Leapfrog-LOGO-Specs-06-2015
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Transcript of Leapfrog-LOGO-Specs-06-2015
Certain statements contained in this document constitute “forward looking statements”. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “propose”, “anticipate”, “believe”, “forecast”, “estimate”, “expect” and similar expressions as they relate to the Company or its management, are intended to identify forward-looking statements.
Such statements reflect the Company’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements.
Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company does not intend, and does not assume any obligation, to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments except as required by law.
Disclaimer
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To disrupt the new vehicle sales industry by giving consumers the first online, haggle free buying
experience; while driving low cost, high volume sales for auto-dealers.
The vision
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Mike Marrandino - Chief Executive Officer
Mike possesses over 30 years of strategic management consulting experience in a broad range of industries with both private and public companies. Rolling up his sleeves and taking an active role in advising, assisting and investing in both entrepreneurial startups and junior public companies has added to his knowledge, experience and contacts within a variety of industries including, technology, social media, Internet gaming, oil & gas, tourism & hospitality and not-for-profit. His consulting work includes team building, best practice research, business plan evaluation, feasibility and market research, equity and debt fund raising, strategic communications planning, and stakeholder relations.
Craig Bedard – Chief Technical Officer
Craig is the founding Principle of Redline Interactive and brings with him nearly 15 years of experience in the Internet space. Craig has worked with some of the leading Internet development firms and has been integral in the development and execution of many award-winning projects including Mercedes-Benz USA, Dell.com, NASA, Nokia, and Hyatt Hotels.
Ryan Lang – Chief Marketing & Business Development Officer
Ryan has an impressive track record both as a sales and marketing professional but as well as an entrepreneur. He led a sales team to over $6B in annual sales at Neteller Plc, and was Co-founder/ Managing Partner of Redfall Techonologies which processed over $1B in online payments. Ryan also co-founded successful tech startup Vogogo, now trading on TSX Venture.
Govan Bianchini – Vice President of Business Development
Govan’s 10 years of auto industry experience has been extraordinary. He has occupied both sales and management roles in addition to achieving top Lexus salesman in Canada 3 years running. Every dealership Govan has worked with has experienced exponential sales.
The team
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Jerome Olney – Co-founder/ Director
Jerome Olney is an elite member of the auto industry. Over his 16 years experience he has turned around 2BMW stores from “worst to first” as well as occupying senior roles within the management structure of multiple dealerships.
Steve McGuire – Co-founder/ Sales
Steve McGuire has been involved in the Public and Private Markets since 1998 and in Venture Capital since 2005. Steve has been instrumental in helping several companies both public and private raise significant funds in several different market sectors.
Jay Purdy - Director
Jay Purdy brings 30 years experience in the automotive industry at an elite level of sales management and ownership. Jay has seen the evolution of the auto industry from the 1980's right through present day and can identify the ever demanding needs of the present day automobile buyer.
Redline Interactive – Marketing and Development
A digital first advertising agency and development team. In business for 13 years, having delivered 100’s of projects for local, national, and international clients. Redline is passionate about Leapfrog. Not only is Redline a Leapfrog shareholder but they have chosen to be compensated in Leapfrog shares for ongoing technical and marketing efforts required for the success of the company.
The team
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• The current car buying process is archaic, time consuming, nebulous, and not enjoyable.
• The consumer is never in control of the process and rarely communicates direct with the decision maker.
The current experience
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The current experienceNorth American vehicle shoppers
hate “the haggle”
83 % of all respondents would prefer not to haggle.
would say “Sayanora” to sex for a month to avoid haggling.1 5 out
of
– 2014 Edmunds.com Survey!7
9%13%
15%
24%31%
9%
65+ 56-65 46-5536-45 25-35 18-24
Who buys new vehicles?
– Accenture Survey: What Drivers Want 2015!
39% 61%
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“Given the opportunity, would you go through the entire purchase of a car directly online?”
– Accenture Survey: What Drivers Want 2015!
42%
33%25%
Yes Definitely Yes Possibly
No
Respondents would consider buying online
75 %
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Respondents use the internet as part of their buying process
93 %
The increased use of the Internet to market new and used cars and light trucks has also had a significant impact on automobile dealers.
Through the Internet, consumers can easily access vehicle reviews; view pictures of vehicles; and compare models, features, and prices. Many Web sites allow consumers to research insurance, financing, leasing, and warranty options. As a result, consumers are generally better informed and spend less time meeting with salespersons.
The Internet has clearly replaced the salesperson as the primary source of vehicle information.
–US Department of Labor, Bureau of Labor and Statistics!
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The role of the internet ‟
”
1. Go to Leapfrog.bid from your desktop, tablet or mobile phone.
2. Decide how far you are willing to travel to pick up your new vehicle.
3. Configure and find the vehicle you want to purchase (actual inventory in your area).
4. See Certified Dealer Cost, MSRP, Dealer & OEM Incentives, Rebates, Financing or Lease Options.
5. Bid: the Price you want to Pay (Credit Card required).
6. Buy: Deposit online secures the vehicle and price
7. Pickup: Leapfrog will notify you as to which Dealer to pick up your new vehicle from.
8. Dealer will arrange financing, lease and paperwork.
How it works for consumers
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• Customer is in control of the process.
• Find and configure your vehicle from real time dealer inventories.
• Integration strategy covers 75% of DMS and CRM’s, by unit sales, in the market.
• No negotiating. Period!
How is unique?
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• Leapfrog.bid platform is integrating into the most
popular Dealer Management and Vehicle Inventory
Systems (DMS and CRM’s like: CDK Global;
Reynolds & Reynolds; ADP Drive; Dealer Socket;
One-Eighty…).
• Provides access to millions of potential new vehicle
buyers and brings confirmed sales not just leads.
• Price shopping is prevented. No reverse auction
and time to close a sale is greatly reduced.
• The Sales Process is “Skip the Salesman”, not
“Lower the Price”.
• Transaction costs are significantly reduced in both
commissions & advertising.
How it works for dealers
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$134MTotal Revenue
* $206MTotal Revenue
*
• Leapfrog is the only service that places the consumer in the driver's seat, controlling their entire new-vehicle buying process.
• No other online service enables the consumer to “skip the salesman” to find the exact vehicle they want and then purchase it online.
• Most online services currently available are “information based” only. Providing stats such as what others paid for similar vehicles in an area, estimated dealer pricing (often masquerading as a “certified price”). Ultimately, all other services treat consumers as leads for dealers to “work”.
• Most significant lead generation service is TrueCar in the USA.
• TrueCar CPA approximately $232 / sale (Q2 2014).
Who is the competition?TrueCar generated leads which led to sales of …
400K! 600K!Vehicle Units Vehicle Units
=2.4%
Market Share
=3.5%
Market Share
* Adjusted EBIDTA of $2.1M & $10.9M respectively!
TrueCar engaged
10,000 Dealers in
2014
20132014
Market Cap
$1.1B
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Online industry comparablesCar Cost Canada UnHaggle TrueCar Dealer’s
Website
Instantly finds cars from multiple local dealer’s inventory YES NO NO NO NO
Bid the price you want online YES NO NO NO NO
Instant confirmation of your successful bid price and purchase YES NO NO NO NO
Car is instantly removed from dealer inventory upon successful
bidYES NO NO NO NO
Provides pricing, MSRP, dealer cost, incentives YES YES YES YES NO
Cost of service to the buyer FREE $40 $99 FREE FREE
Total time involved to buy car MINUTES HOURS-DAYS HOURS-DAYS HOURS-DAYS HOURS-DAYS
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$ No set up fee or subscription costs to either the consumer
or Dealer.
*Typically, Dealers spend over $1000/vehicle in marketing and commissions for each vehicle sold.!
Leapfrog’s dealer pricing model makes it IMPOSSIBLE to experience a negative ROI.
Removing any dealer resistance based on price.
*$399 per completed Leapfrog sale
Revenue model
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There were 1.8M new vehicles sold in Canada in 2014 amongst 3600 new vehicle dealers.
Opportunity - Canada
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1% 3% 5% 7% 10% 15%
$36M$50M
$72M
$108M
$7.2M $21M
1% of Canadian Market = 18,000 units or $7.2M in revenue
There were15.6M & 17.1M new-vehicles sold in 2013 & 2014, respectively amongst 17,540 new vehicle Dealers.
Opportunity - USA
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1% 3% 5% 7% 10% 15%
$68M$204M
$301M$478M
$682M
$1.02B
1% of USA Market = 171,000 units or $68M in gross revenue
The leapfrog journey
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$ 750 K $2 M $4 M $10 M
Western Canada Branding & Marketing
Campaigns!Nov
2014! 2015! 2016!
Industry Research & Positioning
Study!Jan
Company Formed!
Sept
Branding & Identity!March
Marketing Plan Complete!
July
Dealer Partnerships / Integrations!
Aug
Software& Website
Development Completed!
Sept Western
Canada Beta Launch – Rev$$!
Oct
National Branding & Marketing
Campaigns!Feb
National Launch!
Feb
Enter US Market!
Sept
Current Share structureShare Class No. of Shares Cost/Share Warrants Exercise Price Term
FoundersCommon 5,000,000 0.01 - - -
Pref A 14,200,000 0.001 - - -
Seed Common 4,125,000 0.02 - - -
Investors Common
2,975,000 0.10 1,487,500 0.15 2
500,000 0.10 250,000 0.15 yr10.25 yr2 2
Issued & O/SCommon
Pref A
12,600,000 - 1,737,500 - -
14,200,000 - - - -
1. 10% of the Pref A shares will be converted into Common shares upon the Leapfrog.bid website successfully executing its 1st transaction 2. Annualized EBITDA of $5 will entitle the conversion of five Pref A shares to five Common shares..
Pref A shares are converted into Common under the following conditions
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Mike Marrandino, CEO, Director Pick-A-Price Auto Corp.
1410 -1090 Georgia St. West, Vancouver BC Canada V6E 3V7
D: (604) 722-5225 F: (604) 568-8391 E: [email protected]
www.leapfrog.bid