Forward Looking Statement

Transcription

1 OTCQX: MACE 1

2 Forward Looking Statement Certain statements and information included in this presentation constitute forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of When used in this presentation, the words or phrases will likely result, are expected to, will continue, is anticipated, estimate, projected, intend to or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to economic conditions, dependence on management, our ability to compete with competitors, dilution to shareholders, and limited capital resources. 2

3 Brand Strength Our Mission at Mace Brand is to empower your world through safety & security Customers Deliver best in class products & services for our partners & customers Employees Be a great place to work where people are inspired to be their best and achieve their goals Shareholders Maximize shareholder value through the development of innovative Mace Branded products 3

4 Brand Strength WHY INVEST IN MACE Mace is an iconic brand and an American original in a rapidly growing, global market for consumers and law enforcement agencies Added an accretive acquisition in Q1 of 2017 Healthy pipeline of innovative new products, ideas and concepts Systematic product line expansion across business units Aggressively increasing distribution in terms of accounts and channels Financial strength no debt, positive cash flow and growing distribution Turnaround complete Mace is a GROWTH story 4

5 Customer Awareness Mace is synonymous with the personal safety and defense category 85% Brand Awareness 91% Satisfaction Rating Market Leader World-Wide Brand Recognition Brand name creates meaningful benefits for its partners ICONIC BRAND AND MARKET LEADERSHIP Mace Brand adds value and prestige due to its brand image and presence 5

6 Market Needs Mace brand consumer products present a unique opportunity to further penetrate a very large, addressable consumer market with a real and growing need for consumers to provide their own personal security. According to Gallup, Americans' direct experience with crime is at a 16-year high, consistent with a gradual increase -- from 22% in 2001 to 29% today Percentage of US Adults Reporting Household Crime Victimization in Past Year, % 29% 28% 27% 26% 25% 24% 23% 22% 21% 20% 29% 27% 27% 27% 26% 26% 26% 26% 26% 25% 25% 25% 24% 24% 24% 22% Gallup Company, Americans Reports of Crime Victimization at High Ebb, November

7 Market Needs WHY MACE How to avoid getting mugged: A veteran thief tells all March 8th, 2017 at 7:43 AM Jeff Rossen and Anneke Foster NBC TODAY SHOW Every day, people get mugged walking down the street, riding buses and trains even just getting out the car in their own driveway. How do you protect yourself? TODAY national investigative correspondent Jeff Rossen went inside a maximum security prison in upstate New York to hear from David Solano, who's serving 25 years to life for robbery and estimates he's mugged more than 100 innocent people. Here are his tips for avoiding becoming a victim: 8.today-inline-vid-featured-desktop.jpg 7

8 CUSTOMER PROFILE Jennifer Modern Mom I carry pepper spray because I want both my family and myself to be safe. Ralph Working Single I carry pepper spray because I was mugged once and I now know that sometimes it s better to be smart than macho. Margaret Mature Worker I carry pepper spray because it gives me peace of mind when I am out and about. Frank Urban Dad I carry pepper spray because I ve had too many close calls. I m not embarrassed to put my and my family s safety ahead of my ego. Ashley Young Professional I carry pepper spray because everybody has the right to be safe. Source: 2012 Balance Study 8

9 Tactical Profile Mace brand tactical products present a unique opportunity to further penetrate a very large, addressable Law Enforcement marketplace Mace Brand tactical products work hand in hand with the DOJ s guidelines ~The proper use of force (illustrated here) Mace Brand goals are to provide the products an officer needs to deescalate a situation or crisis 9

10 SALES BY DISTRIBUTION CHANNELS Retail OEM International Legal, Selling Legal, Not Selling Illegal / Restricted Law Enforcement 10

11 STRENGTHENED & EXPANDED DISTRIBUTION CHANNELS Retail Strategy Drive growth at current retailers and target new key accounts in 2016, Mace added 70 accounts (approx. 5,500 new doors); Launch new pepper spray product design, bear spray, Mace 911 and personal alarm products; Enhance direct sales through Mace.com and Amazon; Establish aggressive programs with dealer buying groups; Present new displays, female-oriented products, new colors & new products in collaboration with retailers. OEM Strategy Provide more advanced product designs (such as bag-on valve technology); Provide innovative product solutions (such as non-flammable bear spray formulation) International Strategy Build out network of brokers and distributors specific targets include Africa, South America and India and continue expansion from Poland to Eastern Europe, including Russia; Take advantage of current distribution opportunities in Asia; Solidify German market due to changes in labeling and requirements. Law Enforcement Strategy Increase number of dealers, distributors, and agency direct sales via independent sales representatives; Pursue Federal, State and local bids, GSA and Military contracts 11

12 OEM & LAW ENFORCEMENT LICENSING & PARTNERSHIPS OEM Additional Sales Opportunities Law Enforcement and International channel opportunities for new OEM customers due to Mace offering bag-on-valve products not available from Washington Labs Law Enforcement - Product Packaging Redesigned packaging allows for Take Down brand to have more modern and current image Law Enforcement - Good Standing with Federal Government Mace has resolved issues with the EPA, and is now in good standing with the US federal government, allowing participation in GSA bids and other law enforcement/military opportunities Law Enforcement - Incremental Resale Products Opportunity for incremental resale products (knives, batons, etc.) to be sold alongside lessthan-lethal defense sprays (note: may also be used in retail channel) Licensing & Partnerships Revenue opportunities, as Mace receives a royalty percentage for the use of the brand name These licensing agreements and partnerships have an optional change of control out 12

13 Centralized Location Mace Brand can ship any product to 67% of the country in one day from it s Ohio location One facility can handle all of our product needs domestic and international 13

14 Brand Strength Pin, Like, Tweet Empower Mace is investing in Social Media Drive Awareness and Sales Opportunities The top 3 cities our fans are engaging with us on Facebook are from New York, Los Angeles and Chicago Mace has experienced a 14,700% increase in Facebook interactions (yes, that number is crazy, but correct) compared to the previous 28 days Our tweets have an impression of 20,400 and we have 24 mentions in the past week as we have tweeted out safety tips and advice In the past 28 days, our Social Media reach has increased 48% compared to the prior period so the message is hitting home and the timing to discuss security has never been higher or better Pin, Like, Tweet Empower. 14

15 Product Strength Mace is well positioned in the fast growing animal repellent category Walking sprays provide a safe, humane alternative to deter unexpected attacks Dog attacks are a relatively common occurrence in the US according to the CDC at least 4.5 million Americans are bitten by dogs every year There are over 300,000 bears actively living in the USA 15

16 New Consumer Products Compact Stun Gun Compact Sport Pepper Spray Outdoor, Auto, Utility Knife 16

17 New Consumer Products Personal and Portable Alarms Accessible and Affordable Wide variety of colors available 17

18 New Tactical Products Tactical Knives Handcuffs Expandable Batons 18

19 Organizational Strength Mace is well positioned for growth and expansion in terms of sales, distribution and manufacturing 19

20 Financial Strength MACE- A GROWTH STORY Record operating results in 2016 Net revenue increase of 26.7% Gross profits up 33.8% Operating loss improved 84.5% year over year Key Financial Data Points as of 12/31/2016 Cash & Short Term Investments $2,824,000 Current Ratio 9.1 Debt to Equity 0.0 NOL s $60,023,000 20

21 Financial Strength 2017 Estimate, 2016, 2015 & 2014 Full Year Comparison Sales & Gross Profit 2017 Est Final 2015 Final 2014 Final $11,767 $9,054 $7,145 $6,280 $4,751 $3,685 $2,755 $2,312 Revenue (In thousands) Gross Profit 21

22 Financial Strength Mace Security International Estimate Audited Audited Audited 12/31/ /31/ /31/ /31/2014 Revenues 11,767 9,054 7,145 6,280 Cost of revenues 7,016 5,369 4,390 3,968 Gross profit 4,751 3,685 2,755 2,312 SG&A Expenses 3,721 3,719 3,838 4,162 Depreciation and amortization Operating income (loss) 855 (189) (1,223) (1,988) Net income (loss) (1,027) (1,704) EBITDA 1, (1,014) (1,575) (In thousands) 22

23 IDENTIFIED ACQUISITION PIPELINE The Washington Labs transaction will meaningfully increase Mace s revenues in animal/bear defense spray products and distribution into Canada. With this acquisition, Mace will eliminate significant Washington Labs overhead and manufacturing costs. The Company has identified a number of acquisition targets to follow the Washington Labs transaction. These companies are other players in the defense spray, personal defense or less-than-lethal product categories, and each would provide a unique expansion opportunity for Mace. A high level overview of the potential targets is below. Target Strategy Estimated Revenue A Expand international sales and further penetrate the law enforcement market. $1-2 million B C D Expand international sales and further penetrate the law enforcement market. Expand animal/bear spray and other outdoor product sales; sell into a specific retail channel. Expand animal/bear spray and other outdoor product sales; sell into high-end retail channels. $5-6 million N/A N/A 23

24 Brand Strength WHY INVEST IN MACE Mace is an iconic brand and an American original in a rapidly growing, global market for consumers and law enforcement agencies Added an accretive acquisition in Q1 of 2017 Healthy pipeline of innovative new products, ideas and concepts Systematic product line expansion across business units Aggressively increasing distribution in terms of accounts and channels Financial strength no debt, positive cash flow and growing distribution Turnaround complete Mace is a GROWTH story 24

25 OTCQX: MACE 25