Business presentation developed for Merar Investment NetworkVisit us on http://www.merar.com

Business presentation developed for Merar Investment NetworkVisit us on http://www.merar.com

Introduction

Chess playing helps developping analytical thinking and also :

assiduity attention independance creativity

Relevance

In the last years, children and teenagers almost lost interest in chess.

This could have a negative effect on society as chess enables children to developp logical and analytical thinking.

Electronic chessboards

Chess computers

Market

more than 150 millions of chess fans worldwide

The internet portal chess.com has more than 1'000'000 users

> 10 millions people playing chess in online clubs all around the world, more than 500'000 of them are in Russia

> 50'000 chess clubs in Europe and North America

Alone in the United States 2 millions of chess kits are sold yearly

Problems

Electronic chessboards

- not mobile (attached to computer) - need separate chess clock - expensive

Chess computers

- has unchangeable difficulty level- not suitable for games in internet - expensive

Product description

« E-CHESS » is a wireless electronic chessboard with real figures

Bluetooth technology enables connection and information exchange with

mobile phones

computers

laptops

Enables chess games with

alive opponent

computer

internet opponent

Executes savings and analyses of matches, controls time of match

«E-CHESS» Outside appearance

«E-CHESS» Outside appearance 2

«E-CHESS» Outside appearance 3

«E-CHESS» Outside appearance 4

«E-CHESS» Outside appearance 5

Totally wireless chessboard does not need electricity

Case highlighting Used to show opponent's moves and also for learning

Separate chess clock not needed anymoreas it is in-built into system

Original designby means of new modern meterials

Advantages of «E-CHESS» over similar products

Business model

Profit made through selling

- of electronic chessboards- of softwares containing

programms to analyse matches library of grandmasters matches library of chess exercises

And also through organisation of semi-professional and amateur tournaments

internet advertising

mass media advertising

organisation of tournaments

social projects (organisation of tournaments in orphanages, chess classes in schools etc.)

Aleksadra Kosteniuk — Russian chess player , grandmaster (2004), 12th Woman's World Chess Champion

Advertising campaign

In Russian FederationDealer networkOfficial shop in St. Petersburg State order from the Ministery of Education

WorldwideInternet shop In the future possible development of distribution

networks

Realisation

-500 000

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

1 2 3 4 5 6 7 8 9 10 11

$

Денежный поток и накопленный денежный поток

денежный поток проекта денежный поток проекта накопленным итогом

Cash flow

Key financial indicators of the project: Return on investment (10 years) RI – 16,10 Internal rate of return IRR – 79 %

Simple payback period of investment costs – 3 years

Total amount of investment expenses – $200 000 USD The high rate of return obtained under conservative estimations

allows to speak about the solidity of the project.

Financial plan

CEO

Visualiser, manager Candidate for a Master's degree at the Faculty of Physics of St

Petersburg State University

Research project manager of Research and Development Center «TATA»

Engineers

Team

Research and Development Center

“TATA”

Bayer Material Science

Partners

Russian patent for utility model obtained Design is developped

Current stageDevelopment of an experimental model Obtainment of international patents

Necessary investments - 1 million of roubles

Current state