prince corporate presentation 2013 final

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Page 1: Prince corporate presentation   2013 final

www.princemexico.com

Page 2: Prince corporate presentation   2013 final

www.princemexico.com

This presentation contains "forward-looking statements" as that term is defined in Section 27A of the UnitedStates 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 anystatements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-lookingstatements include, among other things, financial projections, commencement of commercial activities, jointventures, 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 growthof the global market. Actual results could differ from those projected in any forward-looking statements due tonumerous factors. Such factors include, among others, the inherent uncertainties associated with new projectsand development stage companies. These forward-looking statements are made as of the date of this newsrelease, and we assume no obligation to update the forward-looking statements, or to update the reasons whyactual results could differ from those projected in the forward-looking statements. Although we believe thatany beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be noassurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors shouldconsult all of the information set forth herein and should also refer to the risk factors disclosure outlined in ourannual report on Form 8-K filed July 6, 2012 and other periodic reports filed from time-to-time with theSecurities and Exchange Commission.

Page 3: Prince corporate presentation   2013 final

www.princemexico.com

The primary goal is to become a significant player in the sportinggoods sectors within Mexico and eventually distribute Prince

products into South America.

With necessary financing, our objective is to create sales ofroughly $1,900,000, $7,500,000 and $15,000,000 over the

upcoming years 2013 - 2015, respectively.

Page 4: Prince corporate presentation   2013 final

www.princemexico.com

Exclusive distribution rights to sell Prince brand nameproducts in Mexico

Incorporated in 2008, and has reach strong sales growth to$525,000 annually

Seeking financing of $1.5 million to increase inventory forlarger customers

Page 5: Prince corporate presentation   2013 final

www.princemexico.com

Mexico is the largest country for importing sporting goods in LatinAmerica

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

Page 6: Prince corporate presentation   2013 final

www.princemexico.com

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

Page 7: Prince corporate presentation   2013 final

www.princemexico.com

Central location within Mexicofor ease of distribution throughoutthe country

Prince MexicoHead Office

Page 8: Prince corporate presentation   2013 final

www.princemexico.com

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 thatgoes into its products.

Page 9: Prince corporate presentation   2013 final

www.princemexico.com

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

Page 10: Prince corporate presentation   2013 final

www.princemexico.com

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

Page 11: Prince corporate presentation   2013 final

www.princemexico.com

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

Page 12: Prince corporate presentation   2013 final

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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

Page 13: Prince corporate presentation   2013 final

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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

Page 14: Prince corporate presentation   2013 final

www.princemexico.com

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

Page 15: Prince corporate presentation   2013 final

www.princemexico.com

Huge upside expansion potential in Mexico

Required increase in inventory

Larger retailers will not negotiate or discuss orders unless the product is intheirwarehouse, in Mexico

Goal is to ship 4 containers per year, or once per quarter

Page 16: Prince corporate presentation   2013 final

www.princemexico.com

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

Page 17: Prince corporate presentation   2013 final

www.princemexico.com

Prince MexicoPro-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

ExpensesAdministrative 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

Page 18: Prince corporate presentation   2013 final

www.princemexico.com

Planning to distribute certain Prince products with the followingcountries:

BrazilColombiaPeruEcuadorVenezuela

Expansion into these markets will simultaneous with expansion inMexico

If inventory not available, will service larger retail clients in Mexico first

Page 19: Prince corporate presentation   2013 final

www.princemexico.com

Successfully surpassed Prince Sports Inc. (USA) sales requirements 5 years straight

Successfully introduced products to new tennis clubs and larger retail chains

Building relationships and selling to largest retailers in Mexico

WalMart Mexico, Sears Mexico, Liverpool, Marti

Page 20: Prince corporate presentation   2013 final

www.princemexico.com

Fco. Duncan A. Forbes Mol. IIIDirector [email protected]

Paul RomeroGeneral [email protected]

Paloma [email protected]

Hugo Barajas SanchezSystems and Logistics [email protected]

Lucia RodriguezAccounts [email protected]

Sergio AlvarezHead of [email protected]

Marcos MéndezSales Squash City and Metropolitan [email protected]

Dieguez AndoniCity and Metropolitan Area [email protected]

Page 21: Prince corporate presentation   2013 final

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AntonelloDistributor Baja California [email protected]

Alberto GallegosMarketing and Sales [email protected]

Thais RomeroSales [email protected]

Allan FletesSales [email protected]

Olga VasquezDF [email protected]

Francisco ColoresDF [email protected]

Enrique PrietoDistributor [email protected]

Gustavo PrietoDistributor [email protected]

Page 22: Prince corporate presentation   2013 final

www.princemexico.com

Issued & Outstanding: 43,000,000

Restricted: 22,000,000

Float (free trading): 21,000,000

Page 23: Prince corporate presentation   2013 final

www.princemexico.com

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 SouthAmerica

Page 24: Prince corporate presentation   2013 final

www.princemexico.com

Lopez Cotilla No. 829 Int. 1 Col. Americana C.P. 44160Guadalajara, Jal., Mexico

(+52) (33) 3827 0727

[email protected]