COMPANY PRESENTATION BUSINESS PLAN2014

ABOUT USFounded in 2009 atthe Massachusetts Institute of Technology.

Conceived as a niche ecommerce platform for Mexico.

In 2014, due to the success among users, Teragu decides to focus on specialized sports and open a physical store.

9%8%7%6%5%4%3%2%1%0%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

1.2%

1.0%

.08%

0.6%

0.4%

0.2%

0.0%2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

ECOMMERCE GROWTH(Source Amazon, US Census Bureau, a16z)

RetailE-Commerce as % US Retail

Amazon as % US Retail

Retail ex gasoline,Food & BeverageBuilding supplies

1 2 3

One-stop shop for sports

MEXICO’S LARGEST SPORTS STORE

ECOMMERCESHOWROOM

Not available in store? Place order Have it delivered

TRIA

THLO

N

GOLF

CLIM

BIN

G

KITE

SURF

ING

CRO

SSFI

T

FOCUS ON HIGH-END SPORTS

- Open 24 hrs

- Unlimited catalog

- Sporting events

- Brand awareness

- Shopping experience

- Brand positioning

E-COMMERCE SHOWROOM EXHIBITION STANDS

SALES STRATEGY

PRODUCT BUILD UP

EVENTS TICKETS

EQUIPMENT & NUTRITION

FOOTWEAR & APPAREL

SPORTINGEVENTS

OUTDOOR TRAVELAGENCIES

ATHLETES &INFLUENCERS

TRAININGGYMS

KEY PARTNERSHIPS

MARKET Triathlon in 2013

(Amounts in USD)

annual growth in Mexico

BikeRace FeesBike equipmentAthletic footwearNutritional supplements

Individual One-Year Spending

Registered AthletesLocal SpendingMarket Size

$2,274$564$524$370$277

$4,009

495,330

$455$113$105$74$55

$802

60,000 61%$29,353,200

30%

1) Source: USA Triathlon

2) Adjusted to GDP Per Capital

(1) (2)

SIZE

PROJECTED REVENUES

2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E

EBITDA

EXPENDITURES

$4,414$7,091

$9,436$12,231

$14,786$18,600

$21,612$25,092

$27,278

$2,587

OTHER SPORTS ARE ALSO GROWING…

3 NEW climbing gyms

opened in Mexico City during the

last year

MAIN COMPETITORS

STORES

SPECIALTY

REVENUES

POPULAR BRANDS

300

Soccer, Running

US$400 Million

Nike, Puma, and Adidas account for 60% of sales

Nike, Reebok, Brooks, Asics,

Newton, Saucony

Nike, Puma, Adidas, Speedo, Under

Armour, Reebok

N/A N/A

Soccer, Running Running

82 71

[Sources: Martí, Mistertennis, Innovasport, BMV]

MARTI'S STORES 20042012

82214

OUR STORE

CROSS-SELLING

PRODUCT CLIMBING DISPLAY WALL

VIRTUAL SHOWROOM

OUR STORE

FEATURED BRANDS

OUR STOREFree Bike Fitting & Running

Shoe Analysis

PREVIOUS PERFORMANCE(Amounts in USD)

NET REVENUES

RAISED CAPITAL

2011 2012 2013 2014E

$1,906

$57,525

$160,605

$253,846

$57,692$34,615$30,769$15,385

AVERAGE TICKET

GROSS MARGIN

METRICSTOTAL INVOICEDORDERS PROCESSEDRAISED CAPITALMONTHLY REVENUE (12-MONTH)ANNUAL GROWTH RATE (2012-2014)FOUNDERS FULLY COMMITEDANGEL INVESTORSCUSTOMER LIFETIME VALUEREPURCHASE RATECOST PER ACQUISITIONCPA/CUSTOMER LIFETIME VALUE

$429,9743,062$138,462$18,123110%27$159.2827.7%$21.2613.3%

2011

$43$86

$125$171

2012 2013 2014E

2011 2012 2013 2014E-12% -4%

17% 22%

72 CUSTOMERS REVIEWS ON

ON TRUSTEDCOMPANY.COMEXCELLENTGOODOKBADVERY BAD

6111000

FOUNDING PARTNERS

RAUL CASTELLANOS (CEO)Age 33MBA, MIT Sloan (2009)Background: Financial Restructuring at SatmexInterests: Climbing (Rock, Mountain, Ice)

ANDRES CASTELLANOS (OPERATIONS MANAGER)Age 27Business Program at IE Business School (Madrid)Background: Co-founder at Going Barefoot MexicoInterests: Hiking & Outdoors

BRICK & MORTAR PROJECTIONS

$400,690 USD $616,889 USD2015 Total InventoryStore Average Inventory

SALES PER SQUARE-METER (USD/m2)

OXXO WALMARTMEXICO

LIVERPOOL USNATIONAL AVERAGE

TERAGU DEPORTES MARTÍ

TUMI DECKERS OURDOORS

LULULEMONATHLETICA

$839 $1,227$3,491 $3,670 $3,877 $3,967

$11,087$13,412

$19,816

VENDORSReorderingJust-in-time

Inventory controlProduct labelingPicking & packingShipping & trackingImport servicesReverse logistics

Final userShowroomIn-house couriers

LOGISTICS MANAGEMENT

PROCESS AUTOMATION100% CLOUD TECHNOLOGY

FRAUD ANALYSIS

BACKGROUND CHECK:EmailAddressPhone numberUnusual behavior

Credit cards black listDevices black list

Amount

ORGANIZATIONAL STRUCTURE

CEORAUL CASTELLANOS

OPERATIONSANDRES CASTELLANOS

Inventory planningProduct researchCustomer service

CouriersShowroom

TECHNOLOGY MARKETING FINANCE

MaintenanceNew functionalities

ERP integrationsMobile apps

Payment gateways

Online campaignsFeedback & surveys

PartnershipsSponsorships

Below The Line

Fraud detectionAccounts Payable

BudgetingTax filings

Investors reports

Amounts in USD)

TOTALREVENUE

Retargeting

LoyaltyPrograms

Mailing

ContentCreation

PublicRelations

SEO

Google

Facebook

GOOGLE ADS

CURRENTLY ACTIVE

TOTAL ADVERTISING

FACEBOOK ADS

$253,846

2014

$31,170

MARKETINGDIGITAL INVESTMENT

$254

$1,050

2014 2015

$860 $82$191 $150 $2,587

(USD Thousands)(Source: Bolsa Mexicana de Valores)

SHOWROOM ADVERTISING EVENTSTICKETS

CROSS-SELLING&

REPURCHASE

EXHIBITIONSTANDS

2015 REVENUE BREAKDOWN

AVERAGE MARTÍ STORE = $1,445

THANK Tel. (55) 5593.2545

TERAGU SAPI DE CV www.teragu.com Colima 220 Int. 301 Col. Roma Norte México, D.F.YOU