Vapor Group Inc · OTC:VPOR
Vapor — Investor Presentation (April 2015)
24 slides from Vapor's investor presentation, Apr 28, 2015
Slide 1: Investor Presentation April 2015
NASDAQ: VPCO ©OVaporCorp. A publicly traded company (NASDAQ VPCO) Investor Presentation April 2015
Slide 2: Safe Harbor
Safe Harbor Statements in this presentation that are not descriptions of historical facts are forward-looking statements relating to future events, and as such all forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995. Statements may contain certain forward-loo
Slide 3: VPCO Snapshot - The Only Pure Play E-Vapor Company
NASDAQ: VPCO VPCO Snapshot - The Only Pure Play E-Vapor Company Listed On a Major Stock Exchange Company Facts ff Financials « \VPCO is a U.S.-based distributor and Price (4/17/15): $0.95 retailer of vaporizers, e-liquids and electronic cigarettes Shares Outstanding: 34MM* * Direct-to-consumer chann
Slide 4: The Market Opportunity
The Market Opportunity i i E-Cigarettes Vaporizers/Tanks/Mods & $1.5B E-liquids $2.0B C-Store, Food, Drug Online and Other and Mass Retail Retail = Channel = C-Store, Food, Dru : ; jannels Channels and Mass Retail ig Vape Shops $700M $800M Channels- $400M $1.2B : Online and Other enilins otet Retail
Slide 5: A New VPCO — post merger with Vaporin
A New VPCO — post merger with Vaporin The merger with Vaporin, Inc. closed on March 5‘, 2015 and provided: * The Vape Store™ retail chain presently has 10 company owned Florida locations « Expansion underway ¢ Franchise opportunity * Online team to drive traffic to our websites and call center ¢ * C
Slide 6: VPCO Structure
VPCO Structure ©OVaporCorp. A publicly traded company (NASDAQ VPCO) Wholesale Company . Distribution and Owned Retail . ; Online Sales Store Chain Brands | | | | VAPORX ine THE, vaigpBrone @Vaporin ook h Shiv
Slide 7: Changing Distribution Landscape
NASDAQ: VPCO Changing Distribution Landscape Bloomberg Business Healthy Markups on E-Cigarettes Turn Vacant Storefronts Consumers are shifting towards Vape Shops for an enhanced experience MAINS! Vape Shops Are Into 'Vape Shops' Helping Vaporizers Across the country, sn shuttered during the re reope
Slide 8: Maturing Consumer Preferences
NASDAQ: VPCO Maturing Consumer Preferences Wells Fargo believes the transition to vaporizers is the “natural progression” after e-cigs, though the category is “here to stay.” Consumers increasingly prefer high quality e- liquid. Given the vast variety of flavors, they are always wanting to try what’
Slide 9: The Vape Stores Financials and Projections
NASDAQ: VPCO The Vape Stores Financials and Projections August 30, 2014 (acquisition) FORECAST to December 31, 2014 oul Q2 Q3 Q4 2015 Total number of Stores 5 8 12 16 20 20 Revenue 1,136,275 809,839 1,336,234 1,959,810 2,694,739 6,800,623 Cost of Goods Sold 422,465 259,148 400,870 529,149 646,737 1,
Slide 10: +11,500 locations
+11,500 locations +6,600 locations +4,500 locations +950 locations +100 locations Also serving the vaping needs of: highway rest stops, grocery stores, convenience stores, mall +100 locations kiosks / specialty retail, smoke shops, gas stations & pharmacies 10
Slide 11: VPCO U.S. Distributors
VPCO U.S. Distributors SessionsSpecialtyCo. = xg?g¢eODBD— thus Osim, We, “Mey Sopp "
Slide 12: VPCO - Recipe for Sustainable Success
NASDAQ: VPCO VPCO - Recipe for Sustainable Success 5?" pF © Continue to revamp xe @ . wholesale distribution \ J Franchise our accounts and only S Vape Stores for —_ continue relationships additional top and with profitable partners bottom line who properly manage Z revenue without __ their inventor
Slide 13: Vapor Corp 2014 and 2013 Financial Results
Vapor Corp 2014 and 2013 Financial Results 2014 2013 Sales $15,279,859 S 25,990,228 Cost of Sales 14,497,254 16,300,333 Gross Profit 782,605 9,689,895 Selling, General and Administrative 11,126,759 6,464,969 Advertising 2,374,329 2,264,807 Operating Income (Loss) (12,718,483) 960,119 Other Expenses
Slide 14: VPCO's Turnaround Strategy
VPCO’s Turnaround Strategy * Continue to shift product Product Shift focus from e-cigarettes to vaporizers * Continue to Build out “The ‘ Vape Store’ footprint across Retail the country * Open an additional 10-15 & branded retail Vape Stores before the end of fiscal 2015 E-commerce to drive return t
Slide 15: Summary
NASDAQ: VPCO Summary - Only Pure Play NASDAQ listed Vaporizer/Electronic Cigarette Company » Recently completed merger with Vaporin expands and provides more control over sales channels » Expanding corporate owned retail chain with goal of creating a national footprint » Exploring and investigating
Slide 16: Appendix
Appendix 16
Slide 17: VPCO In the News
NASDAQ: VPCO VPCO In the News Featured in national media publications, prime time.... THE WALLSTREET JOURNAL he New ork Cimes Bloomberg The Street
Slide 18: Vapor/Cigarette Comparison
NASDAQ: VPCO Vapor/Cigarette Comparison (— iil Ss NO tar NO ash NO noxious odor NO yellowing of teeth NO fire, NO smoke NO second hand smoke 7000 chemicals/100’s toxic 70 carcinogens Tar / Ash Smoke Offensive odor Yellowing of teeth Second hand smoke
Slide 19: VaporX
NASDAQ: VPCO VaporxX® » VaporX® is VPCO’s flagship vaporizer brand - Premiere Vaporizers * Entry Level Price Points ¢ E-Liquid, Dry Herb, Wax Tanks e USA Made Premium E-Liquids ¢ Pre-Filled Flavor Tanks VAPORX 2
Slide 20: Vaporin
NASDAQ: VPCO Vaporin® » Vaporin® offers a comprehensive line of vaporizer and mod products, catering to the more sophisticated vaporizer users. « Comprehensive Product Offering - Strong and Growing On-Line Presence @Vaporin 20
Slide 21: Krave
NASDAQ: VPCO Krave® 4 » Disposable E-Cigs KIA - King Size » 300 Puff (Classic) - 500 Puff (Classic) rechargeable e-cigarette Starter Kit K - Rechargeable E-Cigs & _S - King Size ° Classic Size e Accessories - Carrying Cases ' 1 - Chargers 7 al
Slide 22: Hookah Stix
NASDAQ: VPCO bookak Soi - 10 Great Hookah Flavors - Lasts up to 600 Puffs Soft tip filter - Jewel cut LED tip ¢ Manuel push button - Low 0.6% Nicotine Hookah Stix® 22
Slide 23: Management
NASDAQ: VPCO Management f ) Jeffrey E. Holman, Chairman & CEO ™ NX Gregory Brauser, President & Director a (EEE Christopher Santi, Chief Operating Officer NS S ( ) Jim Martin, Chief Financial Officer 23
Slide 24: Contact Information
NASDAQ: VPCO Contact Information Investor Relations: Social Media Outlets Press contact FaceBook Ei . alii Feed . CKasunic csa.com Phone: 313-898-1041 Linkedin fF. Twitter Investor contact . v - Garth Russell Vimeo vimeo russell@kcsa.com hone: 212-896-1250 » Jeffrey Goldberger igoldberger@kcsa.com P