28 October 2010 Moscow School of Management SKOLKOVO

1

mHealth

Irina Linnik

Dmitry Yurchenko

Sergey Pavlovskiy

Alexander Khomenko

Personal Emergency Response System

Do you know that?!

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Could Live

Do you know that?!

>18 mln Russian are over 65 years old

40% will fall this year

Fall is #1 cause of death

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Do you know that?!

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1-st four hours are the most critical

Immediate assistance reduces

hospitalization by 26%

death by 80%

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Keeping your family safe wherever you are

PERS - Personal Emergency Response System

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Old family member

WeYou

Monthly payment“Selling the Guilt”

SOS

Check call

Call

VisitCall to neighborWeb-Camera Emergency call

Nurses

Care agreement

fee per visitCall

Visit, emergency call

Cash flows & Breakeven

You We

Gadget sale, 1 Unit

$200

Monthly fee, 1 client

$30 * 12 = $360

Gadget costs

$100

Maintain costs

$8 * 12 = $96Sales agent %$7 * 12 = $84

Annual Revenue

$560, per client

Annual variable costs

$280, per client

Annual profit per client $280

Fixed costs $200k * 12 = $2400K / $280 ≈ 8500 clients

Market size estimation

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680K potential clients$250 mln potential market size

2010 20250

10

20

30

40

50

60

70

RussiaUSA

2010 20130

500

1000

1500

2000

Quantity of Seniors over 65 yo, mln Annual revenue, $mln

3.75% Seniors

9.5% Seniors

3.75% Seniors

Is your car safe?

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Key players

Current users

Value proposed

What about your parents?

>10 companies in 10 years

0.5M in Moscow10% growth per year

Distribution channels

Auto dealersInsurance companies

No

NO, with >1M potentiality

Price $0.5–3K unit price$30-100K monthly

$0.1–3K unit price$20-50K monthly

Doctors, Senior care comp,Insurance companies

Alarm, GPS + call center

Alarm, GPS + call center

Competitors or Partners?

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Features Philips Car security REDKLEVER

Auto Fall Detector ✔ from 03/2010 - ✔

Panic button ✔ ✔ ✔

Voice-to-Voice ✔ - ✔

Fix line/mobile Fixed ONLY Mobile ONLY Fixed & Mobile

Geo-location - ✔ ✔

Additional services - - ✔

Installation required - - ✔

Battery duration 14-18 months > 2 years 1-2 days

Quantity of Clients & Annual Revenue

(#1) ≈750’000 &Est. ≈$370 mln

>500’000 &>$700 mln

150’000 &$60 mln

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Potential partners

Infrastructure Sales ChannelsProduct

Technological partner Skolkovo team

The Team

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Dmitry Yurchenko

Sergey Pavlovskiy

Irina Linnik

Alexander Khomenko

- Marketing professional- 6 years in banking

retail

- 5 years in Investment Banking - Co-founder of AdOffer

Company

- Finance professional- Serial entrepreneur: AdOffer,

Mayka

- Strategic management proff.- Start-ups experience

Partner with Tech infrastructure, IP, CTO

Go-to-Market strategy

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Jun 2011

Dec 2011

Dec 2012

Dec 2014

Partnering

Product Packaging

Certification

$3M Invested

$0.5 revenue

500 clients

$1.2M Profit

$7M revenue

10’000 clients

First Sales (insurance co, doctors, direct)

Moscow

High segment

Partnering with mobile operator

St. Petersburg

Mid segment

$12.5M Profit

$30M revenue

40’000 clients

Expansion & Scaling

Remote health monitoring

Health Life-Style

Financial Estimations

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2011 2012 2013 2014 2015-10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Sales, unitsRevenue, $000Net profit, $000

Call for action

Now: Team, Initial product, Partners’ network

Need: $3M of venture capital

For: Marketing & Sales, Product Development

2015: $100M company value

Exit: Sales to strategic investor (Phillips, …) / MBO

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Customer segmentation

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- Economizing

- Optimizing

- Buying the best120K 350K

100K 290K

30K 90K

65-70 Over 70

0.85

– 2

2 –

5>

5

Rel

ativ

es s

alar

y, $

000

per

mo

nth

Senior’s age

37%

30%

9%

Number of potential PERS users in Moscow

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Product packages

Base Alarm System:

- Panic button- Fall detector- Voice-to-Voice- 24/7 call-center

Advanced functions:

- GPS tracking - Vital signs sensors- Fire, gas sensors

VIP services:

- VIP emergency- Web camera- Smart phone app

Gadgets are available We tested products and going to submit patent