Leatt Corporation · OTC:LEAT
Leatt — Investor Presentation (September 2016)
33 slides from Leatt's investor presentation, Sep 16, 2016
Slide 1: Investor Presentation September 2016
SS we INVESTOR PRESENTATION SEPTEMBER 2016 OTCQB: LEAT x
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: Mission & Vision
MISSION & VISION At Leatt’s core is a passion to protect the bodies and futures of amateur and professional athletes. We are committed to expanding the Leatt line of innovative protective gear to protect more athletes in more sports globally. We are committed to giving athletes the assurance and fre
Slide 4: Company Heritage
ATHLETES PARTIGIPATING IN-HIGHEVELOCITY SPORTS ARE-WULNERABLE TRAUMA CAN AFFECT EVERY PART OF AN ATHLETE'S BODY © 2004 - 2016 Leatt Corpor ereemlestt.com | weer heos COMPANY HERITAGE Leatt was born in 2006 out of the need for neck protection in the specialised off-road motocross market, Revolutionar
Slide 5: Leatt Investment Opportunity
LEAT INVESTMENT OPPORTUNITY Our global growth plan to double revenues every 3-4 years Inventor and Industry Leader in Neck Brace Market. Growing Market Share In Expanded Product Categories and Markets. Innovative Product Pipeline of “Must Have” Products To Address Wider Markets. Strong, Authentic Br
Slide 6: Technology: Innovation Process
TESTED IN OUR LAB. PROVEN IN THE FIELD. TRUSTED BY ATHLETES. © 2004-2016 Leatt Corporation www.leatt.com | wwwleatt-corp.com TECHNOLOGY: INNOVATION PROCESS Product development begins with consumer and professional athlete insight to identify core problems. Our team of biomedical engineers and global
Slide 7: Manufacturing & Quality Assurance
MANUFACTURING & QUALITY ASSURANCE Quality assurance starts in the lab and follows through to the factory. Products are now manufactured in ten third-party production plants in China We contract with multiple third-party quality management companies. Leatt quality management staff visit production pl
Slide 8: The Leatt Family of Global Distribution Partners
THE LEATT FAMILY OF GLOBAL DISTRIBUTION PARTNERS DISTRIBUTION CONTINUES TO GROW * Products are sold directly to USA and RSA dealers and through 60 premium distributors in the rest of the world. * Brand Managers employed in key markets, + We sell directly to 900 active core dealers in the USA and to
Slide 9: Our Flagship Product: The Revolutionary Leatt Neck Brace
OUR FLAGSHIP PRODUCT: THE REVOLUTIONARY LEATT NECK BRACE © 2004-2016 Leatt Corporation www.leatt.cam | wiww.leatt-corp.com OUR PRODUCTS Established Leatt as a global protective gear brand respected for quality, innovation and safety. Developed, tested and perfected by our lab in Cape Town, South Afr
Slide 10: Our Products: Neck Brace Revenues
OUR PRODUCTS Neck Brace Revenues * > 680 000 units sold since inception * >$120 million in revenue generated. * $1.4 Million or 17% growth in neck brace 9800 10 000 000 revenues in 2014. 8379 ian 258i. + Revenue decrease in 2015 due to a decline in OEM neck brace sales and a 3 strengthening US Dolla
Slide 11: Neck Brace Market Position
Percentage OUR PRODUCTS + Leatt remains technology and market leader with estimated market share of Neck Brace Market Position sii 58.9% globally.! 60,0 S88 a + Market share is based on volumes. 50,0 Competitors have decreased pricing at the sap expense of margins. i * 52% of market still do not own
Slide 12: Award-Winning Body Armor: Hard & Soft Shell Protection
AWARD-WINNING BODY ARMOR OUR HARD & SOFT SHELL PROTECTION PRODUCTS * Hard shell body armor range launched in EST GLOVE late 2010 with introduction of a chest protector. “THIS MAY BE THE Bi WE'VE USED IN YEARS.” Introduced revolutionary three- dimensional foam soft shell line in late 2012 Expanded th
Slide 13: Award-Winning Body Armor: C-Frame Knee Brace
AWARD-WINNING ouR BODY ARMOR PRODUCTS C-FRAME KNEE BRACE ey + 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 available * First shipped in the second half of 2014. + Medically certified in the E
Slide 14: Body Armor Revenues
Thousands Body Armor Revenues 9000 8000 7000 6000 5597 000 4000 3.000 2000 1000 2013 © 2004-2016 Leatt Corporation ‘www.leatt.com | wwwlestt-corp.com 7812 2014 8540 2015 OUR PRODUCTS > 500 000 units body armor sold since introduction. > $28 million in revenue generated. $750 000 or 10% revenue growt
Slide 15: Chest Protection Market Position
Chest Protection Market Position MARKET SHARE 15 10 ‘Wanda 0 eee res FSFE AE ¥ SQ > & Oo OP FH KP aK ee Te North American Market ~ 50% worldwide market http://mediakit filterpubs.com/survey (© 2004 - 2016 Leatt Corporation woww.leatt.com | wwwlastt-corp.com OUR PRODUCTS + Leatt has gained 3.1% of th
Slide 16: Revolutionary Safety: Head and Brain Protection
: REVOLUTIONARY SAFETY UR HEAD AND.BRAIN...\-7 i. i PRODUCTS PROTECTIO \ 1 + Full range of Carbon and Composite full-face helmets in multiple sizes including junior versions. + Specific helmets designed for Motorcycle (GPX) and Bicycle (DBX) use * Certified and tested: ECE2205/DOT, ACU = Gold, AS/NZ
Slide 17: Product Technology Deployed to the Helmet Market by Leatt
PRODUCT TECHNOLOGY DEPLOYED TO THE DEVELOPMENT HELMET MARKET BY LEATT 360° TURBINE TECHNOLOGY MAXIMIZED VENTILATION REDUCED OUTER SHELL VOLUME * Upto 30% reduction of head * Designed with comfort in * Reduces forces transferred to impact at concussion level. mind, ourhelmets'are neck. * Up to 40% re
Slide 18: New Product Initiatives: Apparel
NEW PRODUCT INITIATIVES: APPAREL APPAREL © 2004 - 2016 Leatt Corporation PRODUCT DEVELOPMENT Our initial range of high-performance apparel with stylish designs and convenient features including neck brace compatibility. The DBX and GPX technical apparel line includes jerseys, pants and jackets that
Slide 19: New Product Initiatives: DBX and GPX Apparel Technology
NEW PRODUCT INITIATIVES: PRODUCT DBX AND GPX DEVELOPMENT APPAREL TECHNOLOGY NECK COLLAR ‘ALL WEATHER WIND PROOF THE INTERNAL KNEE BRACE COMPATIBLE WEAR FABRIC BRACE SYSTEM (IKS) = zie (4 4 « a _— y \ j fi _ or, ~ NTIMICROBIAL STURE oe be) Fasric _ wicking Pe im 4 VENTILATED ABRASION W MESH RESISTANT
Slide 20: Product Refinements: Head and Brain Protection
PRODUCT REFINEMENTS HEAD AND BRAIN PROTECTION © 2004- 2016 Leatt Corporation DBX PRODUCT DEVELOPMENT We have refined both our GPX and DBX helmets’ fit and finish. Expanded range to include ECE specific GPX helmets which are more than 15% lighter and cater to a wider global audienc All GPX and DBX he
Slide 21: Product Initiatives: Head and Brain Protection
PRODUCT INITIATIVES HEAD AND BRAIN PROTECTION DBX ‘© 2004 2016 Leatt Corporation PRODUC DEVELOPMENT Leatt’s first Enduro helmet is equipped with a removable chin bar that allows you to easily go from uphill to downhill riding. Two separate versions - Both the Enduro and All-Mountain helmets us 360°
Slide 22: Product Refinement: New and Improved Hinge
j -NEW AND IMPROVED HINGE PRODUCT REFINEMENT: a GFRAME PRO © PRODUCT DEVELOPMENT Cable and Bearing system is replaced by a high strength stainless steel gear system with self-lubricating PTFE sleeves. New hinge approximately 40% slimmer than previous hinge, as well as lighter. New hinge casings are
Slide 23: Product Development: What Are Consumers Planning on Buying?
PRODUCT DEVELOPMENT What are consumers planning on buying? m@ Established ™ New in 2016 @ New in 2017 % Consumers North American Market ~ 50% worldwide market ine read http://mediakit filterpubs.com/survey © 2004. 2016 Leatt Corporation ‘wwleatt.com | wwwlestt-corp.com
Slide 24: Markets for Leatt Product
(© 2004-2016 Leatt Corpor MARKETS FOR LEATT PRODUCT 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 bicycle market: ~ 36 million riders in the USA.? ~ 90 million riders i
Slide 25: Marketing Initiatives
MARKETING INITIATIVES * Launched new strategic brand positioning journey, “Over to You”, aimed at creating a strong emotional connection with our target market. + “Over to You" signals the dedication behind Leatt’s innovative products giving our athletes the assurance to push themselves further both
Slide 26: Marketing Initiatives: Social Media Stats
6 Leate Corporation MARKETING INITIATIVES Facebook: * 149 643 total FB Likes Instagram: + 52 135 total followers + 13351 additional follower this year Twitter: * 5518 total followers * 386 additional followers this year + 549 800 tweet impressions since January Snapchat: * 2.000 Average followers *
Slide 27: Financial Highlights: Selected Balance Sheet Data
FINANCIAL HIGHLIGHTS Selected Balance Sheet Data $ IN THOUSANDS | JUNE30,2016 | DECEMBER 31, 2015 Cash and cash equivalents 1001 1055 Accounts receivable 2078 2902 Inventory 3 963 4241 Total current assets 8414 9535 Total Assets 9809 11131 Total current liabilities 2029 3605 Long Term Liabilities :
Slide 28: Financial Highlights: Selected Profit & Loss Items
FINANCIAL HIGHLIGHTS Selected Profit & Loss Items 6 Months Ended 12 Months Ended a 2014 2015 2014 31, 2013 Revenues 8521 9215 7691 18 343 18.459 14892 Gross Profit 4498 5.008 4205 9602 9822 7733 Gross Profit % 53% 54% 55% 53% 53% 52% Product Royalty Income 34 2 mn 182 a9. 954 Operating Expenses 4430
Slide 29: Financial Highlights: Worldwide Revenue Trends
FINANCIAL HIGHLIGHTS Worldwide Revenue Trends 20000 16,58 mill 10000 Thousands 18,46 mill 8,52 mill © 2004 2016 Leatt Corporation vwaww.leatt.com | www.leatt-corp.com 2016 Worldwide revenue since inception in 2006 > $168 Million. Leatt Branded Product Revenue growth of $830 000 or 5% in 2015. Revenu
Slide 30: Stock Information
STOCK INFORMATION Share Price and Trading COMMON SHARES SEPTEMBER 15, 2016 150-day closing price range (Post Reverse Split) $2.10 - $3.90 Recent Share Price $2.50 Average daily trading volume (90-day) 1552 Common stock outstanding 5.3 million Market capitalization 13 million © 2004-2016 Leatt Corpor
Slide 31: Outlook - Business & Operations
OUTLOOK - BUSINESS & OPERATIONS + We expect to increase market share in our core * Ourgoal is to develop revolutionary products markets by continuously developing that can be used in more sports to reach more engineered protective gear that gives athletes athletes globally. at all levels the assuran
Slide 32: Leatt Investment Opportunity
LEAT INVESTMENT OPPORTUNITY Global growth plan to double revenues every 3-4 years. Innovative Product Pipeline of “Must Have” Products To Address Wider Markets. Current Market Capitalization approximately 70% of Prior Year Revenues. Ideal Time to Invest in an Early Opportunity.
Slide 33: Thank You
THANK YOU HEADQUARTERS OFFICE 12 Kiepersol j “5 ‘Atlas Garde “Durbanville, 755 South Africa, Keep up to date with our latest news by subscribing to our newsletter here: http://eepurl.com/b4-pft