Sample Executive Summary International Mobile Payment

I ! I ExecutiveSummary | For I I I I I I I I I I InternationalMobilePayment,Inc. Presented by CFO Byron Head byronhead@impay.com 214.683.8118 I IMPay is Represented by Jenkens & Gilchrist J. Rowland Cook, Partner rcook@jenkens.com www.jenkens.com I I I _y m m m n m m m m m m m m m m m m m m | I I Executive Summary_ International Mobile Payment, Brief business proposition Inc. Financial service that businesses or consumers use to pay or receive payment via any mobile device from combined bank, credit and phone accounts. What is the business problem? I have inherent risks of loss, who buy or sell are limited to cash, checks, credit, smartthese purchase card is limited by small screens, slow Businesses and individuals fraud and delay. Mobile device technology to conduct and transactions transactions. These transactions speed and questionable security. I I What "New Way solves service problem?these IMPay's service to Pay" this eliminates transaction risks While our "Talk N Pay" software overcomes the mobile device limitations. Combining these technologies simultaneously increases the scope and volume of all buy/sell transactions. The IMPay Interact-intelligent phone, bank, credit, smart or purchase card accounts and makes your ability to pay orsimultaneously through any service combines mobile phone or PDA. Lose your mobile phone and you don't lose them all available get paid. You can use ANY mobile device. Your transactions are secured by transmitting encrypted one time information. may IMPay accounts be stored-value like checking or smart cards for direct transactions with businesses or individuals. In addition, you may get cash from your IMPay, bank or credit card accounts from existing ATM cash machines. Using the "Talk-N-Pay" voice recognition software for mobile devices eliminates the need to type responses into your phone or PDA. I I 1 Who are our potential customers? Any financial institution, wireless carrier, business, merchant or consumer that conducts buy/sell transactions fi'om business-2business (b2b), bnsiness-2-consumer (b2c), consumer-2-business (c2b) or consumer-2-consumer (c2c). What is the size of the market? Various marketing authorities and companies have predicted an average of $200 billion wireless Interact device transactions by 2004. I • International Data Corporation (IDC) - By 2004, 1.4 billion people will access content and commerce on the Web through wireless devices. By 2005, an estimated $200 billion transactions will take place over the wireless Internet. I • • • Strategic Analyties - a mobile commerce market of $200 billion by 2004 with 14 billion annual transactions Yankee Group - 1 billion wireless users by the end of 2002 and 1.26 billion by 2005. go Forrester 2004. By the- end of 2002, PDAs will outnumbermobile phones to the online along with 12 million Intemet-capable 1/3 of Europeans will be using PCs connected to PDAs by Research Intemet. I i • • Gartner Group - 40% of mobile users will adopt Internet-intelligent and PDAs by 2004. Cellular Telecommunications Industry Association (CTIA) - 830 million wireless Intemet devices by 2005. I • • Ericsson Teleeom - 600 million Internet-intelligent phones by 2002. China Mobile Communication - 432.4 million subscribers by the end of 2001 with 5 million Internet:capable phones. I I How willdifferentiators are our service? we market aggregating multiple Our market bank, credit and phone accounts and convenient secure wireless access. "Remote control for your money". As a financial services company, we will partner directly with banks, card companies, and wireless carriers and manufacturers to use their existing sales and marketing channels. We will also market though financial service technology providers such as Cap Gemini, EDS or PWC. Through these financial institutions we will solicit business and merchant accounts to assure a "Powered By" market view of IMPay. Our additional client accounts. branded financial and business services include purchase, promotional, gill stored-value, cash, payroll, travel, expense & incentive I i where the digital wireless networks exist. We have strong Chinese contacts in our Management, Directors and Advisory Boards and IMPay branding will be a multi-lingual & cultural blend of bank and credit card companies. The first target market will be in Europe will begin in China after reaching our market goals in Europe. We will begin in the US as soon as the digital wireless networks become available. _! I In addition to the usual TV and print advertising in Europe, we will market through the production of a multi-lingual info-channel similar to Ziff-Davis TV (ZDTV) in the US. We call it Mobey TV. The broadcast channel will follow the wireless device market and the international Mobeyforum.org, whose mission is to encourage the use of mobile technology in financial services. I I How will we earn revenue? Similar to banks and credit card companies, revenue will be earned primarily from service fees, transaction fees and interest on monies estimated to be between $US 50-250 annually dependingare estimated they are individuals of the purchase price. Membership fees are in pre-paid accounts. Fees charged on seller transactions on whether to be between 1-2% or businesses. We will earn revenue from services to initially "IMPay Power" our business clients and from the licensing of "Talk-N-Pay" mobile device software. Revenue per customer is estimated to be $US 75 in the first year and subsequent years is estimated as $US 150. Customer acquisition costs during the first year are estimated at $US 225 which is three times the cost of acquiring a credit card customer or the same as acquiring a brokerage account customer. The acquisition cost lowers to $US 75 in subsequent years, the same as the cost of acquiring a credit card customer. Banks & Wireless Carriers •:- Service Fees to "Power" Merchant& •". Service Fees to Carriersto "Power" Consumer Accounts accounts stored-valuewireless °:* License fees for"Talk-N-Pay" 45% of Total Software Year I Cost of Sales Revenue EBITDA Employees 12_185_000 159fl00 (12_026_000) 53 Year 2 16,300,000 4_700_000 (11_600_000) 74 I I Merchants & Businesses -:o B2C TransactionFees - 1 to 2% Promotional, Gift, Stored-Value, @ Cash, Payroll, Travel, Expense, B2B Special Service Fees for Purchase, or B2C IncentiveAccounts 40% of Total Year 3 33p900,000 44.000_000 10_100fl00 115 % 75.6% 100% 24.4% Consumers .'° ConsumerMembershipFees .:. -'. Transactionfees - Person-2-Person MonthlyService 2% - Seller pays 1 toFees i i 15% of Total Year 4 51_000_000 110_000_000 59,000_000 238 Year 5 66_900fl00 148,000_000 gl_100fl00 366 I I I Who are our partners? • Banks and credit card companies -Citibank, Natwest, ABN Ambro, Barclays, Euro Card, JCB, Diners, Visa, American Express, Switch, Solo. The IMPay service is seen as an enabler to the bank and credit card markets since we will facilitate the use of bank and credit cards businesses to who either do not accept all types of cards or who do not accept cards at all. Wireless carriers - Vodafone, Verizon, BT, France Telecom, Telefonica Espana, NTI" DoCoMo, AT&T, Sprint. Wireless equipment suppliers - predominantly Ericsson and Nokia with Samsung in Asia. The IMPay service is seen as a valueadded service for equipment suppliers to encourage turnover in device sales and additional airtime for wireless carriers. • • I Who is our competition? I 724 Billpoint Aether Systems C2it Ecash Technolosies EmoneyMail l Firstata-cOne D Mone_'Zap PayTrust Pa_'Pal. Yodlee IMPay Company Payment Mobile Y N Y N N N N N N Y N Y i [ [ Payment internet Y Y Y Y Y Y Y Y Y N Y to Talk Pay N N N N N N N N N N Y from Cash ATM N N N Y Y N Y N N N N Y Accounts Multiple Y Y Y N N Y N Y N Y y Aggregation Account N N N N N N N N N Y y Payment Multiple Options N Y N N N N N N Y N y Accounts Incentive N N N Y N N N N N N y Account Combined Information N N N N N N N N N N Y y i l l I I ] I I Who's on the Team? Chief Executive Officer- TBE - We continue to interview with an eye toward a CEO who may take the company public. President and Chief Operatin I Officer BreH Wflfiamson Mr. Williamson has 15+ years )f experience and has managed technical and accounting operations for companies such as Ericsson Parcel Service. He has managed operations as large as 30 team support managers who in turn managed over 1200 employees for the Hewlett Packard Telecom (EI-[PI'), Ernst & Young, MCI/Systemhouse, Microsoft, I.x_ckheed Martin, Burl Software Labs and United development and support of Mi, :rosofi's PowerPoint, Word and Publisher software products. Mr. Williamson was Vice President of Versata Inc. Professional Services operation in North America. Please see www.versata.com for that company's recent information. i ! I Ed Standridge Senior Vice President Mr. Standridge has 30+ years experience culminating as Vice President at EDS. His industry experience at EDS includes financial Procurement Division in the Center Expertise. Please procurement for that company's recent information. services, travel and transportation,of supply chain and see www.cgi.ca consulting. Mr. Standridge is currently Director of CGI's Byron Head I I Chief Financial20+ years of experience acting as Managing Director, President and Director of Finance for businesses involved in Mr. Head has Officer financial consulting, information systems operations, database development and real estate development. Those companies have taught American business techniques to 233 CEOs at Xian China's High Technology Incubator. Mr.Hines, Inc. Mr. Executive included Bear Steams, Interactive Business Systems, CompuCom, Block Watne - Texas and Gerald D. Head was an Head has Consultant for CGrs Center of Expertise where he facilitated e-Bnsiness strategy at the executive level. Chief Technical Officer Ke Bi Mr. Bi 6+ years of experience and has managed technical support and acted as project supervisor for large telecom installations. He has worked to design and implement large network information systems comparable to the Internet infrastructure for Asialnfo the positions builder of the Intemet infrastructure in China. He has held with Siemens Telecom in China and Nokia in the U.S. He is currently a Senior Systems Engineer with Nokia's Wireless Application Protocol (WAP) Division in Dallas. Please see www.nokia.com for that company's most recent information. Board of Directors - Director & Advisors i I I I •1 Roy Leman I Director - Professional Executions Presently a Full Partner and Director with Professional Executions, one of the largest execution firms headquartered in New York. i Southwest'sRepresentative and the AmericanPresident for Southwest Securities, Dallas, Texas, and for ten years was in New York, and New York floor activities on Senior Vice Stock Exchange. A Partner in R.I.P. Consultants with offices in London, charge of all of Hong Kong. Member in good standing with the American Stock Exchange for over 20 years. Director of Integrated Transportation Network Group, Inc., a Chinese company operating automobile rentals, taxis, & repairs in China. Director of Capital Swiss, Inc. Denver, CO. DC. Advisor toChinese American Republican Party. Advisor to Worth, Texas.American Development Corporation in Washington, Advisor to the the Texas Computer Network, Inc. based in Fort the Chinese Advisor to the Board of Directors of R.M. Stark & Co., Inc., a securities broker-dealer headquartered in Florida. Advisor to Republic Financial Group-Investment Bankers. Inc. - Investment for China-Link, Inc., Chinese Public Relations Company based in Hong Kong. Consultant to Consultant to the Associate AdvisorBankers based in Hong aKong. Consultant for American Quantum Cycles (Florida Motorcycle Co.)Heng Fung Capital New York Institute of Finance. Traveled to China giving lectures and Q&A sessions to Chinese Political and Business leaders. Please see www.askroy.com for his most recent information. John Ho - Advisor Director of Technology, Asialnfo Technology, Beijing, PRC Mr. Ho is presently Technology Director of this NASDAQ traded company (Symbol: ASIA - www.asiainfo.com) now based in a graduate company University Beijing. The is building "ChinaNet", the backbone for the Internet in China. Mr. Ho is of the of Texas at Dallas and has acted as Executive Vice President for intemet Online, Inc. in Dallas, and as an Intemet consultant for GTE and NationsBank prior to joining Asialnfo 5 years ago. Vahan Bachmann - Advisor Vice President - Systems Planning & Engineering - EurekaGGN I i I I I I Mr. Bachmann hasnetworks. He experience in the design and systems for managementBell large and highly complex global computing systems and data 12+ years of has designed and managed operational Bell Labs, of Core, Comdisco and Alpine Systems. Mr. Bachmann has co-authored 2 books on network design and architecture. Karen Faith Heller - People President - Way CoolDirector I i IBM Heller hasthe gamut from sales to Regional Specialist to Industry sales and Technical Marketing Communication. Communications Ms. covering 17+ years of experience in Communications Headquarters staff in charge of managing all Marketing She started with for IBM Technology Solution Center. In 1994 she opened the market for Alternative Resources Corporation (ARC) and delivered the single largest project in which ARC had ever participated. Ms. Heller moved to GTE's new CLEC division to expand their National Accounts program byexisting customers. profile analysis for newopened her own Executive became GTE's National Accounts Manager for several new and developing a base In 1999, Ms. Heller and existing accounts and Placement and Recruiting fLrm,Way Cool People. Ms. Heller was honored this year and participates as one of 114 women across the State of Texas for Leadership Texas 2000. I !