ATvalueBusiness Proposal

TableofContents 4. S/W Development

1. Affiliated Research

Center / Organization

2. Patents

3. Research Outcomes

1. Carcok Service

2. Visual Caller Ring

3Car Supply in Asian Region ATvalue Business Plan

Purchasing and Securing Cars for Export

by ATvalue

ATvalue Export Procedure

Local Automobile Supply Business

Estimated Capital and Procurement Plan

Estimated Sales and Profit/Loss

1 Introduction

1. Overview

2. History

3. Board of Directors and Share-

holders

4. Organization

2 Business

1. Export of Used Cars

1. Export of Used Cars

2. Used Car Export Flow

3. Business Strategy

2. Export of New Cars

4. New Car Export Market

5. Business Flow

6. Business Strategy

3. Valuable Business

7. Educational Business

8. Development of Export

Automation System Com-

plex

9. Integrated Payment Sys-

tem

10. Green Scrap Service

4 Investment Proposal

01. Introduction

ATvalue Information

4

1. Overview

Company Name ATvalue Co., Ltd

Established February 1, 2011 (Incorporated)

President Min suk Kim

Capital 250,000,000 Won

Employees 28 (20 + 8(Specialists Outsourced))

Head Office 194-51, Okryeon-dong, Yeonsu-gu, Incheon, Korea

Seoul Office Rm. 505 Haksan Cosmos, 110, Gwangjang-dong, Gwangjin-gu, Seoul, Korea

Major Business Export Trade, Overseas Circulation, SW and Web Development, Education

2. History

2010 Signed an expert contract with Cagayan De Oro (Philippines)

2009 Signed an export contract with Ghana

2008 Signed an export contract with Iraq for the new car, Bongo III

2007 Signed an export contract with Vietnam

2006 Signed an export contract with Jordan

2005 Established Samil Trading

December 2011 Established business tie-up with YMCA for training for export practices

December 2011 Established business tie-up with Automobile Academy for export practices

December 2011 Applied for patent for Carcok Service

October 2011 Trial operation of the integrated export management system, ‘One

Pass Service’

May 2011 Established Russian corporation, Koreacar.co (Ussuriisk, Уссурийск)

April 2011 Concluded an export contract with Stanislav Russia

April 2011 Began to develop mobile ‘Carcok Service’

March 2011 Began to develop ‘Carcok Service’, the integrated export management system

March 2011 Established a new Development Division in Seoul

February 2011 Changed the company name to AT value

2011

2005~2010

5

May 2012 Brocoling – Applied for patent for the Automatic Calling Method for Wireless Mobile

Telephone Device and Its System

March 2012 Brocoling – Applied for patent for the Transmission Holding Advertisement Method

for

Smart Devices and Its System

March 2012 Venture certificate

February 2012 Established affiliated research center

February 2012 Officially opened integrated export management system ‘Carcok

Service’

January 2012 Trial operation of integrated export management system ‘Carcok

Service’

January 2012 Established business tie-up with Korea Insurance Development Insti-

tute

2012

6

3. Board of Directors and Shareholders

Profile of Executives

CEO

Ji ho Yang

•Kookmin Bank

•Hanshin Inc.

•Grand Industrial Development

•Directly and indirectly supervised the establishment of various incubating com-

panies and managed their operations

•C.E.O of Seoul Biz Base

•C.E.O. of Hanwon Motors

•Managed KIH Kookmin Venture Fund and Seoul Ventures Holdings Company

•Consulting for the financial structure of Korea Aerospace Industries (KAI)

•Executive director for Doctor for Doctor, KS Music

•Investment inducement and M&A for Sejong High Tech, Donga Precision Machin-

ery, Samju Mulsan, Hanrim ST, Hyundai Machinery, etc.

•Lecture on management, investment, and corporate M&A at various universities

•Lecture on start-up business consulting

7

3. Board of Directors and Shareholders

•Korea Finance Security: The company is in charge of transporting cash to 12 banks in Korea, builds and retains clients through efficient online marketing system. : Kookmin, Hana, Cheil, Shinhan, Woori, Exchange, City, etc.•NOW I&S: Online movie ticketing service provider, provides online marketing and KTF services• Ace Real Estate Consulting: Developed a system which systematically manage the establishment of committees, management of members by district, calculation of price of right, and information on the allocation of apartment by size for nationwide redevelopment and reconstruction promotion committee and association•Samil Real Estate Corporation: Developed programs for the calculation of the price of right of redevelopment association members and for promoting integrated marketing, analyzing and designing margins for new construction project. Developed and managed websites for 100 designated member stores•Samkyung C&M: www.jtech.co.kr, Established the network marketing system for redevelopment and reconstruction through on/offline training, books, blogs, and online club sites• Arcade Construction (C.E.O): Construction through the development of www.arcadecon.co.kr site, analysis of profit feasibility, construction of urban lifestyle residence, one room, multiplex house, and townhouses through PM or CM• ATvalue (C.O.O.): Concluded export contracts with various countries around the world, training of individuals on starting used car export business, and devel-oped and applied for patent for Carcok Service which systematized the existing used car export process

COO

Min suk Kim

Profile of Executives

8

3. Board of Directors and Shareholders

CTO

Yeong mo Yoo

January 1996 ~ December 2000 Hyundai Motors

Overseas Division

March 2001 ~ January 2005 Hyundai Motors Middle

East Division

March 2005 ~ January 2010 C.E.O. of Samil Trading

February 2011 ~ Present ATvalue

Profile of Executives

9

3. Board of Directors and Shareholders

CSO

Yeong jin Yoo

•Homano Trading Management Support Team

•Established Samil Trading

•Samil Trading Used Car Export Devision

•Joeun C&D Used Car Export Division (Exclusively

for Russia)

•Present: ATvalue Export Division Manager (Over-

seas Sales)

•Present: YMCA and Automobile Academy instruc-

tor for export practices

Profile of Executives

10

3. Board of Directors and Shareholders

CMO

Won ho Jeong

January 1995 ~ January 2001 KIA Motors Sales Division

April 2001 ~ January 2005 Hansung Motors Sales Team Manager

June 2005 ~ January 2007 Auto Parts Seoul Branch Manager

May 2007 ~ March 2011 TN Trading Executive Director

February 2011 ~ Present ATvalue

Profile of Executives

11

직원 이력

• PM for North Korean Defector Residence and Settlement

Support System of the Ministry of Unification

• Developed automobile inspection system for Road Traffic

Safety Authority

• Ship clearance system for Korea Coast Guard

• Developed agricultural technological information and appli-

cation system for Rural Development Administration

• Developed agricultural technological information DB for Ru-

ral Development Administration

• Developed H.E Engineering network outsourcing manage-

ment system

• Internet international telephone billing system for Money-

phone

• Text and Voice Recognition System for Moneyphone

• ARS Public Service Guide System for Gwangyang City Gov-

ernment

• Developed electronic approval system for Jeonju City Gov-

ernment

• Developed the group ware for Opennet

• Hankook Tire Internal Document Circulation System

• Developed MRP2 system for Korea Johnson & Johnson

• Developed Dr. C compiler at BIT Computer

3. Board of Directors and Shareholders

Head of Re-

search Center

Yeong seung

Lee

12

4. Organization

Manage-

ment and

Planning

Division

Research

Center

Export

Operation

Division

Auction

Team

Sales Divi-

sion

Organization Map

CEO

COO

Overseas

Operation

Division

13

4. OrganizationExperience of Staff _ Export Division

Manager Jin ho Seok8 years of experience

• Shinho Trade, Clerk

• Sunwoo Motors Repair Team

• Hyundai Glovis Automobile Analysis Team

• ADECAR Manager of Auction Division

• Present: ATvalue Manager of Overseas Export Division

Manager Myeong gi Lee12 years of experience

•Manager, Hanmi Auto Service

•Daemyeong Trading, Head of Automobile Division

•Present: ATvalue Overseas Distribution Manager(Russia)

Manager Deok jae Goh10 years of experience

•Hyundai Auto Service, Repair Team

• SY Trade

•C.E.O. of Car Max Auto Service

•Present: ATvalue Manager of Overseas Export Division

Assistant Manager Hyang jae Kim3 years of experience

• Majored in Arabic Language, Chosun University

• Eins School, Teacher

• Present: ATvalue Overseas Distribution Man-

ager (Middle East, Asia)

14

4. Organization

Manager Dae hee Park5 years of experience

• Hansung Motors Sales Division

• KIA Motors Sales Division

• Sungeun Trading

• Autozen Automobile Division

• Present: Manager, ATvalue Export Division

Manager Dae jin Choi7 years of experience

• Dongbu Fire Insurance Vehilce Investigation Team

• Founder and C.E.O. of Dongjin Trade

• Hangil Trading Middle East Division

• Present: Manager, ATvalue Export Division

Experience of Staff _ Export Division

4. Organization

15

Manager Geon yeong HongGraduated from Dept. of Visual Design, Hongik UniversityDecember 2004 Produced the flash animation for Kyobo Life Audi-tor’s OfficeJuly 2005 Designed the brochure and took photographs for the Ad-vanced Program for Cultural Contents, Seoul National UniversityAugust 2005 Produced the commemorative video for the 30th an-niversary of Korea Management InstituteDecember 2005 Oye Hyang Industry homepage design, coding, flashJanuary 2006 mineERP homepage design, coding, flashFebruary 2006 Apoteke homepage design, coding, flashMarch 2006 Produced video describing the recruitment for Daum Communication2006 Hongik University Graduate School of Architecture & Urban Design homepage designApril 2007 ~ June 2008 EA Mobile Korea web design, mobile con-tents design2007 Exhibition Video for the Reception of Gutenberg Award (Ger-many) by Professor Sang soo Ahn2009 Web design for Sindoh Ricoh Central Branch2008~2011 Team manager for IT Division of Samkyung C&M

Senior Researcher Gwan gook Kim

• UBIVELOX SE Division

• SimpleSync maintenance & repair

• Developed the global version of SimpleDrop

• Designed and developed NeoSimpleSync

• Developed SKT RealEdu, educational application

Experience of Staff _ Affiliated Research Center

Researcher Min ji Sohn

•Developed u-City Event Monitoring System (Silver Prize at the

Software Competition 2009 at Baekseok University)

•Developed Android based food ordering system

•Developed Android based electronic product follow-up service

management system

•(Grand Prize at the Software Competition 2010 at Baekseok Uni-

versity)

Team Manager Min woong Jeong

• Developed plant management system for Na-tional Arboretum • Web renewal of economic news for the Ministry

of Finance and Economy• Developed and managed Hanjin Apartment

Sales Site• Developed broadcast monitoring and music

source filtering system for SBS• Developed ‘Carcok Service’ of ATvalue

02. Business _ Export of Used Cars

ATvalue Business

Export Trade Business

1. Export of Used Cars

17

• Middle East: Iraq, Jordan, UAE, Yemen, Syria

• Africa: Sudan, Egypt, Ghana, Nigeria

• South America: Costa Rica, Nicaragua, Chile, Paraguay

• Asia: Russia, Mongolia, Tajikistan, Kyrgyzstan, Kazakhstan, Uzbek-

istan, Philippines, Cambodia, Laos, Vietnam

■ Export of new and used cars

■ Forwarding and shoring

■ Discovery of new buyers and pioneer of emerging market

Major Clients (24 Coun-tries)

Overseas Car Distribution Business

■ Russia prohibited the import of right-hand drive cars de-creased the demand for Japanese used cars, increased the demand for Korean used cars.

■ Established the Russian corporation, Koreacar.co, in May 2011, and engaged in used car circulation and sales activities according to local demand.

■ Expanding sales network in the far east Russian region and securing local dealers

1) Export Trade of Used Cars

1. Export of Used Cars

18

1) Export Trade of Used Cars

19

1. Export of Used Cars

Export Amount ($)

Export Scale (Quantity)

Scale of Used Car Export

Currently, the domestic consumption market for used cars is stagnant due to excessive competition, economic downturn,

and increase of oil price. However, the overseas market is stable and also shows high growth potentials in terms profit.

Maintains approximately 20% or higher growth rate every year

Growth of Used Car Export Market

20082009

20102011

0

5

10

15

20

25

30

Export Amount

Export Scale

Amount: $600 Million

Scale: 150,000

Amount: $1 BillionScale:

190,000

Amount: $1.25 BillionScale:

240,000

Amount: $1.53 BillionScale:

290,000

1) Export Trade of Used Cars

1. Export of Used Cars

20

‘Hot’ Response to Korean Used Cars in Over-

seas… Seeking a Way Out through Export

(KBS1, November 17, 2011) View News

Civil War in Libya Drawing to an End... Used

Car Export Complex Coming to Life

(YTN, August 26, 2011) View News

Economy is Expected to Look up for Some-time with the Export of Used Car at Sokcho Port (Yeonhap News, December 5, 2011)

4,529 used cars were ex-

ported to Russia through

Sokcho Port in 2011

Increased greatly from

833 cars in 2009 and

1,138 cars in 2011

2009 833 Cars37% Increase

300% Increase2010 1,138 Cars

2011 4,529 Cars

97th Edition of Close Up Industry

(E-Daily, May 23, 2012) View Program

2) Growth of Used Car Export Market

21

1. Export of Used Cars

Export of Korean Used Cars

2) Growth of Used Car Export Market

Jordan

Russian Federa-tionMongolia

Libya

Ghana

Laos

Chile

Vietnam

Kirghizstan

Cambodia

Philippines

Costa Rica

Kazakhstan

Thailand

Tajikistan

Egypt

Sudan

Nicaragua

Iraq

Yemen

USA

Uzbekistan

Pakistan

Cote d'Ivoire

U.A.E

Myanmar

Nigeria

Syria

Israel

AfghanistanSahrawi Arab Demo-cratic Republic

Peru

Iran

Vanuatu

Ethiopia

Guatemala

Tanzania

Madagascar

Dominican Re-publicArmenia

Guinea

Belarus

Turkmenistan

Tunisia

Djibouti

Paraguay

Marshall Islands

Lithuania

116 Others

Total

2010 2011Amount($1,000)

Quantity Amount($1,000)

Quantity2010 2011

Amount($1,000)

Quantity Amount($1,000)

Quantity

1. Export of Used Cars

Rank Country2008 2009 2010

AmountNumber of Cars

Ratio (%) AmountNumber of Cars

Ratio (%) AmountNumber of Cars

Ratio (%)

1 Jordan 188,849 54,954 20.5 268,722 52,962 34.7 326,478 74,530 39.12 Libya 87,488 18,163 6.8 149,570 32,692 19.3 134,537 26,531 16.13 Vietnam 179,682 14,418 5.4 218,318 25,776 28.2 186,960 14,402 22.44 Laos 29,794 8,025 3.0 28,677 9,683 3.7 62,730 11,414 7.55 Ghana 20,124 13,332 5.0 21,951 9,326 2.8 33,528 11,324 4.06 Sudan 36,073 10,892 4.1 45,293 14,014 5.8 40,424 10,168 4.8

7Philip-pines

9,415 3,677 1.4 22,973 7,405 2.9 32,298 8,191 3.8

8 Kirgizstan 53,286 27,645 10.3 18,751 8,895 2.4 16,926 6,896 2.0Total 604,711 151,106 100.0 774,255 160,753 100.0 833,881 163,456 100.0

Major Clients and Export Scale (Top 8 Countries) Unit: $ 1,000

2010 2011

Russia 12,168 ($151,667,000) 29,753 ($409,790,000)

Due to the ban on right-hand drive cars of Russia, the import of Japanese cars is restricted while the preference for Korean cars is increasing.Our export share increased from 2% up to 7%.

Export of Korean Used Cars to Russia

2) Growth of Used Car Export Market

1. Export of Used Cars

Comparison of Domestic Consumption and Export

ItemDomestic Con-

sumptionExport Remarks

Purchase of Cars

All Types of CarsCars Preferred in Each

CountryEX) Russia: 4WD, SUV, Starex, etc.

MarginProportion to

Domestic Market Price

Higher than Domestic Mar-ket Price

Price is determined at a high level compared with

domestic market price due to current production

line and lack of technology

Tax Benefit None8% of Purchase Price is Re-

turned

8% of the purchase price is returned in accordance with deemed input tax deduction on recycling of scrapped materials etc. (Article 108 of the Restric-tion of Special Taxation Act)

Average Period of Sales

1 month ~6 months

1 week ~ 1 month High turn over ratio, low inventory ratio

Save on maintenance and management expenses

Follow-up Ser-vice

Possible Buyer’s responsibilityTT: Exported only after the price of the car is paid

FOB: Overall risks and burden of expenses are

handed over from the seller to buyer

2) Growth of Used Car Export Market

24

2. Used Car Export Flow

Step 5 Cancellation of Car Registration

Step 2 Purchase of Cars

Step 6 Customs Clear-ance

CI PL

Step 9 Export and Tax

Gu Office

Request Shipper for EmbarkationCustoms Agent: Issue Export Permit

Step 1 Order from Overseas Buyers

Export contract with AT value’s overseas buyer

Purchase cars from Carcok Service users and member stores

Step 3 Transportation of Cars

Deliver cars to the head office of AT value

Step 4 Delivery of Cars to Logistics Cen-ter

Arrival at AT value Logistics Center (In-cheon) and inspec-tion

Application for Can-cellation of Registra-tion

Step 7 Buyer CarConfirmation

Confirm cars with overseas buyers

Step 8 Payment of Fees and Distribution of Profits

Payment of Logistic FeesDistribute profits to investors

Load cars and exportProcess post-proce-dures (tax)

Checklist▶

Liability Insur-ance▶

Checklist▶

Checklist▶Liability Insur-ance◀

25

2. Used Car Export Flow

Contract – Buyer Contract

ALTERNA (Russia) Asia bus DV (Russia) SMILE (Russia) ROSKOR (Russia)

BuyerBusinessStatus

1) Used Car Export Contract

2. Used Car Export Flow

26

We send out the purchase list to sellers such as used car trade complex, sales representatives for new cars, rent-a-car compa-

nies, transportation companies, and individuals through on/offline purchase marketing network and purchase cars.

Used Car Sellers3,450 Sellers / 25,031

Dealers

Sales Representative for New CarsATvalue DB

and Hyundai, Kia, Ssangyong, GM, etc.

22,215 Dealers

Rent-a-Car Compa-nies

Rent-a-Car Compa-nies around the

Country 1,027

Transportation Com-panies

10,098 Companies

IndividualsList of Members + DB

38,000

Sending out Purchase List

2) Purchase of Cars to Export

27

Bid for Used Cars

■ Reverse Auction System – The head office directly secures items based on the database of the auction list

2. Used Car Export Flow2) Purchase of Cars to Export

1. We established the business tie-up with Carsdaq

which exclusively handles the trade of used cars

in Gmarket, the Korean branch of eBay, the

world’s largest online shopping mall and we

opened Atvalue’s own exclusive page for the pur-

chase of export cars and introduced the matching

system that preferably receives the information

about export cars, making it possible to secure a

large number of cars.

2. We established business tie-up with (MPark)

Land, the biggest used car trade complex in Ko-

rea to have 15,000 cars supplied with priority.

3. We also established business tie-up with Renault

Samsung, Chevrolet, and Ssangyong Motors to

have the supply of 2,000~3000 aged cars each

month.

4. We also have contract with express bus, intra-city

bus, and other bus companies such as Dongyang

Express Bus to have the supply of 50~100 aged

busses each month.

Sell Cars to Export

2. Used Car Export Flow2) Purchase of Cars to Export

29

2. Used Car Export Flow

1. Check Car2. Check Document3. Inquiry -Inquire Original (Check for Provision Seizure, Bonds) -Inquire Business Registration (for business ownership) -Inquire Accident History (for accident)4. Sign Contract (Pay Price and Take Over)

Major Procedures

• Sales Contract

Document to Prepare

• Certificate of Seal Impres-sion

• Vehicle Regis-tration

Document Received

■ Use of Car Analysis Tool1.Work on 3 Criteria

(hood, both front fenders, and front panel) or rear fender

-500,000 won for popular cars

-1,000,000 won for regular cars

-2,000,000~4,000,000 won for luxury cars

2.Work on both wheel houses, roof, a filler, b filler

-1,500,000~2,000,000 won for popular cars

-3,000,000~4,000,000 won for regular cars

- Cost varies depending on car price for luxury

cars

3. Single house

-1,000,000~1,500,000 won for popular cars

-1,500,000~2,000,000 won for regular cars

- Cost varies depending on car price for luxury

cars

4. Replacement of

doors

-100,000 won for popular cars

-100,000 won for regular cars

-1,000,000 won or higher for luxury cars

5. Replacement of

hood

-200,000 won for popular cars

-300,000 won for regular cars

-2000,000 won or higher

6. Painting

- 50,000 won deduction on each cut

-9 or more cuts: Require full coating

(1) 500,000 won deduction on small cars

(2) 700,000 won deduction on medium cars

(3) 1,000,000 won deduction on large cars

The analysis tool is used at the purchase

to appraise the car accurately and maximize profit at

the sales stage!

2) Purchase of Cars to Export

30

2. Used Car Export Flow

1. Prepare CI (Commercial Invoice), PL (Packing List)

2. Attach the certificate for the cancellation of vehicle registra-tion to CI and PL and send to the customs agent

3. Issue of export declaration

Major Procedure • CI(Commercial Invoice)

• PL(Packing List)

Document to Prepare

Delivery of purchased cars to logistics center. Inspection of car status before consignment, insure car for the loss during con-

signment process.

차량의 국내 등록 말소1. Preparation of documents re-

quired for the cancellation of the vehicle registration

-Application for the cancellation of registration, invoice

2. Submission of documents to the Gu Office

-Application for the cancellation of registration, invoice, vehicle registration, certificate of seal impression, license plate

3. Issue of the Certificate for the Cancellation of Vehicle Registra-tion

Major Procedure• Application for the Cancellation of Registration (for Export)• Invoice

Document to Prepare

• Certificate for the Cancellation of Vehicle Reg-istration

Document Received

3) Consignment and Inspection of Cars

4) Vehicle Registration Cancellation Procedure

31

2. Used Car Export Flow

1. Prepare CI (Commercial Invoice), PL (Packing List)

2. Attach the certificate for the cancellation of vehicle registra-tion to CI and PL and send to the customs agent

3. Issue of export declaration

Major Procedure • CI(Commercial Invoice)

• PL(Packing List)

Document to Prepare

• Certificate for Export Decla-ration

Document Received

1. Confirmation of cars by buyer

2. Compare with vehicle registration (per-

formance inspection table)

3. Hand over vehicle and export permit

when there is no trouble

Major Procedure

5) Customs Clearance

6) Confirmation of Cars by Buyer

32

2. Used Car Export Flow

Advanced Payment Base

Cars are loaded to the ship after the buyer confirms actual cars. Payment is made after confirmation, and then the cars

will be handed over.

T/T 　 [Telegraphic Transfer Remittance]

Transferred to the account designated by the other party through the bank.

Since the money is directly sent to the account without requesting the bank for collection, the payment is fast, fees are

saved, and the risk in the delay of payment is eliminated.

FOB (Free On Board) refers to the trade condition where the seller (exporter)

loads the promised cargo to the ship designated by the buyer (importer) and

shoulders overall expenses and risks until the cargo is handed over to the

importer on the ship.

In other words, the burden for overall risks and expenses is transferred from

the exporter to the importer when the cargo is loaded to the ship at the

export port over the railing on the ship’s side.

Since the buyer takes overall responsibilities after cars are loaded to the ship,

the exporter does not take responsibilities for follow-up service, insurance, or

loss of cars.

7) Payment

33

2. Used Car Export Flow

Deemed input tax deduction on recycling of scrapped materials etc. (Article 108)

In case a collector (ordinary taxable person) of recyclable waste resources and used goods (limited to used cars) acquires

such resources or goods from an entity which cannot issue a tax invoice such as the central government, local government,

tax-exempted business, persons subjected to simplified taxation, and individuals and manufactures, processes, or supplies

them, deem input tax up to a certain rate and deduct it from output tax in order to promote environmental preservation

through the efficient collection of waste resources.

-Deduction Rate for Used Car

- Applicable Business: Those who registered as automobile sales business in accordance

with the Automobile Control Act, those who export used cars

- Applicable Items: Used goods – The “used car” according to the Automobile Control

Act, however, excluding the cars for which the period between the manufacture

date recorded in the original register of the car and the date the declaration of

export is received as recorded in the export performance report is less than 1 year

in case of exporting used cars.

Acquisition Value x 9/109

8) Export and Tax

2. Used Car Export Flow

34

PeriodInvestment

(Purchase Price per Car)

Number of Cars Pur-chased

Margin per Carⓐ

Deduction (Re-turn) of Input Tax for Recy-clable Waste Resources

Deduction (Re-turn) of Input Tax for Recy-clable Waste Resources

ⓑ

Accumulated Profits( + )ⓐ ⓑ

Profit Rate

2 Months 20,000,000 1 1,000,000 0.08 1,600,000 2,600,000 13%

4 Months 20,000,000 1 1,000,000 0.08 1,600,000 5,200,000 26%

6 Months 20,000,000 1 1,000,000 0.08 1,600,000 7,800,000 39%

8 Months 20,000,000 1 1,000,000 0.08 1,600,000 10,400,000 52%

10 Months

20,000,000 1 1,000,000 0.08 1,600,000 13,000,000 65%

12 Months

20,000,000 1 1,000,000 0.08 1,600,000 15,600,000 78%

14 Months

20,000,000 1 1,000,000 0.08 1,600,000 18,200,000 91%

16 Months

20,000,000 1 1,000,000 0.08 1,600,000 20,800,000 104%

18 Months

20,000,000 1 1,000,000 0.08 1,600,000 23,400,000 117%

20 Months

20,000,000 1 1,000,000 0.08 1,600,000 26,000,000 130%

22 Months

20,000,000 1 1,000,000 0.08 1,600,000 28,600,000 143%

24 Months

20,000,000 1 1,000,000 0.08 1,600,000 31,200,000 156%

total

Investment: 20 Million Won / Purchase Price for 1 Car: 20 Million Won / Export Price: 21 Million Won (Margin = 1 Million Won)

Deduction (Return) of Input Tax for Recyclable Waste Resources: Estimated at 8% / other ancillary charges excluded

Car Export Simulation

35

3. Business Strategy

3. Collect carsand secure smooth supply

2. Supplier Ad-vantage Contract

4. Minimize Car Loss and Damage

1. Manage and Discover Buyers

Used Car

(for expor-tation)

BuyerDeman-

der

ATvalueSupplier

Gain ProfitsCon-tinue Trade

More prompt, aggressive, and systematic discovery and management of buyers compared with

existing small used car exporters.

- We secured dealers fluently speaking the language of the buyer for enhanced sales activities.

- We operate meeting facilities and lounge for buyers in export offices.

- We provide the information on export volume directly from the shippers leaving to buyer’s nations to

buyers.

- We are expanding the trade and export volume from supplier to 1 buyer to B2B trade across borders.

1) Management and Discovery of Buyers

36

3. Business Strategy

Risk hedge for the cancellation of buyer order

- If 10% of contracted price is paid in advance at the con-

tract, goods will be supplied preferably

- There are far more demands than the supply in the current

market.

We sign the contract with the advantage to the supplier,

and if a buyer breaches the contract terms, we can export

the same type of cars to another buyer on the same terms.

Exemption clause concerning the period for secur-ing cars for exportation

2) Supplier Advantage Market Contract

37

3. Business Strategy

We inspect our cars in each stage and are thoroughly insured in order to minimize loss from the pur-

chase cars to warehousing at the distribution complex and delivery to buyers.

3) Minimize Loss during Circulation Process

02. Business _ Export of New Cars

ATvalue Business

39

1. New Car Export Market

- New car exporters springing up everywhere

The demand for Korean cars is increasing in the regions

without factories of Korean car makers such as Hyundai,

KIA, Ssangyong, etc. However, consumers have to wait a

long time to purchase new cars through local official im-

porters and a number of small new car exporters are estab-

lished in Korea for the high profit rate compared with the

cars parallel-imported from Korea.

However, each manufacturer is limiting the purchase of

their cars sold in Korea by individuals or corporations to pro-

tect local official importers that the new car exporters are

hiring part-time brokers who lend their names for the pur-

chase of new cars.

1) Demand and Supply of Korean Cars (New Cars)

40

2. Structure of New Car Export Business

Contract with Overseas BuyersLarge quantity based contract in the regions without

official dealers

ATvalue

Domestic Manufacturer (Head Office)

Direct contract with the head offices of Hyundai, KIA, Ssangyong, etc.

Order from Overseas BuyersSmall quantity based contract regardless of the local

official importer

New Car Exporter

Domestic Manufacturer (A-

gency)Due to the limitation on the number of purchases,

companies are borrowing names of part-time bro-

kers to buy new cars

2) New Car Export System of ATvalue

41

Overseas

Buyer

2. Business Flow

ATvalue

P-Bond30~40%L/C or TT

Domestic

ManufacturerHyundai, KIA,

Ssangyong, etc.

L/C or TT

Supply of Cars

Supply of Cars

1) ATvalue New Car Export Flow

42

3. Business Strategy

Contract – Buyer Contract

Contract with Syria for the Supply of 500 Tuscon IXATvalue concluded the contract with supplier advantage with buyers around the world

the company developed through many years of experience in trade based on the mar-

ket structure where supply is noticeably small compared with the demand.

1) Car Export Contract

3. Business Strategy

43

Supply and Business Facilities of Hyundai/KIA carsin the Middle East/Africa/Europe

Branches help securing lo-cal buyers and steady management as well as import/export related oper-ations.

We established 2 branches in the Middle East and 1 branch in Russia including Iraq, Syria, and Jordan con-sidering the relationship with the operating facilities directly managed by manu-facturer’s local branches.

Operation of Follow-up Service CenterWe are also operating follow-up service centers along with the branches to help local sales by buyers and are plan-ning to increase the number of operating centers gradually following the sales.

Middle East

Europe Middle East

Africa

Eastern Europe

2) Establishment of Branches

02. Business _ Valuable Business

ATvalue Business

45

1. Valuable Business – Educational Business

■ ‘Used Car Export Practice’ course at YMCA and Automobile

Academy

■ ‘Used Car Export Practice and Business Registration’

course for Carcok Service members

01Automobile

IndustryWorkers

Has basic knowledge about automobiles,

persons engaged in related industries with poten-

tial to show quick progresses by learning about

export practices

02General Public

Interested in Export

General public who understands the benefit of export, but

could not approach export business due to lack of actual

experience

03Future

Entrepreneurs

Future entrepreneurs wishing to

start a business safely with a small

capital (Supports the entire course

from beginner to practice)

1) Educational Business

46

1. Valuable Business - Educational Business

Job training for workers from multicultural familyDisplay enhanced communication skills by understanding the used car export business in the trade be-

tween countries around the world.

Job training for workers from multicultural families who can be ignored as cheap-laborer.

Training and ApplicationNegotiation with overseas buyers / Customer response / Import dealer for corresponding country

Fulfilling social function with the training courses related with the export of used cars

Job training for persons with disabilitiesProvide the opportunity to start a business or to learn in connection with the Korea Employment Promo-

tion Agency for the Disabled under the Ministry of Labor.

Organize training programs customized for the skill level of the individuals with disabilities, help finding

jobs in export related areas.

Training and ApplicationExport administration / Repair and automobile related services

1) Educational Business

47

1. Valuable Business - Educational Business

Small and Medium Business Adminis-

tration /Ministry of Knowl-

edge Economy ATvalue Trade Center

Korea Employ-ment Promotion

Agency

Board of Ed-ucation

Multicultural Family Support

Center

Local Public Offices

Small Business Development

Center

Ministry of Labor

Composition of Education Infra-

structure

Certification of Life-Long Education

Refund Course of Ministry of

Labor

Support for the Business Com-

mencement

Persons with Disabilities and

Multicultural Families

Future En-trepreneurs

Provide Training

Creation of Jobs and Shar-

ing of Work

Support for Successful Start-up of Business

Step 1 Business Tie-Up for Start up Business and Employ-ment

Step 2 Train Targets

Step 3 Achieve Edu-cation Goals

Support for Busi-

ness Com-

mence-ment

System of Educational Business

1) Educational Business

48

1. Valuable Business - Educational Business

Comparison of Staring Export Business and Starting Other Businesses -Initial Investment-

ComparisonBBQ Restaurant

(100m2)Export Business

(660m2)Remarks

Store Purchase Cost(Deposit)

Class B Commercial District50,000,000 won

Coffee Shop (100m2)

Class B Commercial District100,000,000 won

(Incheon Export Complex)3,500,000 won

In other forms of business, the store pur-chase cost increases when the premium is

added

Membership Fee 10,000,000 won 10,000,000 won None Exhaustible expenses (not refunded)

Facilities Cost(Interior) 40,000,000 won 100,000,000 won 10,000,000 won

(Office Setting)

Initial facilities cost which will be eliminated at the closure of business is the most burden-

some cost for those who start the business

Fixtures and Cost of Products 20,000,000 won 120,000,000 won20,000,000 won

(Purchase of Cars)Used car export business can be started

with at least 5,000,000 won

Total At least 120,000,000 WonAt least 330,000,000 Won 30,000,000 won90,000,000 won~ 300,000,000-

won compared with other forms of businesses

-Fixed Monthly Cost -

ComparisonBBQ Restaurant

(100m2)Export Business

(660m2)Remarks

Rent 5,000,000 won

Coffee Shop (100m2)

7,000,000 won 1,200,000 wonFor other businesses, the rent increases when the premise is located in class A commercial

districtLabor Costs 10,000,000 won 5,000,000 won 5,000,000 won

Miscellaneous Costs 2,000,000 won 1,200,000 won 500,000 won Electricity, utilities, and other supplies expenses

Total 17,000,000 won 13,200,000 won 6,700,000 won Approximately 50% of fixed cost compared with other forms of

businesses

Training of Future Entrepreneurs for Used Car Export BusinessThere are no institutes that provide exclusive training on the export of used cars. We transmit our know-how about export procedures and business

management to future entrepreneurs, and provide the opportunity to establish independent companies by supporting training fees and the fund for

staring a business.

1) Educational Business

2. Valuable Business – Development of Export Automation Sys-tem Complex

49

Automated system for every one to export

Deliver cars from those who wish to ex-port used cars (individuals/companies)

Scan license plate – send export informa-tion

Inspect vehicles/check results

Buyer matching

Remittance of Payment / Notification of Expected Returns on Purchase

Loading / Exporting

Once the car is delivered to ATvalue Logistics Center, all data

are collected and export related procedures will be automati-

cally progressed. Designed to help the user to easily export

cars without sophisticated knowledge and experience about

exporting used cars.

The user only needs to bring the car and approve the ex-

port.

With the delivery, the export related documents will be pre-

pared automatically through the scanning of the license

plate, and all related processes such as the preparation for

export from the confirmation of fine payment status to the

inspection of car condition and repair, as well as the contract

with buyer and shippers will be automatically completed.

ATvalue Automation System

2) Development of Export Automation System Complex

Prospective Tenant

Companies

- Exporter

- Salvage Yard

- Repair Shop

- Gas Station

- Consignment Service

- Lodging Service

- Food Service

- Convenience Store

- Car Wash

- Loader

- Used Parts Shop

- Car Articles Shop

- Tire Exclusive Shop

- Wheel Exclusive Shop

- Tinting Exclusive Shop

- Plating and Painting

Shop

- Korea Customs Service

Office

- Gu Office Branch

- Post Office

- Educational Facilities

- New Car Dealer

- Used Car Dealer

- Entertainment Facilities

including screen golf

Yard for Export Cars

Example of Complex

Deliver cars from those who wish to export used cars (in-

dividuals/companies)

Scan license plate – send ex-port information

Inspect vehicles/check re-sults

Buyer matching

Remittance of Payment / No-tification of Expected Returns

on Purchase

Loading / Exporting

ATvalue Automation System

2. Valuable Business – Development of Export Automation Sys-tem Complex

2) Development of Export Automation System Complex

Conservation of resources and increase of energy efficiencyIncreasing the efficiency of the export operation through the development of export automation system can conserve the

resources that used to have been wasted through complexity of process and increase the energy efficiency.

- Saves time and material resources that were consumed from the visit of individuals or companies to various organiza-

tions in obtaining required documents to inspection, repair, and scrapping.

Creation of Jobs and Contribution to Local EconomyCreation of jobs in different areas due to the need for manpower following

the companies moving into the complex and the system automation.

Expansion of start up businesses and employment leading to the increase

tax income and the enhancement of the quality of life of the local residents.

Activation of local economy through individuals/companies/organization

coming in from various regions of the country for the export of used cars.

Exporter

ATvalueAuto-mated

Logistics Center

Export

Export

GuOffice

KoreaCustoms

Office

Shipper

Buyer

Export by Existing Exporter ATvalue Export Complex

2. Valuable Business – Development of Export Automation Sys-tem Complex

2) Development of Export Automation System Complex

AT value

3. Valuable Business – Integrated Payment System

Vicarious payment of various bills including fine, seizure/collateral, etc.Payments related with the car such as fine, seizure/collateral shall be made to each of the corresponding organizations, however, ATvalue logistic center pays for all at once.

Corresponding Organization

Corresponding Organization

Corresponding Organization

Corresponding Organization

Corresponding Organization

Carwith

Default

Carwith

Default

Carwith

Default

Carwith

Default

Carwith

Default

Carwith

Default

Carwith

Default

Carwith

Default

Carwith

Default

Carwith

Default

Payment of bills for each vehicle at corresponding organization

Vicarious payment for all bills by ATvalue

3) Integrated Payment System

53

4. Valuable Business – Green Scrap Service

Increased Recycle Rate of Scrap Cars- Existing car scrapping business has been centering

on some valuable parts such as scrap iron, however,

the remnants of the scrap car after compression

and refrigerant gas are mostly neglected in the na-

ture.

- Possible to increase the scrap car recycle rate

which currently remains at 84% due to lack of prof-

itability and technological strength up to 95% by in-

creasing the export of parts and retrieval rate of

rare metals through the introduction of refined

technologies.

Business Tie-Up with Manufacturers-Setting up a business tie-up on parts export and scrap car with manufacturers that are experienc-

ing conflict between corporate profit and environment protection concerning legal enforcement to

derive a way to create profits mutually.

-The manufacturer can reduce large scale facilities investment and infrastructure development

which require enormous capital compared with the profitability under expectation through the

Green Scrap System.

4) Green Scrap ServiceGlass Polish-Cerium

UV Guard Glass-Cerium

Diesel Fuel Additive-Selenium, Lanthanum

Hybrid Nickel-Manganese Battery-Lanthanum-Cerium

Catalyst Conversion Device-Cerium, ZirconiumLanthanum

Electric MotorNeodymium Magnet

Hybrid Electric Motor & Generator-Neodymium, praseodymium, dysprosium, terbium

LCD Screen-Europium, yttrium, cerium

54

4. Valuable Business – Green Scrap Service

Expansion of the Export of Used Parts and Domestic Consumption Market- Export and sales of reusable parts through thorough inspection and performance test.

- Secure market for models that could not be exported due to the shortage of parts.

- Expand market through insurance firms – Induce customers through the used parts supply market for

high quality used parts costing about half of the price of new parts and the premium reduction policy

of insurance firms.

Green Scrap Service Membership Program- We signed the membership contract with car scrapping compa-

nies throughout the nation and are increasing profits by training

them to maximize recycle rate. We are also engaged in used parts

exporter/agency business.

- Enhancing the service quality of overall scrap car market and in-

creasing profit for car scrapping businesses.

- Expansion of direct sales market through the multilingual shop-

ping mall for used parts.

• Multilingual Parts Shopping Mall

• Training for Maximizing Recycle

Rate

• Used Parts Export Agency

Green Scrap Ser-vice Mem-ber Store

Green Scrap Ser-vice Mem-ber Store

Green Scrap Ser-vice Mem-ber Store

Joint Green Scrap Ser-

vice

4) Green Scrap Service

02. Business _ Software Development

ATvalue Business

56

1. Software Development

Organization of Affiliated Research Center

Application Developer

Head

Development Team Manager

Sw Devel-oper

Design

Established the affiliated research center in February 2012

Authorized by Korea Industrial Technology Association (KOITA)

ATvalue engaged in the development of the integrated online export system since 2011 and is accumulating automobile export related techniques and know-hows. The company is developing updates and a variety of products required by service stabilization in the future

1) Affiliated Research Center

57

1. Software Development

Title of Patent: A Method of Providing Automobile Export

Agency Service Using Reverse Auction

Applicant: ATvalue

Application No.: 10 – 2011 -0145322

1) Affiliated Research Center

58

1. Software Development

Title of Patent: Applied for patent for the Transmis-sion Holding Advertisement Method for Smart De-vices and Its SystemApplicant: ATvalueApplication No.: 9 – 1999 -000503-9

1) Affiliated Research Center

Title of Patent: Applied for patent for the Automatic Calling Method for Wireless Mobile Telephone Device and Its SystemApplicant: ATvalueApplication No.: 9 – 1999 -000503-9

59

2. Software Development - Carcok

Carcok Service greatly simpli-

fied the time and expenses ac-

tually consumed during the ex-

port of cars through the online

service.

The existing user with export

experience as well as the user

without the experience can eas-

ily follow the export procedure.

2) Export Service - Carcok

CustomerEnter initial car

information

Gu OfficeCancel the Vehi-cle Registration

Customs AgentExport Permit

Gu OfficeReport for Export

Performance

Tax AccountantTaxation Proce-

dure

BuyerSign Contract and Pay Price

Enter car information

Send information to DB for the cancellation of vehicle registration

Completion of the cancellation of vehicle

registration

Send to DB (PL, CI)

Export Permit (Export License)

Send tax performance report to DB

Completion of taxation process

Send information to taxation DB

Pay price for car

Purchase contract

Hand over car and export li-cense

60

2. Software Development - Carcok

Automatically prepares all documents required for export

Enter basic information of the ve-hicle

Select the inquiry cat-egory and enter vehi-

cle number >>

Real time inquiry of vehicle information in connection with public institutions (Na-tional Tax Service, THE Min-istry of Land, Transport and Maritime Affairs, Korea Cus-toms Service) and partners (Korea insurance develop-ment institute)

Check the acci-dent history im-mediately*Carcok’s inquiry service is available 24 hours unlike the inquiry system of other companies and it also involves very simple information inquiry pro-cedure.

3) Automatic Export Document Preparation Technology

4) Vehicle Information Inquiry Technology

2. Software Development - Carcok

Register Car for Auction

List Up Auction Items

Bidding

Provides the service which equally enables all functions of

Carcok Service on mobile device (smartphone)

*Enabled Korea’s first export related mobile service

Seller and bidders

can easily join the

auction through

web or mobile en-

vironment.

5) Real Time Auction 6) Mobile Service

2. Software Development - Carcok

Sends the export related docu-

ments saved to personal informa-

tion storage to the selected re-

ceiver through fax or e-mail using

My Documents feature of the App

License No: xxGA 1234Model: K7Maker: KIA

Inquiry Service

Auction Service

Export Service

Select the service you need

Inquire Market Price

Photograph the license plate

Recognizes the license plate pho-

tographed with a smartphone, inquires

the original register of the vehicle, the

accident history, business registration,

sales price trend, and vehicle data in real

time.

7) Document Transfer

8) Automatic Recognition of License Plate

Step 1 Save within Document

Step 2 Send Re-quired Documents

Business Operator Re-lated Documents (Seal,

Transcript, Business Reg-istration)

Export Related Docu-ments (Cancellation Cer-tificate, Export License,

CI, PL)

Brocolring

The user can watch the advertisement while the user makes a

call or receives a call to collect mileage point that can be used

to pay for communication bills, goods or services provided by

partner companies.

Plays advertisements customized to the location, time, age,

and individual characteristics to provide the information suit-

able to the user and enhance advertisement effect.

통화를 연결합니다

YES NO

SendWatch

AD ReceiveCollect Mileage Points

UsePoints

Watch AD

Again

• If the user places the phone to the ear or is not watching the AD while making a call, the user will not receive the notice for reception.

• When the receiver presses the Call button, he or she will be given the notice that the caller is watching the advertisement, and when he or she brings the phone to the ear, the proxim-ity sensor will enable the call

*Title of Patent: Applied for patent for the Transmission Holding Advertisement Method for Smart Devices and Its System (10-2012-0050818)

2. Software Development - Brocolring1) Introduction

Collecting and Using Mileage Points

Using the points provided while watching advertisement, the user can pay for communication bills and goods and services of

partner companies, or other services such as PRECALL*.

Collect Points Convert Points Use Points

2. Software Development - Brocolring1) Introduction

Development Background _ Mobile advertisement market is recording steady growth every year due to the increase of smartphone users in Korea

420,000

800,000

Sept.2009

Dec.2009

Mar.2010

Jun.2010

Sept.2009

Dec.2010

Mar.2011

Jun.2011

Sept.2011

Dec.2011

Mar.2012

Jun.2012

26 Million

23 Million

20 Million

18 Million

15 Million

11 Million7 Million

4 Million2.4 Million1.4 Million

Status of Smartphone Users in Korea

2007 2008 2009 2010 2011 2012

174 Billion199 Billion 274 Billion

336 Billion

435 Billion

560 BillionSize of Domestic Mobile Advertisement Market

Increase of Budget52%

Undefined 4%

Decrease of Budget19%

Unchanged25%

Plan to increase mobile adver-tisement by domestic adver-tiser in 2012

*Source: Korea Broadcasting Corporation, Korea Communications Commission,

TN SRI Regular Survey/ Google

2. Software Development - Brocolring1) Introduction

Development Background _ Change in the communication market from 3G to 4G will be changed from existing banner and image oriented mobile advertisement to real time video

2011

1,000

2012

2013

2014

2,000 3,000 4,000 5,000 6,000

(10,000 People)

120 1,377 3,813

1,598 728 3,228

2,894 245 2,659

4,232 245 1,321

Digital WCDMALTE

Division 1G 2G 3G 4G

Technology Analogue Digital WCDMA LTE

Transmission Speed

10kbpsor Less

~64kbps~100mbps

~600mbps

Service VoiceVoice,Text

Voice, Text,

mms, In-ternet

Multimedia

Change in Share of LTE

Change in Communication Technology by Generation Real Time Video Advertisement

Advent of more effective advertisement due to the advancement of communication technology

2. Software Development - Brocolring1) Introduction

Combination of Mvoip (Mobile Internet Phone) and Brocolring

It is expected that the number of ordinary call will decrease and the data communication will increase due to the stabiliza-

tion of LTE network

Call for free and collect points

brocolring

Commercialization of Mvoipby Advancement of Technology

Potential of Real Time Video ADas the new mobile advertisement media

Effective profit model making best out of the changes in the communication market

2. Software Development - Brocolring1) Introduction

System of brocolring

Brocolring business is comprised of the developer, partners (distributor, mileage point accepting companies), user, adver-tisement agency, and advertiser, and each of them play their roles individually

Developer

•Development, maintenance, and repair of App

•Management of web and mobile site

•Development of additional product and services

Advertisement Agency

•Induction of advertiser•Production and organiza-tion of advertisement

•Advertisement

Advertiser

•Provision of advertise-

ment rates

Partner (Distributor)

•Distribution of App

•Secure users

•Advertisement

User

•View advertisement

•Use of points

•Recommendation of user

Call for free and col-

lect points

BrocolringPartner (Point)

•Provide the place to use

points

•Point conversion and

recognition system

2. Software Development - Brocolring2) Commercialization Plan

Composition of Entire Business Structure

AdvertisementAgency

User

CommunicationCompany

Advertiser

Advertiser

Advertiser

PointPartner

Distribution Partner

BroColRingBrocolring Dis-tribution Con-tractDistribution of Advertisement Profit

Distribute BrocolringInstall partner App

Direct distributionSend advertisementProvide points

Use of PointCommunication Charge/PartnerPurchase of Goods, etc.

Share advertise-ment profitAdvertisement sales/production

-Mvoip Company (Existing)

-New Company in the Mar-

ket

2. Software Development - Brocolring2) Commercialization Plan

1 Strategic Business Tie-Up

• Reduction of initial expenses for App advertisement and distribution

• Requires public confidence for inducing large adver-tiser

• Possibility of inducing partner’s users and potential customers

Ex) Setting up a business tie-up with My People (DAUM) which maintains 20 million users in the existing Mvoip

market will enable the induction of existing users and facilitate the induction of large advertiser and new users

based on brand awareness.

Conditions in Selecting Partner Role of Developer

Capital StrengthExisting UserPossibility of In-ducing New Users

Brand Aware-

ness

Development

of Application DevelopInducing Elements

Distribution

of Profits

Developing the business structure to establish the Win-Win relationship with the partner preparing to expand existing business and tap into the new market along with the commercialization of Mvoip market

2. Software Development - Brocolring2) Commercialization Plan

2 Tie-up with Advertisement Agency• Receive order for large advertisement through the tie-up with adver-

tisement agency and create profits stably• Receive orders for advertisement and reduces operating expenses of the

advertiser• Organize advertisement customized for the target (location, sex, and

age, etc.)

Advertiser Advertisement Agency Developer

Request for Advertisement

Pay for Advertis-ing Expenses

Manufacture Advertisement

Distribution of Profit

Pay for Advertising Expenses

Organize Advertisement

Register App

2. Software Development - Brocolring2) Commercialization Plan

3 Partnership for the Usage of Point

• Set up a business tie-up with the companies that accepts the points that the user collected

• Developing a number of ways to use the points is connected to the increase of users

• Advance payment with the point gives advantages in the negotiation with partners for contracts

and provides more benefits to users.Pay for communication bill (Partner-ship with mobile communication provider)- The user can automatically pay for the communication bill with the collected points every monthly- The developer pays the mobile communication provider for the settled amount

*Need to develop a payment system in connection with the bankUse as mileage point (Partnership with corresponding company)- Provide a number of companies that accept points

2. Software Development - Brocolring2) Commercialization Plan

App Market Distribution _ Android market / App store

Viral Marketing _ Provide App guide and information about benefits through blogs, internet Knowledge data-base, and online club sites

Push message _ Banner type advertisement in portal sites and IT related sites

Related Key Word AD _ Expose App name when searching partners and related key words

Overture Marketing _ Expose the search of mvoip related key word on the top

Exposure of Advertiser in Partner Sites _ Maximize advertisement effect through the exposure in mutual web sites

Star Marketing _ Use the image of celebrities that users are familiar with

Noise Marketing _ Compare features and advantages compared with App

PUSH Strategy – Maximum exposure to user and potential user

2. Software Development - Brocolring2) Commercialization Plan

*PRECALL_ Additional function for user convenience

Pull Strategy – Induce users by maximizing the advantages of the App in addition to the provision of mileage points

Integration with Game _ Expose advertisement inside the game to enhance the concentration to advertisement and pro-vide additional mileage points to the user

Character Product _ Addition of a variety of avatars and icons that add fun to use

Gift Shop _ Enabled the exchange of gifts and coupons between users

Membership Benefits _ Provision of mileage points to subscribers and recommenders when a member joins directly or through the recommender

Event _ Events and gimmicks for the promotion of App

Simplification of Use _ Simplification of the input of personal information required for login and the use of mileage points

Development of Additional Services and Related Products _ Provision of a variety of differentiated contents competitive with other contents

*PRECALL: Inquires whether the receiver is available for a phone call through a message before making a call, auto-matically makes a call when the receiver is available

2. Software Development - Brocolring2) Commercialization Plan

Car Supply in Asian Region ATvalue Busi-ness Plan

ATvalueExport of Cars / Rent-a-Car and

Transportation Busi-ness

Asian RegionIncrease of Automo-

bile Supply Rate

Increase of Road Utilization Rate In-

cluding Asian Highway

• Business Goal

– Increase car supply in Asian region to increase the use of Asian Highway and land route and contribute to the ad-

vancement of tourism and logistics industry.

• Background

– According to the economic circumstances of most countries in Asia, it is difficult to purchase luxurious cars produced

in Europe and America that the progresses in the car market is small.

– The car demand in Asian region is increasing but the supply is not smooth due to insufficient investment into infra-

structures such as the local manufacturing facilities and repairing facilities.

– Roads such as Asian Highway are being developed, but the number of car owners is small that the utilization rate is

low.

Car Supply in Asian Region ATvalue Business Plan

Car Supply in Asian Region ATvalue Business Plan

ATvalue Export Complex

Asian Highway Branches in

Each Country/Car Sales, Rent, Repair, and

Transportation

Local Distribution Com-

plex of ATvalue in Each

Country

Establishment of Main Offices

and Infrastructures in Corre-

sponding Countries for the

Sales of Used and New Cars /

Rent-a-Car / Car Lease Busi-

nesses

Plan the business suitable for the circumstances of each region by connecting with major

hub points of the Asian Highway

Target Areas – 6 Countries including Russia, Myanmar, Vietnam, Philippines, Kazakhstan, Tajikistan

Car Supply in Asian Region ATvalue Business Plan

AH1: Area with warm cli-

mate and advanced tourism

and leisure industries Suit-

able for rent-a-car business.

AH6: Runs throughout Rus-

sia, suitable for businesses

based on the export of used

cars than tourism and leisure

industries due to climatic

conditions

AH6

AH1

Car Export

ATvalue

(Korea Overseas)

Local Car Sales

Local Corporation

Operation of Local

Car Business

(Rent-a-Car, Trans-

portation)

Local Corporations

Car Supply in Asian Region ATvalue Business Plan

• Export of Korean used cars → Local corporation

• Apply the competitive car supply system designed for higher profit to local market

• Export to local corporation with the margin rate of 10%

• 9/109(≒8.25%) of the purchase price returned due to the deduction of tax for the

purchase of used cars

• Local corporation, imports cars from ATvalue

• Sell in the local market with 30%~100% margin on the import price (including tariff)

• Share profit by 50% with the head office of ATvalue

• Operate local repair station and follow-up service centers

• Increase sales rate through the tie-up with financial/capital firms

• Supply of battery refresher

• ATvalue operates businesses such as rent-a-car or taxi by exporting new cars for business purpose

• Import with the same margin rate for used cars, and produce 100% of profit through the business operation in 1 year

• Supply 500 new cars (Russia) every 6 months• Sell cars operated for 1 year as used car• High profit rate compared with the direct export of used cars

ATvalue Busi-ness

Car Supply in Asian Region ATvalue Business PlanCar Supply and Investment Plan for 6 Asian Nations

Unit: 1,000 $

Business Period for Each Country

Country Investment Ratio 80,357

January 2013 Russia 47% 37,500

July 2013 Vietnam 17% 13,660

September 2013 Myanmar 10% 8,035

February 2014 Kazakhstan 10% 8,035

July 2014 Tajikistan 8% 6,696

February 2015 Philippines 8% 6,428

Car Supply in Asian Region ATvalue Business PlanGoal for Car Supply in 1 Year in 6 Asian Nations

Country

Total Export from Korea in Previous Year (2011)

Goal for the Export

of Used Cars

Goal for the Export of

Cars for Op-eration (New

Car)

Goal for Total Export in the Next Year by

ATvalue

Remarks

Russia 29,753(4,712,258)

3,500(81,850)

1,000(23,740)

4,500(105,590)

Planning to increase the share in domestic car export to Russia up to 20% and the ratio of Ko-rean used car in Russia up to 3% as of 2013 --- Expecting the increase of market ratio in Rus-sia due to the investment to facilities such as follow-up service centers

Vietnam10,288

(139,930)1,150

(15,680)300

(6,720)1,450

(22,400)

Many construction companies around the world are tapping into Vietnamese market, ur-banizing many regions and also increasing car demands

Myanmar827

(18,730)1,200

(12,070)200

(4,040)1,400

(16,110)Began to open automobile market, expecting high growth rate

Kaza-khstan

4,880(23,290)

2,000(11,200)

200(4,800)

2,200(16,000)

Wealthy nation among Middle Eastern and Asian nations, steady demand for expensive cars, export increased as the level of Korean used cars elevated

Tajikistan4,804

(13,460)2,000

(5,600)100

(2,400)2,100

(8,000)Country with low income level, steady increase of inexpensive Korean cars

Philippines7,486

(35,389)1,200

(5,600)100

(2,400)1,300

(8,000)Expecting the increase of used car export due to the relaxation of restrictions on car import

Unit: Cars(1,000,000 won) Applied the Exchange Rate of 1$ = 1,150 won

Car Supply in Asian Region ATvalue Busi-ness Plan

ATvalue Automobile Ex-portCar Purchase / Export Procedure

ATvalue

Purchase of

Cars(Secure Cars to Ex-

port)

ATvalue

Export of Cars

(Delivery to Export

Logistics Complex)

Local Corpora-

tion

Supply of Cars

to Importing

Country(Delivery to Import Lo-

gistics Complex in Each

Country)

Car Supply in Asian Region ATvalue Business Plan

• Send out purchase list to 100,000 databases including new car dealers, used car com-panies and dealers, individual members, rent-a-car companies, and transportation com-panies

• Carcok (developed by ATvalue) – Auction system• Business tie-up with M Parkland, contract for the supply of cars for export with priority.• Business tie-up with eBay – G Market and Auction, contract for the supply of cars for ex-

port with priority.• Secure vehicles through the contract for supply of aged vehicles with Renault Samsung,

Chevrolet, Ssangyong Motors, etc. / supply of aged busses with express bus, intra-city, and regular bus companies such as Dongyang Express Bus

• Public advertisement marketing through Brocolring

• Development of vehicle export logistics complex

• Automation of export procedure such as Carcok Service and the recognition of li-

cense plate

• Development of import logistics complex in each country (import operation, rent-

a-car, used car / new car dealers, repair shop moving into head office)

• Management of rent-a-car and repair shops located in the border areas of Asian

Highway

• Place vehicles to public institutions, transportation company, etc.

Export

84

Used Car Sellers3,450 Sellers / 25,031

Dealers

Sales Representative for New CarsATvalue DB

and Hyundai, Kia, Ssangyong, GM, etc.

22,215 Dealers

Rent-a-Car Compa-nies

Rent-a-Car Compa-nies around the

Country 1,027

Transportation Com-panies

10,098 Companies

IndividualsList of Members + DB

38,000

Sending out Purchase List

Car Supply in Asian Region ATvalue Business PlanPurchasing and Securing Cars for Export by ATvalue

Head Office Infrastructure and DB

85

Most exporters are having difficulties in supplying cars to export due to the worldwide in-

crease of demand for Korean used cars, however, ATvalue has the infrastructure and the

database for car suppliers developed through many years and is capable supply cars

steadily.

We have purchase dealers with excellent sales capacity and skills for thorough analysis

and inspection about the problems that may take place in the future due to the condition

of the car to bring maximum profits.

New Car Dealers 22,215 Dealers including Hyundai, KIA, Ssangyong, GM, etc.

Used Car Companies / Dealers

3,450 Trading Companies / 25,031 Dealers

Individuals List of Members + DB 38,000 people

Rent-a-Car Companies Rent-a-Car Companies Nationwide: 1,027Companies

Transportation Companies 10,098 Companies

Car Supply in Asian Region ATvalue Business PlanPurchasing and Securing Cars for Export by ATvalue

Head Office Infrastructure and DB

86

Bid for Used Cars

■ Reverse Auction System – The head office directly secures items based on the database of the auction list

Car Supply in Asian Region ATvalue Business PlanPurchasing and Securing Cars to Export by ATvalue

Online/Mobile Real Time Auction

Car Supply in Asian Region ATvalue Business Plan

1. We established the business tie-up with Carsdaq

which exclusively handles the trade of used cars in

Gmarket, the Korean branch of eBay, the world’s

largest online shopping mall and we opened At-

value’s own exclusive page for the purchase of ex-

port cars and introduced the matching system that

preferably receives the information about export

cars, making it possible to secure a large number of

cars.

2. We established business tie-up with (MPark) Land,

the biggest used car trade complex in Korea to have

15,000 cars supplied with priority.

3. We also established business tie-up with Renault

Samsung, Chevrolet, and Ssangyong Motors to have

the supply of 2,000~3000 aged cars each month.

4. We also have contract with express bus, intra-city

bus, and other bus companies such as Dongyang

Express Bus to have the supply of 50~100 aged

busses each month.

Sell Cars to Export

Purchasing and Securing Cars to Export by ATvalue

Business-Tie up for Supply of Cars

88

Once the car is delivered to ATvalue Logistics Center, all data are collected and export related proce-

dures will be automatically progressed. Designed to help the user to easily export cars without sophisti-

cated knowledge and experience about exporting used cars.

The user only needs to bring the car and approve the export.

With the delivery, the export related documents will be prepared automatically through the scanning of

the license plate, and all related processes such as the preparation for export from the confirmation of

fine payment status to the inspection of car condition and repair, as well as the contract with buyer and

shippers will be automatically completed.

Car Supply in Asian Region ATvalue Business PlanATvalue Export Procedure

Car Supply in Asian Region ATvalue Business PlanATvalue Export Procedure

Conservation of resources and increase of energy efficiencyIncreasing the efficiency of the export operation through the development of export automation system can conserve the

resources that used to have been wasted through complexity of process and increase the energy efficiency.

- Saves time and material resources that were consumed from the visit of individuals or companies to various organiza-

tions in obtaining required documents to inspection, repair, and scrapping.

Creation of Jobs and Contribution to Local EconomyCreation of jobs in different areas due to the need for manpower following

the companies moving into the complex and the system automation.

Expansion of start up businesses and employment leading to the increase

tax income and the enhancement of the quality of life of the local residents.

Activation of local economy through individuals/companies/organization

coming in from various regions of the country for the export of used cars.

ATvalueAuto-mated

Logistics Center

Export

GuOffice

Export by Existing Exporter ATvalue Export Complex

Exporter

Export

GuOffice

KoreaCustoms

Office

Shipper

Buyer

Car Supply in Asian Region ATvalue Busi-ness Plan

Yard for Export Car

Example of Complex

Deliver cars from those who wish to export used cars (individuals/compa-

nies)

Scan license plate – send export informa-

tion

Inspect vehicles/check results

Buyer matching

Remittance of Payment / Notification of Ex-

pected Returns on Pur-chase

Loading / Exporting

ATvalue Automation System

ATvalue Export Procedure

Entrance of Car

※ This is the image produced based on the as-

sumption that the head office purchases and pre-

pares the site for lease business. If the site is

rented, only the most required companies will be

accommodated.

Car Supply in Asian Region ATvalue Business Plan

1. Development of Export Logistics Complex Site Area: 495,867m2

If land is rented, 1.5 billion won a month / 18 billion won a year will be required. (Rent for each pyeong (3.3m2: 10,000 won) For purchase of land, 5,00 billion won will be required (construction cost not included). Site Location: Songdo, Incheon

Prospective Tenant Companies

- Exporter- Salvage Yard- Repair Shop- Gas Station- Consignment Ser-

vice

- Lodging Service- Food Service- Convenience Store- Car Wash

- Loader- Used Parts Shop- Car Articles Shop- Tire Exclusive Shop-

Wheel Exclusive Shop

- Tinting Exclusive Shop- Plating and Painting Shop- Korea Customs

Service Office- Gu Office Branch- Post Office

- Educational Facilities- New Car Dealer- Used Car Dealer- Entertain-

ment Facilities including screen golf

ATvalue Export Procedure

※ This is the image produced based on the

assumption that the head office purchases

and prepares the site for lease business. If the

site is rented, only the most required compa-

nies will be accommodated.

※ The cash flow and income and expenditure

analysis data in this proposal were prepared

based on the assumption that the site will be

rented.※ Can be accommodated based on separate financing with the Korea Development Bank, KDB Capital, Hana Capital,

etc.

Car Supply in Asian Region ATvalue Business Plan

• Establishment of Local Used Car Trade Corporation (Different corporate characteris-

tics and profit distribution depending on the terms of establishment in each country)

Used Car Trade Business System of Local Corporation

ATvalueExport Cars

Ex.) Price for purchase of cars in Korea 2,0700,000 won

Local CorporationImport Cars

Local Sales

10% Profit compared

with the purchase

price

Ex.) Export Price

23,000,000 won

~100% Profit compared

with the purchase price

Ex.) Sales price (46,000,000

won)

~200% tax (different in each country)

compared with import priceEx.) Car import tax

4,600,000 wonRussia, fixed tax for each

model

Car Supply in Asian Region ATvalue Busi-ness Plan

ATvalue Car Operation BusinessRent-a-Car, Transportation

• Transportation Business• Supply vehicles to public institutions or establish and operate a transportation company depending on

the circumstances of the county.• Establish a transportation company and export and use ATvalue‘s cars.

• Rent-a-Car Business• Establish AH(Asian Highway) Rent-a-Car Companies: Open rent-a-car agencies near the national borders

of the Asian Highway and other hotspots• Operate agencies with ancillary facilities in the beginning and end of the Asian Highway in each country

and the area with high demand for rent-a-car to enhance convenience for road users and business effi-ciency.

Sell after 1 Year – For both rent-a-car and transportation businesses, sell cars operated for 1 year as used cars to create high profits compared with the export of Korean used cars.

Tap into the market aggressively and form a local automobile market infrastructure following the increase of lo-cal traffic and highways

Car Supply in Asian Region ATvalue Business PlanCar Operation Business

Car Supply in Asian Region ATvalue Business PlanCar Operation Business Flow

Purchase / Export of New Cars

Import of New Cars / Operate in Rent-a-Car and Taxi Busi-

nesses

Operate for 1 Year and Sell as Used Cars

Profit from the Export of New Cars

10% profit rate compared with domestic purchase

Operating Profit

100% of annual income rate compared to the

import price of the vehicle (including tax)

Profit from the sales of operated cars

60% of the market price of used cars

Car Supply in Asian Region ATvalue Business PlanComparison of Profit from Car Operating Business and Profit from Ex-port of Used Cars

Busi-ness

ATvalue Car Purchase

Price

ATvalue Car Export

Price

Deduction of Input

Tax

ATvalueOperating

Profit

Purchase Price of Cars by

Local Cor-poration

(Including Tax)

Operating Income of Local Cor-poration

Sales Price of Cars by Local Cor-poration

Total In-come of

Local Cor-poration

10% profit from purchase

price

9/109 of pur-chase price

Export Price-Purchase Price + Deduction of Input Tax

100% of the Import Price of Cars through

Operation

Sell Operated Cars at 60% of

the Market Price

Operating In-come + Sales

Price – Pur-chase Price

Export of Used Cars

18,482 20,535 1,526 3,580 24,643 0 35,714 11,071

Car Op-eration

Business(New Cars)

20,089 22,321 0 22,321 28,571 28,571 21,428 21,428

Increased profit rate from exporting and operating new cars in local area

Ex.) Comparison of the Export Sales of Used Cars and the Operation of New Cars by Russia Grand Starex

Unit: $

Through the cooperation for the supply of new cars manufactured in Korea (Hyundai, Kia, Ssangyong, etc.), ATvalue is exporting and supplying vehicles to the areas that the manu-facture has not set up conditions for sales and manufacturer is expanding their domain of sales.

Increase the collection rate for exportable ve-hicles owned by individuals and reduce market-ing expenses ATvalue through the nationwide advertisement using Brocolring, the application developed by the affiliated research center.

Car Supply in Asian Region ATvalue Business Plan

Hyundai Motors Sales Subsidiaries

Purchasing and Securing Cars Exported by ATvalue

Business Consultation with New Car Makers about Supply of Vehicles

Marketing through the Advertisement Solution Developed by the Affiliated Research Center

Car Supply in Asian Region ATvalue Busi-ness Plan

Local Car SupplyVarious business plans for smooth supply of exported cars

Car Supply in Asian Region ATvalue Business PlanLocal Car Supply Channel

Warehouse in Car Logistic Complex in Each CountryComplete import procedures within the logistic complex and distribute cars for

each business

Import Car

Used Car Trading

Company

Trans-portation Company

Car Leas-ing Com-

pany

State In-stitution/Company

Complete import procedures within the logistic complex and distribute cars for each business

Scale of Car Supply and Operating Business for the 1st Year

ATvalue

BusinessInvestment

Scale(Annual)

Export Scale Export Value Total Income

Used Car Export 65,714 312,500 73,057 7,321

Rent-a-Car 9,464 44,642 10,625 1,160

Taxi Business 9,464 44,642 10,625 1,160

84,821 401,785 94,482 9,642

(Unit: 1,000 $)

Russian Corporation

Business ImportImport Value

Operating Income

Sales Total Income

Used Car Export 312,500 73,035 78,660 5,625

Rent-a-Car 44,642 10,625 11,696 9,196 10,267

Taxi Business 44,642 10,625 11,696 9,196 10,267

401,785 98,482 23,392 102,946 26,160

(Unit: 1,000 $)

03. Used Car Export Business and Investment Plan

Car Supply in Asian Region ATvalue Busi-ness Plan

• The income level of most Asian countries is not high Expand the chance to own a car for the general public who does not have enough money to purchase a car by introducing the installment sales system in connection with financial institutions.

• Financial institutions can secure safety for local business by providing loans on the car, the secu-rity in kind.

• The money from car sales will be provided to head office as a lump sum payment from the finan-cial institution.

• Currently, we established business tie-up with KDB Capital Corp., Hana Capital, and Hyundai Capi-tal and are providing the service.

Local Car Supply Business

Installment Sales Service in Connection with Financial Circles

Car Supply in Asian Region ATvalue Busi-ness Plan

• Help the smooth circulation of automobiles by resolving the follow-up service issues of the domes-

tic export car market and seek for long-term business development by enhancing user satisfaction.

• Set up shops near major hotspots and Asian Highway.

• For new cars, the manufacturer provides the infrastructures that it is easy

to set up the shop.

• Space rented by repair shops: 330m2 area.

Local Car Supply Business

Repair Service

• Enhance the satisfaction of buyers and expand market by eliminat-

ing the disadvantages of domestic car export business, the parts

supply and follow-up service.

• Increase the sales ratio of Korean used cars and seek for a way to

diversify the models that can be exported for a long term by ex-

porting the parts of used cars and expanding supply network.

• Open online shopping mall for domestic used parts in the future in

many languages to facilitate the import from any country.

Expansion of Auto Parts Market

Strong pole

Lever block

Plate jack

Air pump

Plate hammer

Plate base

Panel safer

Molding clipper

Cut saw

Paint dryer

Break oil changer

Air conditioner re-frigerants changer

Air conditioner vac-uum pump

Tire auto air injector

Oil drain

Air operated grease pump

Air compressor

alignment

Tire desorption ma-chine

Wheel balance

press

Mission oil changer

Power oil changer

Drum/disk grinder

Machinist Peen Hammer

Soft Hammer

Wrench Set

Socket wrench

Socket

chain pipe wrench

Antifreeze changer

Torque wrench

Moving tool box

Mobile Floor Crane

Trans mission jack

Jack

Spray gun

Engine holder

Break pad changer

Monitor type bore scope

Oil filter wrench

Pressure gauge

Timing light

Tab & die set

Recoil tab

Undercoating.Sticker remover

Welding machine

Auto clamp

Dust collector

Hot fan

Bearing puller

Component cleaner

Engine flushing

Wheel dolly

Gear oil injector

Battery charger

Steam car cleaner

Cam shaft timing tool

Car Supply in Asian Region ATvalue Busi-ness Plan

• Eliminate customer inconveniences such as the climatic issues and discharge issues of the battery,

the expendable part, by supplying the battery refresher parts to secure competitiveness. (The bat-

tery refresher is mounted to the existing battery to extend life and maintain the best charged/discharged

status, exclusively supplied by ATvalue)

• Mounted to cars exported and supplied to all regions in order to cope with cold regions on AH6 route and to

extend the life of the battery.

Local Car Supply Business

Other Services

Unit: 1,000 $

Division1st Year 2nd Year 3rd Year 4th Year 5th Year

Total(2013) (2014) (2015) (2016) (2017)

Sales 98,515 103,538 107,904 114,330 123,374 547,661

Sales Cost 84,849 87,851 91,761 97,513 104,758 466,734

Sales Management Ex-penses 7,111 7,741 8,506 9,343 10,258 42,961

Ordinary Income 6,554 7,944 7,636 7,472 8,356 37,965

Ordinary Income Af-ter Distribution 6,554 30,624 36,732 37,867 40,417 152,195

Ratio of Ordinary In-come After Distribu-

tion7% 30% 34% 33% 33% 7%

Local Automobile Supply Business

Estimated Sales and Profit/Loss (ATvalue)

Unit: 1,000 $

Division1st Year 2nd Year 3rd Year 4th Year 5th Year

Total(2013) (2014) (2015) (2016) (2017)

Sales 92,400 144,864 153,401 159,317 165,233 715,218

Sales Cost 95,758 99,375 103,158 107,126 111,302 516,722

Sales Management Ex-penses

2,800 3,602 3,927 4,213 4,491 19,035

Ordinary Income -6,158 41,885 46,315 47,977 49,440 179,460

Ordinary Income Af-ter Distribution -6,158 24,022 23,158 23,989 24,720 89,730

Ratio of Ordinary In-come After Distribu-

tion-7% 17% 15% 15% 15% 13%

Estimated Sales and Profit/Loss (Russia)

03. Used Car Export Business and Investment Plan

04. Investment Proposal

ATvalue Business

1. Investment Request: 8,035,714 $

2. Purpose of Fund

Usage ATvalue Head Office Russian CorporationMyanmarese Corpo-

ration Total

PurposeInvestment to the

Export of Used CarsInvestment to the

Export of Used CarsInvestment to the

Export of Used Cars

Amount 35,714,285 $ 37,500,000 $ 7,142,857 $ 8,035,714 $

Investment Period September 2012 September 2012 December 2012

3. Major Conditions

- 8,035,714 $ to the head office of ATvalue

- ATvalue invests 50% to Russian and Myanmarese corporations, respectively (condition: 50% of profit)

- The profit of head office and the profit of local corporations will be shared with investors (ratio can be adjusted)

04. Investment Proposal

4. Profit Structure

(1) Profit and Loss according to Head Office Export (1st Year)

Division Income Expenditure Profit and Loss (1st Year) Profit and Loss (2nd Year)

Export of Used Cars

Used Car Export 73,080Export of Cars for Lease

211,964Purchase Tax Deduction

4,238

Used Car Purchase65,772

New Car Purchase for Lease 19,076

Other Expenses/Taxes 8,422

Used Car Area 7,308Lease Area 2,119

Other ▲4,166

Total 98,515 93,271 5,243Accumulated Current Net

Income29,742

Unit: 1,000 $

(2) Distribution of Profit based on the Operation of Local Corporations

Division Income ExpenditureProfit and Loss

(1st Year)Profit and Loss

(2nd Year)Divi-dend

Russian Corpora-

tion

Used Car Sales 78,743Used Car Operation

6,828Taxis Operation 6,828

Used Car Purchase 72,346

Rent Car Purchase 11,706

Taxi Purchase 11,706Other Expenses / Taxes

2,800

Used Car Area 6,397Rent Car Area ▲4,877

Taxi Area ▲4,877Other ▲2,800

Used Car Area 27,573Rent Car Area 8,958

Taxi Area 8,958Other ▲8,961

92,400 98,558 ▲ 6,158 36,527 17,863

Myan-marese

Corpora-tion

Used Car Sales 19,305Used Car Operation

1,630Taxi Operation 1,630

Used Car Purchase 16,399

Rent Car Purchase 2,795Taxi Purchase 2,795Other Expenses /

Taxes ▲ 769

Used Car Area 2,906Rent Car Area ▲ 1,165

Taxi Area ▲ 1,165Other ▲ 769

Used Car Area 4,904Rent Car Area 2,885

Taxi Area 2,885Other ▲ 2,297

22,566 23,767 ▲ 192 8,378 4,815

114,967 134,153 ▲ 6,350 44,906 22,679

04. Investment Proposal

Unit: 1,000 $

5. Profit Structure for 5 Years

Division Investment 1st Year 2nd Year 3rd Year 4th Year 5th Year Total

ATvalue

Russia

Myanmar

35,714

37,500

7,142

6,554 7,945

17,863

4,815

7,636

23,158

5,937

7,472

23,989

6,406

8,356

24,720

7,341

37,965

89,728

24,500

Operating

Income

Dividend

Dividend

Total 80,357 6,554 30,624 36,732 37,867 40,417 152,195

Deduction of Corporate Tax

1,310 6,125 7,346 7,573 8,083 30,439

Current Net In-come

5,243 24,499 29,385 30,294 32,333 121,756

6. Analysis of Investment Earnings Rate

Division ATvalue Russia Myanmar Total

(1) Payback Period

(2) Current Net Value (8%)

(3) Internal Rate of Return

5.71 Years

▲10,755

▲5.04%

3.52 Years

9,061

15.10%

2.91 Years

5,394

28.15%

3.70 Years

12,132

12.99%

*The major reason the low profit of the head office is the rent for the land secured for exportation.

- 136.4 billion won profit in 5 years with 90 billion won investment (Earnings Rate: 51.6%)

04. Investment Proposal

Unit: 1,000 $

Unit: 1,000 $

Future leading figure in the world market!

ATvalue Co., Ltd.

Professional automobile exporter!

Value Innovation

Provide the best value to customers

Relationship Innova-tion

Build trust of all inter-ested parties

Trading Innovation

Aim at customer-oriented export structure

Competence Innova-tion

Establish the best global competence

The Best Exporter of Korea