 2013

18”-23,9” Sales Units %

Page 18


NPG helds an 11% market share within a stable replacement market of 1 million devices.

9.90%

11.10%

7.70%

22.60%

5.80% 4.90%

2.60%

35.40%

SET TOP BOXES SALES IN 2013

AXIL NPG ENERGY SIST BEST BUY NEVIR SUNSTECH ENGEL OTHERS


SET-TOP-BOXES BRANDS SEGMENTATION December 2013

Sales Value %

Page 19


Development Project

General Information of Interest

The entire Latin America is currently in process to switchover to digital technology for TV within the next few years by Government imperative.

As indicated in the attached table, in 2017, about 95 million households will

have access to DTT and will have switched over to digital TV.

The sale of consumer electronics products in the emergent countries (China,

India and Latin America) went from 37% of the world total to 46%, in 2012.

(Gfk for CES 2012).

The receivers market will be very important because the DTT target market

in Latin America is a segment of population, mainly out of the consumer credit

system and whose incomes barely cover their basic expenses (Source: Horacio

Gennari; CEO Business Bureau; 2012).

According to GFK, HD televisions are the second most popular electronic

product.

THE ANALOG

SWITCHOVER IN LATIN

AMERICA

2015 Mexico, Uruguay

2016 Brasil

2017 Chile

2018 El Salvador

2019 Colombia, Venezuela

2020 Argentina, Peru,

Bolivia, Ecuador

2021 Panama, Honduras

Latin America Spain Portugal1

Population 577 45 11

Households nº 156 16 4

NPG sales with the analog switchover ? 38 7

Sales / Households nº ? 2,375 1,75

Figures in millions

1 Sales in Portugal include forecast from 2013 Switchover year + previous and next

Page 20

Technology for everybody

Analog Switchover – a Business Opportunity

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

2005 2006 2007 2008 2009 2010

Th

ou

sa

nd

s PRESS NPG SHARE RETAIL

150,000

435,00

200,000 180,000

2,050,000

1,545,000

ANALOG

SWITCHOVER

MAY 2010

22%

16

% 5% 5.5%

12.4

% 5.9% 200,000

800,000

2,450,000

4,200,000

5,570,000

Press DDT press = 1,155,000 units (NPG share = 70 %)

VENEZUELA 2020

PERU 2020

COLOMBIA 2019

ARGENTINA 2019

COSTA RICA 2018

ECUADOR 2017

CHILE 2017

PUERTO RICO 2017

BRASIL 2016

MEXICO 2015

URUGUAY 2015

DDT sales through all channels = 17,780,000 units (NPG share = 13%)

* Spain population 46 M/Inhab.

Comparative chart among implementation periods in Spain and LATAM

Year Spain

Page 21


LATAM: Operations Structure and

Head Office in Colombia

R + D

• Concept

• Provider selection

PURCHASE and elements assembly

Assembly and distribution of the final product

Why choose Colombia?

Strategic position in the continent.

Key element in the Pacific Pact

Stable economy and costs-competitive

Page 22


LATAM: Implementation Plan in Colombia

Page 23


Flotation on MAB and Capital increase, funds release.

Right after, the machinery orders are confirmed to the Chinese supplier and

the implementation of the Factory in Colombia, city of Calí, is put into

operation

The pre-contracts agreed with GDA are signed.

The production belonging to GDA initial promotions is started.

Three months later, once the Factory setup is finished, the assembly line

workers are hired, for their training.

Within less than 4 months the factory and the business in LATAM is

completely settled and fully functioning.

Page 24


Colombia Factory Setup

Gantt diagram – Colombia NPG factory

Page 25


An estimation of the potential market has been made

considering what the NPG structure is able to take over.

We will operate a light market penetration in countries

where there is no Factory.

We estimate there are three kinds of countries depending

on their interest/difficulty/risks/position.

China is considered almost residual, and reserved to

future stages of growth.

LATAM business is shaped by three families of products,

targeting the 2nd , 3rd and 4th sections of the middle

class.

There are two main sales channels:

1. GDA (media groups). There are already pre-sales in

process.

2. Larges shopping areas and retail chains.

Business Plan – Guidance Notes

NPG GROUP PROFIT AND LOSS ACOUNT (in thousands of €)

Turnover 2014 2015 2016

NPG Europe 19,150 22,901 25,653

NPG Colombia / Latam 22,581 39,696 56,473

NPG China 4,000 4,200 4,410

The Group turnover 45,731 66,797 86,536

EBITDA 4,465 7,580 10,298

Financial Costs -1,174 -1,654 -2,097

Depreciation -508 € -574 -619

BAI 2,783 5,352 7,582

Taxes -1,047 -2,144 -3,100

Net Result 1,737 3,208 4,482

Page 26


The financial plan considers that:

a) The capital increase through the MAB will provide to Colombia business, current assets

and OPEX.

b) The current assents are structured by days of sales and days of purchasing. There is

bank financing only for 30 days of sailings and 30 days of purchasing.

c) We intend to be cautious and work with an operating cash-flow for about 10-13 days of

payments.

d) We estimate that the needs for CAPEX and OPEX, will be properly covered.

Business Plan – Guidance Notes

Page 27


In order to support its sales objective, NPG has signed pre-agreements with the Group Editorial

GDA for at least 4 from the 8 technology advertising projects on the main newspapers from

Colombia, Ecuador, Peru and Chile, with a total amount of between 17 and 22 Millions of USD

We already have a commercial office in Colombia for all the Latin America from which we are

contacting with the main local groups of large shopping areas (Éxito Group, Alkosto, Fallabella, etc.)

and also with large distribution platforms in Colombia and the rest of Latin American countries.

A Market Survey has been done (by the Royal Media Group) during a university event in Bogota –

163 surveys – and in Cajica (20km from Bogota) - 995 surveys – about the Smart TV from NPG

(according to social status: 2, 3 y 4). The result:

• 54% of the families would buy our television and agree with the established price.

• 87% % of the students would buy our television although, as imagined, young people would pay a

little less.

• When it comes of purchasing a TV set, the brand affects the final decision in only 35% of cases.

And now, we detail the origin of the funds and the forecast of the current assets cycle.

LATAM Sales Prospects

Page 28


Prospects Consolidated Sales

TOTAL SALES 45.68 Millions of €

LATAM EUROPE - CHINA CONSOLIDATED

1. FUNDS ORIGIN

2. CURRENT ASSETS

CYCLE 1. FUNDS ORIGIN

2. CURRENT ASSETS

CYCLE 1. FUNDS ORIGIN

2. CURRENT ASSETS

CYCLE

Cap. Increase 5.5 MM € Figures in thousands of € Exsitencias 5.5 MM € Figures in thousands of € Exsitencias 5.5 MM € Figures in thousands of €

Extern. financ. 0.75 MM € Gross margin 15% Extern. financ. 1.00 MM € Gross margin 15% Cap. Increase 5.5 MM € Gross margin 15%

Total Funds 6.25 MM € Net margin 3.8% Total Funds 6.50 MM € Net margin 3.8% Extern. financ. 1.75 MM € Net margin 3.8%

Total Funds 12.75 MM €

stock New PO 30%

Out China

70%

To the

Factory

Sale to

customer stock New PO 30%

Out China

70%

To the

Factory

Sale to

customer stock New PO 30%

Out China

70%

To the

Factory

Sale to

customer

Jan. Q1 6,250 1,875 6,500 1,950 12,750 3,825

Q2

Feb. Q1

Q2 4,375 4,550 8,925

Mar. Q1

Q2

Apr. Q1 6,488 1,946 7,188 6,747 2,024 7,475 13,235 3,970 14,663

Q2

May. Q1

Q2 4,541 4,723 9,264

Jun. Q1

Q2

Jul. Q1 6,734 2,020 7,461 7,003 2,101 7,759 13,737 4,121 15,220

Q2

Ago. Q1

Q2 4,714 4,902 9,616

Sep. Q1

Q2

Oct. Q1 6,990 2,097 7,744 7,270 2,181 8,054 14,259 4,278 15,798

Q2

Nov. Q1

Q2 4,893 5,089 9,982

Dic. Q1

Q2

TOTAL SALES LATAM 22,392 TOTAL SALES IN EUROPE-CHINA 23,288 TOTAL CONSOLIDATED SALES 45,680

The Factory in China

1º

2º

3º

4º

5º

Page 29


FIRST STAGE:

Competitive Advantages:

Embracing the manufacture of main boards and panels Open-Cell, brings a savings of 8%:

3% for the investment depreciation

5% net savings, charged to the income statement of the Group.

SECOND STAGE:

Commercial expansion:

It will be done in two stages (2015).

We will position on the market as

an European brand.

Annual Accounts 2009 - 2013

Page 30


DEFINITION TAX YEAR

ASSETS 2009 2010 2011 2012 2013

A) NON CURRENT ASSETS 712 1,846 2,423 4,050 5,624

Fixed assets 674 1,816 2,363 2,753 4,515

Intangible assets and other assets* 38 30 59 1,296 1,109

B) CURRENT ASSETS 4,478 5,143 7,212 7,167 7,496

Inventories 1,462 2,943 4,061 2,944 5,286

Trade and other receivables 2,592 1,886 2,736 3,917 2,164

Cash and other equivalent liquid assets 424 314 414 306 46

TOTAL ASSETS (A+B) 5,190 6,989 9,634 11,217 13,120

NET WORTH AND LIABILITES 2009 2010 2011 2012 2013

A) Net Worth 1,534 1,411 1,797 3,213 3,631

Capital 210 210 210 429 429

Issue premium and reserves 327 874 1,201 2,405 2,771

Result of the year 998 327 386 379 431

B) NON CURRENT LIABILITES 343 1,189 1,320 1,772 2,815

Long-term debt 324 1,172 1,166 1,607 2,650

Deferred tax liabilities 18 17 154 165 165

C) CURRENT LIABILITIES 3,318 4,389 6,517 6,232 6,674

Short-term debt 1,365 2,726 2,844 3,247 3,683

Trade and other payables 1,953 1,663 3,673 2,985 2,991

TOTAL NET WORTH AND LIABILITES (A+B+C) 5,195 6,989 9,634 11,217 13,120

*2012 increase due to the fusion with DFC Group BVBA

Figures In thousands of Euros

DEFINITION TAX YEAR

PROFIT AND LOSS ACCOUNT 2009 2010 2011 2012 2013

Turnover 19,039 12,169 14,363 14,415 13,575

Purchases 15,182 8,717 9,505 9,431 9,389

Personnel expenses 518 559 640 776 1,092

Operating expenses (Advertising and other operating expenses) 1,903 2,230 3,025 2,950 1,729

Depreciation of fixed assets 54 70 157 222 189

OPERATING PROFIT 1,382 593 1,036 1,035 1,176

Financial expenses 165 155 397 442 528

Foreign exchange loss -200 -29 88 90 20

FINANCIAL RESULT 35 -126 -485 -533 -548

PRE-TAX PROFIT 1,417 467 551 502 628

Profits tax 419 141 165 124 197

RESULT OF THE YEAR 998 327 386 379 431

Figures In thousands of Euros

Profit and loss: 2009 - 2013 Overall balance sheet: 2009 - 2013

Charity Project / Sports Events

It is a special non-profit work centre with

the stated goal of improving the quality of

life of people with intellectual disabilities

(DI) from Torrejón de Ardoz and its region,

through their work integration.

Projects NPG has been involved:

Integration by work of people mentally

disabled.

INLADE Fundation

It is a non-profit institution which aims to improve the

home, school, social and labour integration of the

children and young adults mentally disabled.

Promentor Project

Job placement for people with intellectual disabilities.

PRODIS Fundation

Sports sponsorship

Page 31


NPG dressage team

National and international horse

competitions sponsorship.

Technology for everyone www.npgtech.com

Documents

Everyone · About Us Page 1 Technology for everyone • Mr. Enrique Cosío is a Technical Communications Engineer with 35 years’ experience in the world of electronics. • 1989: