ex3 energy investor presentation 1.0

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Page 1: EX3 Energy Investor Presentation 1.0
Page 2: EX3 Energy Investor Presentation 1.0

To produce and market a new and To produce and market a new and convenient energy supplement to safely convenient energy supplement to safely enhance mental & physical capabilities and enhance mental & physical capabilities and serve as an essential step to staying serve as an essential step to staying focused and productive all day.focused and productive all day.

Mission and Vision

EX3 Energy stands poised to exploit an EX3 Energy stands poised to exploit an untapped segment of the global energy untapped segment of the global energy market by providing an alternative to market by providing an alternative to bulkybulky and and inconvenientinconvenient liquid beverages. liquid beverages.

Page 3: EX3 Energy Investor Presentation 1.0

Market Opportunity

Consumers are increasingly aware and cautious of consuming energy drinks and supplements with high doses of caffeine. People still live an on-the-go lifestyle, and

desire and need an alternative to caffeinated energy products.

EX3 Energy is the Xtreme Energy alternative Without the caffeine. ANYTIME - ANYPLACE!

Page 4: EX3 Energy Investor Presentation 1.0

Market Opportunity

The U.S. energy drink industry is anticipated to more than double and reach an astounding $19.7 billion in 2013, which is almost a 160% increase from 2008.

Rising health awareness among global consumers is playing a major role in the popularity of energy products. With a society of time-scarce consumers struggling to maintain a work-life balance, this growth is expected to continue.

There is a growing interest among Baby Boomers looking to add a little hop to their step. The consumer goods market research firm reported that those 55 years and older, who also happen to represent two thirds of the U.S. population, are emerging as a promising consumer base for these products

Global demand for sports and energy drinks is expected to grow at a compound Annual growth rate (CAGR) of more than 10% from 2011 to 2016.

The predominant market for EX3 Energy is the 18 to 34 year olds. This demographic tends to live an on-the-go lifestyle (students, weekend partiers, after-hour crowds, video gamers, young professionals, etc.) and are receptive to advertisements for these types of products.

Page 5: EX3 Energy Investor Presentation 1.0

Our ProductEX3 comes in a conveniently flat 3in x 3.5 in package that contain four chewable tablets that are equivalent to one energy drink. EX3 Energy is sold in four exciting flavors – Cherry Tart, Juicy Grape, Lemony Lime and Tangy Orange. And we've recently added pineapple and mango.

New Formulation - L-Arginine – for Nitric Oxide uptake- Decaffeinated Green Coffee Bean Extract- Vinpocetine - for mental clarity- Niacin- Vitamin B12- Raspberry Ketones

Page 6: EX3 Energy Investor Presentation 1.0

StrategyEX3 Energy presents great opportunities for sports and EX3 Energy presents great opportunities for sports and entertainment based marketing through sponsored entertainment based marketing through sponsored promotion to establish and extending the brand.promotion to establish and extending the brand.

These venues provide excellent opportunities for These venues provide excellent opportunities for capturing video and still image media as a means of capturing video and still image media as a means of generating highly integrated trans-media content that generating highly integrated trans-media content that can be distributed on EX3 Website, can be distributed on EX3 Website, mobile appmobile app, , YouTube and social networks (Facebook, tumbler, YouTube and social networks (Facebook, tumbler, Pinterest, twitter, etc.), affiliate websites Pinterest, twitter, etc.), affiliate websites and other media end points.and other media end points.

Marketing and Promotion

Page 7: EX3 Energy Investor Presentation 1.0

StrategyEX3 Energy will seek international distribution partnerships, offering select EX3 Energy will seek international distribution partnerships, offering select distributors exclusive rights in certain territories, while splitting distribution distributors exclusive rights in certain territories, while splitting distribution rights in others.rights in others.

EX3 Energy will tailor its product offering based on the particular needs of each EX3 Energy will tailor its product offering based on the particular needs of each geographic region, offering different flavor combinations that map to thegeographic region, offering different flavor combinations that map to theparticular tastes of each region.particular tastes of each region.

Flavor expectations differ considerably between different countries and regions,Flavor expectations differ considerably between different countries and regions,According, and EX3 Energy is keen to leverage these differences in order to tailor its According, and EX3 Energy is keen to leverage these differences in order to tailor its product offering to a diverse global consumer while maintaining a unified global product offering to a diverse global consumer while maintaining a unified global brand identity.brand identity.

Distribution

Page 8: EX3 Energy Investor Presentation 1.0

StrategyDistribution Milestones

By end of first quarter: By end of first quarter: Secure exclusive distribution deals with Mexico and other South Secure exclusive distribution deals with Mexico and other South American Countries - Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, Peru, Uruguay, VenezuelaAmerican Countries - Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, Peru, Uruguay, Venezuela

By end of second quarter: By end of second quarter: Secure exclusive distribution deals in each of the Asia Pacific territories and Secure exclusive distribution deals in each of the Asia Pacific territories and The Australia’s - Cambodia, China, India, Indonesia, Japan, Singapore, Thailand, Vietnam, Australia, The Australia’s - Cambodia, China, India, Indonesia, Japan, Singapore, Thailand, Vietnam, Australia, New ZealandNew Zealand

By end of third quarter: By end of third quarter: Secure exclusive distribution deals in each of the European territories - Austria, Secure exclusive distribution deals in each of the European territories - Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, UK, Bulgaria, Czech Rep., Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Sweden, Switzerland, UK, Bulgaria, Czech Rep., Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Russia, UkraineRussia, UkraineBy end of Fourth quarter: By end of Fourth quarter: Secure distribution deals Africa and Middle Eastern territories - Algeria, Egypt,Secure distribution deals Africa and Middle Eastern territories - Algeria, Egypt,Morocco, South Africa, Tunisia, Saudi Arabia, IsraelMorocco, South Africa, Tunisia, Saudi Arabia, Israel

Page 9: EX3 Energy Investor Presentation 1.0

CompetitionThreatsThreats

Existing competitors may react to EX3 Energy’s entrance into the energy supplement market. A strong Existing competitors may react to EX3 Energy’s entrance into the energy supplement market. A strong competitive reaction could be a formidable threat. Most threatening would be for one or more of the competitive reaction could be a formidable threat. Most threatening would be for one or more of the established to leverage their brand in order to develop a chewable similar to EX3 Energy.established to leverage their brand in order to develop a chewable similar to EX3 Energy.

Regulatory changes in energy supplement spaceRegulatory changes in energy supplement space..

AdvantagesAdvantagesEX3 Energy is Caffeine freeEX3 Energy is Caffeine free The formula is fully developed, packaged and ready for manufacturingThe formula is fully developed, packaged and ready for manufacturing

EX3 Energy has few competitors in the chewable energy supplement space.EX3 Energy has few competitors in the chewable energy supplement space.

The package form factor is easy to manufacture, deliver and store.The package form factor is easy to manufacture, deliver and store.EX3 Energy is much more convenient for its users to carry, dispense and share with friendsEX3 Energy is much more convenient for its users to carry, dispense and share with friends

Page 10: EX3 Energy Investor Presentation 1.0

Financials

Year 1 Year 2 Year 3 Total Sales US $89,68,422 US $66,186,476 US $79,713,955

Total Direct Cost $3,021,796 $24,186,349 $29,076,462

Gross Margin $5,946,626 $42,000,127 $50,637,493

Gross Margin % 66% 63% 64%

Gross profit $5,946,626 $42,000,127 $29,076,462

EBITDA $2,882,686 $35,823,287 $45,219,236

Return on equity 39% 490% 620%

EBITDA @ year 3: $45,219,236*PE: 10Market Cap: $45,219,236ROI: 518%*

*based on completion of funding and meeting proforma sales targets.

Exit Strategy• Acquisition• Initial Public Offering (IPO)• Strategic Merger (Friendly Sale)

Page 11: EX3 Energy Investor Presentation 1.0

Financial RequirementsEX3 Energy seeks an equity investment of $5 EX3 Energy seeks an equity investment of $5 Million dollars for a maximum of 10% Million dollars for a maximum of 10% equity in the company.equity in the company.

$125,000 USD Per Unit To $125,000 USD Per Unit To a maximum of 40 Units a maximum of 40 Units

The funds will be used to:The funds will be used to:Manufacture new inventory which will enable Manufacture new inventory which will enable us to book orders, obtain sales and global us to book orders, obtain sales and global distributorshipsdistributorships

Enhance and extend the existing website for selling to Enhance and extend the existing website for selling to consumers and to enable and support our distribution consumers and to enable and support our distribution partners and affiliates, and to develop the necessary partners and affiliates, and to develop the necessary content management and social media infrastructure in content management and social media infrastructure in order to grow and support the brandorder to grow and support the brandBegin the promotional push through sponsored Begin the promotional push through sponsored

events in which to begin capturing media content events in which to begin capturing media content for distribution in order to begin branding EX3 for distribution in order to begin branding EX3 EnergyEnergy

Develop the mobile application in order to engage the Develop the mobile application in order to engage the audience and enhance the brand.audience and enhance the brand.