Prince Mexico Corporate Presentation

Corporate Presentation

2012

www.princemexico.com.mx


Legal DisclaimerThis presentation contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this presentation which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, financial projections, commencement of commercial activities, joint ventures, strategic collaborations, achieving positive EBITDA, leveraging partnerships, extension of supply chain, future growth with current customers, business strategy, sales of Prince products, growth of sales and growth of the global market. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 8-K filed July 6, 2012 and other periodic reports filed from time-to-time with the Securities and Exchange Commission.


Vision

The primary goal is to become a significant player in the sporting goodssectors within Mexico and eventually distribute Prince products into

South America.

With necessary financing, our objective is to create sales of roughly$1,900,000, $7,500,000 and $15,000,000 over the upcoming years 2013-

2015, respectively.


Overview

Exclusive distribution rights to sell Prince brand name products in Mexico and Latin America

Incorporated in 2008, and has reach strong sales growth to $525,000 annually

Seeking financing of $1.5 million to increase inventory for larger customers


The Market

Mexico is the largest country for importing sporting goods in Latin America

Over 60% market share valued at USD $266 million

Annual 1.1% population growth (equal to 1.1 million people)

Prince is a world recognized racquet and apparel branded company

Both Mexico and South America have much room for growth


History

The Prince brand was established by US based company Prince Sports Inc. in theearly 1970s

The company began with the first ever invented tennis ball machine

Later moved into highly innovative tennis racquets and equipment for otherSports

Sports include: Tennis, Squash, Racquet Ball (Ektelon), Viking Athletics and Golf

Today the Prince brand has hundreds of products sold throughout the world


Location

Central location within Mexicofor ease of distribution throughout the country

Prince Mexico &South America HeadOffice


Product Description

A strong reputation for its innovative technology over the years

Large product line including racquets, clothing, apparel and accessories

Racquets are built with a larger sweet spot, innovative string technologyand an improved weight/power ratio compared to other competitor racquets

Association with professional tennis players

Reputation as one of the worlds leading brands, and the innovative technology that goes into its products.


Product Description – EXO3 Racket

Currently an example of one of Princes best-selling tennis racquets is the PrinceEX03 Tour 100 tennis racquet

The current flagship EX03 racquet captures over 26% of wasted energy on impact,providing a stronger hit

Its patented graphite energy bridge is built-in to its innovative design, which cutsframe vibration by 20%, improved spin and boasts a 83% bigger sweet-spot thanother racquets

Prince racquets also use larger holes rather than grommets which reduce vibrationand increase the sweet spot


Top Professional Athletes Choose Prince

Some of the top ranking tennis athletes in the world choose Prince:

Player Racquet Nationality RankMike Bryan EXO3 Rebel 95 USA 1

Bob Bryan EXO3 Rebel 95 USA 1

David Ferrer EXO3 Tour 100 ESP 5

John Isner EXO3 Warrior USA 10

Marion Bartoli EXO3 Warrior FRA 11

Taylor Townsend (Junior) EXO3 Tour 100 USA 1

Kimmer Coppejans (Junior) EXO3 Rebel BEL 1


Professional Athletes – ATP

Player Racquet Nationality Rank

Pablo Andujar EXO3 Tour 100 ESP 40Facundo Arguello EXO3 Rebel 95 ARG 229Ruben Bemelmans EXO3 Rebel 95 BEL 121Alex Bogomolov EXO3 Tour 100 USA 62Johan Brunstrom EXO3 Rebel 98 SWE 80Rik De Voest EXO3 Tour 100 RSA 171Juan Carlos Ferrero EXO3 Tour 100 ESP 66Marcelo Granollers EXO3 Tour 100 ESP 25Christopher Kas EXO3 Rebel 95 GER 40Xavier Malisse Diablo BEL 57Julien Roier EXO3 Tour 100 AHO 20Viktor Troicki EXO3 Tour 100 SER 23James Ward EXO3 Rebel 95 UK 254Albert Montanes EXO3 Tour 100 ESP 114


Professional Athletes – WTA

Player Racquet Nationality Rank

Marion Bartoli EXO3 Warrior FRA 11Mona Barthel EXO3 Tour 100 GER 39Jana Cepelova EXO3 Black 100 SVK 103Daria Gavrilova EXO3 Tour 100 RUS 241Daniela Hantuchova EXO3 Tour 100 SVK 35Patricia Mayr EXO3 Tour 100 AUT 151Shahar Peer EXO3 Warrior ISR 57Lisa Raymond EXO3 Tour Lite USA 1Silvia Soler-Espinosa EXO3 Tour 100 ESP 59


Who’s Next Campaign – Junior Players

Prince’s Who’s Next Campaign focuses on the next professional athletes:Player Racquet Nation Player Racquet NationTaylor Townsend EXO3 Tour 100 USA Jozef Kovalik Ozone Tour SVKKimmer Coppejans EXO3 Rebel BEL Jason Kubler Ozone Tour AUSRomain Arneodo EXO3 Rebel FRA Josie Kuhlman EXO3 Rebel 95 USABrooke Austin Original Graphite USA Oleksander Lebedyn EXO3 Rebel 95 RUDAndre Biro EXO3 Rebel 95 HUN Polina Leikina O3 Speedsport RUSCarlos Boluda EXO3 Tour 100 ESP Robert Levine EXO3 Rebel 95 USAHunter Callahan EXO3 Rebel 95 USA Patricia Martins EXO3 Black 100 PORJordan Daigle EXO3 Tour 100 USA Oliver Nagy EXO3 Rebel 95 SVKAndie Daniell EXO3 Ignite Team USA Hernus Pieters EXO3 Ignite Team RSAJulia Elbaba O3 White USA Enzo Py EXO3 Black 100 FRAOliver Golding EXO3 Rebel 95 UK Omar Salman EXO3 Rebel 95 BELJuan Sebastian Gomez EXO3 Rebel 95 COL Charlene Seateun EXO3 Black 100 FRAJaden Grinter EXO3 Rebel 95 NZL Ronnie Schneider Original Graphite USARichel Hogenkamp EXO3 Rebel 95 NED Frederico Silva EXO3 Graphite PORWhitney Kay O3 White USA Chanelle Simmonds EXO3 Black 100 RSAIrina Khromacheva Ozone Seven RUS Chantal Skamlova EXO3 Black 100 SVK


Customer Benefits

Leading Edge Technology – Patented technology that offers consistent innovationand edge over competitors brands

Trusted brand – sponsors top tennis professionals

Convenience – Customers can purchase Prince products online 24/7, or through alarge range of popular retail outlets

Attractive Packaging – Prince brand products come in high-quality, well-designedpackaging for maximum appeal for customers


Expansion – In Mexico

Huge upside expansion potential in Mexico

Required increase in inventory

Larger retailers will not negotiate or discuss orders unless the product is in theirwarehouse, in Mexico

Goal is to ship 4 containers per year, or once per quarter


Current Customers

WalMart Mexico wholly owned subsidiary of Walmart USA, over 2000 locations

Sears Mexico wholly subsidiary of Grupo Carso, owned by Carlos Slim Helu

Liverpool department store chain in Mexico, over 195 locations

Marti large sport store in Mexico with hundreds of locations


Financing

Minimum of USD $1.5 – 5 million

Purchase more inventory to supply the growing demand of our major retail clients

$1.5 million worth of product per container shipment every quarter

Payment is received every 90 days with larger retailers

Short term goal is to distribute one container per quarter


Financing

Issuing up to 6M shares @ $0.25 (or 14% of company)

Values company at $10.5 million.

Based on 2013 projected revenues company will have earnings of $2M

A conservative 10X earnings multiple values company at $20M

Many companies that market themselves well have 20X multiples or higher


Financial ProjectionsPrince Mexico Pro-forma Income Statement

Total Total Total Total TotalPeriod Starting: 2011 2012* 2013* 2014* 2015* Net Sales $527,788 $559,785 $7,500,000 $15,000,000 $22,500,000 Cost of Sales $388,384 $480,067 $5,250,000 $10,500,000 $15,750,000 Gross Profit $139,404 $79,718 $2,250,000 $4,500,000 $6,750,000

Expenses Administrative and selling

expense$200,886

$300,657$220,975 $276,218 $345,272

Total Expenses $200,886 $300,657 $220,975 $276,218 $345,272 Net Income -$219,795 -$91,742 $2,029,025 $4,223,782 $6,404,727

*Pro-forma figures


Expansion – South America

Planning to distribute certain Prince products with the following countries:

BrazilColombiaPeruEcuadorVenezuela

Expansion into these markets will simultaneous with expansion in MexicoIf inventory not available, will service larger retail clients in Mexico first


Accomplishments

Successfully surpassed Prince Sports Inc. (USA) sales requirements 5 years straight

Successfully introduced products to new tennis clubs and larger retail chains

Completing RTO transaction to go public and access funding for expansion

Building relationships and selling to largest retailers in Mexico

WalMart Mexico, Sears Mexico, Liverpool, Marti


Management & TeamFco. Duncan A. Forbes Mol. IIIDirector [email protected]

Paul RomeroGeneral [email protected]

Paloma [email protected]

Hugo Barajas SanchezSystems and Logistics [email protected]

Lucia RodriguezAccounts [email protected]

Sergio AlvarezHead of [email protected]

Marcos MéndezSales Squash City and Metropolitan [email protected]

Dieguez AndoniCity and Metropolitan Area [email protected]

mailto:[email protected]









Management & TeamAntonelloDistributor Baja California [email protected]

Alberto GallegosMarketing and Sales [email protected]

Thais RomeroSales [email protected]

Allan FletesSales [email protected]

Olga VasquezDF [email protected]

Francisco ColoresDF [email protected]

Enrique PrietoDistributor [email protected]

Gustavo PrietoDistributor [email protected]










Share Structure

Issued & Outstanding:43,000,000

Restricted: 22,000,000

Float (free trading): 21,000,000


Why Prince?

Dedicated team with proven results over the past 5 years

Sales Growth with positive cash flow expected soon

Geographic Location

Large growth opportunity through expansion in Mexico and South America


Corporate Information

Lopez Cotilla No. 829 Int. 1 Col. Americana C.P. 44160Guadalajara, Jal., Mexico

(+52) (33) 3827 0727

[email protected]


Prince Mexico Corporate Presentation

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Transcript of Prince Mexico Corporate Presentation