prince corporate presentation 2013 final
TRANSCRIPT
www.princemexico.com
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.
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.
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
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
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
www.princemexico.com
Central location within Mexicofor ease of distribution throughoutthe country
Prince MexicoHead Office
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.
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
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
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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
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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
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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
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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
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
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
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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
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
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
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]
www.princemexico.com
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]
www.princemexico.com
Issued & Outstanding: 43,000,000
Restricted: 22,000,000
Float (free trading): 21,000,000
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
www.princemexico.com
Lopez Cotilla No. 829 Int. 1 Col. Americana C.P. 44160Guadalajara, Jal., Mexico
(+52) (33) 3827 0727