Xmax, Inc. · NASDAQ:XMAX
Xmax — Nova Lifestyle — Investor Presentation (July 2011)
20 slides from Xmax's investor presentation, Jul 20, 2011
Slide 1: Nova Lifestyle, Inc. Corporate Headquarters
=o flOVd © uirestyie Corporate Headquarters 6541 €. Washington Be Nova Lifestyle, Inc. Commerce, CA 90040 USA : Tel: (323) 888-9999 Stock Symbol: STVS www.novalifestyle.com
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT a Nova LIFESTYLE This presentation contains "forward-looking statements" within the meaning of the “safe-harbor” provisions of the Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the act
Slide 3: Corporate Overview
» Nova LIFESTYLE CORPORATE OVERVIEW COMPANY OVERVIEW © Nova Lifestyle designs, markets and manufactures modern home furniture for today’s middle class, urban consumers in diverse markets worldwide + Established in 2003, + US. company headquartered in California + Manufacturing base in China + Approx
Slide 4: A History of Growth
A HISTORY OF GROWTH zoos ans ual ‘hella Nova Furniture peoteremean ete wasawardeda silver medal established Dest Seaton a at the International Famous Furniture Fairin China for LIFESTYLE 2009 Initiated China retail sales expansion; commenced R&D for “Ming Ma” brand dest [ol=Fesa) 2010 2011 Novabrand
Slide 5: Global Presence
GLOBAL PRESENCE at hova LIFESTYLE les an dh + 29% China sales: Nova-branded products and wholesale + 71% export sales: mainly ODM/OEM Europe North America 48.8% Hong Kong Asia (ex oo | 4.4% | i% Other Countries SENNA sales of Nova-branded products
Slide 6: Brand Positioning
BRAND POSITIONING = nova LIFESTYLE GIORGIO MOBILI Upper Middle-Class Introduced in 2010 Consumers Clean, classic style, luxury brand 1Sofa Launch in 2011 ASO wireme SaTE e . . Launch in 2011, Functional, practical, bright is ; sancl Traditional Chinese designs in colors and random pattern Sea ee mod
Slide 7: "Colorful World" Brand
“COLORFUL WORLD” BRAND a Nova © visestye * Clientele: Middle-class consumers + Launched in 2003, first major branded product introduced by Nova into the China market + Young, clean, fashionable look for middle-class consumers; suitable for smaller, urban living spaces + Products incorporate wide var
Slide 8: "Giorgio Mobili" Brand
“GIORGIO MOBILI” BRAND GIORGIO MOBILI * Clientele: Upper middle-class consumers + Luxury brand established in 2010 * Clean, classic style for upper middle-class consumers + High-end living room and bedroom sets, combining simple elegance with modern fashion * Luxury brands are growing exponentially
Slide 9: "Ming Ma" Brand
“MING MA” BRAND a Nova © visestye * Clientele: Middle-class consumers + New product line ~reinterprets traditional Chinese designs in modern furniture styles + Two years of R&D - to launch in 2011 + “Ming Ma” inspired designs are currently being offered to the export market
Slide 10: "1Sofa" Brand
“1SOFA” BRAND = nova LIFESTYLE * Clientele: Middle-class consumers (young generation) + New product line — functional, practical, bright colors + To launch to market in 2011
Slide 11: "Wo Zhi Bao" Brand
“WO ZHI BAO” BRAND + nova LIFESTYLE * Clientele: The general public + New product line - popular fashion and casual practical designs * To launch to market in 2011 + Moderately scaled and priced for price-conscious consumers
Slide 12: Franchising in China
» Nova LIFESTYLE FRANCHISING IN CHINA FRANCHISING MODEL IN CHINA + Nova brands offered through independently owned franchise stores + Stores individually advertise through local media + Nova coordinates large-scale promotions for launching new product collections + Nova sells directly to franchise s
Slide 13: China Industry Dynamics
CHINA INDUSTRY DYNAMICS at hova LIFESTYLE Consumption of furniture in China up 37.2% to $10.65 billion in 2010 from 2009" China’s GDP growth drives consumer wealth growth - China's average GDP growth of 10.1% annually since 2006") China's market population of middle class and affluent consumers is p
Slide 14: Export Markets
» Nova LIFESTYLE EXPORT MARKETS + Products offered in over 20 countries + Sales to Europe increased 20% in 2010 despite financial cr * Offer extensive choices for the international markets: approximately 50 distinct collections developed exclusively for the export markets + Introduce new collections
Slide 15: U.S. & International Industry Dynamics
U.S. & INT’L INDUSTRY DYNAMICS a Nova LIFESTYLE Furniture e-commerce sales in the U.S. rose 4% in February 2011, the fourth consecutive monthly increase for the furniture category’? Through 2016, projected higher disposable income and strong consumer sentiment will help boost demand for furniture in
Slide 16: Competitive Advantages
COMPETITIVE ADVANTAGES a Nova LIFESTYLE NOVA = Contemporary Styling + Functionality + Emerging Market Growth + Niche player: urban, contemporary lifestyle products highly demanded by modern consumers + Unique distribution channels in China: direct access tothe growing middleclass in China through pr
Slide 17: Established Global Clientele
ESTABLISHED GLOBAL CLIENTELE a Nova LIFESTYLE SELECT CLIENTS SELECT CUST¢ ER PROFILE if More than € 150 million in annual sales, marketing to stores and chain stores e Actona Company across Europe, U.S., Australia and Asia with a broad range of product offerings and a wide international design span.
Slide 18: Other Select Customers
OTHER SELECT CUSTOMERS = nova LIFESTYLE V) {18-BS JSWB 2844 & a, E freedom) Musant IDEmobler SCIMENESI 5 Bene csn| stores.com & think sofas, think dfs << a amazon.com
Slide 19: Management Team - Industry Experts
MANAGEMENT TEAM - INDUSTRY EXPERTS at hova ¥ Jeffery Wong~ CEO, Chairman and Co-Founder +22 years of experience in the furniture industry + Vice-Chairman, Dongguan FumnitureAssociation * Director, the InternationalFurniture and Decoration (Hong Kong) Association + Graduated from Hong Kong Victoria T
Slide 20: Financial Profile
FINANCIAL PROFILE = NOVA LIFESTYLE, INC. FINANCIALS USS milions FYE 12/31/2009 _ FYE 12/31/2010 FY2OL1E| Revenue S218 $288 $395 Growth 37.1% EBITDA $59 $63 $93 Net Income saa sag $58 ‘COMPARABLE ANALYSIS — LAST FISCAL YEAR END Margin: mployees _MktCap P/E FYESales Gross _EBITDA Operating _Net Hooker