Leatt Corporation · OTC:LEAT
Leatt — Investor Presentation (May 2013)
26 slides from Leatt's investor presentation, May 30, 2013
Slide 1: Investor Presentation
INVESTOR PRESENTATION OTCQB: LEAT w.leatt-corp.com, June 2013
Slide 2: Forward Looking Statement
_ FORWARD LOOKING STATEMENT This presentation may contain forward-looking statements under the Private Securities Litigation Reform Act of 1995, as amended. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievemen
Slide 3: Our Mission & Strategy
—— OUR MISSION & STRATEGY At Leatt’s core is a passion to save lives! We are driven to protect the bodies and futures of athletes — professional and amateur. Mission is to extend our unique lab-tested and athlete-trusted performance and protective gear to more sports and to more athletes globally. >
Slide 4: Our Mission & Strategy
—— OUR MISSION & STRATEGY = Trauma can affect virtually every part of an athlete’s body. = We started with protecting necks; we will remain technology and market leader. = Product line extended to protect more body areas. = Goal is to protect + Heads, backs, chests. * Flanks, torsos, elbows. + Knees
Slide 5: Our Mission & Strategy
— OUR MISSION & STRATEGY = Started with protecting helmeted participants in offroad motorsports. ‘© Now protecting downhill and BMX bicycle riders. * Goal + Protect more athletes in wide range of sports with multiple product lines. = Plan * Continue to develop innovative, cutting edge products. + Mo
Slide 6: Technology – Our R&D Process
— LABS TECHNOLOGY — OUR R&D PROCESS Tested in our lab. Proven in action. Trusted by athletes = Product development begins with consumer and professional athlete insights into requirements. = Insights presented to our bio-medical engineers and designers dedicated to developing revolutionary products.
Slide 7: Manufacturing & Quality Assurance
— MANUFACTURING & QUALITY ASSURANCE = Products manufactured in third-party production plants in China. = We contract with third-party quality management companies to inspect products to ensure finished products meet our stringent quality standards. = Quality management staff visits manufacturers con
Slide 8: Global Distribution Network
— N, (oot isin on GLOBAL DISTRIBUTION NETWORK = Product distribution * South Africa: Leatt SA - Directly to dealers. + USA: Leatt USA-— Directly to dealers with capacity to sell additional product lines. + ROW: Network of 60 third-party distributors. = ~5,000 motorcycle and apparel dealers in USA, 1
Slide 9: Our Products
—— OUR PRODUCTS The Leatt Neck Brace — Flagship product = Revolutionary, award winning = Developed in our lab in Cape Town, South Africa, tested by BMW Munich. = Established Leatt as global brand respected for innovation, safety and quality. = >500,000 units sold worldwide to date. = Revenue of >$93
Slide 10: Our Products
—— OUR PRODUCTS The Leatt Body Armor Range = Hard Shell Body Armor range ) launched in late 2010 with introduction of Leatt Adventure Chest Protector + Awarded a 10/10 score in a product evaluation by Motorcrossgear.com. = Subsequently introduced full upper trunk protectors, knee and elbow [Brace pr
Slide 11: Our Products
— OUR PRODUCTS Leatt Body Armour — Sales Growth $ in thousands = Award winning Body Armor products well $4,000 accepted since late 2010 introduction. $3,500 $3,381 + Trusted by athletes for Leatt quality, $3,000 innovation and safety. $2,500 = >100 000 units of Leatt Body Armor sold $2,000 since int
Slide 12: Product Development
ee opuct PRODUCT DEVELOPMENT NEW PRODUCT INITIATIVES PLANNED AND ALREADY UNDERWAY Leatt Neck Braces — New Chasis 5.5 & 5.5 Junior Range Five = Five = The Leatt Five.Five Neck Brace features ) new chasis design that addresses RA customer, athlete and engineer input. ALPT . Ar ee Features new helmet r
Slide 13: Product Development
ee opuct PRODUCT DEVELOPMENT NEW PRODUCT INITIATIVES PLANNED AND ALREADY UNDERWAY Leatt Body Armor — New Hard Shell 5.5 & 3DF Airfit oD FUME. FIle Maelo = Leatt's new premium Hard Shell = Leatt’s new Airfit premium soft protector offers maximum protection protection line features 3DF Airfit with ful
Slide 14: Product Development – New Product Categories
ee opuct PRODUCT DEVELOPMENT -— New Product Categories NEW PRODUCT INITIATIVES PLANNED AND ALREADY UNDERWAY Leatt Fusion Vest Junior " Fusion brings together Leatt neck brace FUSION technology and Leatt 3DF Airfit impact 3 foam protection for protection of neck, chest, back, shoulders and flank in a
Slide 15: Markets for Leatt Products
— MARKETS FOR LEATT PRODUCTS N, (oot isin on = Leatt products have roots in off-road motorcycle market: ~1.5 million riders in USA, ~50% of world market. = Moved into bicycle market: ~15.7 million riders in USA, ~50% of world market. = Also a presence in such markets as + Snowmobile: ~2.8 million ri
Slide 16: Markets for Leatt Products
— MARKETS FOR LEATT PRODUCTS Leatt Neck Brace — New Markets 100% ? Leatt has successfully entered , new markets since 2010 = ~18% of brace unit sales in Q1 2013 from DBX Bicycle Brace. * Grew from 9% of unit sales in 2010 when released. 90% 80% 70% 60% 50% = Street Brace introduced in 2011 along wit
Slide 17: Leatt Neck Brace – Market Position 2012
— N, (oot isin on MARKETS FOR LEATT PRODUCTS Leatt Neck Brace — Market Position 2012 69% G7") EVS Leatt Alpinestars Atlas Omega Other None North American Market (Estimated to be 50% of World Market) = Leatt had a 69% market share according to an industry survey of primarily off-road motorcycle rider
Slide 18: Leatt Chest Protector – Market Position 2012
— MARKETS FOR LEATT PRODUCTS Leatt Chest Protector — Market Position 2012 30% 26% 5% 2% 1% 0% 0% | 2% 2% g 4 B's ® 2 oO Go & BF Z_E_ OQ B 4 ge £ g§ O os @ ec 2 5§ «© §cn go Ss 2 2 -¢ 8 2s feag#* i658 8 22 8 8 842 5 § § @ 58 ° < 2 ¢ = g % Fa a S a z North American Market (Estimated to be 50% of World
Slide 19: Marketing Initiatives & Social Media
— MARKETING INITIATIVES & SOCIAL MEDIA “Wipeout” Continued sponsorship, support of motorcycle and bicycle athletes. “Straight Talk About Neck Braces” video series + Features Leatt technology, addresses neck brace usage questions. Media visits to Leatt lab * Top journalists visit facility, often writ
Slide 20: Financial Highlights
ee ncia FINANCIAL HIGHLIGHTS SELECTED PROFIT AND LOSS ITEMS 3 Months Ended 12 Months Ended SS $ in thousands 31, 2012 31, 2011 Revenues 3,248 3,322 16,577 17,878 Gross Profit 1595) 1,865 8,909 10,409 Gross Profit % 49% 56% 54% 58% Product Royalty Income Sf 34 262 99 Total Operating Expenses 2,391 2,
Slide 21: Financial Highlights
ee ncia FINANCIAL HIGHLIGHTS SELECTED BALANCE SHEET DATA Decembe: December $ in thousands 31, 2012 31, 2011 Cash, equivalents and short term investments 1,151 1,395 Accounts receivable 2,303 mn 2,993 Inventory 3,049 3,770 3,679 Total current assets 7,391 9,372 9,120 Total Assets 8,534 10,656 10,642
Slide 22: Financial Highlights
— FINANCIAL HIGHLIGHTS Revenue Trends — Worldwide $ in Thousands $20,000 $17,878 $15,000 $13,743 $14,330 $10,000 $5,000 0 2009 2010 2011 2012 = Worlwide revenue since inception in 2006 >$100 million. = Worldwide 2012 revenues 7% lower compared to 2011, primarily due to lower OEM revenues. = Worldwid
Slide 23: Stock Information
i, STOCK INFORMATION [common shares | OTC: LEAT| 150-day closing price range (Post Reverse Split') $0.50 - $0.83 Recent price (5/30/13) $0.68 Average daily trading volume (90-day) 1,142 Common shares outstanding 5.2 million Market capitalization $3.54 million 1 | for-25 reverse split effective Septe
Slide 24: Outlook – Business and Operations
— OUTLOOK — BUSINESS AND OPERATIONS Growth plan — implement following global growth strategy, which we expect will double revenue every 2-3 years: = Increase market share in core markets by continuously developing unique, innovative products that protect more areas of athletes’ bodies and can be sol
Slide 25: Summary – Why Leatt?
— SUMMARY — WHY LEATT ? = Innovative lab- and action-proven performance products that fulfill unmet needs to protect and save the lives of amateur and professional athletes of all ages. = Experienced, diverse international management team. = Strong global distribution network. US dealer direct distr
Slide 26: Headquarters Office and Investor Relations
S= HEADQUARTERS OFFICE 50 Kiepersol Crescent Atlas Gardens Durbanville, 7550 South Africa Phone: 27 21 557 7257 www leatt-corp.com USA DISTRIBUTION OFFICE Two Eleven Distribution LLC 26320 Diamond Place Unit 130, Santa Clarita, CA 91350 Phone: 888 209 5584 www leatt-brace.com = INVESTOR RELATIONS: J