27 slides from Mene, Inc. Class B's investor presentation, March 2019
Slide 1: Investor Presentation: Invest in Pure 24K
INVESTOR PRESENTATION INVEST IN PURE 24K March 2019 MENE MENEF
Slide 2: Table of Contents
TABLE OF CONTENTS THE CONCEPT Introduction The Global Jewelry Economy Educating Consumers with Ancient Wisdom The Menē Experience THE BUSINESS Designs by Picasso & Moon Robust Business Model THE COMPANY Relationship with Goldmoney Capital Structure & Share Listing Financial Performance & KPI’s Press
Slide 3: The Concept
THE CONCEPT Menē is one of the most successful jewelry brands to have launched in recent times. Large addressable market Unique convergence of technology, business, access to capital A disruptive vision Menē restores the link between savings and jewelry.
Slide 4: Introduction
INTRODUCTION Led by innovative technology, Franco-American craftsmanship, and direct-to-consumer economics, Menē is rapidly becoming a disruptive force in the $250 Billion global jewelry industry. Every day, nearly $1 billion worth of jewelry is purchased as gifts for loved ones, to mark a special m
Slide 5: The Jewelry Economy: East
THE JEWELRY ECONOMY EAST OVERVIEW In the East, it is not “jewelry” but rather precious metals which are ultimately being accumulated as long-term savings by consumers. The investment bank Goldman Sachs estimates this natural rate of accumulation at 0.5 grams of gold per capita per year. This trend d
Slide 6: The Jewelry Economy: West
THE JEWELRY ECONOMY WEST OVERVIEW One hundred years ago, Tiffany & Co. sold silver jewelry by the ounce, and only 50 years ago 22-24k gold chains in the U.S. were sold by gram weight. Today, the principles guiding Western Jewelry brands are consolidation, reduction of working capital, and maximizati
Slide 7: Jewelry industry is extremely consolidated
NYSE: TIF Tiffany & Co. The jewelry industry is extremely consolidated with a handful of brands representing the majority of global sales. Just two companies: Tiffany & Co. (NYSE: TIF) and Pandora (US: PANDY), sold over $8 billion of jewelry last year and have CPH: PNDORA combined valuations of over
Slide 8: Disrupting an Entire Industry
DISRUPTING AN ENTIRE INDUSTRY Companies such as Amazon and Uber changed how consumers thought about the process of purchasing a book or ordering a taxi to the point of implementing a “paradigm shift” or “sea change”. When these shifts in consumer behavior occur, the prior consumer experience becomes
Slide 9: Unique Business Model
UNIQUE BUSINESS MODEL Menē is the first jewelry brand to sell only 24 karat gold and platinum jewelry. Menē is the only jewelry company in the world that prices its jewelry by gram weight while also transparently disclosing its profit margins. Menē keeps its profit margin at roughly 20%.
Slide 10: Key Figures and Performance Indicators
KEY FIGURES AND PERFORMANCE INDICATORS 81% $10mm+ 19,000+ 40 Inside Ownership Revenue Generated Units Sold Countries Sold To
Slide 11: Educating Consumers with Ancient Wisdom
EDUCATING CONSUMERS WITH ANCIENT WISDOM Before Menē, the average item of jewelry sold by western brands lost around 80-90% of its value at the time of purchase. Menē has flipped the value proposition such that 80% or more of the original purchase price of its jewelry is maintained and perhaps even g
Slide 12: Educating Consumers with Ancient Wisdom
EDUCATING CONSUMERS WITH ANCIENT WISDOM Menē is re-educating western consumers towards pricing jewelry by weight and has pioneered a new 24 karat gold and platinum investment jewelry concept and business model. Menē’s proprietary technology also displays the company’s profit margin on each item, cle
Slide 13: My Collection
MY COLLECTION This section of the dashboard is akin to an investment portfolio. Here customers can monitor the value of the jewelry they have bought, initiate a buyback (Selling the jewelry back to Menē), or initiate an exchange.
Slide 14: Pure 24 Karat Gold and Platinum Jewelry
PURE 24 KARAT GOLD AND PLATINUM JEWELRY The philosophy driving the Menē business model is the restoration of the historic 24 karat gold and platinum jewelry standard which traces its lineage to ancient Mesopotamia (the Code of Hammurabi where the name Menē is derived). This gold jewelry standard and
Slide 15: Robust Business Model, Designs by Picasso and Moon
Diana Widmaier-Picasso ROBUST BUSINESS MODEL, DESIGNS BY PICASSO AND MOON Menē’s business model, transparent pricing, and investment jewelry concept are unique to the western jewelry market. Menē’s design team is based in Paris, France and headed by the company’s co-founder, Diana W. Picasso (the gr
Slide 16: Vertically Integrated Business Model
VERTICALLY INTEGRATED BUSINESS MODEL Menē owns its infrastructure and is vertically integrated from manufacturing, technology, customer support, fulfillment center, design, and marketing. Everything is done in-house creating a sense of harmony that translates into exceptional design and satisfied cu
Slide 17: Relationship with Goldmoney
RELATIONSHIP WITH GOLDMONEY (TSX:XAU) $500 RING COMPARISON Goldmoney (TSX: XAU) is one of the largest custodians of precious metals in the world and looks after nearly $2 $500 RING COMPARISON Billion of physical gold, silver, platinum, and palladium. Goldmoney owns around 33% of Menē. This access to
Slide 18: The Long-Term Differentiator
THE LONG-TERM DIFFERENTIATOR Unlike other jewelry brands that have to mark down old inventory or come up with new designs to stimulate sales, Menē never suffers from the risk that its inventory will lose value. In fact, its quite the opposite – Menē is always invested in 24 karat gold and platinum w
Slide 19: A Uniquely Positioned Public Company Focused on the Long-Term
A UNIQUELY POSITIONED PUBLIC COMPANY FOCUSED ON THE LONG-TERM Menē Inc. is a unique publicly traded company which is serious about disrupting the global jewelry industry. Menē is a revolutionary new way to think about jewelry, changing the paradigm and building strong relationships with a global cus
Slide 20: Capital Structure and Share Listing
CAPITAL STRUCTURE AND SHARE LISTING Following a successful underwritten funding round led by the investment bank Canaccord Genuity, Menē Inc. has $47 million in tangible assets and $21 million in equity capital. Menē Inc. has a dual-class voting structure with tradable Class B Shares (TSXV- MENE) ow
Slide 21: Financial Performance
FINANCIAL PERFORMANCE (The business officially launched sales on January 6, 2018) REVENUE NUMBER OF ORDERS 3,389,366 6,729 1,985,711 3,994 1,392,867 2,389 1,038,947 951 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 22: Key Performance Indicators
KEY PERFORMANCE INDICATORS FISCAL YEAR 2018 PRELIMINARY INVENTORY (KG OF GOLD) GROSS MARGIN (%) GROSS PROFIT (CAD) TOTAL SHAREHOLDERS' EQUITY (CAD) 862,832 21,111,517 244 25 131 135 16 16 11,878,195 11,251,166 10,077,520 90 10 229,461 208,408 170,486 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 23: Press & Media
PRESS & MEDIA MENĒ IS THE JEWELRY COLLECTION QUITE LITERALLY WORTH ITS WEIGHT IN GOLD HOW MENĒ IS REVOLUTIONIZING THE GOLD BUSINESS JEWELRY WORTH ITS GRAMS IN GOLD PICASSO'S GOLD: THE ART OF INVESTING IN GOLD JEWELRY
Slide 24: Menē Flywheel
MENĒ FLYWHEEL POSITIVE CUSTOMER EXPERIENCE By empowering customers with a unique VIRAL NETWORK EFFECTS value proposition, Menē has registered over 5,000 independent product reviews with 99% being 5 stars. CUSTOMERS BECOME GAIN MORE LOYAL BRAND AMBASSADORS CUSTOMERS Satisfied customers advocate for t
Slide 25: Menē Narrow Band Number Charm
Menē Narrow Band Number Charm 7.26 Grams 2.46 Grams 32 Reviews 76 Reviews Nathan Bharani Jul 18, 2018 Verified Purchase Aug 8, 2018 Verified Purchase Fabulous Engagement Band Looks Perfect! My Fiance and I love our matching engagement bands. We love the idea that we Delivered as promised. I was afra
Slide 26: Heart Knot Ring Suits Dice Charm
Heart Knot Ring Suits Dice Charm 7.1 Grams 2.3 Grams 30 Reviews 22 Reviews Mark Tanya Aug 25, 2018 Verified Purchase Jul 3, 2018 Verified Purchase A Beautiful Ring! Unique I purchased this for my wife for our upcoming anniversary and she is in love with it! I bought this charm for my daughter and it
Slide 27: Investor Relations & Press Contacts
INVESTOR RELATIONS & PRESS CONTACTS Menē – Corporate Press Office 6 Place Vendôme, Paris, France – Paris 75001 press@mene.com Menē – Public Relations Contact France Daniel Alfredo, KARLO OTTO PARIS daniel.alfredo@karlaotto.com Menē – Investor Relations Renee Wei investor@mene.com