Sportbär Trading & Merchandising GmbH The Company Schatzbogen 56 D-81829 München, Germany Tel +49 / 89 / 37412032 Email info@sportbaertoys.com Website www.sportbaertoys.com Sportbaer ASIA office in Bali / Indonesia Purpose of the Company Trade with any kind of toys, specially with Teddy bears and distribution of products for sales promotion. Commercial Register HRB 197567 VAT number: DE 258644702 CEO: V. Giuseppe Grasso Content 1. Executive Summary 2. Activities The Idea Product Range Customer Benefit Corporate Social Responsability 3. Market Position & Competition Customers Soccer Customers Motor Sports Customers yesterday & today 4. The Companies‘ History 1997 – 2004 2004 – today 5. Sportbär „at a glance“ 6. The Business-Strategy Success Factors Targeted Markets 7. Marketing Activities 8. Opportunities & Risks 9. The Team 10. Strategic Partners & Consultants 1. Executive Summary Teddy Bears have a long tradition in being a companion for the young and old. Still a symbol for affection, fondness and sympathy. Today Teddy bears dressed in branded cloths with their symbols of success are finding more and more followers and fans. Besides Teddies for Christmas or the „LederhosenTeddy“ from the Oktoberfest specially Teddies from the Motor Sports in their specific race suits as well as Teddies in the typical outfit and color from the favourite soccer club create the desire to own these articles and take them home. Sound and reliable quality, first class workmanship, classical design and compliance to all necessary safety requirements for cuddly soft toys justifies the price. Being licensees of e.g. Ferrari and Juventus ensures being close to the brand name and its degree of popularity. Production is carried out from different producers in China. The main contractor is working for Warner Bros. as well as for Carrefour or Disney. Individual and short term sample production is possible. Our products are sold via merchandise catalogs or special placement in the toy stores. The Motor Sports articles are sold e.g. during racing events and in special TV shops upfront the race event. Soccer articles are sold during soccer games or via Internet merchandise-shops. Our next acquisitions activities target automobile manufacturers and sponsors in the automobile race area as well as in the sports business like Red Bull in Formula 1 or Nike in soccer. The company has a booth every year on the worlds leading fair for toys, the International Toy Fair in Nuremberg. 2. Activities Sportbär is specialist for merchandising articles with worldwide leading brands. 1. In the licensing business as a licensee 2. As a producer, supplier, importer and for the trade of promotional articles and accessories. 2. Activities The Idea Plush figures appareled with branded cloths are used as a likeable role model for products / brands / services. 2. Activities Product Range The product portfolio developed over the years and now covers a broad range of merchandise and promotion articles: - Plush Teddy bears, various stuffed animals, pillows, MP3 pillow, neck pillow, rattles, backpacks, Size grids for children, slippers, feature plush toy - Baby articles Pacifiers, pacifier holders, bottles, flasks, children's plates, bibs, rompers, towels, blankets - Accessories & Others Sports bottles, sweatbands, laptop bags, mouse pads, pencils, erasers, stickers, magnets, pencil sharpener, light pens, pins, key chains, lanyards, purses, umbrellas, rugs - Apparel 2. Activities Customer Benefit Products from Sportbär Trading & Merchandising GmbH serve as: • Likeable addition to the original product (e.g. during the handover of a new car) • Emotional brand-loyalty-instrument (especially for families, Women and kids) • Create awareness and attractiveness for the original brand • Maskot for fans: - AC Milan “Milanello Devil” - FC Juventus “ Juve Zebras” „Non c´é 2 senza 3“ - KTM “ Racebeast” 2. Activities Corporate Social Responsability Sportbär has an active CSR and is committed to help through different organizations such as: - SOS Kinderdorf - Kindergarten - Junior football clubs 3. Market Position & Competition After intensive research still no significant competitor could be located for the end-use in: • Soccer (Europe‘s Top-Soccer-Clubs) • Motor Sports (Formula 1 & Sports cars) Sportbär Trading & Merchandise GmbH still owns – as licensee and supplier – the position as market-leader and the USP, as especially all Teddy Bears in racing suits are protected by licensee agreements and intellectual property rights. Strong position in company merchandising, with such companies as Vodafone and Unicredit. 3. Market Position & Competition Customers Soccer 3. Market Position & Competition Customers Motor Sports 3. Market Position & Competition Customers yesterday & today 4. The Companies‘ History - 1 1997 The company G. Wurm KG creates a Bavarian bear for the Oktoberfest using own design. 1998 Set up of the Gummibär Toys Trading GmbH. (GTT) 1999 Production of Bavarian bears for KarstadtHertie and other customers. 2000 With the Motor Sports bear GTT wins Porsche as a new customer. 2001 As a result of GTT´s new product range, it succeeds in gaining Michael Schumacher, BMW, Luk and Siemens as new customers. Opening negotiations take place with Volkswagen, Ferrari, Aral, Shell, Coca Cola, Munich Hofbräu, Infineon, Stuttgarter Hofbräu and the Nuance group. 2001 V. Giuseppe Grasso joins GTT 2002 V. Giuseppe Grasso is appointed to Managing Director of the company in March. In October GTT is licensee of Ferrari S.p.A. 2003 In February GTT is licensee of Toyota. V. Giuseppe Grasso is appointed to Managing Director in May. GTT is licensee of Volkswagen in June. In Autumn campaigns follow with the Ferrari sponsors Vodafone (Germany) and Balducci (Italy). Licensee negotiations with Maserati and enquiries from Mitsubishi Europe. 2004-2005 GTT becomes supplier for Ferrari with Teddy bears and baby articles. Toyota Formula 1 and BMW Williams are new license-customers 4. The Companies‘ History - 2 2007 In 2007 with Inter Mailand successful first step into the soccer business 2008 V.Giuseppe Grasso sets up the Sportbär Trading & Merchandising GmbH (STT) 2009 Further Italian soccer clubs with a global awareness join the license portfolio. Juventus Turin, AC Milan, SS Lazio, AS Roma. Special: The Italian Soccer Association FIGC with the Italian national team. 2010 On 27 September 2010 in Abu Dhabi the Ferrari World opens its doors. Sportbär exclusively created a special toy: The Camel. Additionally in 2010: The Ferrari City Collection and a new customer in the Motor Sports area: KTM, Austria. 2011 New licenses in soccer: Atalanta Bergamo. Furthermore the first customer from outside the Motor Sports and Soccer: The „Umbria Equitazione“ with the „Snooky“ Collection. 2012 The customer portfolio in the Motor Sports segment grows with Lotus Cars. 2013-2015 The company has insured their position as a merchandising supplier. We have as well improved our certification and have standarized our processes in search of synergies and efficiency. 5. Sportbär „at a glance“ SPORTBÄR Activity-focus Merchandise-licensee Supplier / Production Trade / Import Product-focus Target groups-focus Plush (Teddy bear) Motor Sports Baby articles Soccer Accessories / Promotionothers articles / Apparel Special Know-How and Experiences Merchandising specialist Licensing specialist Idea / Product Development / Production Import / Logistics / Trade Targeted Markets EU / USA / UEA / Asia Safety: CE-Certificate (EN71 / EN 71-2 Flammability), ASTM, CPSIA: Phthalates & Section 103, RAECH-Tests and Chemical-Tests, EU-Compliance, independent tests / Public Liability Insurance Quality and certification approved by TÜV 6. The Business-Strategy 1. Licensing Business covering - Product Development, Production, Import & Logistics 2. Supplier for merchandise article covering - Idea, Development, Production & Import 3. Strategic Partnerships - e.g for Import & Trade of Promotion articles 6. The Business-Strategy Success Factors • Personal contacts to the top-players and decision makers • Well accepted brand and special know-how • Existing partnerships with production facilities • Know-how in production & distribution • Product safety know-how (CE-Certificate, Tests approved by TÜV Rheinland) • Lean structures • Product-elasticity 6. The Business-Strategy Target Markets • • • • • • European Union UK North-America UAE Asia Australia 7. Marketing Activities • Booth presence every year on the worlds largest toy fair „International Toy Fair“, Nuremberg • Booth presence at Techno Classica Essen • Buyer representation at Canton Fair • Permanent contact with existing top-players • Establish new contacts in existing areas (Motor Sports & Soccer) with targeted key-players like Bugatti S.A. Volkswagen Group, etc. • Reasonable enlargement of the existing product range • Acquisition of new target groups outside of the existing Portfolio 8. Opportunities & Risks • Growth through acquisition in the licensee area (Nike, Red Bull, etc.) • Growth by widening the supplier area (from a licensee to a supplier) • Danger of product copies and fakes 9. The Team V. Giuseppe Grasso (ITA), CEO Alessandro Moscatelli (ITA), Head Of Product Laura Sommavilla (GER/ITA), Product Manager Gonzalo Flethes (ESP), Junior Account Manager Doris Müller (GER), Team Assistant Susan Paradiso (GB), Sales Manager Hans Köppl (GER), Graphics & Photography Josa Wei (CHI), Agent China 10. Strategic Partners & Consultants SDV Geis GmbH, München, Germany Import / Export M2 Logistik GmbH, Markt-Schwaben, Germany Partner for Logistics Wedlich.Servicegruppe, Bayreuth, Germany Partner for Logistics MSAM GmbH, Media Service Atelier Munich GmbH, Munich, Germany Support in Layout, Graphics, Photography, etc. roeckl_communication, Munich, Germany Support in Strategic Marketing & Communications Shiftzero, Bari, Italy Support in Internet Marketing TÜV Rheinland, Italy, China, Turkey Quality inspection and test certification Legal Lines Produced under license of Ferrari Spa. FERRARI, the PRANCING HORSE device, all associated logos and distinctive designs are trademarks of Ferrari Spa. V. Giuseppe Grasso www.sportbaertoys.com info@sportbaertoys.com Handelsregister HRB 197567 USt. ID. Nummer: DE 258644702 Geschäftsführer: V. Giuseppe Grasso Any files and pictures transmitted with this presentation are confidential and intended solely for the use of the individual to whom it is addressed. Unauthorised publication, use, dissemination, forwarding, printing or copyng of this presentation and its associated attachments is strictly prohibited.