DOWNUNDER SUBMARINES

PITCH DECK

DownUnder Submarines Pty. Ltd. Experience Australia from a different perspective

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admin@downundersubmarines.com

www.downundersubmarines.com

35 Ervatamia St. Brisbane QLD 4113 Australia

+61 7 3344 4463

+61 404478480

ABN 27 616 610 783

DownUnder Submarines presents a Tourist Submarine

attraction offering a convenient and safe underwater

travel experience.

The project is the first of its kind in Australia and will be

available on Sunshine Coast, Mooloolaba, Queensland.

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DownUnder Submarines was established

in December 2016 as a business entity

committed to a new project.

The aim of the project is to launch a

Tourist Submarine attraction based on the

Sunshine Coast, Queensland.

The Submarine will be taking up to 30

people for a dive at the best artificial reef

in Australia, HMAS Brisbane.

DownUnder Submarines utilizes assets,

management structure and networking of

the original company Reef Jet Tours.

Reef Jet Tours has been providing Whale

Watching and scenic tours on the Gold

Coast since 2015.

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THE COMPANY

THE PROBLEM WE ARE SOLVING

Today people are more interested in the quality of experience above all else, which is why DownUnder

Submarines is here to offer a completely new and unique experience not yet available in Australia.

We are passionate about the marine environment and would like to give people the opportunity to see

something that is not readily accessible.

We will enable people of any age and physical abilities to experience underwater travel.

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HOW WE SOLVE THE PROBLEM

The pressurized hull of the Submarine resembles an aircraft cabin which maintains ambient air pressure

and carries multiple safety features.

The Submarine’s design allows for convenient horizontal entry.

Traveling to a dive location doesn’t require intermittent embarking / disembarking in open waters.

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OUR PRODUCT

SC-30 tourist submarine has the capacity to transport up to 30 people to a diving location and dive to a

depth of up to 30 meters.

TOURS

HMAS Brisbane dive $180

Mudjimba island dive $150

Night dive $210

Vertical dive (sheltered waters) $100

Semi Submersible Tour (sheltered waters) $100

School’s excursions $3000 per tour

Private functions $3000 per hour

SUBCAT 30 / SUBMARINE TOURS

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OUR BUSINESS MODEL SUBMARINE TOURS OPERATOR

We will offer a variety of Submarines Tours with a

price range depending on the experience being

offered and duration of a tour.

Duration of a tour will range between one hour and

one hour forty minutes.

We will provide four to seven tours per day on a

year-round basis with an estimated down time of 60

days.

The revenue estimate is between $15 000 and

$25 000 per day with direct running cost ranging

between $3000 and $4000 per day.

Merchandise sales will generate an additional

10-15% of revenue.

The breakeven point of this business model is

10 000 passengers which corresponds to 100

operational days.

Our customers will gain exposure to the

attraction through the Media, via online sites and

Social networking.

We will partner up with Tourism and Events

Queensland and also gain membership with the

Australian Cruise Association for further

exposure.

We will capitalize on the expansion of the

Sunshine Coast Airport and building of the new

Cruise Ships Terminal in Brisbane.

Tickets will be available online, at the boarding

location and via Ticketek.

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TRACTION

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$200

$150

$100

11 (40%) 17 (60%) 22.5 (80%) 28 (100%)

The Model is based on 1000 tours and expenses of $1 500 000 per year.

Tickets’ cost

KEY CUSTOMER CASE STUDY

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THE TOURIST SUBMARINES INDUSTRY

Atlantis Submarines currently has twelve submarines and operates undersea tours in Aruba, Barbados,

Cozumel, Guam, and in Hawaii at Waikiki, Maui, and Kona.

Atlantis Submarine Barbados has 861 reviews and 4.5 stars on the Tripadviser.

COMPETITIVE ADVANTAGE

Low cost High Cost

Strong

Weak

Them

Us

11 Semi – Submersibles - $250 (part of a package

including transfers).

2 passengers mini submarine - $200

(including transfer), 10m depth, no ambient

pressure.

Subcat 30 - $180. Real submarine with complete life

support system. No additional transfer required.

Ocean Gate - $59 000. Deep sea tour to Titanic

4000m.

ADDRESSABLE MARKET

The tourist market on the Sunshine Coast is $2.8 billion based on 4 million visitors per year. The average

spend is $700 per person per visit. (Source: Sunshine Coast Council)

Current expansion of the Sunshine Coast Airport and new Cruise Ships Terminal in Brisbane (2019) will

stimulate an immediate market growth.

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STATUS

DONE

Submarine tourism market

research.

Location / diving sites suitability

assessment.

Submarine mechanical

inspection, familiarization with

operational and maintenance

procedures.

Australian maritime safety,

American Bureau of Shipping,

Local Government and

Insurance consultations.

Business plan / financial

projections Submarine deposit agreement

DOING

Submarine purchase agreement

Submarine transport

arrangements

Capital raising for the refit and

operational set up.

NEXT

Submarine arrives in Brisbane

December 2017.

Inspection by the American

Bureau of Shipping.

Start Submarine's refit working

with the original designer /

engineer January 2018.

Start operating by November

2018.

November 2016 November 2017 November 2018 13

GROWTH STRATEGY

● Teaming up with Tourism and Event Queensland and the Australian Cruise Association.

● Offering educational programs connecting with schools.

● Offering 10% commissions to major resellers and Hotel chains.

● Achieving a high customer satisfaction rate e.g. Trip adviser

● Purchase of 42 passengers machine . One extra passenger on each tour equals to $150 000 increase in

revenue on yearly basis.

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Year 1

Start of operation

Revenue - $3 000 000

Year 2

Traction / Expanding

Revenue - $4 000 000

Year 3

Plans for second Sub

Revenue - $5 000 000

Year 5

Second Sub deployed

Revenue - $7 000 000 Year 4

Building second Sub

Revenue - $6 000 000

FINANCIALS

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START-UP EXPENSES

Company setup $1500

Submarine Inspection 1 $10 000

Broker fee $9000

American Bureau of Shipping $18 000

Submarine Deposit $140 000

Fundraising $4000

Submarine Inspection 2 $3000

Submarine Transportation $120 000

Total $305 500

Variables

Operating Days $250

Dives per Day 4

Load Factor (70%) 20 pax

Ticket Price (average) $160

Sales

Ticket Sales $3 200 000

Merchandise (15%) $480 000

Less cost of sales

Commissions (10%) $320 000

Cost of Souvenirs (50%) $240 000

Net Sales $3 120 000

FINANCIALS FORECASTS

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Revenue p/y Expenses p/y

Variables

Management (1) $120 000

Pilot (3) $300 000

Boat Crew (2) $150 000

Divers (2) $200 000

Surface Officer (1) $70 000

Cashier (1) $50 000

Maintenance (2) $150 000

Facility rental $30 000

Advertising $100 000

Insurance $35 000

Maintenance / Repair $160 000

Consumables / Fuel $160 000

Utilities $20 000

Contingency (5%) $85 000

Total Expenses $1 630 050

Net Earning $1 489 950

WHY US?

Andrey Alexeenko

Director

Professional Athlete

Commercial Marine Alaska USA

Bachelor Degree of Education

Borja Oreol

Submarine’s Designer / Engineer

Gran Azul Fuerte Ventura S. L. Spain

Damien Catran

Manager of Operations / Skipper

Master 4 EMD 2

Scuba Diving Instructor

First Aid Accreditation Provider

Jonathan Newman

Director

Underwater Vehicles Inc.

Canada

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THE ASK

We are asking for $1 500 000 offering 40% equity in

return.

The funds will be applied for the completion of the

submarine’s refit and operational base setup.

Cost of the Submarine before refit - $800 000,

after refit - $2 million dollars.

The refit will take up to 6 month, starting in January 2018.

The Submarine has been acquired and will arrive in

Australia in mid December 2017.

Effective life of submarine’s major components after refit

10+ years.

Exit strategy - sale of the company to a strategic buyer

after 3 years e.g. Merlin Entertainment Group, Sea

World.

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RETURN ON INVESTMENT

Capital Introduced to Business $1 500 000

Earning from Income (5 Years) $17 500 000

Equity Share 40%

Net Equity after 5 years $7 000 000

Return on Investment (ROI) 466%

No. of times ROI 4.66

SUMMARY

THE BUCKET LIST EXPERIENCE

Tourist submarines represent a successful tried

and true technology that demonstrate profitability.

Since the first contemporary submarine went

into operation in 1985, over 45 purpose built vehicles have

entered the service.

No longer are trained divers the exclusive visitors

to the undersea world.

Now, regardless of age or physical conditions,

passengers can directly experience the myriad denizens of

the deep from the air conditioned comfort of a contemporary

submarine.

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