MobileMonday China Startup Challenge 2015 An O2O technology for marketing, advertising and publishing Israel MobileMonday China Startup Challenge 2015 WinkApp is the most advanced solution for connecting offline to online content. Publishers, Retailers and advertisers can: - Engage customers to rich content - Offer info, coupons, purchasing and direct engagment - Increase revenues MobileMonday China Startup Challenge 2015 Print is all around us in the physical world: news papers, posters, products, catalogues. Unfortunately today there is no easy-to-use, intuitive solution to connect offline to online. • Bar codes and QR codes: Require unacceptable changes to the look & feel (layout). Require valuable space Require prior design changes • Augmented Reality (AR( only works with images, not text requires long and expensive preparation Requires investment & knowledge in creating suitable content So, Can print be interactive in a clean, intuitive way? MobileMonday China Startup Challenge 2015 WinkApp solution: Use your Smartphone as a mouse- just point & click to get the pre- defined content! WinkApp proprietary technology offers a fast, intuitive way to “surf” anything around us: -no need for additional marking -recognition of any language and any font -use multiple links without compromising the look & feel -prepare in minutes MobileMonday China Startup Challenge 2015 Click PLAY button to see WinkApp solution on YouTube Click HERE to download the clip MobileMonday China Startup Challenge 2015 Business development status: • Several pilots with publishers in Israel • Recent agreement with Dainik Bhaskar, the largest publisher in India • LOI from DNP, the largest print company in Japan Advanced discussions with: • Inquirer and PhilStar, the largest publishers in the Philippines • SPH, the largest publishers in Singapore • Reliance, the second largest company in India • large retailers in the US Achievements: •WinkApp was elected as one of the 10 promising Israeli start-ups for 2014 •WinkApp won 2nd place in Asia Smartphone Apps Contest 2015 MobileMonday China Startup Challenge 2015 Trends and indications: • QR Code Usage among European smart phone owners doubled over the past year source: scanlife.com • Commerce anticipates mobile bar code redemption value to exceed $50B globally by 2017 - MobileBarCodeMarketing2012 • Mobile augmented reality apps currently generate nearly $300 million in revenue and will grow to $5.2 billion by 2017 source-juniperresearch.com Print market will remain HUGE in the foreseeable Future and is predicted to grow to $845 Billion by 2016 source: Pira international The global print advertising market is expected to a minor drop from $133.6 billion in 2013 to $131.7 Billon in 2015 source- zenith Optimedia MobileMonday China Startup Challenge 2015 Billboards and signs Museums Personal/corporate identity Education TV ads Tourism WinkApp‘s technology can be implemented in a variety of additional markets MobileMonday China Startup Challenge 2015 Only WinkApp offers: • simple "surfing" experience, just like Online surfing • Multiple links of a page or product, without affecting the look & feel • Textual areas recognition, as well as images • Recognize any language or font. • No need for external markings- link any existing product or publication • simple and fast preparation process, using WinkApp BackOffice tool • TV advertising recognition- and display of a pre-defined relevant content . MobileMonday China Startup Challenge 2015 Core Strategy O2O (Offline to Online) is marked as one of the fastest growing industries. The reasons are simple: There is endless content both online and offline, and very limited ways to connect between those worlds. As most of us carry smartphones, with camera and connectivity, the need can easily meet the means. WinkApp proprietary technology does not suffer from the limitations of cumbersome use and preparations (AR) or esthetics (bar codes) The first to adopt will probably be print publishers, who are eager to find a solution to help keeping their readers, and who will find it easier to educate their readers for the new capabilities in their app. MobileMonday China Startup Challenge 2015 At this stage WinkApp offers a B2B solution- embedding our technology within any application: • SDK licensing • Pay Per Scan packages MobileMonday China Startup Challenge 2015 Financial Projection 2015-2019 P&L Yearly 2015 2016 2017 2018 2019 Revenues COGS $39,304 $174,344 $1,722,596 $477,641 $5,264,135 $705,000 $11,410,450 $814,680 $18,767,900 $853,972 Gross Profit -$135,040 $1,244,955 $4,559,135 $10,595,770 $17,913,929 Expenses EBITDA $465,705 -$600,745 $1,843,623 -$598,669 $2,848,361 $1,710,774 $3,575,641 $7,020,129 $3,889,963 $14,023,966 The expenses and the revenue based on the investment round of $1.5M MobileMonday China Startup Challenge 2015 SWOT * The global printing industry is forecast to reach $980 billion by 2018, driven by growth in packaging and labels, rather than graphic applications, and digital rather than analogue printing. There are declining volumes of many print products, but not packaging and labels where demand is growing. * Print circulation increased 2% globally in 2013 from 2012 but declined by 2% over the last five years. * Global newspaper publishing revenues from print circulation and advertising were stable year-on-year at US$163bn in 2013. But that figure is down from US$187bn in 2008. * Brands and retailers are looking to find new ways to engage their customers with their products, while information and offerings are available online, but not easily available in an offline environment. MobileMonday China Startup Challenge 2015 Exit scenarios: In the long run, following the B2C stage and vast usage by large number of users (in different apps using our SDK) WinkApp will have very unique and valuable information about user interests and their interactions within the Offline world, based on the what they read, the product they interact with and so on. Such information about offline behavior is extremely valuable and is not catered for in todays market. WinkApp becomes an "OFFLINE GOOGLE" for advertisers. A possible M&A could be by large online advertising companies or large retailers. MobileMonday China Startup Challenge 2015 Financial Projection 2015-2019 As we are entering the go-to-market phase, WinkApp is looking to raise $1.5M, mainly to boost marketing and sales efforts. Investment Round: $1,500,000 Valuation: $3,000,000 Pre money Investors Shares: 33.3% Minimum Investment: $150,000 EXIT Event- Company Valuation EBIDTA Multiple on EBIDTA $9,303,790 6.0 The investor may return his investment Valuation (Post 5) within five years with 10.54X on his investment. Investors Shares IRR: 83.42% Dilution $55,822,741 33.3% 15% The IRR based only on Exit event regardless if the Investors Shares post company will distribute dividend over the years. Shares Value 28.3% $15,816,443 This return is based ONLY on the two markets described in the business plan. Investment ROI $1,500,000 10.54X MobileMonday China Startup Challenge 2015 Experienced team that holds a variety of expertise: Itai Arad, CEO – experienced founder and manager in the fields of digital media, internet, technology and medical devices. Profile Eli Carmi, VP R&D- experienced VP of R&D at start-up companies, in the field of web and cell-phone applications Profile Tsur Herman, CTO - Senior algorithms and software developer. Profile Eli Carmeli, VP Operations, experienced manager of technology oriented projects. Profile MobileMonday China Startup Challenge 2015 Thank you! Contact: Itai Arad, CEO, +972-54-6781180, itai@winkapp.co Eli Carmeli , VP operations, +972-54-2537573, carmeli@winkapp.co