Xmax, Inc. · NASDAQ:XMAX
Xmax — Nova LifeStyle — Southern California Investor Conference 2012
27 slides from Xmax's conference presentation, Sep 4, 2012
Slide 1: Presentation at Southern California Investor Conference
Corporate Headquarters 6541 E. Washington Blvd. Commerce, CA 90040 USA Tel: (323) 888-9999 www.novalifestyle.com Presentation at Southern Califomia Investor Conference August 30, 2012 Nova LifeStyle, Inc. Stock Symbol: STVS
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 actual results of the
Slide 3: About Our Company
ABOUT OUR COMPANY + A rapidly growing U.S. designer, distributor and manufacturer of modern lifestyle furniture, headquartered in California with 2011 sales of $42MM (up 50% YOY) and net income of $5.4 million (up 28% YoY) + Industry innovator and niche leader in the U.S. And globally with its own b
Slide 4: Other Nova Facts
OTHER NOW FACTS + Symbol: STVS (OTCAB) + Shares Outstanding: 18,691,250 + Recent Stock Price: $2.50 (August 22, 2012) + Market Cap: $46,475,000 + Float: Approx. 4MM + Employees: 1000 + ISO 9001 and ISO 14001 certified + Patents: 119 + Public: June, 2011, + Founded: 1992 + Auditor: Marcum LLP
Slide 5: Worldwide Markets and Brands
WORLDWIDE MARKETS AND BRANDS ‘Our Markets: EUROP “chal conor het ares + Original design capabilities + Diamond Sofa-branded products, + Distribute to stores ranked in the top 100 furniture companies in the U.S. + Novacbranded products (Colorful World, Giorgio Mobil) + Profitable and fast-growing fra
Slide 6: Manufacturing Leader Lifestyle - Dongguan, China
MANUFACTURING LEADER LIFESTYLE DONGGUAN, CHINA
Slide 7: Global Presence
GLOBAL PRESENCE nova Seles and demographics for the year ended December 31, 2011 —_— North America: Hong Kong ‘Asia (ox HKIChina) Other Countries e nova Sales of Nova-branded products ~ sun. Sales of Diamond Sofa products
Slide 8: Established Global Customers
ESTABLISHED GLOBAL CUSTOMERS nova ‘i Nebraska ELDORADO 5 ty Pett aman ) future ‘a zillion things home © (ra) 5 ores wayfair —amazoncom
Slide 9: Other Select Customers
OTHER SELECT CUSTOMERS nova aa JSWB28+%5 GBB — teedomh aa ae IDEmobler semennan 2 a iss wo GES ATLAS omitens} ILVA Kinhom @ 83 RB FL
Slide 10: Competitors (U.S.)
COMPETITORS (U.S.) Note: Each Company above differs markedly from NOVA, in that NOVA, Is nota retailer- - it sells to retailers and distributors, and also is a manufacturer
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES nova NOVA = Contemporary Styling + Functionality = U.S. and Emerging Market Growth —— Niche leader: urban contemporary lifestyle products in high demand by modern consumers Distribution channels in China: direct access to the growing middle dass in China through proven franchi
Slide 12: Growth Drivers
GROWTH DRIVERS nova = Furniture e-commerce sales in the U.S. rose 10.89% In 2022. (2) — = Global furniture production reached an estimated $402 billion in 2013 (3) = Real growth In furniture demand in 2021 grew 8.546 In the world’s top 70 countries, Including the U.S. and Europe (3) = The IMF antici
Slide 13: U.S. Market: Diamond Sofa
U.S. MARKET: DIAMOND SOFA ig Indires + Diamond is a strong respected American brand and innovative distributor and designer of contemporary lifestyle furniture products in the U.S. since 1992 + Products sold to stores ranked in the top 100 furniture companies in the U.S.1 + Worldwide product showroo
Slide 14: Diamond Sofa Products
DIAMOND SOFA PRODUCTS nova
Slide 15: Franchising in China
FRANCHISING IN CHINA HIGHER PROFIT MARGINS THROUGH DIRECT SALES 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 + Nove sells directly to fr
Slide 16: Nova Organic Latex Mattresses
NOVA ORGANIC LATEX “Made in the U.S.A.” MATTRESSES
Slide 17: Giorgio Mobili Brand
"GIORGIO MOBILI" BRAND GIORGIO MOBILI + Clientele: Upper middle-class consumers + Luxury brand established in 2012 * 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 18: Colorful World Brand
"COLORFUL WORLD" BRAND + 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 + Majority of franchising store sales consist o
Slide 19: Global Management Team
GLOBAL MANAGEMENT TEAM MV —= Jotay Wong -C£0, Chama Fano Tam am Prosar an co Co Fair “yun Sonic Detar tay arn Saames “aman erga Assn peesrieed “Dror hear onto “GEO eterno ard Sf Comma \ Sees {Sesriem ta perme cree IRR « Gradsated trom Hong Kong Victoria Technical + Bachelorof Sciance in Business and
Slide 20: Financials
FINANCIALS Year Ove: LIFESTYLE 1 Year Growth In Revenues and Net Income — FY 2009 FY2010_ [FY2011 Revenue S27 $28.8 $43.2 Growth $33.0% | +50% NetIncome | $4.6 $4.8 $5.37 Growth 128% Revenue Net income (suo 8 ste
Slide 21: Financials: 2012 Second Quarter
FINANCIALS LIFESTYLE, 2012 Second Quarter Sales Up 74%: Net Income up 176% Second Quarter Ended June 30 2021, 2012 Revenues 39.26 si6a5 474% Net Income S58 S143 Fa7E% EPS $0.05 ‘$0.08 Diluted Weighted | 11,952,747 18,491,138 Average Shares + U.S. sales led growth with 129% gain te $5.4 millian + Chi
Slide 22: Financials: 2012 First Half
FINANCIALS 2012 First Half Sales up 82%; Net Income up 11% 6 Months Ended, June 30 2011, 2012 Revenues 314.69 $2.45 482% Net Income $1.59 $2.40 Ec 21,788,314 18,589,410 Average Shares + Gross profit margins were 25% compared with 28% in year ago period. Goal is 30% as product mix broadens and as hil
Slide 23: Recent Events
RECENT EVENTS LIFESTYLE, May 15, 2012 — Company Announced Long-Term Supply Agreement China with IKEA, the world’s largest home furnishings retailer; Supported by new 161,460 square foot production line under construction with targeted completion in December. Products generated could add approximatel
Slide 24: Recent Events (cont'd)
RECENT EVENTS (con't) nova July 12, 2012 — Company announced first shipment to China of its Ultra Premium Made in the USA Mattresses. Substantial high margin growth opportunity for much sought after luxury product. July 30, 2012 — Company introduces new line of urban contemporary sofas with built-in
Slide 25: Growth Strategy
GROWTH STRATEGY —- Focus primarily on continuing rapid growth in U.S. and China, via further penetration of “Top 100” stores in the U.S. and increasing Internet sales with Diamond brand. In China, via increasing direct sales of NOVA branded furniture through growth to 200 franchises, and new Interne
Slide 26: Outlook for 2012
OUTLOOK FOR 2012 JLIFESTVLE] Based on anticipated organic growth, the Company provided the following guidance for 2012 on April 2, 2012: nin 2011 to between $50 + Revenues growing from $43.2 mill range: +259%) n and $58 million in 2012 (M 1g from $5.4 million in 2011 to between $7 ion in 2012 (Midra
Slide 27: Contacts
CONTACTS Corporate Contact: Tawny Lam President, Nova LifeStyle, Inc. Tel: (323) 888-9999 Email: info@novalifeStyle.com www.diamondsofa.com IR Contact: Ken Donenfeld DGI Investor Relations, Inc. Tel: (212) 425-5700 Email: kdonenfeld@dgiir.com
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