NanoClear

1. NanoClear Group 5 Austin Bratton Ryan Burke Kaan Boyaci Evan Casso Christina Nguyen Ryan Sanders April 21, 2011

2. NanoClear • We will manufacture motorcycle helmet visors permanently coated with hydrophobic and oleophobic nanotechnology at the molecular level providing industry leading clarity and overall performance. • “Hydrophobic”(from the combining form of water in Attic Greek hydro- and for fear phobos) is the physical property of a molecule (known as a hydrophobe) that is repelled from a mass of water • "Oleophobic" (from the Greek (oleo) "oil") refers to the physical property of a molecule that is repelled from oil. • http://www.aculon.com/thin-film-optical-coatings.php Using innovative technology geared towards providing the ultimate performance and safety for motorcycle helmet visors

3. Company Structure

4. A Clear Future Mission Statement: • NanoClear is the next step in safety standards for all motorcycle helmet visors. Financial Objectives: • Accomplish breakeven goals • Adapt to anticipated growing market • Increase firm value Marketing Objectives: • Partnership with ThermaHelm • Shift partnership to North America • Expand to Major Motorcycle Helmet Companies • Ultimately, NanoClear be used in all future motorcycle production

5. SWOT Analysis

6. Issue Analysis • No direct competition gives this unparalleled technology an advantage in penetrating the market • Growing number of motorcyclists • According to a special report by the Bureau of Transportation Statistics “there has been a significant increase in the number of motorcycle sales and registrations in the United States over the last decade. Later on the report discusses the fact that the number of registered motorcycles from 1997 to 2006 nearly doubled from 3,826,373 to 6,678,958 and how the sales of motorcycles grew even more sharply over the same period from 260,000 in 1997 to 892,000 in 2006.” • 20 states & D.O.C. have full helmet laws • 26 states have passenger helmet laws • 7 states have laws discriminating against riders b/n 18-20 • Colorado, Illinois, Iowa, and New Hampshire are 100% helmet law free • Consumers tend to attract to new technology • Ingredient branding: ThermaHelm • By partnering with ThermaHelm should lead to faster market penetration

7. 100% Helmet Free Helmet Law: Age Exemptions Helmet Law: All Riders Helmet Law: Age Discriminations *Insurance Requirement

8. Industry Analysis There are over 7 million registered motorcycles in the U.S. • According to figures from the Motorcycle Industry Council, the median income of motorcycle owners has gone from $25,600 in 1985 to $55,850. The age has also increased from 27.1 in 1985 to 41 in 2003 Demographics of a New Bike Rider • Age                                                           Gender20 years and younger        1%          Male          90%21-25                                7%              Female      10%26-30                                9%31-40                              22%41-50                              30%51-60                              23%61-70                                7%71 and older                      1%  • Marital StatusMarried                             65%Single (never married)        17%Widowed                           2%Divorced/separated            16%(7) • The U.S. motorcycle market is worth $14.6 billion (2007) and is expected to reach  $21 billion by this year Motorcycle Market Share Harley-Davidson 28%Honda 25%Yamaha 17%Suzuki 13%Kawasaki 11%KTM  2%BMW 1%Triumph 1%Ducati 1%

9. Competitor Analysis • Current motorcycle visor companies • Visor sealants • PercentaNano Synthetics™- sealant when applied creates a small film that reduces water, dirt, brake dust, oil, etc. • Lasting time- 14 days- 1 month • Fog eliminators • Clarity™- dry coating onto lens that absorbs moisture and disperses across surface until evaporation. • Lasting time- hours

10. Customer Analysis • Target Customer • Sport/Performance motorcyclists ages 25 and up • Financial resources • “Voluntary safety helmet use by those accident-involved motorcycle riders was lowest for untrained, uneducated, young motorcycle riders.” • 60% of the motorcyclists were not wearing safety helmets at the time of the accident. • Of this group, 26% said they did not wear helmets because they were uncomfortable and inconvenient, and 53% simply had no expectation of accident involvement.” • Professional Riders- Racing, Performance, Stunting • Customers who value premium products

11. Customer Analysis • By partnering with we can provide unparalleled safety to riders • Immediate Cooling system to reduce brain swelling • GPS activation when accident occurs • By using our NanoClear visors in addition, can improve visibility as well as increase safety • Increase of motorcycle accidents leads to increasing awareness of safety • Thirty-five more times likely to have a fatality in a motorcycle accident rather than in a car • Head injuries occur in 80% of motorcycle fatalities • DPS- requires MSC (motorcycle safety course) • MSF partnership/ Sponsorship • Could become licensed standards for helmets • Increase of awareness among market • Increase of unit production

12. Ingredient Branding

13. Target Markets • Motorcycle and motor/car related athletes • Motorcycle riders who value innovative and premium technology • Eventually be able to reach all motorcycle enthusiasts thus paving a standard for helmet safety laws.

14. Points of Diff/Positioning • New innovative technology • Lasting performance • Convenient • Partnering with • Direct market penetration *Established in European Market NanoClearVisor Percenta Nano Synthetics™ Microfiber Cloths Current Visor Technology

15. Product Strategy • Ingredient branding: • Aggressive marketing to reach motorcycle helmet manufacturing companies • Rely on performance and durability to enhance image in market

16. Pricing Strategy Penetration pricing: High quality, low price • $110.00 ThermaHelm helmets start at $999 • Schuberth, Shoei, and Arai helmets at least $500 • Atelier Ruby starts at $900 • Regular visors are ~$30 • Percenta Nano Synthetics spray (250ml) ~$30 • Fog eliminators – Clarity wipes 3pack $5.99

17. Promotional Strategy Showcase at major motorcycle shows • Carole Nash Motorcycle Live show 2012 in Birmingham, London • Supershow – Toronto, Canada “Largest motorcycle show in North America” Sponsor a motocross rider, preferably one of the top 3 supercross or motocross riders in the nation • Trey Canard, Jake Weimer, Ryan Dungey Internet advertising • Motocross and motorcycle related websites • http://motocross.transworld.net/ • Major helmet companies

18. Place Strategy Indirect distribution • We manufacture NanoClear as an ingredient brand for ThermaHelm • Expand to other motorcycle helmet companies

19. Financial Projections

20. Breakeven 6 Year TFC-3,125,000 Price- $110 AVC-$68.75 3,125,000/(42.25) Breakeven Quantity = 73,965 units

21. Implementation/ Timeline of Events Year 1- Invest heavy in R&D Q1 • Receive investments • Begin negotiations with ThermaHelm Q2 • Finalize production of prototype • Test performance of product • Meet with ThermaHelm, begin partnership • Marketing at conventions Q3 • Continue push with marketing Q4 • EndQuarter fully operational • Meet production for release of product Year 2- Expansion Q1 • Expand marketing efforts to turn potential competitors into customers Q2 • Negotiate sponsorships with professional riders Q3 • Retain new contracts for select helmet companies Q4 • Increase production of product

22. Implementation Plan Year 3- Growth Q (1-4) • Increase R & D to account for increase of production • Begin production for new orders • Continue to acquire new orders from helmet companies Year 4&5- Long Term Goals Q (1-4) • Finish product adaptation • Expand marketing efforts to more channels • Further develop distribution networks for new customers

23. Questions