Leatt Corporation · OTC:LEAT
Leatt — Investor Presentation (October 2015)
30 slides from Leatt's investor presentation, Oct 6, 2015
Slide 1: Investor Presentation — Oct 2015
INVESTOR PRESENTATION — OCT 2015 OTCQB: LEAT
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 achievement
Slide 3: Mission & Strategy
MISSION & STRATEGY At Leatt’s core is a passion to protect the bodies and futures of amateur and professional athletes with premium engineered protective gear. We are committed to expanding our line of innovative protective gear to protect more athletes in more sports globally. (© 2004 -2015 Leat Co
Slide 4: Mission & Strategy: Trauma affects every part of the body
MISSION & STRATEGY Trauma can effect every part of an athlete’s body © Leatt was born out of the need for neck protection. © Leatt products now protect more body parts than ever before. © Weill continue to develop our current products to remain technological leaders. © Weill continue to expand our p
Slide 5: Mission & Strategy: High velocity sports athletes
MISSION & STRATEGY Athletes participating in igh velocity sports are vulnerable © Leatt started by protecting helmeted participants in off road motorcycle riding. © Leatt now protects downhill, BMX and Enduro bicycle riders. © We intend to address a broader range of bicycle and other helmeted sports
Slide 6: Technology: Our Innovation Process
TECHNOLOGY OUR INNOVATION PROCESS Tested in our lab. Proven in the field. Trusted by athletes. © Product development begins with consumer and professional athlete insight. © Our team of bio-medical engineers and designers develop based on these insights, medical research and injury mechanism simulat
Slide 7: Manufacturing & Quality Assurance
MANUFACTURING & QUALITY ASSURANCE High quality innovative products are core to Leatt (© 2004 -2015 Leat Corporation | woleatcom Products manufactured in seven third-party production plants in China. We contract with multiple third- party quality management companies to ensure finished products and p
Slide 8: Global Distribution
GLOBAL DISTRIBUTION The Leatt family of distribution partners continues to grow © Products are sold directly to USA and RSA dealers and through 60 premium. motorcycle and bicycle distributors in ae the rest of the world. © Wesell directly to 900 active core dealers in the USA and to 200 in RSA. © 50
Slide 9: Our Products: The Leatt Neck Brace
OUR PRODUCTS Our Flagship Product — The Revolutionary Leatt Neck Brace © Developed, tested and perfected by our lab in Cape Town, South Africa. Further testing by BMW, Munich. © Established Leatt as a global protective gear brand respected for quality, innovation and safety. © 5.5 line added featuri
Slide 10: Our Products: Neck Brace Revenues
OUR PRODUCTS Neck Brace Revenues 2012 (©2004-2015 Leatt Corporation| wiwleattcom 8379 018 m2012 2013 m2014 “2014 > 620 000 units sold since inception. >$112 million in revenue generated. $1.4 Million or 17% growth in neck brace revenues in 2014. 5.5 adult, junior and Fusion junior have contributed t
Slide 11: Our Products: Neck Brace Market Position
OUR PRODUCTS Neck Brace Market Position 69% Leste evs Alpinestars North American Market ~ 50% worldwide market Source: Race (© 2004 -2015 Leatt Corporation| wontleatcom se © Leatt remains technology and market leader with estimated market share of 64% globally* © 54% still do not own a Neck brace. W
Slide 12: Our Products: Hard & Soft Shell Protection
OUR PRODUCTS Our award winning body armor range: Hard & Soft Shell Protection © Hard shell body armour range launched late 2010 with introduction of a chest protector. © Expanded the line to include full upper torso protectors, knee and elbow protectors, as well as junior versions. © Revolutionary t
Slide 13: Our Products: C-Frame Knee Brace
OUR PRODUCTS Our award winning body armor range: Revolutionary Bio-medically designed C-Frame Knee Brace (© 2004 -2015 Leat Corporation | woleatcom Strong and dependable C-arm and mono hinge construction that controls knee rotation and sheer. The C-frame is the only single sided action sports brace
Slide 14: Our Products: Body Armor Revenues
OUR PRODUCTS Body Armor Revenues 9000 © > 335.000 units sold since introduction. 3 8000 i Fats © >$20million in revenue generated. 7.000 . eee. © $2.2 Million or 40% revenue growth 5.000 5597 in 2014. 4.000 ai © _Leatt body armor products are trusted + ooo for Leatt quality, innovation and safety an
Slide 15: Our Products: Chest Protection Market Position
OUR PRODUCTS Chest Protection Market Position 258 pl © Leatt has gained 2.75% of the oh chest protector market share von 2% a per annum since 2011 and currently has 11% market oe iin share.* sd TK 5K sx a dian 6% 7 a 3% | I I Iii a 3 2% 2% 2% ay ay I © Unique position as technology om i and safety l
Slide 16: Product Development: Gloves & Hydration
PRODUCT DEVELOPMENT New product initiatives: Leatt Protective Gloves & Hydration © Leatt gloves provide maximum bike feel and premium protection using cutting edge technology and materials. © Armourgel impact protection at vulnerable areas of the hand and fingers. © Nanogrip/Aramid palm that is ultr
Slide 17: Product Development: Head & Brain Protection
PRODUCT DEVELOPMENT New product initiatives: Head & Brain Protection MOTORCYCLE BICYCLE (© 2004 -2015 Leat Corporation | woleatcom Full range of Carbon and Composite helmets in multiple sizes, including junior versions. Anti- microbial high evaporating snap out liner system: MoistureCool Tech layer.
Slide 18: Technology Added to the Helmet Market
PRODUCT DEVELOPMENT Technology added to the helmet market by Leatt —_ 360° TURBINE TECHNOLOGY a Al © Upto 30% reduction of head impact at concussion level. NS mee 7 © Up to 40% reduction of rotational acceleration to the head & brain. => at © Adds additional low energy impact protection. 3D IN-MOULD
Slide 19: Product Development: What Are Consumers Planning on Buying?
PRODUCT DEVELOPMENT What are consumers planning on buying? 9% SK 53% 45% 20% 2% | , soe 19% 2% 2K io & lel North American Market ~ 50% worldwide market * Source: Racer X Illustrated magazine October 2014 reader survey (© 2004 -2015 Leatt Corporation| wontleatcom Lv
Slide 20: Markets for Leatt Product
MARKETS FOR LEATT PRODUCT We continue to expand the markets that we serve (© 2004 -2015 Leat Corporation | woleatcom Leatt products have roots in the off-road motorcycle market which is still the predominant market that we sell to : ~ 3 million riders internationally. * We have moved into the the bi
Slide 21: Marketing Initiatives
MARKETING INITIATIVES Protection Redefined. Inspiring Confidence. 0 Weare partnered with top international athletes like Trey Canard, Cedric Gracia, Marvin Musquin, Filip Polc and Tucker Hibbert to name a few. ‘© Marketing focus on both products and Leatt brand including introduction of new brand gu
Slide 22: Marketing Initiatives: Social Media
MARKETING INITIATIVES Social Media - Facebook u egal o 92131 total FB Likes Check ou this amazing GoPro footage trom Leat athlete Slavik Hannes {rom Austia as he competes in a MTB competition trough a mall ‘Seriously! Through a mall! o 35100 total Instagram followers o 1,797,120 million people reach
Slide 23: Financial Highlights: Selected Balance Sheet Data
FINANCIAL HIGHLIGHTS Selected Balance Sheet Data JUNE 3 DECEMBER 31, 2015 2014 $ IN THOUSAN Cash, equivalents and short term investments 1277 783 Accounts Receivable 2193 4239 Inventory 3449 3404 Total current Assets 8246 9899 Total Assets 9347 11204 Total Current Liabilities 1658 3938 Long Term Lia
Slide 24: Financial Highlights: Selected Profit & Loss Items
FINANCIAL HIGHLIGHTS Selected Profit & Loss Items ea Revenues 9215 7691 18.459 14892 Gross Profit % 54%, 55% 53% 52% Product Royalty Income 72 val 191 954 Salaries, General and Admin Costs 2063 2149 4383 4232 Advertising and Marketing Costs 625 675 1.442 1.492 Research and Development Costs 586 614
Slide 25: Financial Highlights: Worldwide Revenue Trends
FINANCIAL HIGHLIGHTS Worldwide Revenue Trends 20,000 © Worldwide revenue since inception in 2006 > 18,459 15,000 pee 16,57 $142 Million. 14 330 aa BOF 10,000 o Revenue growth of $3.6 Million or 24% 5,000 in 2014. i) o Revenue growth of $1,5 2010 2011 2012 2013 2014 Million or 20% to 30 June 2010 201
Slide 26: Financial Highlights: Quarterly Revenue Trends
FINANCIAL HIGHLIGHTS Quarterly Revenue Trends a2 2013 m2014 2015 (© 2004 -2015 Leat Corporation | woleatcom Consistent revenue growth for the last 6 quarters. Cumulative revenue growth of $5 million for the last 6 quarters. Lv
Slide 27: Stock Information: Share Price and Trading
STOCK INFORMATION Share Price and Trading COMMON SHARES OTCQB:LEAT 150-day closing price range (Post Reverse Split) $1.90 - $5.17 Recent price (10/02/15) $5.15 Average daily trading volume (90-day) 1565 Common shares outstanding 5.2 million Market capitalization $26.94 million 1-for-25 reverse split
Slide 28: Outlook - Business & Operations
OUTLOOK - BUSINESS & OPERATIONS Our global growth plan to double revenues every 3-4 years © We expect to increase market share in our core © As we develop new product categories, we plan markets by continuously developing innovative, to develop appropriate distribution channels. cutting edge protect
Slide 29: Leatt Summary: Why Leatt?
LEATT SUMMARY Why Leatt? © Weare committed to continue developing bio- medically proven, high performance protective gear that protect amateur and professional athletes globally. © Anexperienced and diverse international management team. © Strong global distribution network and US dealer direct dist
Slide 30: Thank You
THANK YOU eS HEADQUARTERS OFFICE 50 Kiepersol Crescent Atlas Gardens Durbanville, 7550 South Africa Phone: 27 21557 7257 LEaTT.com @O@ (© 2004 -2015 Leat Corporation | woleatcom & USA DISTRIBUTION OFFICE Leatt Corporation 26475 Summit Circle Santa Clarita, California, 91350 Phone: 1.800.691.3314 &=