XPEL, Inc. · NASDAQ:XPEL
XPEL — Investor Presentation (December 2018)
22 slides from XPEL's investor presentation, December 2018
Slide 1: Between You and the Open Road – Investor Presentation December 2018
BETWEEN YOU AND THE OPEN ROAD. —— INVESTOR PRESENTATION DECEMBER 2018
Slide 2: Forward Looking Statements
cS “XPEL This Presentation contains certain forward-looking statements in respect of various matters including upcoming events that involve known and unknown risks and uncertainties that are beyond the control of Management. Those risks and uncertainties include, among other things, risks related to
Slide 3: Automotive Paint Protection Films, Window Tint, Solar & Security
“XPEL eoe AUTOMOTIVE PAINT PROTECTION FILMS coe AUTOMOTIVE WINDOW TINT eee SOLAR & SECURITY ARCHITECTURAL WINDOW FILMS
Slide 4: Headquartered in San Antonio, Founded in 1997
eg) fw -ee HEADQUARTERED IN SAN ANTONIO, TX wey 4] = eee FOUNDED IN 1997 eee TSXV:DAP.U OTC PINK:XPLT eee 200 FULL TIME EMPLOYEES eee 2000+ CUSTOMERS
Slide 5: History That Continues to Set the Standards
SS PARASOL — PEL CANADA ASIA OFFICE ACQUISITION ‘gy DESIGN | emeneatrmmeatiadl PROGRAM ULTIMATE PRIME |. ULTIMATE PLUS PROTECTION FIL DTIVE WINDOW FILM PAINT PROTECTION FILM 1998-2005 2007 2010 2011 2014 2015 2016 2017 2018 | VISION ARCHITECTURAL GLASS SOLUTIONS. STANDARD PROTECTION FILM OPEN OPEN o
Slide 6: Key Investment Highlights
“XPEL eee Strong Recognition as Premium Brand ium TECHNOLOg, eee Significant Domestic and International Market Opportunity eee Robust Growth, Profitability and Strong Balance Sheet eee High Insider Ownership Creates Firm Alignment with Shareholders eee Results Driven Management Team With Proven Trac
Slide 7: Complete Protection
Door Door Door Edge Guards Cup Guards Sill Guards Lia —— Cry ) PRIME Window Tint Headlight Protection Kits ULTIMATE PLUS PAINT PROTECTION FILM Bumper Fenders Mirrors & Rocker Panels & A-Pillars Rear Wheel Impact COMPLETE PROTECTION
Slide 8: Ultimate Paint Protection Film
L ULTIMATE see Invisible, Cut-To-Fit PAINT PROTECTION FILM Protection Film > y ~ y > 0.5 mils (0.013 mm) eee Protects Paint From Rock y | \ Chips, Bug Acids and [ —— Damage From Road Debris | — ae oct ) \ / N A \ d 3.0 mils (0.076 mm) se® Requires Professional Installation eee Primarily A New Car Pr
Slide 9: Automotive Window Film
AUTOMOTIVE WINDOW FILM iv] Large, Established Market for Heat Rejection & Cosmetic Purposes VW First Large Product Bolt-On to Channel ne) Customer Base Very Active in Product $ Gross Margin Percentages Consistent with PPF AUTOMOTIVE WINDOW FILM
Slide 10: Architectural Glass Solutions
ARCHITECTURAL GLASS SOLUTIONS iv] Large Addressable New Market First Non-Automotive Product Line WP Some Overlap with Existing Customers ((*)) New Product for 2018
Slide 11: Design Access Program Patterns Used to Cut Film
SE ] 6 ()) Used To Cut Film Into Vehicle Shapes Key Competitive Differentiator Good Patterns Reduce Install Time and Film Waste Over 70,000 Applications Daily Design Updates from Dedicated Design team
Slide 12: End Customer PPF Economics
COVERAGE - FULL FRONT COVERAGE - PARTIAL HOOD Covers entire car. Covers entire painted front bumper, hood, fenders Covers 6” - 12” of leading edge of hood 4000 3 5000 headlights and backs of the painted mirrors. 100 = 200 $ $ $1800 - $2500 ° NL PRICE DETERMINATION *ee Complexity Of Installation ee F
Slide 13: XPEL Revenue Ecosystem
PRODUCT O INSTALLATION O REVENUE 95 % SERVICE REVENUE % $150 - $375 / CAR SERVICE JS LOCATIONS go = DEALERSHIP $800 - $2500 $600 - $1500 / CAR / CAR gS END gS END NEW CAR CONSUMER CONSUMER DEALERSHIP XPEL REVENUE ECOSYSTEM 13
Slide 14: Competitive Differentiators
“XPEL FILM TECHNOLOGY see Self-healing, Durable & Stain Resistant -ee Ease of Installation DAP SOFTWARE -ee Unmatched Quality & Fit, Saves Installer Time & Money see Over 70K Patterns and Growing Daily MARKETING AND LEAD GENERATION see Annual Global Enthusiast Event Presence see Dealer Locater & Adv
Slide 15: Strategic Initiatives
“XPEL CONTINUE GLOBAL EXPANSION a) y -ee European Headquarters Established in 2017 +ee Build Out Sales Team In Under-penetrated Geographies DRIVE GLOBAL BRAND AWARENESS see High Visibility At Premium Events see Advertising Placement In Media Consumed By Car Enthusiasts CHANNEL EXPANSION VIA ACQUISIT
Slide 16: Annual Revenue
“XPEL $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 65.5% $20,000 $17.9M ai $10,000 S 2013 2014 2015 2016 2017 Q3 2018 YTD ANNUAL REVENUE (IN MILLIONS) 16
Slide 17: Gross Margin Trend
“XPEL GROSS MARGIN $ $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $8.6M $8.8M $7.5M 29.8% Ql 2017 Q2 2017 Q3 2017 Q4 2017 Ql 2018 Q2 2018 Q3 2018 40.0% 30.0% 20.0% 10.0% 0.0% GROSS MARGIN % GROSS MARGIN TREND (IN MILLIONS)
Slide 18: EBITDA Profile
“XPEL EBITDA $ $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $10.2M 2013 2014 2015 2016 2017 Q3 2018 YTD 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% EBITDA % 20.0% 15.0% 10.0% 5.0% 0.0% EBITDA PROFILE (IN MILLIONS)
Slide 19: Net Income
$6,000 $5,000 $4,000 $3,000 $2,000 $1,000 50.0% \ 45.0% $6.7M 40.0% 35.0% 30.0% 25.0% ; NET 20.0% INCOME % 15.0% 10.0% 5.0% 0.0% 2013 2014 2015 2016 2017 Q3 2018 YTD NET INCOME (IN MILLIONS)
Slide 20: Strong Financial Position
| 2016 2017 Q3 2018 1.45 $6.2M $5.6M $10.2M $29.0M $4.1M 29.5 % $4.0M 2.03 $12.3M $7.1M $12.6M $34.2M $1.9M 91% $4.9M (YTD) STRONG FINANCIAL POSITION (IN MILLIONS) 20
Slide 21: Macro Growth Opportunities
eee Rock Chips Are Top Consumer Complaint eee Paint Protection Film Low Penetration to New Cars Sold eee Fragmented Market Provides Opportunity Ripe for Consolidation eee Dealerships Need Tangible, Profitable Products eee Window Film First Example of Leveraging Channel Opportunity eee Equivalent Opp
Slide 22: San Antonio, TX USA
“XPEL San Antonio, TX USA +1 210-678-3700 xpel.com PRS, COMPLETE PROTECTION, UNSEEN.