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 forwardlooking statements within the meaning of th ID: 743189
Download Presentation The PPT/PDF document "OTCQX: MACE Certain statements and inf..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
OTCQX:
MACE Slide2
Certain statements and information included in this presentation constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995.
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 1995.
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.
Forward Looking Statement
2Slide3
Customers
Deliver best in class products &
servicesfor our partners & customers Employees
Be a great place to work where people are inspiredto be their best and achieve their goals
Shareholders
Maximize shareholder value through the developmentof innovative Mace® Branded products
Our Mission at Mace® Brand is to empoweryour world through safety & security
Brand Strength
3Slide4
Mace is an iconic brand with 52% market share
Integrated an accretive acquisition in the first quarter of 2017
Tactical and Consumer revenue opportunities
Aggressively increasing distribution in Law Enforcement and Consumer Markets
Financial strength – positive cash flow, low debt, NOL’s
WHY INVEST IN MACE®
…
Brand Strength
4Slide5
Benefits of the Mace® Acquisition…
Brand Strength
5
Acquired new customers both domestic and international
New EPA registrations for animal repellents
New formula’s of OC
Equipment – increased capacity and efficiencies
Guard Alaska Brand
Dual brand strategies for good, better, best assortments at retail
Dual brand strategies in Law Enforcement and Tactical Slide6
Customer Awareness
6
Over half of pepper spray owners report owning Mace® brand pepper spray, while the next largest category was “Don’t Know”
The Mace® brand name is a propriety eponym - a brand name that has become synonymous with this general class of product; and it is an exemplary symbol of personal protection.Slide7
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…”
Gallup Company, Americans’ Reports of Crime Victimization at High Ebb, November 2016
7
Market Needs Slide8
Market Needs
8
NBC TODAY SHOW 3/8/2017
Mace can be effective.
"
Mace is a great thing," Solano said. But, he added, "You need to have that Mace in your hand, not in your purse. I see the
Mace I take to flight.”
TODAY 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. Slide9
Market Needs
9
John McCann, President & CEO
Mace Security International, Inc. (OTCQX: MACE)
"Since 1970, Mace® has been the original trusted brand for personal defense sprays, while continuously adding high quality security products to the brand line through the years. Mace® supports their products by providing warranty and educational programs for all of their products and services."
JUNE COMPANY HIGHLIGHT….Slide10
Strengthened & Expanded Distribution Channels
Retail Strategy
Law Enforcement Strategy
International 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.
Increase number of dealers, distributors, and agency direct sales via independent sales representatives;
Pursue Federal, State and local bids, GSA and Military
contracts.
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.
OEM Strategy
Provide more advanced product designs (such as bag-on valve technology);
Provide innovative product solutions (such as non-flammable bear spray formulation
).
10Slide11
Sales by Distribution Channels
Retail
OEM
International
Legal, Selling
Legal, Not Selling
Illegal / Restricted
Law Enforcement
11Slide12
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
12Slide13
Mace® brand
tactical
products present a unique opportunity to further penetrate a very large, addressable Law Enforcement marketplace
13
Tactical Profile
Selected nonlethal weapons authorized by local police
departments, by size of population served, 2013
Population Served
Numbers
Pepper Spray
Batons
Taser/Stun
Guns
All Sizes
12,326
94%
87%
81%
1,000,000
16
100%
100%
100%
500,000–999,999
36
100%
100%
83%
250,000–499,999
53
96%
98%
93%
100,000–249,999
224
98%
96%
90%
50,000–99,999
446
98%
95%
87%
25,000–49,999
878
98%
93%
85%
10,000–24,999
1,986
96%
91%
83%
2,500–9,999
3,873
93%
87%
85%
2,499 or fewer
4,815
91%
83%
75%
Source: Bureau of Justice Statistics, Law Enforcement Slide14
Law Enforcement
Licensing
& Partnerships
14
Opportunity for incremental resale products (knives, batons, etc.) to be sold alongside less-than-lethal defense sprays (note: may also be used in retail channel)
Law Enforcement - Incremental Resale Products
Law Enforcement
–
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
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”
Redesigned packaging allows for Take Down® brand to have more modern and current image
Law Enforcement
– Innovation
Mace® brand
tactical
products present a unique opportunity to further penetrate a very large,
addressable
Law Enforcement marketplace Slide15
Mace®
B
rand 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
Centralized Location
15Slide16
Pin, Like, Tweet – Empower…Mace
T
he 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 in 2017
Pin, Like, Tweet – Empower.
16
Brand StrengthSlide17
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
17Slide18
Organizational Strength
Mace is well positioned for growth and expansion in terms of sales, distribution and manufacturing
18Slide19
Compact Sport Model
Retail: $9.99
Targets: Consumer & Sporting Goods channel
Combat low priced competitors Unique product as has jogging strap and key chain so multi-purpose product offering
6/26/2017
19Slide20
Mini Flash/Stun Gun ProductRetail
:
$24.99Targets: Consumer Sporting Goods channelNiche
as size is smaller than competition High quality, light weight, affordable cost product with multi-functions
6/26/2017
20Slide21
Utility and Auto Safety Knives (Consumer)Retail
: $24.99
Targets: Consumer channel Grocery Drug Mass
New category for the Mace Brand
High opportunity segment, great product with multiple features and benefits, profitable and attainable sales opportunities
6/26/2017
21Slide22
Mace LED Safety Gear
Retail: $
9.99 - $19.99Targets: Consumer & Sporting Goods channel Replaces our
Nite beams product line Higher quality, modern look, feel and design
6/26/2017
22Slide23
Personal Alarm and Pepper Spray
Retail
: $19.99Targets: Consumer & Sporting Goods channel
Opportunity to take advantage of our best in class pepper sprays and personal alarms
6/26/2017
23Slide24
Tactical Knives
Retail
$19.99 - $34.99Targets: LE Markets Logical extension for the Mace Brand
Great products and features for the Tactical market
6/26/2017
24Slide25
Tactical Expandable Batons 16 inch and 21
inch
Retail: $29.99 - $39.99Targets: LE Markets Expandable Batons are again popula
r with Law Enforcement as part of most departments de-escalation protocols and procedures
6/26/2017
25Slide26
Tactical NON – NIJ Handcuffs
Retail
: $24.99Targets:
LE Markets Another strategic play for the company in the less lethal (de-escalation space). Great product which fits and fills a void in the marketplace
6/26/2017
26
NIJ: National Institute of JusticeSlide27
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 3/31/2017
Cash & Short Term Investments
$1,101,000
Current
Ratio
5.9
Debt to Equity Ratio 11.2
NOL’s
$60,023,000
MACE- A GROWTH STORY
Financial Strength
27Slide28
Financial Strength
(In thousands)
28Slide29
Financial Strength
Mace Security International
Estimate
Audited
Audited
Audited
12/31/2017
12/31/2016
12/31/2015
12/31/2014
Revenues
11,276
9,054
7,145
6,280
Cost of revenues
6,723
5,369
4,390
3,968
Gross profit
4,553
3,685
2,755
2,312
SG&A Expenses
3,783
3,719
3,838
4,162
Depreciation and amortization
195
155
140
138
Operating income (loss)
575
(189)
(1,223)
(1,988)
Net income (loss)
583
250
(1,027)
(1,704)
EBITDA
737
298
(1,014)
(1,575)
(In thousands)
29Slide30
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
Expand
international sales
and further penetrate the law enforcement market.
$5-6 million
C
Expand
animal/
bear spray and other outdoor product sales; sell into a specific retail channel.
N/A
D
Expand
animal/
bear spray and other outdoor product sales; sell into high-end
retail channels
.
N/A
30Slide31
Mace is an iconic brand with 52% market share
Integrated an accretive acquisition in the first quarter of 2017
Tactical and Consumer revenue opportunities
Aggressively increasing distribution in Law Enforcement and Consumer Markets
Financial strength – positive cash flow, low debt, NOL’s
WHY INVEST IN MACE®
…
Brand Strength
31Slide32
OTCQX: MACE
32