Household • Repairing • Beauty&Wellness

Tutoring • Personal • Assistance • Cleaning

Delivery • Transport • Events • Tours • Food

Therapy • Entertainment

New York, 2015

for Providers and Customers of local ServicesOnline Marketplace

Table of ContentsSummary

Status / what we have achieved

Next Phase Goals (12 months)

Business Model

Project Phases

Clients / Vendors Base Growth

Business Model map

Advantages

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USPs

Standard User Scenarios

Structure of services (200+)

Our Target: Technical Releases

Our Target: Marketing Strategy

Our Target: Promotion Tools

Market of local services in US

Our Target: Gamification

Our Team

Corporate Set-up

Contact Information

Advertising Design

Platform Design

Technology Stack

Payment Processes

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Summary

Targeted economics/ metrics• Around 235,000 new (new clients) profiled platform users

• Register 22,000 total new service providers

• 587,000 service provision transactions

• Reach monthly transaction fees volume of up to 749,000 USD

ProjectInternet-Based Auction (Marketplace) Platform for services marketing, sales and provision: workhe-roes.com

Description: Innovative, unique and global internet services B2Cauction platform workheroes.com of-fering unique service in the area of service market-ing, services are delivered to the customers, making customers wishes the center of service market. Aim of the workheroes.com is to ease the process of search, sourcing,valuation and acquisition of corpo-rate and household services, to revolutionize modern service market the way Amazon revolution-ized global product market.

Next phase duration: 12 months

Region: 1st focus: NY, 2nd focus: 5 major US metro-politan areas, platform establishment in UK and Germany

Current status• Technical platform developed (Release 1):workheroes.com

• Workheroes.com operational (beta)

• Frist registrations in progress

• First marketing steps in progress

• Attracted 1st round investments (2013):capital: 500,000 EUR

• Full scale marketing campaign fully prepared

Unique products and features200+ standardized services. We have standardized businessprocesses of 200+ most common and popular services and for each of the services we developed a simple ordering / marketing process. Each service is ordered simply through several clicks for the customer. Standardization of the ser-vices order parameters allows for Instant Offers, where the platform calculates and offers service packages to the client on behalf of the provider. Standardization allows for the simple ordering pro-cess on the mobile and touch platforms.

Instant Offer. The system compares subscriptions with incoming client requests for matching parame-ters. The system will calculate the price for an offer and send it to the client. In this case, the providers’ physical presence is not required. The offer will be sent automatically and instantly.

Hot Deal – It is a ready to use standard offer

Providers promo Page – It is a special promo page with a short direct link for the provider

Business ModelServices E-Marketplace-AuctionWe firmly believe that over time, the B2C service market will develop in the same way as the e-product market. That is why our goal is to devel-op a customer-centric platform that will change the buying habits at the e-service market in the long run:

We free our clients from the work involved in ordering: The client merely states which service he or she would like and the service providers then contact the client

Unified and easy processes: From ordering to reviewing – in doing so we expect to win client loyalty

In the long term, the platform should become a central shopping location for all sorts of services

We envision our solution in the form of an e-marketplace, where compa-nies and individuals can offer their services. The buyer can search both by category and provider for the required service, as well as stating a request and receiving offers from the service providers.

The service market is currently still influenced by the old paradigm, where the service providers and not the clients are put in the middle.

Business ModelThe goal of our project is to provide a B2C online trading platform for various services on the Internet.

Buyers and sellers of services are brought together in the following manner:

buyers are permitted to list (put into the system) the services they want to buy

sellers can view buyers requests and make specific offers to provide the requested service, or preset the instant offers

buyers can view all offers made by sellers and buy a specific offer

throughout the buying and delivery process buyers and sellers communicate using the platform

service delivery from seller to buyer is monitored by the platform

buyers can list service providers and contact them directly with a request

Our project streamlines and globalizes the traditional process of service delivery, which is normally restricted to local businesses. We also change the buyer’s experience, who traditionally have to find, compare and contact service providers personally. We shift the focus of attention to the buyer (customer, service consumer) by changing the direction of the whole process: the service sellers will now be able to find, contact and make offers to interested customers. This facilitates easy and transparent service buying process for customers and enables very effective customer acquisition for service sellers.

Using the platform for buying services is free of charge,but the service sellers are charged following kinds of fees:

Transaction fees (3,99% + $1,99)

Sales Ads – “Hot Deals”

Service Ads – Related Services

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Status / what we have achieved—

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Technical platform developed (Release 1): workheroes.com

Workheroes.com operational (beta)

Frist registrations in progress

First marketing steps in progress

Full scale marketing campaign fully prepared

Marketing materials, content, instruments, external contracts prepared

Offline promotion (New York) campaign fully planned

Marketing and affiliate partners secured

Workheroes.com domain registered

Workheroes brand name registered

Workheroes gamification concept in place

Platform IP rights secured

German and UK market penetration prepared and planned

Co-branding partners negotiations in progress (toys, accessories..)

Attracted 1st round investments (2013): capital: 500 000 EUR

Next technical releases (technical documentation and functional requirements) prepared

2nd phase financing goalsTo profit through the staged capital value growth of the project company RITTER DIGITAL SOLUTIONS, INC, owning workheroes.com plat-form

Fast and significant annual capital / valuation growth

To attract 3rd stage institutional investor for global expansion growth and finally an IPO

Develop workheroes.com to a similar global platform to eBay and Amazon

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Business goals235,000 registrations in US during 12 months of 2nd development phase (as muchas possible active and loyal users)

22,000 active providers during 12 months of 2nd development phase

Focus on New York area

Secondary focus on 5 biggest US metropolitan areas

CAC up to $ 5

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International expansiongoals (UK and Germany)

We plan to establish the platform presence in Germany and UK markets

We will adopt / expand the technical platform to the requirements of the UK and German mar-kets

We will adopt / translate the required platform and marketing content

We will adopt payment system and legal struc-ture to the national UK and German require-ments

If required, we will establish the national corpo-rate presence for the platformoperation at mini-mum cost

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Communicative goals Building and maintaining brand image Workhe-roes

Formation of a viral effect

Encourage members to talk in an environment of positive experiences on the platform

Encourage providers to use workheroes.com to advertise their services and profile with refer-ence to the platform

Promptly respond to negative reviews about the platform

Deviation from the competitor

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Next Phase Goals (12 months)

With minimum equity capital exposure, 2nd proj-ect stage should bring the workheroes.com to the stage at which it starts covering its opera-tion costs and generating profits

To revolutionize modern service market the way Amazon revolutionized global product market

To continue development of the workhe-roes.com, innovative and highly technological internet services auction platform offering unique service in the area of service marketing

Project Phases

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Business, Financial& Development Plans

US MarketPenetration

Development of full project documentation package

Investor sourcing for the 1st phase

Full technical system development

Start of operation

Market establishment

Investor sourcing for the 2nd round

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Start of operation

Marketing campaign

Market establishment

Achievement of profitability

Constant client base growth

Investor sourcing for the 3rd round

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IPO—

US MarketEstablishment

EU (27) + Asianmarkets Penetration

3 year (projected)1 year (current)1 year3 months (completed)

3 Phase 4 Phase2 Phase1 Phase0 Phase

Clients / Vendors Base GrowthProjectionsWe intend to attract during the next 12 months of platform operation:

Around 235,000 new (new clients) profiled plat-form users

Register 22,000 total new service providers

586,000 service provision transactions

Reach monthly transaction fees volume of up to 748,000 USD

In our business model we have included the experiences of major leading internet services sale platforms. In the chosen fee structure we tried to combine our commercial interests and sellers incentives to maximize sales volume.

Sales Fees (3,99% + $1,99): These fees are charged each time a customer buys a service and are paid by service provider.

Instant Offers: These fees are charged if a service seller buys lots for instant offers. The price for lots is dependent on the category.

Additional Features Fees: These fees are optional and are charged if the service seller turns on additional features

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total 1M 2M 3M 4M 5M 6M 7M 8M 9M 10M 11M 12M

New clients visits (new potential qualified clients)

Registered clients (cumulated)

Total transaction volume (USD)

Total amount of transactions

Total amount of vendors offered lots (incl. not bought)

Registered vendors (cumulated)

Transactions volume (USD) per provider

Average amount of offered lots (from vendors) per inquiry (from clients)

1,914,042

234.898

17,584,973

586,166

2,240,596

21,754

13,000

1,300

19,500

650

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1,300

350

56

14,300

2,730

81,900

2,730

2

5,460

385

213

16,803

4,410

132,308

4,410

2

8,821

452

292

21,003

6,744

202,318

6,744

2

13,488

565

358

27,829

9,836

295,082

9,836

3

29,508

749

394

38,961

14,165

424,951

14,165

3

42,495

1,049

405

57,467

20,550

616,508

20,550

3

61,651

1,547

398

89,074

30,447

913,422

30,447

3

91,342

2,398

381

144,745

48,541

1,456,217

48,541

4

194,162

3,897

374

246,067

79,299

2,378,970

79,299

4

317,196

6,625

359

436,769

133,895

4,016,855

133,895

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535,581

11,759

342

808,023

234,898

7,046,943

234,898

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939,592

21,754

324

1,868,100 2,072 8,701 14,055 21,493 31,348 45,144 65,494 97,036 154,699 252,726 426,724 748,620Transaction fees (total amount)

Business Model mapProblems (TOP3)Provider:Spend time and money to attract customers (sales office, site, promo, calls, emails) Working without prepayment and guaranties Difficulty to start without capital

Customer:Spend time for search, choice, waiting, calls, emails to providers The services are not standardized as the goods It’s not possible to have an Instant deal

Cost structure:marketing, salary, equipment, hosting, bank, paypal

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Unique valueproposition

Instant offerHotdealsProviders promo pageDashboardLow price (Fee 3,99% + $1,99)

UVP for providers– online sales office. Automatic sales

UTP for client – instant offers, price auction, reservation money until delivery service

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Direct mails, emailsBTLNewspapersSMM, contentSEO, linksContestsViral PROutdoor, IndoorPartnersAffiliate program

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Unfair advantageFun, Game styleInstant offersCompetitors conditions

Solutions (TOP Features)Provider:

Fee only for real dealsAutomatic Instant offersDashboardProviders’ promo pageHotDeals

Customer:Request instead of searching Instant offers from many roviders and deals without callsStandardized services

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Active customersActive providersChurn rates/retentionRevenue, TurnoverConversion ratesCACServices MarginsTransaction figuresSite visits analyticsEBITCash Flow

Success metrics

Provider:Small businessStart-up businessIndividualsFreelancersStudents for additional earning

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ClientHouseholdersHousewivesSmall businessownersManagers

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For Customers:We free the customer of the work connected to ordering a service (searching, comparing, gathering opinions, establishing contact, following up, etc.): The client only needs to state which service he or she wishes to acquire and the service providers approach the client

Platform integrates vast variety of services – single “shopping center” for all kind of services

Client can pay in cash after the deal or we will reserve the vonline payment for service up to verification

Many service providers are competing, which creates fair prices and higher quality.

Our platforms international focus, as well as location-independent access allow services such as “translation services” to be performed by foreign experts

Advantages

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Customers platform modules:GeneralChat SettingsServices & RequestsOffersProjects

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For Service Providers:No investments needed – you can start using our platformright away

Focus on your core services – we find customers and provide infrastructure for you

Automated sales in the personal sales office on workheroes.com.

Low fees structure (3,99% + $1,99)

On workheroes.com vendors can subscribe to customers requests for a service, place automatic responses to requests (instant offers), and place package offers with special conditions (hot deals)

Both corporate and private service providers can efficiently participate and compete

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Providers platform modules:GeneralRequestsProjectsServices & SubscriptionsSettings

USPsInstant Offer – Provider activates this feature on each subscription and provides the following parameter: max. number of sold IOsThe system will then compare those subscriptions with incoming client requests for matching parameters. In case of a match, the system will calculate the price for an offer and send it to the client. In this case, the providers’ physical presence is not required. The offer will be sent automatically and instantly.

Manual Offer - To create an offer, the seller needs to provide the following:Subscriptions and their prices, Comment to the client. This offer package will be sent to a client.

Hot Deal – It is a ready to use standard offer, comparable to a coupon on Groupon.com. A request from the customer is not required

Providers promo Page – It is a special promo page with a short direct link for the provider. The page contains all of the providers’ offers, its description, galleries, and reviews. Provider can advertise this page in the external environment, encouraging customers to make personal requests

Dashboard - All personal providers statistics. Sales funnel, charts, dynamics, visits, sales

Internal chat – Provider and customer can discuss any questions or concerns, quickly and efficiently.

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200+ standardized services:We have standardized business processes of 200+ most common and popular services and for each of the services we developed a simple ordering / marketing process.

Each service is ordered simply through several clicks for the customer.

Providers also can easily describe the service on the basis of most important parameters

Standardization of the services order parameters allows for Instant Offers, where the platform calculates and offers service packages to the client on behalf of the provider

Standardization allows for the simple ordering process on the mobile and touch platforms

Structure of services (200+)Animals and pets

Dogs walking and training services

Beauty WellnessImage consulting Sport and fitness Massage therapy

Nails Spa procedures Yoga lessons

BusinessOther businnes services Security services

Cleanang services Paper shredding services

Presentation development services Virtual assistant services

EducationSchool homework assistance Translation Tutoring

Musical Instruments lessons Proofreding

Hobbies and RecrationDance lessons Musical instruments lessons

Photo and video Image consulting

Rental products for outdoor activites Tutoring Yoga

Water sports Sports lessons Leisure

HomeCleaning

Cleaning

Domestic LandscapePaper shredding

Security Delivery Personal care Other home services

Home improvement Sanitation

TransportTransport rent Car services Drivers services

Moving and freight transport Tire services

Driving lessons Car electronics

ElectronicsCell phones repair Computers repair

Other electronics repair

EntertaimentHiring staff for restaurants or for events/catering Delivery

Photo and video Event

Commercial junk removal

Roof/Siding Pressure Wash

Commercial snow removal services

Chimney cleaning

Commercial area cleaning

Roof/Siding Washing

Windows Cleaning (interior)

Roof/Siding Washing

Air Duct CleaningInspection and cleaning of residential air ducts. Removing dust and harmful pollut-ants which decrease air quality and can...

Find a workhero Become a workhero

Standard User ScenariosFor customers:

Sign up Choose the service Submit a request Check the offers instantly Accept the best offer Make the payment Use the service Confirm delivery Leave a review

For providers:

Sign up Choose the service Create a subscription Fill of the instant offer Check your email about deals Deliver services Confirm delivery Leave a review Get paid

Market of local services in US

Requests, waiting offer

$149m - Investments

$1,8b – Turnover

7,5m users (64k providers)

3m projects yearly

900+ services

All USA market

$3,5-16 for deal Fee

Since 2009

Choice from 4 providers,waiting offer

$2,5m Investments

$200m Turnover

25m users (85k providers)

Over 500 categoriesof services

$30-50 for deal Fee

USA, Canada, France, England

Since 1998

Catalog of providers, waiting offer

$40m – Investments

$4m – Turnover

2m users (25k providers

4 categories of services

Main cities of USA

20-26% for deal Fee

Since 2011

Catalog of providers, waiting offer

Acquired by The Home Deport about $70-90m (2012)

$7,5m Investments

0,5m users (5k providers)

Over 60 categories

$29,95 monthly + $20-40for deal Fee

Over 200 states of USA

Since 2008

Catalog of providers, fixing offers for appointments

Calendars integrated

$3m Investments

0,5m users

Over 80 services

3% for deal + 37% fordeal with each new client

$200 all includes

All USA market

Since 2013

New service of Amazon

Ready to use offers with dis-counts like groupon.com

New service of Amazon

Requests, waiting offer

Coming soon

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External marketing sourcesAn internal affiliate program, which will aim to attract new users by providing affiliates with performance based rewards

Banner ads on external sites, which sell products related to our services (pool cleaning service ad on a pool store website)

Cooperation with employment platforms (jooble.com, indeed.com)

Offline providers attractionOur marketing team will search (telephone, personal presence) and source required offline providers, if they are not already available for every customer service request

Our marketing team will scout major NYC streets for interested vendors and provide registration in shop, on the tablet

We will contract major service providers for every service type, in major metropolitan areas

Our Target: Marketing StrategyMarketing strategyFee strategy:Maintain one single fee for all providers. Possibly add a monthly or a yearly subscription fee for unlimited deals in that given time period

Geographical expansion:Create presence in the entire USA, actively grow our database with service providers with Instant Offers. 1st priority – NYC, 2nd priority– 5 major US metropolitan ares

Product strategy:Development of new and unique tools for the users (Calendar system, iBeacon integration, perfect the service request forms)

Promo strategy:Create innovative and unique campaigns by demonstrating our competitive advantages. Increase the number of inbound links to our platform by means of viral content , gamification, and affiliate programs.

External marketing sourcesMarketing Budget StructureThese figures are based on the average market conversion.

30% - Online marketing contractors (Entire USA)60% - Offline marketing contractors (NY and 5 major US metro areas)5% - Mobile ads4% - Production costs, creative content, marketing team1% - Other expenses

Our Target: Promotion Tools SEO

Context (CPC)

Display

SMM

PR

Newspapers

Colleagues

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BTL

Direct mail

Telemarketing

Production / creative

Mobile CPC

Shopping Centers

Social media managementManagement of social media group pages

Formation of creative content

Transfer requests and offers

Related news stories

Encourage proliferation of the affiliate program and the gamification concept

PR: create a positive image, timely address negative feedback, spread content on external sites

A fixed monthly payment to an agency

Advertising budget (PPC) + 15%

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Target:Service providers

Goal:Increase the provider’s involvement and activity on the platform in order to attract more buyers and increase the conversion rate

Additional goals:Help providers advertise their business with the help of the platform

Target user behavior:complete registration, create a service subscription, monitor client requests, daily platform visitation, business self promotion, post offers on external sites

Principals of gamification:simple rules, all of the scenarios are intended for reaching achievement goals, to gain feedback from providers, adjustment of the users behavior, to get providers involved and immersed into the business process.

Structure of gamification:Motivation – Action – Communication – MotivationA story about a rookie players’ adventure to becoming a pro

Main idea:We put the user into a virtual world and put them into a superheroes’ shoes. In the process of becoming the best superhero, he or she will face different obstacles.

Our Target: Gamification

R2Improvements:

System emails for usersStatic Images Address input updateService parameters viewing formService overview page Sign up process updateOffer sharing

New functions:HotDealsProviders’ promo pageProviders’ dashboardClient requests publishingStatisticsSEO optimizationCreative 404Affiliate ProgramDefault Avatars

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R2Improvements:

StatisticsProviders’ dashboardFees accounting systemSEOFiltersAdministrative panel

New functions:Mobile versionGamification systemAdditional services for providers (promo and others)Integration with jooble.com System trayExtras for salesRequests overviewVISA/Amex paymentMedia Library

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Our Target: Technical Releases

Pavel, CEO

Our Team

The Captain and the ideologist of the project. Master of Project Management on the international level. Effectively manages the project resources, supports any design ideas, and stresses on timely deadlines Has experience of successfully launching online and offline international projects

Roman, CTOThe heart and soul of the team. A master communications chief and the technical brain of the project, transforming ideas into results. If you can describe an idea, Roman can create it. He has a degree in economics and information technologies, and excellent management experience in the development of the world's leading companies

Konstantin, partnerThe engine of the development team. Under his successful leadership, web designers and developers created and improved our platform.Has a degree in economics and computer science. Possesses valuable management experience and successfully developed IT-companies

Elena, CMOThe strategist of the project who seeks and finds efficient opportunities to make our project more convenient for the users and more profitable for the owners.Possesses a degree in economics and has over 10 years of marketing experience with IT-companies.

Konstantin, development managerThe project analyst. Has the constant knowledge of the company updates. Creates and improves our platforms’ tools, making them interesting and user friendly. Has a technical background and experience in many areas of IT companies

Alex, advertising managerThe master of promotional campaigns. Manages the advertising efforts and successfully works with partners. Generates ideas for new ways to attract users.Has a degree in Business Administration from Rider University, in the US. Marketing experience with national companies.

Platform Design

Advertising Design

Frontend

Technology StackBackend

External Services

jQuery Yii 1.1.16 Node.js Redis

Beanstalkd Composer Nginx

MySQL 5.5jQuery UI

Less Grunt

Project Support Infrastructure

Oracle VMVirtualBox Vagrant

Confluence GitLab CI

Git JIRAYii framework implements MVC pattern for frontend-backend interactionsHeavy jobs are pushed to beanstalkd for asynchronous processing (e.g. service requests)Database access through business case specific modelsGrunt is used to compress css, js etc.Redis is used for fast access to objects which are frequently used and shared by usersNginx is used as a web server

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Vagrant JIRA

Customer acquires the service through platform(from a vendor who only accepts PayPal)

Customer acquires the service through platform(from vendor who requires the payments directly in cash)

Payment Processes

Platform reserves the payment at customers PayPal account

PayPal direct or through credit card(when the service is received and accepted by the client)

Workheroes.commarketplace

PayPal vendor account

Platform checks thecredit card validity

Direct payment

Service provider (service vendor)

Payment amount is set by the vendor (cash)

Direct payment to the vendor in cash when the service is delivered

and accepted by the customer

Corporate Set-up

Attracted investments (2013):Capital: 500 000 EUR

Legal advisorREZNICK LAW, PLLCNew York

AuditorsRozel & Haykin CPA PCBrooklyn

Company:RITTER DIGITAL SOLUTIONS, INC.Registered: 29.01.2013

Address:2502 86th Street, 3rd FloorBrooklyn, NY 11214USA

Bank account:Bank: Apple BankAccount: 7010007578

Tax ID:331-22-7236

Contact information

Confidentiality ClauseThe information included in this presentation is strictly confidential and is provided on the understanding that it will not be disclosed to third parties without the expressed written consent of RITTER DIGITAL SOLUTIONS, INC.

Pavel DruzhkovPresident

RITTER DIGITAL SOLUTIONS, INC.2502 86th Street, 3rd Floor

Brooklyn, NY 11214

USA

E-Mail: pd@ritter-re.com

USA: +1 (914) 310-93-02

Germany: +49 (176) 890-050-43

Russia: +7 (909) 629-63-44

Fax: +49 (3212) 107-68-71

Web: www.ritter-re.com