Mace Security International, Inccorp.mace.com/wp-content/uploads/2017/03/1Mace-Security... · 2017. 3. 1. · Mace brand pepper spray. Pepper Shot (13%), Sabre (9%), and American

Mace Security International, Inc

4th Quarter and Full Year 2016 Analysis

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OTCQX: MACE

Mace Security International, Inc 4th Quarter and Full Year 2016 Analysis

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Certain statements and information included in this presentation constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this presentation, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “projected,” “intend to” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to economic conditions, dependence on management, our ability to compete with competitors, dilution to shareholders, and limited capital resources.

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Continued to build significant positive momentum; •  Third consecutive positive net income quarter

•  Added additional new accounts in the quarter and in the full year

•  Margin improvements spurred by automation, production efficiencies and cost reductions

•  Announced pending acquisition will be accretive for the company

Mace Security International, Inc 4th Quarter 2016 Key Takeaways

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Continued to build significant positive momentum; •  Net revenue up 9.1% for the quarter; up 26.7% full year

•  Gross profit up 19.0% for the quarter; up 33.8% full year

•  EBITDA of $138,000, up $583,000 for the quarter; $317,000 for the year, up $1,332,000


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•  Company continued to grow top line, improve results and cut costs

•  Sporting Goods + 29.8% •  Consumer + 15.1% •  Web/Direct Sales - (29.5)% •  Tactical Division - (53.6)% •  International - (55.8)% •  OEM/Other +174.3%

•  All Channels + 9.1%

Mace Security International, Inc Net Sales by Channel – Fourth Quarter 2016 versus Fourth Quarter 2015

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•  Significant growth in key channels with opportunities in other channels

•  Sporting Goods + 12.6% •  Consumer + 48.3% •  Web/Direct Sales + 2.4% •  Tactical Division - (35.1)% •  International + 71.0% •  OEM/Other + 48.0%


Mace Security International, Inc Net Sales by Channel- Full Year Analysis

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•  All Channels +19.0%

An increase of 3.3% Points in margin in the Fourth Quarter

Mace Security International, Inc Gross Profit by All Channels – 4th Quarter, 2016 versus 2015

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An increase of 2.1% points in margin for the full year

Mace Security International, Inc Gross Profit by All Channels – 12 Months, Dec. 2016 versus 2015

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The American Original, Mace® Brand Mace Security International, Inc, located in Cleveland, Ohio, is a diversified manufacturer and provider of personal defense and security products to consumer and business market segments under the world renowned Mace® Brand. Since 1970, Mace® Brand has been the original trusted brand for personal defense sprays, while continuously adding high quality security products to the brand line through the years. Mace® Brand supports their products through warranty and educational programs. Mace® Brand directly distributes and supports its branded products and services through strategically targeted customer channels which include mass market retailers, wholesale distributors, independent dealers and e-commerce marketers.

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50.6%

8.5%

3.5%

2.0%

12.8%

2.6%

8.1%

0.6%

10.2%

1.0%

Sabre

Ruger

Kimber

American Defender

Defense Technolgy

Pepper Shot

I Don’t Own Pepper Spray

Don’t Know

Other (Please Specify)

0% 20% 40% 60%

Mace® Brand

Consumer Study on Brands Owned*

Just over half (51%) said they own Mace brand pepper spray. Pepper Shot (13%), Sabre (9%), and American Defender (8%) are the next most common brands owned. One in ten (10%) said they do not know what brand they owned. *Study done by Balance Inc. in 2013

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Consumer Personal Profiles

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Updated, improved and launched the Mace Hard Case line – Improved with Flip Top Lid

Old Version of Mace Brand Hard Case Pepper Spray

NEW Version of Mace Brand Hard Case Pepper Spray

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Best P

ersonal Alarm

s in the W

orld

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•  Continued our brand dominance with innovative packaging

•  New packaging is environmentally friendly - less use of plastic

•  Improved design and marketing platform

•  Cost effective materials and assembly

•  Packaging has been recognized internationally as BEST IN CLASS


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Expansion at Retail continued with Signage and Displays to

Promote the #1 brand in Defense Sprays


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Pin, Like, Tweet - Empower. Sharing content and engaging with customers world wide through social media channels, we’re able to give them the best safety information and answer any questions quickly.


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Mace continues to support empowerment and giving back to the

community


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Mace partnerships to drive the brand and sales opportunities

Mace partnerships to promote empowerment


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Brand Ambassadors ~ Educate, Train and help sell Products

JenniferCutrona Owner/Designer of BoobyTrap Bras •  Survivor of attempted physical attack •  Designs specific apparel to hold

personal defense items •  Active voice and designer in the safety

and security arena

JenniferCassetta Safety & Personal Trainer •  Creator of Stilettos and Self

Defense DVD series •  Active spokeswoman, Self Defense

Trainer & Personal Trainer


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Channel of Distribution Number of Accounts Sporting Goods 2

Consumer 1

Tactical 2

International 1

Other 1

Totals 7

Mace Security International, Inc New Distribution by Channel – 4th Quarter 2016

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Channel of Distribution Number of Accounts Sporting Goods 27

Consumer 18

Tactical 18

International 5

Other 4

Totals 72

Mace Security International, Inc New Distribution by Channel – 12 Months, Dec. 31st , 2016

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4th Quarter 2016 Comparable Financial Results


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2,238

863

2,051

725

187 138

-

500

1,000

1,500

2,000

2,500

Revenue Gross Profit

2016 4th Quarter

2015 4th Quarter

2016 versus 2015 Δ

Mace Security International, Inc 2016 4th Quarter versus 2015 4th Quarter

Sales & Gross Profit

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940 958

39 98 122

724 832

56 211

44

216

126

(17) (113)

78

(200)

-

200

400

600

800

1,000

1,200

2016 4th Quarter

2015 4th Quarter

2016 versus 2015 Δ

Mace Security International, Inc 2016 4th Quarter versus 2015 4th Quarter

Sales Key Channels

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4th Quarter 2016 2015 Percentage

Net Sales $2,238 $2,051 9.1%

Gross Profit $863 $725 19.0%

GP % 38.6% 35.3%

SG&A Expenses $947 $1,022 <-7.3%>

SG&A Exp. % 42.3% 49.8% Net Income (loss) $120 $(450)

EBITDA $138 $(445)

Mace Security International, Inc 2016 4th Quarter

Comparative Financial Results

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4th Quarter 2016 2015 Percentage

Net Sales $9,054 $7,145 26.7%

Gross Profit $3,685 $2,755 33.8%

GP % 40.7% 38.6%

SG&A Expenses $3,719 $3,838 <3.1%>

SG&A Exp. % 41.1% 53.7% Net Income (loss) $250 $(1,027)

EBITDA $317 $(1,015)

Mace Security International, Inc YTD 12 Months ending 12/31/16

Comparative Financial Results

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Mace Security International, Inc Mace® Brand made in the USA

Manufacturing & Shipping out of the USA

Our Mission at Mace Security International, Inc. is empowering your world through safety & security

Customers Deliver best in class products & services

for our partners and customers

Employees Be a great place to work where people are inspired to

be their best and achieve their goals

Shareholders Be a disciplined, forward-thinking brand driven to

maximize shareholder value

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Documents

Mace Security International, Inccorp.mace.com/wp-content/uploads/2017/03/1Mace-Security... · 2017. 3. 1. · Mace brand pepper spray. Pepper Shot (13%), Sabre (9%), and American