Nascent Wine — Investor Presentation (April 2008)
23 slides from Nascent Wine's investor presentation, Apr 10, 2008
Slide 1: Investor Presentation April 2008
Investor Presentation April 2008
Slide 2: Safe Harbor Statement
1 Safe Harbor Statement Statements made in this presentation that express the company's or management's intentions, plans, beliefs, expectations or predictions of future events, are forward-looking statements. Those statements are based on many assumptions and are subject to many known and unknown r
Slide 3: Company Snapshot
2 Company Snapshot Ticker OTCBB: NCTW Stock Price (4/7/08) $0.22 Fully Diluted Shares Out 128 million Market Cap $28.2 million Net Debt $0.1 million 2007 Revenues Estimate >$40 million 2008 Estimated Revenue run-rate $65 million
Slide 4: Company Overview
3 Company Overview • First-mover advantage and fastest growing foodservice distributor of imported branded and private-label food & beverage products in Mexico – Over 2,000 products and 200 national and private-label brands – Seven exclusive distribution rights • National footprint • Services over 2
Slide 5: Company History
4 Company History • May 2006 – Secured distribution rights for Miller Beer in Baja, CA – Raised $11,300,000 in private placement • Provided capital to fund acquisition strategy • Acquired 6 exclusive brands since inception • July – October 2007 – Completed 4 acquisitions $8 $13 $5.1 $4.7 $0.1 >$17 $
Slide 6: Strategic Acquisition History
5 Strategic Acquisition History Date of Acquisition Company Name Brands/ Strategic Advantage April 2006 Miller Beer of Baja, CA October 2007 Piancone Group International November 2007 Palermo Italian Food May 2007 Pasani, SA July 2007 Grupo Sur Promociones October 2007 Comercial Targa
Slide 7: Mexican Foodservice Industry
6 Mexican Foodservice Industry • Mexico represents 12th largest economy in the World – Mexican population in excess of 110 mm – Mexico’s GDP is over $1 trillion dollars • Mexico imports $120 billion in food and beverage products*: – Foodservice industry represents $46 billion – Highly dependent on t
Slide 8: Demographic Served
7 Demographic Served
Slide 9: First Mover Advantage
8 First Mover Advantage • National Footprint in Mexico – 15 DC’s in Mexico – 3 DC in USA • Total warehouse sq. ft ~ 250,000 • Fleet of 35 distribution trucks • Six exclusive distribution rights • Value- Added Services – 4,800 Employees – 56 person sales team – 4,500 dedicated to food merchandising a
Slide 10: Leading Branded & Private Label Portfolio
9 Leading Branded & Private Label Portfolio Strong portfolio of private label & branded products • Over 2,000 branded and private label products – 250 private label products – 750 products under exclusive agreements – 1,000 products purchased in the open market
Slide 11: Comprehensive Product Portfolio
10 Comprehensive Product Portfolio Beverages Snacks Grocery Products Bottled water, cocoa, tea, coffee, drink mixes, juices, soda Chocolates, hard candies, chewing gum, cookies, crackers, nuts Disposables Fresh Meats Condiments Specialty Foods Refrigerated Foods Beer Bread, canned fruit, cereal, des
Slide 12: Exclusive Distribution Relationships
11 Exclusive Distribution Relationships • Miller Beer for Baja California, Mexico • Bellissimo Pizza Products • AvaSoft Ice Cream • Ferrarelle Water • Atlantic International (Cora Italian foods and condiments) • Jolly Rancher Soda • Clabber Girl
Slide 13: Channels
12 Channels Accounts Supermarkets Club stores Convenience Stores BTL Marketing Foodservice Restaurants, hotels, bakeries Key Retail Partners
Slide 14: Business Model
13 Business Model ~2,000 branded and private label products 18 Distribution Centers Centralized Operations (Sales, Accounting, Purchasing, etc) Distribution Fleet (35trucks) 4,500 Stocking Employees Supermarkets Club Stores Convenience Stores Food Service
Slide 15: Competitive Landscape
14 Competitive Landscape • 25,000 small and independent distributors • Similar market to United States 30 years ago before Sysco or US Foodservice, Inc. US Exporter Importer/Dist/Rep/Agent Retailers US Mexico
Slide 16: Growth Opportunities
15 Growth Opportunities • Organic growth expected to be over 30% in 2008 • Pursue Selective Acquisitions • Leverage Business Model – Majority of investment in distribution platform complete – Expand higher margin private label offering – Adding additional leading brands • Further Penetrate Existing
Slide 17: Pursue Selective Acquisitions
16 Pursue Selective Acquisitions • Fragmented industry (comparable to United States 30 years ago) • Estimated 10,000 acquisition opportunities • Average P/E multiple of acquired Company 2.0x -4.0x • Limited strategic buyer universe Opportunity • Leverage existing infrastructure • Expand branded and
Slide 18: Management Team
17 Management Team Team Member Title Years of industry experience Industry Experience Sandro Piancone Founder, CEO 20 Victor Petrone President 20 Peter White CFO 40
Slide 19: Financial Overview
wG, Financial Overview
Slide 20: Historical & Projected Financial Overview
19 • Q4 Revenue estimated to be greater than $17 million • Q4 07 Annualized revenues implied approx. $65 mm in revenues Historical & Projected Financial Overview Revenue Growth $4.7 $65.0 >$40.0 $0 $20 $40 $60 $80 2006 Est. 2007 Annualized 2007 run-rate ($ in millions)
Slide 21: Balance Sheet Highlights
20 Balance Sheet Highlights As of 9/30/2007 • Cash balance of $1.95 million • Accounts receivable fully insured by AIG • Working capital of $2.0 million • Short-term debt of $7.6 million • Long term debt of $2.0 million • Total stockholders equity of $27.7 million
Slide 22: Investment History
21 Investment History • July 2007 – $8,000,000 private placement by York Capital Management • November 2007 - $7,000,000 private placement by York Capital Management
Slide 23: Investment Summary
22 Investment Summary • Rapidly Expanding Sales Growth • First-Mover Advantage • Fragmented Industry • Leveraging Infrastructure • Improving Margins • Diversified Branded and Private Label Products • Compelling Customer Value Proposition
Nascent Wine Company — Investor Presentation (April 2008) on 6ix