Xmax, Inc. · NASDAQ:XMAX
Xmax — Nova Lifestyle — Marcum Microcap Conference (June 2012)
24 slides from Xmax's conference presentation, Jun 20, 2012
Slide 1: Presentation at Marcum Microcap Conference
Presentation at Marcum Microcap Conference nova June 20, 2012 Corporate Headquarters 6541 E. Washington Blvd. Nova LifeStyle, Inc. Commerce, CA90040 USA, Tel: (323) 888-9999 Stock Symbol: STVS www.novalifestyle.com
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT nova —_—= 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 res
Slide 3: About Our Company
ABOUT OUR COMPANY + Arapidly growing U.S. designer, distibutor and manufacturer of modem lifestyle furniture, headquartered in California with 2011 sales of $42MM (up 50% YOY) and net income of $5.4 milion (up 28% YOY) *Industry innovator and niche leader in the U.S. and globally «with its own brand
Slide 4: Other Nova Facts
OTHER NOVA FACTS * Symbol: STVS.OB * Shares Outstanding: 18,691,250 * Recent Stock Price: $1.95 une, 2012) * Market Cap: Approx. $37.4MM * 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: EU + Global corporate headquarters + Original design capabilies + Diamond Sofa-branded products * Distibute to stores ranked in the top 100 furniture ‘companies in the U.S.) + Nova-branded products (Colorful World, Giorgio Mobil) + Profitable and fast-growin
Slide 6: Manufacturing Leader Leste, Dongguan, China
MANUFACTURING LEADER LESTE DONGGUAN, CHINA
Slide 7: Global Presence
GLOBAL PRESENCE Sales and demographics for the year ended December 31, 2011 China Other Countries
Slide 8: Established Global Customers
ESTABLISHED GLOBAL CUSTOMERS nova LIFESTYLE] - Nebraska FE DOR ADD icici) ~ Furniture Mart future azilion things home e (1a) 5/20 wayfair — amazoncomr
Slide 9: Other Select Customers
OTHER SELECT CUSTOMERS nova — y JSWB 244 & seas freedom 19: MACALUNE IDEmobler SCIMENBRI %. Bene & tense CES Kinhom 283 RB
Slide 10: Competitors (U.S.)
COMPETITORS (U.S.) nova | A, || | | Sle, | — ute | apace | "Eewoe” | Seciit | sci, | some | OSS | Pama fa = ioe, | Grapes, | Saves | "Exp ieee | GE | EP Taincy | mane [awa Seaoae [auae —Yunear [ame [ee [rar tay Tae ?E | ou few aE] Sa rm] ame Pe = ‘dy Fewste | SA [aR [ue [xa aa [sw Jae ae ae S a axa
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES nova NOVA = Contemporary Styling + Functionality = U.S. and Emerging Market Growth LIFESTYLE STU Niche leader: urban contemporary lifestyle products in high demand by modern consumers Distribution channels in China: direct access to the growing middle class in China through pr
Slide 12: Growth Drivers
GROWTH DRIVERS Nova ‘+ Furniture e-commerce sales in the U.S. rose 10.3% in 2011. (1) —_= ‘* Through 2016, projected higher disposable income and strong consumer sentiment will help boost demand for furniture in the U.S. (2) ‘+ Asthe level ofhome ownership rises, homeowners are expected to purchase
Slide 13: U.S. Market: Diamond Sofa
U.S. MARKET: DIAMOND SOFA Strong Indirect Sales * 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. « * Worldwide pro
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 + Nova sells directly to f
Slide 16: "Giorgio Mobili" Brand
"GIORGIO MOBILI" BRAND GIORGIO MOBILI + Clientele: Upper middle-class consumers + Luxury brand established in 2010 + Clean, classic style for upper middle-class consumers ‘+ High-end living room and bedroom sets, combining ‘simple elegance with modem fashion + Luxury brands are growing exponentially
Slide 17: "Colorful World" Brand
"COLORFUL WORLD" BRAND nova NB id a) + 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 sal
Slide 18: Global Management Team
GLOBAL MANAGEMENT TEAM ‘Jeffery Wong ~ CEO, Chaiman and Co-Founder Eager pee ) eases + Graduated from Hong Kong Vitoria Tectnical college + Ctzenship: Hong Kong/UK + Fluent in English and Chinese ‘Sammy Ho - CFO, Co-Founder * 19 years of experience inthe furiture Industry ‘ * Bachelor's degree trom
Slide 19: Financials
FINANCIALS Year Over Year Growthin Revenues and Net Income US Millions FY 2009 FY2010 | FY2011 Revenue | $21.7 $28.8 $43.2 Growth +33.0% | +50% Net $4.6 $4.8 $5.37 eed Income shares) Growth +28% Revenue NetIncome US SMitions US SMitions Fv2009 = = Fv2010 Fv2011
Slide 20: Financials: 2012 First Quarter Sales Up 95%
FINANCIALS Nova FESTY! Ussuitions 2012 First Quarter Sales Up 95% ——— 2011Q1 2012Q1 Revenues $5.6 $11.0 +95% NetIncome | $1.01 $0.98 (EPS: $0.05 on 18.7 MM diluted shares) Analysis: USS. sales up approx. 300% following acquisition of Diamond Sofa Decline in gross margins mainly due to increased prod
Slide 21: Recent Events
RECENT EVENTS LIFESTYLE * May 15, 2012 — Company Announced Long-Term Supply Agreement in 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 approxim
Slide 22: Growth Strategy
ova GROWTH STRATEGY LIFESTYLE —_ 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 th
Slide 23: Outlook for 2012
OUTLOOK FOR 2012 LIFESTYLE Based on anticipated organic growth, the Company provided the following guidance for 2012 on April 2, 2012: ¢ Revenues growing from $43.2 million in 2011 to between $50 million and $58 million in 2012 (Midrange: +25%) ¢ Net income increasing from $5.4 million in 2011 to be
Slide 24: 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
Nova Lifestyle — Marcum Microcap Conference (June 2012) on 6ix