Roundabout - presentation to investors
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8/14/2019 Roundabout - presentation to investors
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Chris, Eric, Heidi, Shree, Uzra 14 March 2007
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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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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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Questions?