LUUV | Overview

Videos are becoming increasingly important in everyday communication as well as in our media consumption. More than 400 hours of video footage are uploaded to YouTube every minute; sales figures for action cameras have skyrocketed in the last years, and smartphones have turned into the omnipresent camera of our generation. There are more than 46 million smartphone users in Germany alone. Last year, approximately 1.4 billion smartphones were sold worldwide. It doesn't matter whether you are on holiday, at work or just going about your daily business: Nowadays, every event, no matter how insignificant, is captured on film!

The result is exciting and unique video footage - dressed in shaky and unprofessional shots. There seems to be an enormous gap between the camera manufacturers' promotional videos and the videos shot by frustrated camera owners. LUUV products aim to close said gap.

solidLUUV, the camera stabilizer for shake-free filming in motion, is the foundation of our range of products. solidLUUV prevents transmission of the body's movements to the camera with the help of the patent pending technology and guarantees professional videos at all times. solidLUUV makes expensive and complicated film technology accessible so that everyone can film like a pro!

Two successful crowdfunding campaigns, pre-orders worth more than €360,000 and enthusiastic beta testers - solidLUUV serves an international market with a strong growth potential. So far, we have been able to generate pre-orders from more than 60 countries without implementing any significant marketing measures.

solidLUUV has generated enthusiastic international media coverage and appears in hundreds of media reports, as well as receiving numerous awards including:

• the 'Product of the Year 2015/2016' award in the category 'Action' from the world's largest sports trade fair ISPO for the innovative features
• the renowned 'Red Dot Award: Design Concept' for the functional design
• the 'CES Innovation Award' from the world's largest trade fair for consumer electronics, which was also awarded to established camera manufacturers such as Ricoh or Canon

Snowboarders on the slopes, families on holiday, journalists in hotspots or real estate agents who want to show off their properties in the best light - the demand for shake-free videos is enormous, making the range of applications just as diverse as the target group. In order to satisfy all target groups, we attach great importance to creating a timeless product that is always ready to go and does not require any training.

One of the main advantages of solidLUUV is its modular setup - it can already be combined with an electronic stabilization component and is equipped to handle all future cameras and trends. The special setup makes solidLUUV the world's only stabilizer for 360° and virtual reality cameras.

Our focus is on superior quality, which is why we have chosen Germany as our production site. The solidLUUV development phase has been completed, serial production is about to take off, the international market launch is scheduled for the second quarter of 2016 - the filming revolution starts right now!

LUUV's vision is to become the leading manufacturer of innovative film technology and camera stabilizers. To this end, we are developing a range of products that focus on the central issue of shaky filming. Different products for a variety of target groups - our portfolio is currently arranged according to the following three areas:

1. Mechanical stabilization

Product: solidLUUV

Mechanical 3-axis stabilizer for action cameras, smartphones and compact digital cameras:

• Professional mechanical stabilization
• Waterproof, robust, Plug & Play - solidLUUV is always ready to go
• Easy to adjust and balance thanks to our patent pending technology
• Simple use - no technical knowledge required
• Perfect for capturing spontaneous activities, sports scenes and action-packed moments
• no batteries required

In its basic version, solidLUUV is compatible with all cameras weighing up to 500 grams and is therefore also the world's first stabilizer for 360° and virtual reality cameras. 360° footage is currently one of the most important developments in the moving images industry.

In order to strengthen solidLUUV's position in the professional film business, we will also develop a module for enhancement of the weight range to include heavy DSLR cameras.

2. Electronic stabilization

Product: autoLUUV

Electronic 3-axis gimbal for GoPro-sized action cameras or smartphones:

• Electronic stabilization
• Maximum flexibility: autoLUUV can be attached to various surfaces (e.g. helmets or handlebars) and common accessories (e.g. poles or chest straps) with the help of a universal adapter
• Simple use - no technical knowledge required

The development of autoLUUV is supported by our partner FeiyuTech, one of the leading manufacturers of electronic stabilizer modules. Together, we are developing the most progressive and diverse electronic stabilizer module.

3. The best of both worlds: a combination of mechanical and electronic stabilization

Product: ultraLUUV

Combination of mechanical and electronic 3-axis stabilization

2x3-axis stabilizer for GoPro-sized action cameras or smartphones:

• The new generation of stabilizers
• Intuitive use - no training required
• Consistently perfect, shake-free images - no matter whether you are a first time user, are travelling at high speeds or are moving rapidly

ultraLUUV combines the advantages of mechanical and electronic stabilization.

Filming in motion has always put video stabilization to the test. Walking, running, climbing stairs - in order to film these movements, professional film makers rely on expensive and complex camera tracks, use camera cranes or hire specialised steadycam operators: thanks to ultraLUUV, these approaches will soon be nothing more than a distant memory.

 _{Steadycam Operator vs. ultraLUUV (http://www.stefanobella.com)}

In order to demonstrate the simple operation and wide range of applications, we recorded a video with Amadei Weiland, the world record holder in parkour/free-running. The video is a definitive test with as many sprints, jumps and big movements as possible.

Left half of the screen without ultraLUUV, right half of the screen with ultraLUUV:

LUUV is the only provider of camera stabilizers that also develops own products and has adopted a more comprehensive approach. Our products are neither limited to individual camera manufacturers or types, nor to one single kind of stabilization (solidLUUV = mechanical, autoLUUV = electronic, ultraLUUV = electromechanical). We value the diversity of the application areas for our many different target groups without sacrificing any operational flexibility. And at the same time, the use of our products requires no technical experience.

solidLUUV is the only stabilizer on the market that can be adjusted to achieve the necessary balance for stabilization with the help of the recommended weight setup. Spend no longer than 5 minutes on unpacking and setting up the stabilizer thanks to the patent pending technology!

In addition, solidLUUV is the world's first stabilizer for 360° and virtual reality cameras. Until now, 360° footage has always been captured using fixed cameras. Videos shot in motion can be very shaky and can make the viewer feel sea sick, especially when gazing through virtual reality glasses - which is why solidLUUV is a must-have for every 360° camera! We are in contact with established camera manufacturers (including Nikon, Giroptic, Sphericam) and will be signing cooperation agreements in the coming months.

Furthermore, solidLUUV provides a unique opportunity to upgrade to 2x3-axis stabilization (solidLUUV + autoLUUV = ultraLUUV). The customer can choose to up- or downgrade at a moment's notice. solidLUUV as well as autoLUUV can be used independently of one another. But the combination, ultraLUUV, is where you will experience the full potential.

Additional features of our differentiation strategy include the lifestyle positioning of the products and the development of a consistent brand image, similar to the successful strategy employed by action camera manufacturer GoPro. As a consequence, we have already put a significant distance between our company and the competitors who, for the most part, communicate only in technical and rational language.

On 17 October 2013, solidLUUV was first registered at the German Patent and Trade Mark Office. Since then, our functional design has been comprehensively protected through registered designs. In addition, our logo and the name 'LUUV' enjoy international protection. On 11 September 2015, we filed our technical patent; ever since then, solidLUUV and ultraLUUV have been extensively protected in Germany. An extension of this protection to the EU area and the US is planned within the framework of the existing priorities of this technical patent.

LUUV Forward GmbH's business model consists of generating revenue through sales of film technology to the end customer, the camera user. Initially, we will focus on sales of own products such as, e.g. solidLUUV as well as respective extension modules.

Our sales channels for the German-speaking market are a combination of direct sales (webshop, Amazon) and sales via retail partners. The international markets are managed by local distributors. We have already convinced Conrad Electronics and camXpert, two established dealers, of the advantages of solidLUUV. In addition, we have also received more than 70 orders from national and international dealers and distributors.

Aside from the core business, there are numerous options to expand our business model:

• Accessories for product enhancement (e.g. travel bags, prefabricated weight setups, and packages for specific application areas or target groups)
• Product individualisation options
• Custom production, events, live streaming, journalism, rental business
• Development of a user-generated media centre as a sales platform for shake-free videos
• Development and sales of further electronics components
• Range of relevant complementary products using the LUUV trademark

We focus on short communication channels and the highest possible quality when selecting our production partners. That is why we cooperate with leading German businesses in development and production and rely on production in Germany for the serial production of solidLUUV.

One of our most important partner is igus GmbH the global leader in polymer, maintenance-free ball bearings. Together, we produced the central bearing that was specifically designed for solidLUUV. The bearing guarantees the necessary pinpoint precision and, at the same time, grants us a competitive edge.

The injection-molded components are produced by valder Kunststoffverarbeitung in Cologne. The valder Kunststoffwerk has been working with customers from various fields for over 60 years and is also responsible for the assembly of our products.

Our innovative approach was first recognised during the prototype production phase, by e.g. EOS, the market leader in manufacturing solutions for 3D printing, who published a case study about us. Furthermore, we were awarded the formnext 2015 start-up prize for our additive approach.

LUUV products are aimed at customers who want to film in motion. In the age of the Internet, videos are gaining importance and the amateur film sector has increased substantially thanks to the development of the smartphone. Ever since, professional recording technology has become accessible to everyone. And that is exactly where we come in.

A survey among the supporters of the crowdfunding campaigns revealed that more than 70% of all respondents want to use solidLUUV for private purposes. 20% of respondents stated that they intended to use solidLUUV in a professional context, for example to shoot individual film scenes. The strongest selling point among all respondents was the product's maximum flexibility and simple operation. Kell, one of our American backers, tells us a little more:

solidLUUV has already been used to shoot an internal BMW commercial as well as an international movie project. Furthermore, LUUV is the official partner of the European downhill skateboarding championship. We are currently engaged in talks with some larger German publishing houses with the aim of providing their editors with LUUV products. We are also in contact with large German TV stations in order to establish solidLUUV in the field of television journalism and as a complementary product in movie and television productions.

Additionally, we regularly receive requests from larger businesses that are interested in using our products. For example, solidLUUV offers a significant added value to real estate, as real estate agents are increasingly presenting their properties on video. We completed our first successful test with RE/MAX. The estate agent was able to film seven properties within the space of 20 minutes without the need for additional post-production measures.

solidLUUV is an international product. Our two successful crowdfunding campaigns showed that our customers come from all around the world. We currently have orders worth EUR 360,000 from more than 60 countries. During the campaigns, we realised that, in comparison to the German market, we could generate disproportionate revenues in e.g. the American and Asian markets through nothing more than targeted public relations.

Every year, the German photo and video market generates in excess of €20 billion. Smartphones, in particular, have revolutionised the camera market in the last few years. In 2014, more than 24 million smartphones were sold in Germany alone. The German Imaging Association states that there have never been more people interested in photos and videos.

Action cameras have also enjoyed increasing popularity in the last years. In Germany, annual sales consistently increase in the double-digit percent range. In 2014, the global market volume for action cameras was at around €1.8 billion. Experts predict further strong growth in this area over the next years.

With each new generation, smartphones and action cameras boast higher resolutions, and become more efficient. Statistics prove that camera quality is a decisive purchase criterion in almost 50% of all smartphone purchases. The shaky video issue, however, remains:

The camera stabilizer market is lacking in innovation. Existing systems are merely a technical scaling of cinema systems that are impossible to operate without the necessary technical expertise. On the other hand, there are 'stabilizer bargains' that sound promising but, in the end, do not contribute to true stabilization due to a lack of sensitivity and functionality, and as they are too complex to operate.

Even though some current camera models and smartphones have improved their image stabilization with the help of stabilization software, these results do not even come close to videos shot with a stabilizer. In addition, every computer-calculated stabilization goes hand in hand with a significant loss of image quality. Therefore, software-induced stabilization is not a true substitute for stabilizers, eliminating the risk of substitution for LUUV.

There is no comprehensive solution for the amateur film market even though almost everybody is equipped with the best camera technology. The demand for videos can be inferred by the number of videos uploaded to popular video websites. For example, in 2015, more than 400 hours’ worth of video material was uploaded to YouTube every minute.

This is the gap in the market where we want to establish our LUUV products:

There is a great demand for camera technology: More than 860,000 tripods are sold in Germany every year. At the same time, adjacent markets, such as the market for camera drones, show how new sales potentials can be created with the help of technical innovation, and simultaneously, to what extent the customer expects these technical innovations. Further market development achievements prefix the financial projections.

We developed our first product, solidLUUV, in close cooperation with supporters from all over the world. An Indiegogo crowdfunding campaign in March 2014 helped to validate our idea and develop a highly involved core customer base. We were awarded the crowdfunding prize 2014 by the Senate in Berlin for our campaign following a public vote.

With the help of surveys, lively personal exchanges with the crowd and the international response to our Indiegogo campaign, we and our network of mentors were able to adapt our business plan and restructure the initial idea of a 3D printing manufactory to a scalable business plan for the mass market.

The second crowdfunding campaign on Kickstarter helped us to, on the one hand, present our reworked products and the adjusted vision and, on the other hand, generate a comprehensive production budget in the form of pre-orders as well as exploitation of cost benefits through increased order volumes. The proof of our success is in the pudding: Our crowdfunding campaign was one of the most successful campaigns in Germany and is the world's largest campaign for a camera tripod.

The encouragement we received from our customers as well as the media reports, positive product reviews and the numerous international awards are proof of solidLUUV's superiority in comparison to competing products.

We have achieved numerous milestones since the idea for solidLUUV was born in December 2012:

We have completed the development of solidLUUV and defined the market entry strategy. As a business, we now want to move forward with the crowd, develop a profitable hardware business and, in the medium term, establish our company as the leading provider for shake-free film technology. We deliberately decided against a premature incorporation of venture capital. Instead, we want to continue benefitting from the crowd's expertise and develop our network of brand ambassadors. At the same time, an investment in LUUV is a unique opportunity for Companists to become a part of our success story and reap the associated benefits.

We laid the foundations for our network in October 2013. As a first round hardware.co Accelerator start-up (previously: Berlin Hardware Accelerator), we gained a lot of experience and established our company as an inherent component of the German hardware scene.

LUUV Forward GmbH is supported by the Business Angel Club Berlin-Brandenburg (BACB). In total, we have four Business Angels looking out for us, including film producer Doris Kirch. In addition, LUUV is a member of the development and production network HWTrek. In the context of the large-scale Asia Tour 2015, we were able to establish contact with electronics manufacturers and dealers and advance our cooperation with Feiyu Tech.

In 2015, we travelled to New York as members of a delegation of Berlin-based start-ups (also on board Panono, KIWI.KL, dailyme TV etc.) with the Berlin Business Development Association and became official partners of the Berlin Senate's capital campaign be Berlin.

In addition, we are members of the internationally renowned Hardware Club, an exclusive association of highly promising hardware start-ups from around the world. The Hardware Club supports us in core topics such as manufacturing, choice of distributors and acts as a strategic partner with relevant contacts for future financing rounds.

As ISPO Product Of The Year 2015/2016 award winners, we are also active in the world's largest sports business network.

_{Founding shareholders Friedrich-Paul Spielhagen (CBO & Communication), Tim Kirchner (CFO & Organisation), Felix Kochbeck (CEO & Development), Tobias Gerhardt (CMO & Distribution)}

We are videographers, athletes, engineers and designers. But we are one thing above all: Enthusiasts with a vision to redefine filming using innovative products.

The four founding shareholders are full-time LUUV employees and have been enjoying the support of industrial designers Jannis Thiele and Levin Wagner (thiele+wagner) since August 2014. Natalja Knauer, the graphic designer responsible for LUUV's visual presence, has been a part of the team right from the beginning. Our Head of Communication, Nathalie Miller, joined the team in July 2015. And finally, our team comprises a network of freelance employees from a variety of disciplines:

For more details on our team, please see: www.companisto.com/de/investment/luuv/team

teamLUUV online

Facebook: www.facebook.com/teamLUUV

Twitter: https://twitter.com/teamLUUV

Instagram: https://instagram.com/teamluuv/

YouTube: https://www.youtube.com/channel/UCUMwtDtXz0UQAlFe3eTG06A

Medium: https://medium.com/@teamluuv

In general, we plan to use the capital for the development of our derived products as well as for the launch and rapid scaling of serial production (solidLUUV; including provision of test units for shop and testimonial sampling). In addition, we plan to strengthen our sales team and invest in international marketing measures for the launch of solidLUUV in order to increase our publicity and promote sales.

As a hardware company, we are very close to launching our series production: more capital will lead to increased production volume and a larger marketing budget. In turn, these measures will lead to a more rapid market penetration and will help us prematurely achieve the break-even-point.

In order to achieve our growth targets more rapidly, we also want to add venture capital to the investments effected by Companists. We have planned an additional financing round for no later than early 2017 to coincide with the intensification of our international sales activities.

At the same time, we are also in a position to flexibly adjust costs and growth targets if, for example, we have less capital at our disposal. Our scalable business model is characterised by a streamlined cost structure and high flexibility, as initial costs (in particular investments in injection molding tools) have already been covered. Correspondingly, back-up solutions with low capital requirements have already been put in place and can be implemented if necessary.

A detailed list of the costs of our different expenses can be found in our financial projection.

Spread the Word! In addition to financial support, we are grateful for every kind of interaction. You can find us on numerous social media channels (Facebook, Twitter, Instagram, YouTube, Medium) and we appreciate every like or share. The more people find out about LUUV and watch our videos, the more successful our market entry and business development will be.

Moreover, we are always looking for beta testers (e.g. athletes, professional film makers or tech journalists) who can report to large networks. Our products sell themselves thanks to good reviews and spectacular videos.

In the coming weeks and months, we want to strengthen our team in the areas of research and development, and sales. To this end, we are looking for a hardware engineer with experience in supervising mass production, and sales people with international sales experience.

LUUV Forward GmbH
Harzer Straße 15
12059 Berlin
Germany

investor-relations@luuv-stabilizer.com
www.luuv-stabilizer.com