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MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

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XPEL TECHNOLOGIES CORP. MicroCapClub Invitational
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Page 1: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

XPEL TECHNOLOGIES CORP. MicroCapClub Invitational

Page 2: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

FORWARD LOOKING STATEMENTS

This Presentation contains certain forward-looking statements in respect of various

matters including upcoming events that involve known and unknown risks and

uncertainties that are beyond the control of Management. Those risks and uncertainties

include, among other things, risks related to: share prices, liquidity, creditworthiness,

currency, insurance, dilution, ability to access capital markets, interest rates, dependence

on key personnel and environmental matters. Management believes that the expectations

reflected in forward-looking statements are based upon reasonable assumptions and

information currently available; however, Management can give no assurance that actual

results will be consistent with these forward-looking statements. Factors and assumptions

that were applied in drawing conclusions and could cause actual results, performance, or

achievements to differ materially from those expressed or implied by forward-looking

statements, include, but are not limited to, general economic conditions, competition,

availability of manufacturing supply or quality, availability and quality of raw materials, the

Company’s ability to maintain key employees and other factors identified in the “Risk

Factors” section of the Company’s Management’s Discussion and Analysis (MD&A)

available at www.xpel.com/relations.

Page 3: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

• Film Protects Painted

Surfaces from Rock Chips

and other Damage

• Made on a Roll, Cut to Fit

• Requires Professional

Installation

• Usually Sold Around

Vehicle Purchase

PAINT PROTECTION FILM

Rock Chips - #1 New Car CSI Issue

Page 4: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

• Ticker: TSXV: DAP.U

• Founded 1997

• Based in San Antonio, Texas

• ~40 Employees

• Stock Price*: $1.47

• Market Cap*: $37.9M

• ~50% Insider Ownership

• No Warrants or Options

CORPORATE OVERVIEW

* Based on 25.7 million shares outstanding as of January 14th, 2014

Page 5: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

REVENUE BY QUARTER

$880,755

$1,160,767

$4,898,729

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q2

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Revamp

Sales

Force/Comp

First

ULTIMATE

Film Sale

Expand

Awareness

Campaigns

Page 6: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

NET INCOME BY QUARTER

$596,895

$392,895

($1,200,000)

($1,000,000)

($800,000)

($600,000)

($400,000)

($200,000)

$0

$200,000

$400,000

$600,000

$800,000

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q2

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013 Pre-Tax

Net

New

Management

Page 7: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

PRODUCT OVERVIEW

Film

• ULTIMATE

• XTREME

• Stealth

• Industrial

• Headlight

• Window Tint

Services

• DAP

• Training

• Installation

Chemicals

• Installation

• Care

DIY

• Headlight

• Door Edge

• Door Sill

• TracWrap

Page 8: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

• 10-Year Warranty

• Optically Clear, Minimal “Orange Peel”

• Resists Staining

• Self Healing

ULTIMATE™ FILM CONSTRUCTION

Release Liner

Adhesive

Polyurethane

“ULTIMATE” Clear Coat

Page 9: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

• Internet-Based Cutting

Program

• Real Time Design Updates

• Over 70,000 Vehicle

Applications

• Key Differentiator, Pull Through

Tool

DESIGN ACCESS PROGRAM

Page 10: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

INSTALLATION TRAINING

• 4-Day Starter Course

• 1-Day Advanced Course

• Training Starts Learning

Process

• Also Offered Offsite,

Internationally

Page 11: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

FILM INSTALLATION

Page 12: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

• We Sell Solutions First, Products Second

• Offer Highest Quality Products

• Generate Awareness, Loyalty Through Marketing

Campaigns and Referral Programs

XPEL VALUE PROPOSITION

Page 13: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

Who You Are

Enthusiast

First Time

Buyer/Long

Term Owner

Serial Vehicle

Leaser

Dealership

Customer

Your car is your

passion

This is a largest

investment, it

needs to be

protected

Looking to save on

damage charges at

return

You buy what they

want you to buy

SALES DRIVERS

Where You Are

“Coast” Winter Weather China Middle East

Early adopter:

ex: California

Denver, SLC,

Alberta Acid Rain Sand

Page 14: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

• Independent Installers ~ 70% of Customers

• New Car Dealerships

• Retail Public / Catalog

• International Distributors ~ 30% of Sales

• Largest Customer 7% of Sales

CUSTOMER BASE

International

Canada

China

Middle East

Page 15: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

• Dealerships Need Tangible Products

• PPF Often Tops List of Most Profitable*

• Rock Chips Continues as Top CSI Complaint

• Independent Installers Seek New Products

• Where Will Penetration Go?

GROWTH PROSPECTS

*AddOnAuto 2013 Auto Accessories Annual Trend Report

Page 16: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

• Current Industry: 2-4% Penetration

• Select Markets 20%+

• US 15M SAAR

– 15M * 10% Penetration * $120 wholesale per car

– = $180M at wholesale industry size

INDUSTRY GROWTH PROSPECTS

Page 17: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

• Invest in XPEL Brand

• Increase Product Awareness

– Push – Consumer Awareness

– Pull – Dealership Education

• Develop Labor Force

• Open and Expand Markets Globally

• Create New Verticals

REQUIREMENTS FOR GROWTH

Page 18: MicroCapClub Invitational: Xpel Technologies (DAP.U / XPLT)

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