Leatt Corporation · OTC:LEAT
Leatt — Investor Presentation (June 2013)
26 slides from Leatt's investor presentation, June 2013
Slide 1: Investor Presentation
INVESTOR PRESENTATION OTCQB: LEAT http://www.leatt-corp.com/ ©©2004 2004- -2012 2013Leatt LeattCorporation Corporation | www.leatt.com June 20131
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT This presentation may contain forward-looking statements under the Private Securities Litigation Reform Act of 1995, as amended. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements
Slide 3: Our Mission & Strategy
OUR MISSION & STRATEGY At Leatt’s core is a passion to save lives! We are driven to protect the bodies and futures of athletes – professional and amateur. Mission is to extend our unique lab-tested and athlete-trusted performance and protective gear to more sports and to more athletes globally. 2 ©
Slide 4: Our Mission & Strategy
OUR MISSION & STRATEGY Trauma can affect virtually every part of an athlete’s body. We started with protecting necks; we will remain technology and market leader. Product line extended to protect more body areas. Goal is to protect • Heads, backs, chests. • Flanks, torsos, elbows. • Knees, l
Slide 5: Our Mission & Strategy
OUR MISSION & STRATEGY Started with protecting helmeted participants in offroad motorsports. Now protecting downhill and BMX bicycle riders. Goal • Protect more athletes in wide range of sports with multiple product lines. Plan • Continue to develop innovative, cutting edge products. • Move
Slide 6: Technology – Our R&D Process
TECHNOLOGY – OUR R&D PROCESS Tested in our lab. Proven in action. Trusted by athletes Product development begins with consumer and professional athlete insights into requirements. Insights presented to our bio-medical engineers and designers dedicated to developing revolutionary products. We u
Slide 7: Manufacturing & Quality Assurance
MANUFACTURING & QUALITY ASSURANCE Products manufactured in third-party production plants in China. We contract with third-party quality management companies to inspect products to ensure finished products meet our stringent quality standards. Quality management staff visits manufacturers conti
Slide 8: Global Distribution Network
GLOBAL DISTRIBUTION NETWORK Product distribution • South Africa: Leatt SA - Directly to dealers. • USA: Leatt USA – Directly to dealers with capacity to sell additional product lines. • ROW: Network of 60 third-party distributors. ~5,000 motorcycle and apparel dealers in USA, 150 in South Africa
Slide 9: Our Products: The Leatt Neck Brace
OUR PRODUCTS The Leatt Neck Brace – Flagship product Revolutionary, award winning Developed in our lab in Cape Town, South Africa, tested by BMW Munich. Established Leatt as global brand respected for innovation, safety and quality. >500,000 units sold worldwide to date. Revenue of >$93 mi
Slide 10: Our Products: The Leatt Body Armor Range
OUR PRODUCTS The Leatt Body Armor Range Hard Shell Body Armor range launched in late 2010 with introduction of Leatt Adventure Chest Protector • Awarded a 10/10 score in a product evaluation by Motorcrossgear.com. Subsequently introduced full upper trunk protectors, knee and elbow protectors. •
Slide 11: Leatt Body Armour – Sales Growth
OUR PRODUCTS Leatt Body Armour – Sales Growth $ in thousands Award winning Body Armor products well $4,000 accepted since late 2010 introduction. $3,381 $3,500 • Trusted by athletes for Leatt quality, $3,000 innovation and safety. $2,500 >100 000 units of Leatt Body Armor sold since introduction
Slide 12: Product Development: New Neck Braces
PRODUCT DEVELOPMENT NEW PRODUCT INITIATIVES PLANNED AND ALREADY UNDERWAY Leatt Neck Braces – New Chasis 5.5 & 5.5 Junior Range The Leatt Five.Five Neck Brace features new chasis design that addresses customer, athlete and engineer input. • Features new helmet rim striking platform with improved he
Slide 13: Product Development: New Body Armor Range
PRODUCT DEVELOPMENT NEW PRODUCT INITIATIVES PLANNED AND ALREADY UNDERWAY Leatt Body Armor – New Hard Shell 5.5 & 3DF Airfit Range Leatt’s new premium Hard Shell Leatt’s new Airfit premium soft protector offers maximum protection protection line features 3DF Airfit with full flank protection. imp
Slide 14: Product Development – New Product Categories
PRODUCT DEVELOPMENT – New Product Categories NEW PRODUCT INITIATIVES PLANNED AND ALREADY UNDERWAY Leatt Fusion Vest Junior Fusion brings together Leatt neck brace technology and Leatt 3DF Airfit impact foam protection for protection of neck, chest, back, shoulders and flank in a single product. Le
Slide 15: Markets for Leatt Products
MARKETS FOR LEATT PRODUCTS Leatt products have roots in off-road motorcycle market: ~1.5 million riders in USA, ~50% of world market. Moved into bicycle market: ~15.7 million riders in USA, ~50% of world market. Also a presence in such markets as • Snowmobile: ~2.8 million riders • Street moto
Slide 16: Leatt Neck Brace – New Markets
MARKETS FOR LEATT PRODUCTS Leatt Neck Brace – New Markets 100% 2% 2% Leatt has successfully entered 3% 3% 3% 90% 9% new markets since 2010 14% 17% 18% 80% 6% 3% 2% ~18% of brace unit sales in Q1 2013 70% from DBX Bicycle Brace. 60% • Grew from 9% of unit sales in 2010 when released. 50% 97% 89% 40
Slide 17: Leatt Neck Brace – Market Position 2012
MARKETS FOR LEATT PRODUCTS Leatt Neck Brace – Market Position 2012 69% 47% 14% 12% 3% 1% 1% Leatt Alpinestars EVS Atlas Omega Other None North American Market (Estimated to be 50% of World Market) Leatt had a 69% market share according to an industry survey of primarily off-road motorcycle riders
Slide 18: Leatt Chest Protector – Market Position 2012
MARKETS FOR LEATT PRODUCTS Leatt Chest Protector – Market Position 2012 30% 26% 20% 11% 7% 6% 7% 5% 3% 3% 3% 3% 3% 3% 7% 5% 2% 2% 2% 1% 0% 0% Fox Troy Lee Fly UFO Pro Grip MSR Alpinestars No Fear Other Thor HRP O'Neal Answer Acerbis AXO Shift None EVS SixSixOne Moose Sinisalo Leatt Designs North Ame
Slide 19: Marketing Initiatives & Social Media
MARKETING INITIATIVES & SOCIAL MEDIA Continued sponsorship, support of motorcycle and bicycle athletes. “Straight Talk About Neck Braces” video series • Features Leatt technology, addresses neck brace usage questions. Media visits to Leatt lab • Top journalists visit facility, often write edit
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS SELECTED PROFIT AND LOSS ITEMS 3 Months Ended 12 Months Ended March 31, March 31, December December $ in thousands 2013 2012 31, 2012 31, 2011 Revenues 3,248 3,322 16,577 17,878 Gross Profit 1,595 1,865 8,909 10,409 Gross Profit % 49% 56% 54% 58% Product Royalty Income 37 34 262
Slide 21: Financial Highlights: Selected Balance Sheet Data
FINANCIAL HIGHLIGHTS SELECTED BALANCE SHEET DATA March 31, December December $ in thousands 2013 31, 2012 31, 2011 Cash, equivalents and short term investments 1,151 978 1,395 Accounts receivable 2,303 3,532 2,993 Inventory 3,049 3,770 3,679 Total current assets 7,391 9,372 9,120 Total Assets 8,534
Slide 22: Financial Highlights: Revenue Trends – Worldwide
FINANCIAL HIGHLIGHTS Revenue Trends – Worldwide $ in Thousands $20,000 $17,878 $16,577 $15,000 $13,743 $14,330 $10,000 $5,000 0 2009 2010 2011 2012 Worlwide revenue since inception in 2006 >$100 million. Worldwide 2012 revenues 7% lower compared to 2011, primarily due to lower OEM revenues. Wo
Slide 23: Stock Information
STOCK INFORMATION Common shares OTCQB: LEAT 150-day closing price range (Post Reverse Split¹) $0.50 - $0.83 Recent price (5/30/13) $0.68 Average daily trading volume (90-day) 1,142 Common shares outstanding 5.2 million Market capitalization $3.54 million 1 1-for-25 reverse split effective September
Slide 24: Outlook – Business and Operations
OUTLOOK – BUSINESS AND OPERATIONS Growth plan – implement following global growth strategy, which we expect will double revenue every 2-3 years: Increase market share in core markets by continuously developing unique, innovative products that protect more areas of athletes’ bodies and can be sold
Slide 25: Summary – Why Leatt?
SUMMARY – WHY LEATT ? Innovative lab- and action-proven performance products that fulfill unmet needs to protect and save the lives of amateur and professional athletes of all ages. Experienced, diverse international management team. Strong global distribution network. US dealer direct distrib
Slide 26: Headquarters Office and Investor Relations
HEADQUARTERS OFFICE USA DISTRIBUTION OFFICE INVESTOR RELATIONS: 50 Kiepersol Crescent Two Eleven Distribution LLC Joe Allen Atlas Gardens 26320 Diamond Place Chairman & CEO Durbanville, 7550 Unit 130 Allen & Caron Inc South Africa Santa Clarita, CA 91350 212 691 8087 (NYC) Phone: 27 21 557 7257 Phon