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Investor Presentation September 2010 CONTACT Jonathan C. Miller, managing partner +1 415.992.7614 |  [email_address]
September 2010 CONFIDENTIAL Tstix® - A revolutionary patented product reshaping the $38 billion global tea and coffee industries.
CONFIDENTIAL CONFIDENTIAL Many have tried to innovate… September 2010
Few have succeeded… ,[object Object],CONFIDENTIAL 2737 b.c. Shen Nung Discovers Tea 1400’s West Discovers Tea 1600’s Teapot Invented 1800’s Tea Ball Invented 1908 Tea Bag Invented By Thomas Sullivan 2000’s Circular and Pyramid Teabags Introduced September 2010
Until now. ,[object Object],CONFIDENTIAL September 2010
What is Tstix? Tstix is a Patented micro-perforated stick pack alternative to teabags and loose tea.  ,[object Object],[object Object],[object Object],[object Object],Tstix is a brilliant but simple innovation whose time has come.  September 2010 CONFIDENTIAL
Market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],CONFIDENTIAL September 2010
CONFIDENTIAL Taste & Flavor Traditional  Convenience  Easy to Use Non-Disposable No Mess / Disposable Market Positioning No Messy Drips No Spoons No Staples or Strings September 2010
Competitive Landscape ,[object Object],September 2010 CONFIDENTIAL
Timeline CONFIDENTIAL September 2010
Today and Tomorrow ,[object Object],CONFIDENTIAL September 2010
Growth Plan ,[object Object],CONFIDENTIAL September 2010
Business Channels ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],CONFIDENTIAL September 2010
Earnings Summary CONFIDENTIAL 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 September 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 September 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 ,[object Object],CONFIDENTIAL September 2010
CONFIDENTIAL About the Founder Geoff Stuart Tstix Inventor, Managing Director ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Visionary with the experience to change the tea business. September 2010
Team ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],CONFIDENTIAL Jaap den Engelsman, CTO  ,[object Object],[object Object],[object Object],September 2010
Investment Highlight ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],CONFIDENTIAL September 2010
Investment Opportunity ,[object Object],CONFIDENTIAL To Date: Invested: $800,000 Seed Series A Seeking:  $6.2M Pre-Money:  $14,455 Series B Seeking: $11.5M Pre-Money:  $65,195 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],September 2010
CONTACT Jonathan C. Miller, managing partner +1 415.992.7614 |  [email_address]

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Mg Tstix Deck V1 Final

  • 1. Investor Presentation September 2010 CONTACT Jonathan C. Miller, managing partner +1 415.992.7614 | [email_address]
  • 2. September 2010 CONFIDENTIAL Tstix® - A revolutionary patented product reshaping the $38 billion global tea and coffee industries.
  • 3. CONFIDENTIAL CONFIDENTIAL Many have tried to innovate… September 2010
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. CONFIDENTIAL Taste & Flavor Traditional Convenience Easy to Use Non-Disposable No Mess / Disposable Market Positioning No Messy Drips No Spoons No Staples or Strings September 2010
  • 9.
  • 11.
  • 12.
  • 13.
  • 14. Earnings Summary CONFIDENTIAL 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
  • 15. Market Share by Country CONFIDENTIAL September 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%
  • 16. Return on Investment CONFIDENTIAL September 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
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22. CONTACT Jonathan C. Miller, managing partner +1 415.992.7614 | [email_address]

Editor's Notes

  1. Does this seem wordy to you? What about “ Tstix® - A revolutionary patented product reshaping the $38 billion global tea and coffee industries. “
  2. For the large title I am not sure if we should say they have the highest consumption or most popular etc…
  3. Just a thought why is the tea bag higher in flavor then the more traditional methods?
  4. Resized the fonts to fix the overlap problem
  5. Is 2012 the correct year for the exit in other docs we had it at 4-5 years away
  6. Seems financials need one more revisions. So I will wait until all the oks are in.
  7. Can we increase the font size ?
  8. Leaving space for photos Still waiting for jaap resumes.
  9. biggest teabag innovation since its invention in 1908 or biggest tea innovation since the invention of the teabag in 1908.