Mg Tstix Deck V1 Final
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Transcript of Mg Tstix Deck V1 Final
Investor PresentationSeptember 2010
CONTACT
Jonathan C. Miller, managing partner+1 415.992.7614 | [email protected]
September 2010 CONFIDENTIAL 2
Tstix® - A revolutionary patented product reshaping the $38 billion global tea and coffee industries.
CONFIDENTIAL 3CONFIDENTIAL 3
Many have tried to innovate…
September 2010
Few have succeeded…
Existing products still do not satisfy people’s needs.
CONFIDENTIAL 4
2737 b.c.Shen Nung Discovers Tea
1400’sWest Discovers Tea
1600’sTeapot Invented
1800’sTea Ball Invented
1908Tea Bag Invented
By Thomas Sullivan
2000’sCircular and PyramidTeabags Introduced
September 2010
Until now.
Tstix is the next evolution in tea.
CONFIDENTIAL 5September 2010
6
What is Tstix?
Tstix is a Patented micro-perforated stick pack alternative to teabags and loose tea.
• Combines a teabag and stirring device in one package. • No strings, tags or staples.
• No drips.
• No mess.
Tstix is a brilliant but simple innovation whose time has come.
September 2010 CONFIDENTIAL
CONFIDENTIAL 7
Market
Tea and coffee represent a US$38 Billion market opportunity.
• Global Tea Market US$21 Billion.
• Every country on earth consumes tea.
• Instant Coffee Market US$17 Billion.
• The US consumes 66 billion cups of coffee each year.
Second only to water - tea and coffee are the world’s most popular beverages.
September 2010
CONFIDENTIAL 8
Taste &
F
lavor
Traditional Convenience Easy to Use
Non-Disposable No Mess / Disposable
Market Positioning
No Messy DripsNo SpoonsNo Staples or Strings
September 2010
9
Competitive Landscape
Tstix offers a patented product superior to the competitors.
September 2010 CONFIDENTIAL
CONFIDENTIAL 10
Timeline
September 2010
CONFIDENTIAL 11
Today and Tomorrow
Tstix is set to revolutionize they way people drink tea and coffee.
September 2010
CONFIDENTIAL12
Growth Plan
Exit to Unilever, Nestle, Tata / Tetley or other FMCG company.
September 2010
CONFIDENTIAL 13
Business Channels
Universal product, multiple channels and a global market.
• Licensing Products and Production Technologies.
• Equipment and Materials Sales.
• White Label Products.
• Tstix Branded Products.
Multiple channels to generate revenue.
September 2010
CONFIDENTIAL 14
Earnings Summary
September 2010
Revenue and Earnings Summary (USD '000) 2011 2012 2013 2014 2015
Revenues 5,270 42,432 98,920 133,858 160,430
COGS 1,825 10,078 20,952 27,329 32,649
Gross Profit 3,445 32,355 77,968 106,529 127,781
Sales and Marketing Expenses 5,622 27,078 42,950 51,926 58,851
Salaries 2,268 9,850 18,668 24,315 28,740
Other SG&A 247 1,440 3,039 4,089 4,913
Total SG&A 8,138 38,369 64,657 80,330 92,503
Total Expenses (COGS and SG&A)
9,963 48,446 85,609 107,659 125,152
EBITDA 3,197 30,914 74,929 102,441 122,869
EBITDA margin -89% -14% 13% 20% 22%
Net Income (4,735) (6,253) 12,205 17,690 23,769
Cash Flow from Operations (4,320) (6,504) 11,212 17,765 24,339
Accumulated Cash Flow from Operations
(4,320) (10,824) 389 18,153 42,492
Market Share by Country
CONFIDENTIAL 15September 2010
Market share (tea only) 2011 2012 2013 2014 2015
Australia - units sold 17,779,008 69,529,536 88,672,320 90,357,120 90,357,120
Australia - market share 0.46% 1.80% 2.30% 2.34% 2.34%
US - units sold 9,243,072 58,978,944 128,119,104 176,166,144 194,151,168
US - market share 0.02% 0.15% 0.33% 0.46% 0.50%
Germany - units sold 3,416,256 38,901,312 82,501,632 90,357,120 90,357,120
Germany - market share 0.10% 1.10% 2.32% 2.55% 2.55%
UK - units sold 687,744 28,524,096 74,929,536 93,773,376 110,030,400
UK - market share - teabags 0.00% 0.05% 0.13% 0.16% 0.19%
Japan - units sold 0 18,128,448 69,607,872 91,067,328 107,324,352
Japan - market share - teabags
0.00% 0.09% 0.35% 0.45% 0.53%
ROW - units sold 0 59,218,603 199,128,445 337,144,399 485,769,875
ROW - market share - teabags 0.00% 0.05% 0.18% 0.30% 0.43%
Total units sold 31,126,080 273,280,939 642,958,909 878,865,487 1,077,990,035
Market share - teabags 0.01% 0.12% 0.27% 0.37% 0.46%
Return on Investment
CONFIDENTIAL 16September 2010
Investment Rounds Pre-Money Amount Post-Money Date
Series A 14,455 6,195 20,650 1-Jan-11
Series B 65,195 11,505 76,700 1-Jan-12
Equity Results USD 000s
Required Equity Investment - Series A 6,195
Series A Initial Ownership 30.0%
Series A Final Ownership 25.5%
Series A Return - IRR 56.8%
Series A Return - Multiple 9.12x
Terminal Equity Value @ 5.0x EBITDA 221,580
Exit Date 31-Dec-15
Revenue by Channel
Primary revenue from Branded Products followed by Licensed.
CONFIDENTIAL 17September 2010
CONFIDENTIAL 18
About the Founder
Geoff StuartTstix Inventor, Managing Director
• 20+ years of FMCG packaged goods marketing experience.
• Worked with leading multinationals including:
• Pepsi-Cola• Kellogg’s• Unilever• Nestle • Campbell Soups• Kraft Foods• Reckitt Benckiser
Visionary with the experience to change the tea business.
September 2010
CONFIDENTIAL 19
Team
Tstix is run by a team of global FMCG industry experts.
• 17 + years of strategic planning and implementation experience
• International Data Corporation (Hong Kong & Singapore)
• Salomon, Smith Barney (Vice President, Singapore).
• IBM’s (Asia Pacific -Senior Market Intelligence & planning Manager).
• Corporate Strategy Advisor (projects ranging in size from the tens of
millions to multi-billion dollar growth revenues).
Peter Hitchen, CFO
Jaap den Engelsman, CTO • 20 + years of M&A, planning and administration.• DSM • Unilever
September 2010
CONFIDENTIAL 20
Investment Highlight
Tstix is the next evolution in the $38B+ tea and coffee markets.
• Product Complete, Globally Patented, and Copyrighted.
• Initial licenses signed with significant additional near term opportunities.
• Highly Scalable Business Model.
• Generating Revenue.
• Multiple revenue streams.
• Multiple product line extension possibilities.
Tstix is the biggest innovation in teabags since their invention in 1908.
September 2010
CONFIDENTIAL 21
Investment Opportunity
56.8 % ROI in 4-5 Years through Sales to Large FMGC Company
To Date:Invested: $800,000
Seed Series ASeeking: $6.2MPre-Money: $14,455
Series BSeeking: $11.5MPre-Money: $65,195
Use of Funds -Product Complete -Patent, Trademarks, Etc. -Manufacturing Partnerships -1st License Agreements
Use of Funds: -Tstix Branded Products in: Australia, Japan, Germany, US and UK
Use of Funds: -Own production facilities -Asia, Europe and Americas -Coffees, Vitamins and Nutraceuticals
September 2010
CONTACT
Jonathan C. Miller, managing partner+1 415.992.7614 | [email protected]