Presentation Instructions

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• Presentation Instructions
• Prepared for TechBA by Simon Sacal
• May 8, 2006

email simon.sacal_at_fit-bits.com (5255) 55762297
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1. Introduction

• 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.

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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)

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3. Your solution

• 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

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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

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4. Potential market market size

• 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.

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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
 
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6. Previous and future milestones

• 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.

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7. Management Team Advisory Board

• 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

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8. Alliances and Partnerships

• 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.

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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

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10. Transition strategy

• 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.

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11. Summary

• 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.