Dogness (international) Corporation · NASDAQ:DOGZ
Dogness (international) — IPO Roadshow (October 2017)
29 slides from Dogness (international)'s IPO roadshow presentation, Oct 19, 2017
Slide 1: Dogness (International) Corporation (NASDAQ: DOGZ)
DOGNESS (INTERNATIONAL) CORPORATION (NASDAQ: DOGZ )* * application pending Filed pursuant to Rule 433 Registration No. 333 - 220547 Issuer Free Writing Prospectus dated October 18, 2017 Relating to Preliminary Prospectus dated October 10, 2017
Slide 2: Disclaimer
Disclaimer This presentation incorporates information from a registration statement and contains forward - looking statements . All statements contained herein other than statements of historical fact, including statements regarding our future results of operations and financial position, our busine
Slide 3: Disclaimer
Disclaimer The offering of the Class A Common Shares will be made pursuant to an effective registration statement and prospectus . Dogness (International) Corporation has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates . Befor
Slide 4: Who We Are
Who We Are “Wireless Care, Endless Love” We were born from the belief that dogs and cats are important, well - loved family members. Since 2003, we have been a leading global provider of high - quality leashes, collars, and harnesses that are beautiful, comfortable, and designed to ensure pets’ safe
Slide 5: Our Vision
Our Vision Traditional Products Smart Collars Smart Pet Ecosystem Pet IoT Platform Big Data 4 Building the future of pet commerce
Slide 6: Investment Highlights
Investment Highlights Large Global Pet Industry Opportunity Strong Foundation and Product Leadership Established Marketing and Distribution Network Worldwide Innovative Technology Proven R&D Capability Compelling Growth Strategies Strong Management Team with Deep Industry Expertise 5
Slide 7: Key Strengths and Risks
Key Strengths and Risks Competitive Strengths • Advanced technology • Strong research and development • Vertically integrated production • Economies of scale • Strong reputation in pet products industry Risk Factors • Risk regarding ability to use offering proceeds • Possibility to be classified as
Slide 8: 1. Large Global Pet Market
70.6 81.8 15.6 13.8 72.1 83.2 20.0 14.0 0 10 20 30 40 50 60 70 80 90 US Europe China Japan 2016 2017 (est) 202 241 25 100 0 50 100 150 200 250 300 US Europe Japan China Global Pet Spending (USD, billions) Global Pet Ownership in 2016 (millions of pets) 1. Large Global Pet Market 7 Sources: Asia Pet
Slide 9: 1. Large Global Pet Market (U.S. example)
U.S. Pet Store Sales (USD, billions) 1. Large Global Pet Market (U.S. example) 8 13 14 15 16 17 18 19 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 18 19 19 20 20 21 21 22 22 2017 2018 2019 2020 2021 Projected U.S. Pet Store Sales (USD, billions) Source: American Pet Products Association
Slide 10: 2. Strong Foundation and Product Leadership
Nylon series Real leather series Most competitive product Key growth product High value - added product Retractable leash Supplementary product Others 2. Strong Foundation and Product Leadership 9
Slide 11: Annual Revenues and Net Income
2. Strong Foundation and Product Leadership 10 16.1 3.5 21.2 4.9 0 5 10 15 20 25 Revenue Net Income Annual Revenues and Net Income (USD, millions) 2016 2017
Slide 12: 2. Product Leadership: Sales by Product
2. Product Leadership: Sales by Product ( $ mil ) 11 5.4 7.5 2016 2017 Collars 4.4 5.3 2016 2017 Leashes 2.8 1.5 2016 2017 Harnesses 1.3 1.7 2016 2017 Retractable Leashes 0.9 2.4 2016 2017 Gift Suspenders 1.2 2.7 2016 2017 Other Accessories
Slide 13: 2. Product Leadership: Sales by Geography
2. Product Leadership: Sales by Geography ($mil) 12 2016 2017 0.0 5.0 10.0 15.0 20.0 25.0 Total Revenue US China Europe Other* 16.1 8.0 3.4 2.0 2.7 21.2 9.1 6.8 2.6 2.7 2016 2017 *Includes Japan and other Asian countries, Central and South America, Canada, and Australia
Slide 14: 2. Product Leadership: Case Study
2. Product Leadership: Case Study • Selected out of many companies to be the global supplier of pet leash and collar products to IKEA • Must satisfy stringent quality control and social responsibility requirements 13
Slide 15: 3. Broad and Mature Global Sales Network
Global industry chain stores Global distributors: 300+ 14 3. Broad and Mature Global Sales Network
Slide 16: 4. Innovative Smart Technology: C2 Collar & H2 Harness
4. Innovative Smart Technology: C2 Collar & H2 Harness 15 GPS accurate positioning • Tracking • Safety zones Health management • Activity monitoring • Calorie tracking Voice communication • Remote commands • Instruct or comfort LED lights and water resistant • Remote lights activation • IP65 water r
Slide 17: 4. Innovative Smart Technology: Accurate Positioning
Accurate Positioning & Tracking 4. Innovative Smart Technology: Accurate Positioning
Slide 18: 4. Innovative Smart Technology: Safety Zones
Safety Zones • One or more safety zones • App alerts 4. Innovative Smart Technology: Safety Zones 17
Slide 19: 4. Innovative Smart Technology: Voice Communication
• Recall your dog when he/she leaves a safety zone • Correct your dog when he/she barks above specified decibel level 4. Innovative Smart Technology: Voice Communication 18
Slide 20: 4. Innovative Smart Technology: Health Management
• 24/7 activity monitoring • Data sent to cloud for analysis • View on app • Calculate calorie consumption 4. Innovative Smart Technology: Health Management 19 Activity Monitoring Diet Tracking 5h 48mins Activity:3h 12mins Intense Activity:2h 36mins Basic cons: 700kcal Activity cons: 157kcal
Slide 21: 4. Innovative Smart Technology: LED Lights & Water Resistant
• Remote activation via app • ABS: Eco - friendly • IP65 Water resistant 4. Innovative Smart Technology: LED Lights & Water Resistant 20 Flashing LED lights Eco - friendly & Water resistant
Slide 22: 5. Proven R&D Capability
5. Proven R&D Capability 21 Major global telecom Recognized leader in China Smart product R&D and marketing
Slide 23: 5. Proven R&D Capability: Our Patents
5. Proven R&D Capability: Our Patents 22 16 Design Patents 5 Global Invention Patents 18 Practical Patents Dogness’s 39 patents 6 9 patents pending
Slide 24: 6. Compelling Growth Strategies
6. Compelling Growth Strategies 23 Traditional products Smart collars and harnesses Future products Smart Cages Pet Toys Smart Feeding Smart Watering Smart pet ecosystem Pet Social Network Pet Living Network Pet Commerce Network Pet IoT Network Current products
Slide 25: 7. Strong and Experienced Management Team
7. Strong and Experienced Management Team 24 Minliang Gong Chief Operation Officer Silong Chen Chief Executive Officer Yunhao Chen Chief Financial Officer Jiwei Yuan Chief Technology Officer
Slide 26: 7. Strong and Experienced Board of Directors
7. Strong and Experienced Board of Directors 25 Rongtian He Independent Director Silong Chen Chief Executive Officer Chairman of the Board Zhiqiang Shao Independent Director Zhicong Weng Independent Director Jiwei Yuan Chief Technology Officer
Slide 27: IPO Financing
IPO Financing • $40 - $50 million • $5 per share • Share structure • Existing Shares: 15 million shares (5.9 million A shares, 9.1 million B shares ) A shares: 1 vote/share. B shares: 3 votes/share. A and B shares have identical economic rights. • New Shares: 8 - 10 million A shares 26
Slide 28: Use of IPO Proceeds
Use of IPO Proceeds Research and Development Marketing Equipment Improvement and Maintenance Factory Building Upgrades 27
Slide 29: Legal Counsel, Auditor and IPO Service Group
Legal Counsel Kaufman & Canoles , P.C. Auditor Friedman LLP IPO Service Group 28 Investor Relations I CR Underwriter Spartan Securities Group, Ltd. Transfer Agent Island Stock Transfer
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