roundabout - presentation to investors

8/14/2019 Roundabout - presentation to investors

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Chris, Eric, Heidi, Shree, Uzra 14 March 2007


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2Strictly private and confidential

CONSUMERS

COMPANIES

CHARITIES

I really want to

give, and do soregularly, but its

too big a hassle.

We cant

think of new

ways to keep

consumers

social

attention

span.

We cant

compete

againstTesco for

online

consumer

money, so

why bother.

Enter

Rounda

bout

Seamless integration

Safe and Secure

Transparent process

Low maintenance

Unintrusive

Trusted brand

One-Click transaction

Tax feedback


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1. BACKGROUND and RESEARCH

ONLINE GIVING

People want to give!

People want to give regularly

People want to give online

People want to support the

charity of their choice

Additionally

8 of the 10 Most Charitable Nations are

European nations

Internet is becoming an effective way to

attract impulse givers (CARE USA)

ONLINE RETAIL

Online retail is booming

Retailers need social value

propositions

ONLINE CHARITIES

Not maximising online

fundraising


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A giving option at thepoint-of-sale of online storefronts

It is a single-click, but offers choice of a variety of charities

It is easy-to-use, anonymous (if so preferred), transparent, and secure

2. THE ROUNDABOUT SOLUTION


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4 COMPELLING Whys

2. Independent and

trusted brand

3. Zero cost to retailers

4. Does not intrude on

retailer selling efforts

5. Retailers choose

charity offerings to

match their CSR

tendencies

Roundabout blurs the line between

purchasing and giving


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3. ROUNDABOUT OPERATIONS


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Located in the United Kingdom

No direct competitorLarge Scale Retailer Base

Low employee count

Management / Sales + IT personnel

Low startup capital base

5 equal portions of owner-managers seed funding equalling 50%

50% debt financed (bank loan)

4. INCORPORTING ROUNDABOUT

Biggest risks:

Volume not signing enough retailers

Protection retailers attempting similar things on their own

Slow consumer adoption

Distinguishing characteristics:Timing (first mover)

Charity Partners (this is our core business)

Independent (builds trust)

Sector classification:For-profit entity, online service-provider


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Strictly private and confidential

MarketingApproach:

Large-scale B2B, targeting Large retailers via Promotion Agencyspecializing in philanthropy

Small-scale B2C, via low-cost channels to raise brand awareness

Co-operative Marketing with Charitable partners

5. MARKETING & SALES STRATEGY

Thi s is a b us ine ssdriven by retailerparticipation

PHASE 1 PHASE 2

Market Strategy:

Enhance internal Sales CapabilityExtended reach to EU based Retailers

Monitor response / Refine sales approach


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6. UNDERLYING ECONOMICS

UK donations from small(


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Income StatementYear en e 31 Decem er 000s

2008 2009 2010 2011 2012

Turnover 220 716 1,327 2,258 3,519

G&A Expenses 239 641 697 747 807

Operating Costs 22 22 22 22 23

Marketing Expense 31 27 24 21 19

PBIT (72) 25 584 1,468 2,671

Interest 6 6 5 5 4

Taxation 0 7 164 411 748Net Profit (78) 12 415 1,052 1,919

Profit Margin -35% 2% 31% 47% 55%

Balance SheetYear en e 31 Decem er 000s

2008 2009 2010 2011 2012

Non-current Assets 0 0 0 0 0

Current Assets 20 29 441 1,489 3,403

Current Liabilities 0 0 0 0 0

Net Current Liabilities 20 29 441 1,489 3,403

Non-current Liabilities 47 44 40 36 32

Net Assets (28) (15) 400 1,452 3,371

Stockholder's Equity (28) (15) 400 1,452 3,371

Statement of Cash Flows

Year en e 31 Decem er 000s

Startup 2008 2009 2010 2011 2012

Operating Net Cash 0 (71) 18 421 1,057 1,923

Investing Net Cash (1) 0 0 0 0 0

Financing Net Cash 100 (9) (9) (9) (9) (9)

Net Cash Flow 99 (80) 9 412 1,048 1,914

Cash Balance 99 20 29 441 1,489 3,403

7. SALIENT FINANCIALS

BREAKEVEN: 18 MONTHS

Corporate Valuation 18.2M :NPV (1-5): 3.5MNPV (Terminal Value): 14.7M

Financed 50/50:Debt: 50,000 (HSBC)Equity: 50,000

Break-Even Analysis

-

100,000

200,000

300,000

400,000

500,000

Jan-08

May-08

Sep-08

Jan-09

May-09

Sep-09

Jan-10

May-10

Sep-10

Jan-11

May-11

Sep-11

Jan-12

May-12

Sep-12

Revenue Expenses

Break-Even Point

BREAKEVE

N


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8. GOODWILL IS GOOD BUSINESS!

35,583

716

2,225

7,235

22,835

13,415

2,258220

1,327

3,519

1,052

(78)

12 4151,919

(200)

4,800

9,800

14,800

19,800

24,800

29,800

34,800

2008 2009 2010 2011 2012

Donations Turnover Net Profit (Loss)

Cost to charities: Zero

Speed and volume-related benefits: Priceless!


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roundabout - presentation to investors

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