Presentation InstructionsPrepared for TechBA by Simon SacalMay 8

Slide 1: Presentation Instructions Prepared for TechBA by Simon Sacal May 8, 2006

email: simon.sacal@fit-bits.com (5255) 55762297 This presentation provides a guideline for presenting a company to TechBA and an audience of investors. It outlines key elements, including specific topics which must be covered by the presentation. Although the order and content of the presentation may vary from these guidelines depending on the nature and stage of your business, the key information is required to evaluate your proposal and it must be delivered in the time specified (10 minutes typically). This means about 1 minute per slide so you need to practice your presentation and use your time wisely. Do not try to use your “standard sales presentation” for the TechBA audience. TechBA will evaluate your company overall and the value of your offering in the USA and global markets. You need to extract information from your existing (old and current) presentations and generate a new one to cover all the points included in this example. Your “Cover Page” must include the name of the person who represents your company, contact information, the reference to TechBA and date. This presentation provides a guideline for presenting a company to TechBA and an audience of investors. It outlines key elements, including specific topics which must be covered by the presentation. Although the order and content of the presentation may vary from these guidelines depending on the nature and stage of your business, the key information is required to evaluate your proposal and it must be delivered in the time specified (10 minutes typically). This means about 1 minute per slide so you need to practice your presentation and use your time wisely. Do not try to use your “standard sales presentation” for the TechBA audience. TechBA will evaluate your company overall and the value of your offering in the USA and global markets. You need to extract information from your existing (old and current) presentations and generate a new one to cover all the points included in this example. Your “Cover Page” must include the name of the person who represents your company, contact information, the reference to TechBA and date.

Slide 2:International Healthy Snacks, S.A. de C.V. Mexican Company Constituted in May 2003 Development, production and distribution of healthy food and beverages. MISSION Bring to the people healthy food and beverage alternatives without sacrificing the flavor. VISION To facilitate anyone, anywhere to be healthy without sacrificing the pleasure of eating.

1. Introduction Here is where your presentation really starts. Therefore the introductory slide should be put onto the screen as soon as possible. A good slide should tell the audience what the company does right from the start. Summarize who you are and where you are intending to go. Here is where your presentation really starts. Therefore the introductory slide should be put onto the screen as soon as possible. A good slide should tell the audience what the company does right from the start. Summarize who you are and where you are intending to go.

Slide 3:2. Market need

There is a clear need for a snack that brings together 2, commonly contradictory caracteristics: HEALTHY + EXCELENT TASTING. In the U.S. 64% of the people are overweight and 30.5% obese, this numbers are increasing every year. The snack market in México is of approximately 800 million bags per month. (The US snacking industry overall is a $40 billion a year market) The “healthy-snack” market in Mexico Represents 19% of the snack market. (The healthy snack market in the US reached $15.2 billion in 2004, 38% of the total) The growth expectancy in the Mexican healthy snack market I to 30% in 2007 (The US healthy snack market is growing at a 3.5% annual rate) In most cases, customers don’t purchase a product until they have a real problem or feel real pain that the given product will fix. They really want an aspirin not a vitamin. This slide should describe the problem that needs to be solved, the pain that needs to be addressed, or the otherwise urgent demand that will be satisfied by the product. Many successful new companies meet a demonstrated market demand or solve a specific problem. The exception which proves the rule is Post-It notes: no one knew they needed them until they were invented. In most cases, customers don’t purchase a product until they have a real problem or feel real pain that the given product will fix. They really want an aspirin not a vitamin. This slide should describe the problem that needs to be solved, the pain that needs to be addressed, or the otherwise urgent demand that will be satisfied by the product. Many successful new companies meet a demonstrated market demand or solve a specific problem. The exception which proves the rule is Post-It notes: no one knew they needed them until they were invented.

Slide 4:More than two years in research and development for Fit-Bits Patented process to manufacture healthy snacks with any form or flavor without sacrificing its properties and flavor (PA/a/2004/012039 and PCT/MX2005/000111) . Fit-Bits is Natural, Healthy, Low-Fat, Low-Calorie and has an excellent flavor. The Base” of the product is neutral so any flavor or nutritional supplement can be added. They can be made in any shape (tostadas, sticks, nachos, etc…) New products coming!: Fruit-Bits (dehydrated fruit) Low-Calorie Pasta Healthy soda

3. Your solution Describe clearly and succinctly the product and/or service you plan to offer. TechBA is not a program to support product development so indicate if you only have a prototype or what is the level of completion of your product in terms of manufacturing and marketing. If it is the case, emphasize your unique technology (patentable?) which underlies your solution and creates barriers to competitive entry. If time allows, describe success stories, mention well recognized customers and tell the audience how happy they are and have been with your solution. Describe clearly and succinctly the product and/or service you plan to offer. TechBA is not a program to support product development so indicate if you only have a prototype or what is the level of completion of your product in terms of manufacturing and marketing. If it is the case, emphasize your unique technology (patentable?) which underlies your solution and creates barriers to competitive entry. If time allows, describe success stories, mention well recognized customers and tell the audience how happy they are and have been with your solution.

Slide 5:3. Your solution (new developments)

Fruit-Bits Internally developed patentable technology Snack made with 100% fruits or vegetables The flavor stays intact The production cost is significantly reduced, The nutritional properties stay intact. The final product can be crunchy or soft It is possible to mantain the original shape of the fruit or vegetable. Easy to Re-hidrate. Healthy Soda Internally developed patentable technology There is no need for extra ingredients (educlcorantes, conservadores, saborizantes, etc) Original flavor and nutritional properties stay intact We made possible to bring together two regularly contradictory words Soft drink + Healthy Competitive price Vegetable Pasta Internally developed patentable technology 100% de vegtable pasta Cooked identically to regular pasta and in the same time. It has a neutral flavour so it can be cooked as desired It is 100% natural. It is fat free and cantains 12 times less calories than a regular pasta. Competitive price

Slide 6:The objective market (order for entering US market): Specialty stores (GNC, Nutrisa, Liverpool, Cinemex, airport stores, Airlines, schools, etc..) Big retailers (Whole Foods, HEB, Wal-Mart, Comercial Mexicana, Soriana) Convenience stores (Walgreen's, Vons, Oxxo, Extra, 7 Eleven) Wholesalers Small retailers (Changarros) Potentially our customers are every place where a snack can be found ranging from a small convenience store to an airline. Right now we have costumers like Wal-Mart, Comercial Mexicana, Nutrisa, Cinemex, Liverpool, SportCity. Our consumer is everyone that prefers healthy and natural food over regular options and do not want to sacrifice the taste experience for it. Mainly women between 20 and 55 years, that are very selective.

4. Potential market & market size The description of customers should explain who will buy the product. Are the customers businesses or consumers? If consumers, the slide should describe the target geographical area, demographics or other applicable characteristics (age, education, employment, etc.) If the product will be sold to businesses, the slide should describe the target industry or market segment, and specific examples of targeted customers. You should give an idea of the size and the composition of the target market. If the market described is too small, investors may lose interest. If the market is too large, the audience may feel that the company’s marketing objectives are not sufficiently focused. Also show the growth and composition of the market. For example, a pie chart which breaks the market into segments, and/or a bar graph which shows market growth are helpful. Provide hard market size data if available, otherwise provide your estimates, your estimation process and how you plan to verify the market segment size. The description of customers should explain who will buy the product. Are the customers businesses or consumers? If consumers, the slide should describe the target geographical area, demographics or other applicable characteristics (age, education, employment, etc.) If the product will be sold to businesses, the slide should describe the target industry or market segment, and specific examples of targeted customers. You should give an idea of the size and the composition of the target market. If the market described is too small, investors may lose interest. If the market is too large, the audience may feel that the company’s marketing objectives are not sufficiently focused. Also show the growth and composition of the market. For example, a pie chart which breaks the market into segments, and/or a bar graph which shows market growth are helpful. Provide hard market size data if available, otherwise provide your estimates, your estimation process and how you plan to verify the market segment size.

Slide 7:5. Competition and competitive advantage

  Fit-Bits is sold at $5.85 mxp, for a 50 gram bag. Nutritas is sold for $5 mxp for a 30 gram bag “We have no competitors.” That statement can be the end of your presentation. A surprising number of companies repeat that very statement. This is a result of a) not doing enough research, b) self-delusion: believing that no one else can do what the company plans to do, or c) there is no interest in such product. There are always competitors, even if you are not aware of them. The other mistake is to acknowledge competitors but dismiss them out of hand, because they are too slow, too entrenched, don’t have a great product, or a myriad of other reasons. A much better approach is to acknowledge the strength of the competition, show that they are being watched very closely, and clearly articulate your competitive advantage. Your competitive advantage is the reason why somebody would prefer you over your competition. It is the main reason for your success. It could be a superior technology, a completely new (and more efficient, cheaper, better) solution to solving a problem, a better management team, or all of the above. It is important to demonstrate a significant advantage. Do not try to compete only on lower cost. A matrix / table comparing the company with the competition, is sometimes helpful. If you decide to use a table, be specific and use numbers even for subjective characteristics. Notice that the example given uses numbers when available, it also uses Yes/No for function availability and a 5-to-1 scale for ranking a subjective evaluation. Also, as in this example, you might choose to show your product/service price and total ownership cost. For other examples of software comparisons you can see http://www.2020software.com/ This is a critical slide and should convince your audience of why a customer would buy your product instead of your competitor’s. “We have no competitors.” That statement can be the end of your presentation. A surprising number of companies repeat that very statement. This is a result of a) not doing enough research, b) self-delusion: believing that no one else can do what the company plans to do, or c) there is no interest in such product. There are always competitors, even if you are not aware of them. The other mistake is to acknowledge competitors but dismiss them out of hand, because they are too slow, too entrenched, don’t have a great product, or a myriad of other reasons. A much better approach is to acknowledge the strength of the competition, show that they are being watched very closely, and clearly articulate your competitive advantage. Your competitive advantage is the reason why somebody would prefer you over your competition. It is the main reason for your success. It could be a superior technology, a completely new (and more efficient, cheaper, better) solution to solving a problem, a better management team, or all of the above. It is important to demonstrate a significant advantage. Do not try to compete only on lower cost. A matrix / table comparing the company with the competition, is sometimes helpful. If you decide to use a table, be specific and use numbers even for subjective characteristics. Notice that the example given uses numbers when available, it also uses Yes/No for function availability and a 5-to-1 scale for ranking a subjective evaluation. Also, as in this example, you might choose to show your product/service price and total ownership cost. For other examples of software comparisons you can see http://www.2020software.com/ This is a critical slide and should convince your audience of why a customer would buy your product instead of your competitor’s.

Slide 8:1999 Idea, 2001-2002 technology development, 2003 Plant installation, 2004 stand and patent, 2005 First year of “real” sales. Our actual clients include universities, schools, gymnasiums Candy stores, Naturist stores and some contracts like Walmart, Cinemex, Liverpool, Nutrisa, Comercial Mexicana, Super Mayoreo Naturista, Candy stores, schools universities, etc… March 2006 Nafin investment March 2006 Approval of Conacyt grant Our costumer database is growing fast (Walmart nationwide, Comercial Mexicana, Farmacias Guadalajara, Circulo K, Blockbuster, etc…). We are developing new products and technologies and looking up to expand nationwide and worldwide. In 5 years International Healthy Snacks will be the health food and beverage leader in Mexico and a well recognized brand in other countries.

6. Previous and future milestones This slide is important for showing the progress made by the team to date, and for outlining the future plans for the company. Milestones should be both realistic and substantial. A timeline is a good way to illustrate milestones. This is a good point to show your medium term vision (5 years) for your company. Show specific dates (month/year) and concrete deliverable milestones for your corporation and product. This slide is important for showing the progress made by the team to date, and for outlining the future plans for the company. Milestones should be both realistic and substantial. A timeline is a good way to illustrate milestones. This is a good point to show your medium term vision (5 years) for your company. Show specific dates (month/year) and concrete deliverable milestones for your corporation and product.

Slide 9:Names of management team- Simon Sacal- CEO He is an Entrepreneur and an Industrial Engineer and he is the founder of IHS and the developer of the Fit-Bits Technology. Jacobo Sacal –management director He is a successful businessman with many years of experience combined with studies of management on the IPADE. Janel Alonso-commercial Director Marcos Baez-Research an Development We are now building our advisory board with Nafin

7. Management Team & Advisory Board List three to five key members of the management team. The team should demonstrate relevant industry experience. Previous startup and blue chip company experience also help. Use about two lines per person, stating only the most relevant factual and quantitative career achievements (avoid vague superlatives like expert, dedicated, leader…). A few gaps or provisional hires are acceptable but identify critical needs in your team (if any) and describe your plans to fill those needs. Better to be open than try to hide those gaps. Having some key industry/community leaders as members of your board is huge for the company’s credibility. A well-rounded and committed advisory board can also help to fill in some gaps. List three to five key members of the management team. The team should demonstrate relevant industry experience. Previous startup and blue chip company experience also help. Use about two lines per person, stating only the most relevant factual and quantitative career achievements (avoid vague superlatives like expert, dedicated, leader…). A few gaps or provisional hires are acceptable but identify critical needs in your team (if any) and describe your plans to fill those needs. Better to be open than try to hide those gaps. Having some key industry/community leaders as members of your board is huge for the company’s credibility. A well-rounded and committed advisory board can also help to fill in some gaps.

Slide 10:The partners are Simon Sacal with 40%, Leticia Sacal with 40% and Nacional Financiera with 20%. We have obtained from Conacyt around $360,000 usd for the implementation of the technologies mentioned above Simon is the CEO Leticia is a capital investor Nafin is a limited partner We are looking foreword to develop some strategic alliances.

8. Alliances and Partnerships Identify any existing and describe desired future partners and your objectives for each relationship. Describe the nature of these partnerships. On future partners respond to why would they want to partner with the company, and how will the partners help the company reach its objectives? Don’t just put names of potential partners just because they look good Identify any existing and describe desired future partners and your objectives for each relationship. Describe the nature of these partnerships. On future partners respond to why would they want to partner with the company, and how will the partners help the company reach its objectives? Don’t just put names of potential partners just because they look good

Slide 11:9. Financial highlights

These projections are in Mexican pesos of 2006. These projections only take into account the clients we already have in Mexico. We estimate that with the 4 product lines mentioned above we can get in four years 0.5% of sabritas´ market This chart must show the basic numbers that need to be presented: the number of customers (or units sold, as appropriate), revenues, expenses, and profits over a five year period. These numbers may need to be justified verbally, and your detailed business plan would go into more detail.. In most startup technology businesses, profitability is expected by year 3-5. Revenues should grow significantly (to $50M or more in companies funded by venture capital) by year 4-5. For TechBA we want companies that will grow their current profits significantly and rapidly. The most common problems are unrealistic revenue and too high profit margins. There is also a danger of estimating too low, especially if you are looking for VC - if profits are negligible and revenues are less than $10 million in year 5, funding sources will lose interest. This chart must show the basic numbers that need to be presented: the number of customers (or units sold, as appropriate), revenues, expenses, and profits over a five year period. These numbers may need to be justified verbally, and your detailed business plan would go into more detail.. In most startup technology businesses, profitability is expected by year 3-5. Revenues should grow significantly (to $50M or more in companies funded by venture capital) by year 4-5. For TechBA we want companies that will grow their current profits significantly and rapidly. The most common problems are unrealistic revenue and too high profit margins. There is also a danger of estimating too low, especially if you are looking for VC - if profits are negligible and revenues are less than $10 million in year 5, funding sources will lose interest.

Slide 12:Name of individual: Gibran Guerrero Rough timeline: We plan to start exporting on the second half of 2006 Transition rationale: The health-conscious market in the US is the largest in the world. And our products are tailored to this markets.

10. Transition strategy To implement your operation to enter the USA market it is required to have physical presence in TechBA. It is not possible to enter such a challenging market by remote control. Your representative(s) require full knowledge of your company and products and a high level of decision making. Usually, the USA representative(s) will be the main entrepreneur who is the key person(s) for the operation in Mexico. This means that you need to define a strategy to continue your operation in Mexico (maintaining your income!) and, in parallel, to start a new operation in USA. In this slide, you must identify the resources (personnel and funding) together with a tentative schedule to implement your operation in the USA. To implement your operation to enter the USA market it is required to have physical presence in TechBA. It is not possible to enter such a challenging market by remote control. Your representative(s) require full knowledge of your company and products and a high level of decision making. Usually, the USA representative(s) will be the main entrepreneur who is the key person(s) for the operation in Mexico. This means that you need to define a strategy to continue your operation in Mexico (maintaining your income!) and, in parallel, to start a new operation in USA. In this slide, you must identify the resources (personnel and funding) together with a tentative schedule to implement your operation in the USA.

Slide 13:The main, and most important advantage we have are the technologies mentioned above, and the experience of producing and selling this kind of products in the market. The Health-food market is growing every day and there is not really an option for those who want healthy and good tasting food and beverages. There is not one big company positioned as the one who sells healthy and good tasting products. We have built a Management team that is able to develop, manufacture and commercialize healthy food and beverages. The Nafin investment provided the resources to create a solid structure to develop, manufacture and sell healthy food and beverages. The Conacyt money facilitate the launch of the new products.

11. Summary The 3 main reasons you want the audience to remember for why you would succeed. You need to identify these 3 reasons, the 3 given in the slide are just typical examples. Most VCs place management team quality above all other considerations . This slide closes your presentation and, depending on the time, you may not be able to discuss it in detail. Regardless, you can put it onto the screen as background during the Q&A section. The 3 main reasons you want the audience to remember for why you would succeed. You need to identify these 3 reasons, the 3 given in the slide are just typical examples. Most VCs place management team quality above all other considerations . This slide closes your presentation and, depending on the time, you may not be able to discuss it in detail. Regardless, you can put it onto the screen as background during the Q&A section.