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Ardent Capital Intro
 

Ardent Capital Intro

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    Ardent Capital Intro Ardent Capital Intro Presentation Transcript

    • Ardent Capital Introductory Presented to:Presentation: Matt McDonnell Thursday, March 21, 2013
    • Agenda1. Introductions and background2. Why Southeast Asia – Timeline of interest and involvement – Demographic trends3. Best in class: Thailand‟s potential for continued success – What makes these markets uniquely attractive – Sectors with the large growth potential4. Worrisome SEA markets: Indonesia‟s potential for social unrest5. Growth in action: Interesting startups in SEA – Business models and what makes these companies uniquely positioned for success6. Ideation: Business Pitch7. Questions and next steps
    • Part 1: IntroductionWho is Matt McDonnell  Grew up in Chicago Personal  Ardent Cubs fan/victim  Undergraduate: University of Illinois, Urbana-Champaign, c/o ‘06 Educational  Graduate: Harvard Business School, c/o ’14 (expected)  Morgan Stanley: Equity Research Jr. Associate: ‘07-’09 Professional  Worked directly for IR-ranked Head Analyst covering medium and large-cap U.S. Aerospace & Defense companies  Successfully bought at the peak (joined in July „07) and sold at the trough (left July „09)  Cape Ann Brewing Company (Fisherman’s Brewery): ‘09-’10  Six-month unpaid apprenticeship  Started cleaning floors, worked my way up to running the company‟s draft production  Massachusetts Bay Brewing Company (Harpoon Brewery): ‘10-’12  Worked in the company‟s visitor center before being promoted to a production role  Played a major role in the company‟s largest ever expansion project  Runner-up in company‟s annual mustache competition
    • Agenda1. Introductions and background2. Why Southeast Asia – Timeline of interest and involvement – Demographic trends3. Best in class: Thailand‟s potential for continued success – What makes these markets uniquely attractive – Sectors with the large growth potential4. Worrisome SEA markets: Indonesia‟s potential for social unrest5. Growth in action: Interesting startups in SEA – Business models and what makes these companies uniquely positioned for success6. Ideation: Business Pitch7. Questions and next steps
    • Part 2: Why Southeast Asia? A Clear Continuum of Interest in Southeast Asia 2012-Present: Leveraging HBS to 2007-2009: Worked pursue SEA in finance covering opportunities companies with • Heavily involved in Asia significant SEA Business Club incl. organizing exposure annual conference 2007: First visit to • Networked job search focused • Commercial Aero: SEA on SEA Southeast Asia Boeing backlog third largest globally • Spent 6 weeks backpacking across • Defense: SEA of strategic Thailand & Cambodia importance to US policymakers • Immediately struck by rapid economic growth, pervasive business savvySource: BA Orders & Deliveries Website
    • Part 2: Why Southeast Asia? Southeast Asia as a platform for career growthWhile dwarfed by the US, SEA has now become the world’s 5th largesteconomy Let’s look at what is driving SEA economic growth…Note: SEA basket includes: Indonesia, Malaysia, Philippines, Singapore, Thailand, VietnamSource: OECD
    • Part 2: Why Southeast Asia? Breaking down SEA economic growthNot only does SEA’s productivity growth dwarf it’s G5 counterparts…Note: SEA basket includes: Indonesia, Malaysia, Philippines, Singapore, Thailand, VietnamSource: OECD
    • Part 2: Why Southeast Asia? Breaking down SEA economic growth…it’s population is growing significantly faster too!Note: SEA basket includes: Indonesia, Malaysia, Philippines, Singapore, Thailand, VietnamSource: Relevant governmental census data
    • Agenda1. Introductions and background2. Why Southeast Asia – Timeline of interest and involvement – Demographic trends3. Best in class: Thailand’s potential for continued success – What makes these markets uniquely attractive – Sectors with the large growth potential4. Worrisome SEA markets: Indonesia‟s potential for social unrest5. Growth in action: Interesting startups in SEA – Business models and what makes these companies uniquely positioned for success6. Ideation: Business Pitch7. Questions and next steps
    • Part 3: Best In Class Thailand as A Platform for Stable Growth The Good  A recipe for domestic growth: – Low unemployment: 1% in 2012, the lowest in SEA – Relatively low corruption rankings: 88 of 172 in world, 3rd in SEA – Relatively healthy BOP: +3% of GDP, projected to rise over the next decade – Strong growth in private consumption and real disposable income: +7% y/y, 2nd in SEA Downside Risks  Renewed political instability: – With 6+ coups in the last century alone, Thailand changes its government more often than many of us change our cell phone carriers. – This history poses legitimate concerns that deter investment and trade – It should be noted, that even during the political unrest of 2010 (the worst in the country’s recent history), foreign assets were not nationalized or targeted by protestorsSources: Asia Development Bank; Transparency International 2012 Corruption Perceptions Index; The Jakarta Globe; Bank of Thailand; IMF; Thailand National Economic and Social Development Board
    • Part 3: Best In ClassSectors With Growth Potential: Upscale Bangkok HousingReasons to Consider Capitalizes on burgeoning Thai investor class Continued increase in professional services as % GDP likely to lead to increased migration from suburban to urban areas, driving housing prices up Possible beneficiary of Singapore’s continued attempts to reign in property speculationRisks Increased interest rates: Thailand’s central bank has recently alluded to increases in interest rates as the local economy continues to boom Political degradation: Should Thailand’s ongoing political instability cause extended economic woes high income earners from aboard may return home, causing a pullback in the high-end housing market
    • Agenda1. Introductions and background2. Why Southeast Asia – Timeline of interest and involvement – Demographic trends3. Best in class: Thailand‟s potential for continued success – What makes these markets uniquely attractive – Sectors with the large growth potential4. Worrisome SEA markets: Indonesia’s potential for social unrest5. Growth in action: Interesting startups in SEA – Business models and what makes these companies uniquely positioned for success6. Ideation: Business Pitch7. Questions and next steps
    • Part 4: Worrisome SEA markets Indonesia: An economic powerhouse with potential for unrest The Good  Large domestic market: growth of ~6% very strong relative to 250MM size  Strong growth in private consumption and real disposable income  Strong BOP as exports fuel economic growth The Bad  2014 Presidential elections decreases policy visibility  Corruption remains an issue: – Indonesia currently ranks 118 out of 174 in terms of corruption, 5th among ASEAN members The Ugly  The domestic fuel market is heavily subsidized, resulting in government debt and political instability – Demand distortions continue to cause fuel shortages and social unrest – Previous attempts to lift the subsidy have led to significant social unrest including rioting that contributed to President Suharto‟s resignation in 1998 – Nearly 20% of the Indonesian Government‟s budget pays for domestic fuel subsidies • Exceeds national expenditure on education, healthcare, and public works combinedSources: Transparency International 2012 Corruption Perceptions Index; The Jakarta Globe; Indonesia Census Data, The Economist Intelligence Unit
    • Agenda1. Introductions and background2. Why Southeast Asia – Timeline of interest and involvement – Demographic trends3. Best in class: Well-positioned markets – What makes these markets uniquely attractive – Sectors with the largest growth potential4. Worrisome SEA markets: Indonesia‟s potential for social unrest5. Growth in action: Interesting startups in SEA – Business models and what makes these companies uniquely positioned for success6. Ideation: Business Pitch7. Questions and next steps
    • Part 5: Company ProfilesCompany Profile: DOKU What do they do? Electronic payment (credit card) processing Target market Retailers Headquarters Jakarta, Indonesia Potential Leading position in electronic payments, both online and at brick- and-mortar stores Website http://www.doku.com/
    • Part 5: Company ProfilesCompany Profile: like.vn What do they do? Video game development Target market Large video game companies seeking to outsource their coding and graphic design Headquarters Ho Chi Minh City, Vietnam Potential Beneficiary of video game development outsourcing currently located in high-cost Western countries Website http://www.doku.com/
    • Part 5: Company ProfilesCompany Profile: NuAge Interactive What do they do? Design and implementation of branding strategies Target market Established companies seeking to reinvent their brand/image and growing companies seeking to establish brand identity Mgmt. Team Emmo Italiaander, Narcisse Rassidi Headquarters Jakarta, Indonesia Potential Highly levered to Indonesia‟s growing consumer class
    • Agenda1. Introductions and background2. Why Southeast Asia – Timeline of interest and involvement – Demographic trends3. Best in class: Thailand‟s potential for continued success – What makes these markets uniquely attractive – Sectors with the large growth potential4. Worrisome SEA markets: Indonesia‟s potential for social unrest5. Growth in action: Interesting startups in SEA – Business models and what makes these companies uniquely positioned for success6. Ideation: Business Pitch7. Questions and next steps
    • Part 6: Ideation Trust-Tuk Overview Thursday, March 21, 2013
    • Part 6: IdeationBusiness pitch overview & agenda Agenda We operate and mange an Auto What do we  Background do? rickshaw (Tuk-Tuk) dispatch, – Market Overview inspection, and verification service – The team – Trust-Tuk Business Model Target market Foreign tourists visiting Bangkok who seek an “authentic”  Business Details experience, but value safety and – Planned milestones reliability – Company Metrics – Competitive landscape Mgmt. Team Matt McDonnell- Founder & CEO  Customers & Pipeline Founded March 20, 2013 Headquarters Bangkok, Thailand  Financial Projections 2014e Revenues: $XXX Financials Costs: $XXX  Financing Sought & Use of Funds Income: $XXX
    • Part 6: IdeationThe Team Matt McDonnell: Founder, CEO, and tuk-tuk enthusiast  Education: MBA, Harvard Business School  Experience: investment research, brewery operations, SEA-focused venture capital  First start-up: ProKey.co
    • Part 6: Ideation Today’s Problem is Big and Difficult Customer Pain Point The Thai tourism industry continues to flourish, welcoming millions of tourists annually…Source: Bank of Thailand
    • Part 6: Ideation Today’s Problem is Big and Difficult Customer Pain Point cont. Yet it continues to suffer from concern over safety, including the safety of it’s iconic tuk-tuksSource: Lonely Planet Website
    • Part 6: IdeationOur Business Model Thankfully, Trust-Tuk Has the Answer!  Trust-tuk improves the tuk-tuk market in two ways: 1. Improve tuk-tuk equipment safety through a rigorous inspection and verification system 2. Utilize dispatch services similar to those used by taxi services in the US and elsewhere to increase reliability and customer comfort  The effects of these efforts will be: 1. Decrease equipment-related tuk-tuk accidents among those vehicles inspected, thus increasing customer willingness to ride 2. Allow tourists to differentiate between tuk-tuks that have undergone inspection and those that have not, allowing for fare differentiation 3. Allow customers to book tuk-tuks in advance via their mobile device which will increase ridership Our revenue streams: 1. Tuk-tuk inspection fees 2. Subscription fees for dispatch service
    • Agenda1. Introductions and background2. Why Southeast Asia – Timeline of interest and involvement – Demographic trends3. Best in class: Thailand‟s potential for continued success – What makes these markets uniquely attractive – Sectors with the large growth potential4. Worrisome SEA markets: Indonesia‟s potential for social unrest5. Growth in action: Interesting startups in SEA – Business models and what makes these companies uniquely positioned for success6. Ideation: Business Pitch7. Questions and next steps
    • Part 7: Questions & Next StepsI am happy to discuss whatever you’d like1. Questions?2. Comments?3. Concerns?4. Next steps?
    • Part 7: Questions & Next StepsThank you for your time!