Roundabout - Presentation To Investors
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- Words: 812
- Pages: 12
Chris, Eric, Heidi, Shree, Uzra – 14 March 2007
COMPANIES •Seamless integration “We can’t think of new ways to keep consumers’ ‘social attention span’.”
•Safe and Secure
CONSUMERS
•Transparent process •Low maintenance
£
er t n E ut o b a d n Rou “I really want to give, and do so regularly, but it’s too big a hassle.”
•Unintrusive •Trusted brand •One-Click transaction •Tax feedback
2
CHARITIES “We can’t compete against Tesco for online consumer money, so why bother.”
Strictly private and confidential
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
3
Strictly private and confidential
2. THE ROUNDABOUT SOLUTION •A giving option at the point-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
4
Strictly private and confidential
Roundabout blurs the line between purchasing and giving 4 COMPELLING Why’s 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
5
Strictly private and confidential
3. ROUNDABOUT OPERATIONS
6
Strictly private and confidential
4. INCORPORTING ROUNDABOUT •Located in the United Kingdom –No direct competitor –Large 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) •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 7
Strictly private and confidential
5. MARKETING & SALES STRATEGY “Thi s is a b us ine ss driven by re taile r pa rtici pa tio n” •Marketing Approach: –Large-scale B2B, targeting Large retailers via Promotion Agency specializing in philanthropy –Small-scale B2C, via low-cost channels to raise brand awareness –Co-operative Marketing with Charitable partners •Market Strategy: –Enhance internal Sales Capability –Extended reach to EU based Retailers –Monitor response / Refine sales approach
PHASE 1 8
PHASE 2 Strictly private and confidential
6. UNDERLYING ECONOMICS UK donations from small (<£10) donations: 27%
Economic Philosophy: SMALL CHANGE ADDS UP!
Total number of Roundabout donations
696,000 2008
1,176,000 2009
1,740,000
2010
2,376,000
2,580,000
2011
2012
FEE STRUCTURE
Number of online transactions in 2006: 10,5mn. Revenues in excess of £1bn.
•
Average donation size: £0.50
•
For donations ≤ £0.10 – Free! and for donations > £0.10 – 10%
•
As revenues increase, expenses stay relatively fixed
9
Strictly private and confidential
7. SALIENT FINANCIALS Income Statement
Balance Sheet
Year ended 31 December (£000s)
Year ended 31 December (£000s)
2008
2009
2010
2011
Turnover
220
716
1,327
2,258
3,519
G&A Expenses
239
641
697
747
807
Operating Costs
22
22
22
22
23
(72)
25
584
1,468
2,671
6
5
5
4
BREAKEVEN: MONTHS Marketing Expense 3118 27 24 21 6 0
164
411
748
415
1,052
1,919
-35%
2%
31%
47%
Financed 50/50: 0 0 0 0 • Debt: £50,000 (HSBC) Net Current Liabilities 20 29 441 1,489 • Equity: £50,000 Non-current Liabilities 47 44 40 36 Net Assets
(28)
(15)
400
1,452
3,371
Stockholder's Equity
(28)
(15)
400
1,452
3,371
0 3,403 32
£400,000
£100,000
441
1,489
3,403
Revenue
10
Sep-12
29
£Jan-08
20
Break-Even Po int BREAKEVE (18 months) N
£200,000
1,923
May-12
1,057
Jan-12
421
£300,000
Sep-11
18
2012
May-11
(71)
2011
Jan-11
2010
Sep-10
2009
May-10
2008
Corporate Valuation £18.2M :0 (1) 0 0 0 0 •NPVNet(1-5): £3.5M Financing Cash 100 (9) (9) (9) (9) (9) Net Cash Flow 99 (80) 9 412 1,048 1,914 •NPV (Terminal Value): £14.7M 99
0 3,403
£500,000
Investing Net Cash
Cash Balance
0 1,489
Jan-10
0
0 441
Break-Even Analysis
Year ended 31 December (£000s)
Operating Net Cash
0
55%
Statement of Cash Flows Startup
2012
29
Sep-09
Profit Margin
7 12
2011
Current Liabilities
19
(78)
2010
0
May-09
Net Profit
2009
20
Current Assets
Jan-09
Taxation
Non-current Assets
Sep-08
Interest
2008
May-08
PBIT
2012
Expenses
Strictly private and confidential
8. GOODWILL IS GOOD BUSINESS! •
Cost to charities: Zero
•
Speed and volume-related benefits: Priceless! 35,583
34,800
Donations
Turnover
Net Profit (Loss)
29,800
24,800
22,835
19,800 13,415
14,800
9,800
4,800
7,235
2,225
3,519 220
(200) 2008
716 (78)
2009
1,327 12 2010
11
2,258 415 2011
1,919
1,052
2012
Strictly private and confidential
Questions?
12
Strictly private and confidential
COMPANIES •Seamless integration “We can’t think of new ways to keep consumers’ ‘social attention span’.”
•Safe and Secure
CONSUMERS
•Transparent process •Low maintenance
£
er t n E ut o b a d n Rou “I really want to give, and do so regularly, but it’s too big a hassle.”
•Unintrusive •Trusted brand •One-Click transaction •Tax feedback
2
CHARITIES “We can’t compete against Tesco for online consumer money, so why bother.”
Strictly private and confidential
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
3
Strictly private and confidential
2. THE ROUNDABOUT SOLUTION •A giving option at the point-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
4
Strictly private and confidential
Roundabout blurs the line between purchasing and giving 4 COMPELLING Why’s 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
5
Strictly private and confidential
3. ROUNDABOUT OPERATIONS
6
Strictly private and confidential
4. INCORPORTING ROUNDABOUT •Located in the United Kingdom –No direct competitor –Large 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) •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 7
Strictly private and confidential
5. MARKETING & SALES STRATEGY “Thi s is a b us ine ss driven by re taile r pa rtici pa tio n” •Marketing Approach: –Large-scale B2B, targeting Large retailers via Promotion Agency specializing in philanthropy –Small-scale B2C, via low-cost channels to raise brand awareness –Co-operative Marketing with Charitable partners •Market Strategy: –Enhance internal Sales Capability –Extended reach to EU based Retailers –Monitor response / Refine sales approach
PHASE 1 8
PHASE 2 Strictly private and confidential
6. UNDERLYING ECONOMICS UK donations from small (<£10) donations: 27%
Economic Philosophy: SMALL CHANGE ADDS UP!
Total number of Roundabout donations
696,000 2008
1,176,000 2009
1,740,000
2010
2,376,000
2,580,000
2011
2012
FEE STRUCTURE
Number of online transactions in 2006: 10,5mn. Revenues in excess of £1bn.
•
Average donation size: £0.50
•
For donations ≤ £0.10 – Free! and for donations > £0.10 – 10%
•
As revenues increase, expenses stay relatively fixed
9
Strictly private and confidential
7. SALIENT FINANCIALS Income Statement
Balance Sheet
Year ended 31 December (£000s)
Year ended 31 December (£000s)
2008
2009
2010
2011
Turnover
220
716
1,327
2,258
3,519
G&A Expenses
239
641
697
747
807
Operating Costs
22
22
22
22
23
(72)
25
584
1,468
2,671
6
5
5
4
BREAKEVEN: MONTHS Marketing Expense 3118 27 24 21 6 0
164
411
748
415
1,052
1,919
-35%
2%
31%
47%
Financed 50/50: 0 0 0 0 • Debt: £50,000 (HSBC) Net Current Liabilities 20 29 441 1,489 • Equity: £50,000 Non-current Liabilities 47 44 40 36 Net Assets
(28)
(15)
400
1,452
3,371
Stockholder's Equity
(28)
(15)
400
1,452
3,371
0 3,403 32
£400,000
£100,000
441
1,489
3,403
Revenue
10
Sep-12
29
£Jan-08
20
Break-Even Po int BREAKEVE (18 months) N
£200,000
1,923
May-12
1,057
Jan-12
421
£300,000
Sep-11
18
2012
May-11
(71)
2011
Jan-11
2010
Sep-10
2009
May-10
2008
Corporate Valuation £18.2M :0 (1) 0 0 0 0 •NPVNet(1-5): £3.5M Financing Cash 100 (9) (9) (9) (9) (9) Net Cash Flow 99 (80) 9 412 1,048 1,914 •NPV (Terminal Value): £14.7M 99
0 3,403
£500,000
Investing Net Cash
Cash Balance
0 1,489
Jan-10
0
0 441
Break-Even Analysis
Year ended 31 December (£000s)
Operating Net Cash
0
55%
Statement of Cash Flows Startup
2012
29
Sep-09
Profit Margin
7 12
2011
Current Liabilities
19
(78)
2010
0
May-09
Net Profit
2009
20
Current Assets
Jan-09
Taxation
Non-current Assets
Sep-08
Interest
2008
May-08
PBIT
2012
Expenses
Strictly private and confidential
8. GOODWILL IS GOOD BUSINESS! •
Cost to charities: Zero
•
Speed and volume-related benefits: Priceless! 35,583
34,800
Donations
Turnover
Net Profit (Loss)
29,800
24,800
22,835
19,800 13,415
14,800
9,800
4,800
7,235
2,225
3,519 220
(200) 2008
716 (78)
2009
1,327 12 2010
11
2,258 415 2011
1,919
1,052
2012
Strictly private and confidential
Questions?
12
Strictly private and confidential
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