SlideShare a Scribd company logo
1 of 30
Download to read offline
Orto Sharing Ltd
Co-leasing for sports cars
Pitch deck | August 2016
Josh Darling, Co-Founder | London | +447949 242 735 | josh@orto.uk.com | orto.uk.com
Contents
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document. 2
Section Page
Summary 3
1. The business 4 - 7
2. The market 8 - 16
3. The team 17 - 21
4. Summary financials 22 - 25
5. Investment 26 - 29
Please note this document is accompanied by a notes document, financial forecasts, and a riskassessment, which are available
on request. Referencesto the notes document are denoted by a numberin brackets e.g. (1).
Summary
Five reasons to be excited about this investment opportunity:
1. Orto is an innovative new approach to car sharing for sports cars that provides
all the pleasure of having your dream car but for 40%of the normal cost and
none of the hassle.
2. We’re in anindustry that is ripe for disruption, we’ve already achieved proof of
concept, we have great testimonials from our customers, and numerous leads
for the next cars.
3. We are a fully committed teamcomprising great capability in leadership,
technology, and customer experience excellence.
4. Under current assumptions we’re targeting net profitability of11% in three years
and 13% in Year 3,Month 12.
5. We’re aiming todeliver our investors aninvestment multiple ofup to 20 times
on exit in five to eight years.
3© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
1. The business
©	2016	Orto.	In	commercial	confidence. 4
The pain point…
The world isfull of people who love cars,
but findit hard to justify buying their dream
car. That’s because they know getting acar
just for fun is expensive, inefficient , and a
lot of hassle; whilst renting or using acar
club meansyou don’t have ‘your’ car and
introduces complexity, additional costs, and
inconvenience.
5
…The solution
Costcomparison with traditional ownership
models fora Jaguar F-Type S (1)
Orto’s co-leasing service solves this
problem by letting people share asingle
car with three other people on along term
basis -giving them all the driving they
want, whilst reducing the cost by over
60% and taking away all the chores.
£0
£10,000
£20,000
£30,000
£40,000
£50,000
£60,000
£70,000
UPFRONT	COST MONTHLY	COST RUNNING	COST WHOLE	TERM
Orto Leasing	/	finance Sole	ownership	(lump	sum	cash	purchase)
UPFRONT
COST
MONTHLY
COST
RUNNING
COST
WHOLE
TERM
ORTO %
OF COST
Orto £2,249 £489 £0 £13,496 NA
Leasing / finance £5,000 £1,273 £2,890 £37,169 36%
Sole ownership
(lump sum cash
purchase)
£66,565 £0 £2,890 £26,853 50%
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Co-leasing service overview
6
Fourunrelated customers co-
lease asingle new car worth
between £40k and £100k
Customers joina car on atwo-year
term oneat atimethrough the
orto.uk.com showroom. They can
familiarise themselves withthe
system and make any pre-sale
bookings theywouldlikebefore
theybuyand complete their
security checks andpayments
online.
The customers
booktime with their car
throughtheir Ortocalendar
Each customer has 85 days per
year whichtheybook viatheweb
and anapp. The system has inbuilt
rules toguarantee fairness of
access, includingweekends,
whichwe havedeveloped
through countlesshours of
specialist development and user
testing.
Ortotakes care ofall the
details foran upfrontand
monthly fee
Theall-inclusivefees include
collectionanddelivery, valet,
insurance, maintenance,storage
whenthecar iswithOrto, road tax,
and more. Attheend of theterm
customers’ payments simply
cease and theycan either‘walk
away’, or benefitfrom incentivesto
joinanother car.
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Orto’s business model
7
We charge customers anupfront fee when they joina
car, followed by all-inclusive monthly fees throughto the
end of the car’s two-year term. The processworksas
follows:
• We order acar from our supply partner and make it
available for co-leasinginour online showroom.
• Customers jointhe car one at a time, making any pre-
sale bookings they would likebased onthe car’s
delivery date. We take anauthorisationfor the
upfront fee on the customer’s paymentcard to lock in
their bookings.
• Once the car is ready for delivery(fromtwo weeksto
three months depending onwhether we order from
stock or as a freshbuild) we take the upfront fees,
purchase and register the car inOrto’s name, insure
it, and deliver itto the customer withthe firstbooking.
• The customers pay their monthly subscription
throughout the term.
• At the end of the term we sell the car, clear the
finance, and retain the difference.
Our innovative model providesastrong foundationby
setting up long-term, highvalue relationships withour
customers. We also see greatopportunity to provide
them with a range of value-adding additional services:
• Access to more amazing cars: accessto hourly and
short-termrentals throughthe Orto calendar for those
customers who wantextravariety ona short-term
basis: we planto facilitate these vehiclesthrough3rd
parties and take a 10% commissionor cut.
• Regular car leases: for those customers who wanta
full-time car on top of their co-leasedcar: we planto
deliver this serviceonabrokerage basis, with
contracts subjectto a ‘finder’s fee’ paidto us by the
underwriting leasing company.
• Orto Experiences: providesrecommendations to
customers onplaces and events they mightlike to
visitwhilstthey have their car booked. We planto
take a 10% commissionor cuton facilities arranged.
Core co-leasing service Additional services
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
2. The market
©	2016	Orto.	In	commercial	confidence. 8
Growth incar sharing
Industry trends
9
2024
$6.4bn
2014
$1.1bn
In2015, Navigant Research
projected that theglobal car
sharing industry will grow from
$1.1bnin 2014to $6.4bnin 2024
– a490% increase over thenext
decade (3).
Growth inonline car buying
Research conducted in2016 for
Buyacar.co.ukin theUK found
significant growth between2013
and 2016 inthose happy to buya
new caronline without seeing it
first (5).
2016
31.3%
2013
17.5%
Growth insubscription pricing
Theautomotiveindustry isundergoingsignificantchange, driven by globaleconomic developments,
volatileoilprices, lowinterestrates, peakauto sales,and theapproaching declineoftraditionalcar
ownership (2).As aresult, weexpect toseethefollowingtrends, which underpin thegrowing demand we
seein our targetmarket, toaccelerateover the nextfiveyears:
2016
42%
IBM’s2016research paper ‘ANew
Relationship: People and Cars’
found 42%of their 16,000global
respondents wereveryinterested in
subscription pricing, putting access
above ownership (4).
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Target customer
Our target customers are professionalsin major citiesearning between£50,000 and £150,000 per
year. In London,our initialmarket, thisrepresents about400,000 people(6).At themoment, our
customers tendtobemen agedbetween30 and 45,butwe believethis willexpandasgreater
participationfrom women inthe autosector islongoverdue and,as wegrow, oldercustomers will
bemore likelytoembrace alternativestotraditionalbuying andownership.
Initial target customers in London=400,000
Our market research in 2012 found10.2% (7)ofrespondentswere very interestedinjoiningour
service, which basedon our targetdemographic wouldequateto40,000 privatecustomers in
Inner London.However, three factors suggestthis findingisnow conservative: 1) the Ortoco-leasing
modelwe have todayismore accessiblethan thefractional ownership modeltested,2)as aresult
ofthetrends setouton slidenine, interestinsharing modelshas grown significantlysince thattime,
and 3)in additiontotheir findingsonsubscription pricing,IBM alsorecently foundthat 24% oftheir
16,000 respondentswere very interestedin fractionalownership (8).Therefore, wehave assumed
an interestlevelof15%, orc. 60,000 potentialcustomers in InnerLondon.
Initial potential customers in London= 60,000
10© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Potential market
11
We’veproven with our firstcar that fora quarter share ofa Jaguar F-TypeS onan all-inclusive
contract, these customers are willingtopayapproximately 27%ofthecost ofleasinga car alone.
Once Orto isestablished,weanticipatethiswillincrease tothe 36% indicatedinthe price
comparison on slidefive:£2,249upfront and £489per month includingVAT(or £1,874upfront and
£408 permonth net ofVAT),totalling£11,258for thetwoyear term, or £5,629annualised.
Annualised revenue per customer net ofVAT: £5,600
Atan annualisedrevenue percustomer of£5,600 netofVAT,thiswould translateintoa potential
market inLondonof£336m per year (9).In lateryears we plantoexpand tootherUK citiessuch as
Birmingham, Leeds,Manchester, and Bristol,and major Europeancitiessuch asBerlin, Madrid,
Rome, andParis. Basedon populationsizesrelativetoLondonthe scaleofopportunityis estimated
tobe£269m across theseother UKcities(£605m in total)and £1.27bnacross theseEuropean cities
(10), or £1.88bnintotal.
Potential markets: London=£336m; UK =£605m; Europe = £1.27bn; total =
£1.88bn
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Current traction
12
The service is upand running: orto.uk.com isfully liveand processingcustomers fromfirstvisit to
payment and the daily managementofbookingsby customers through the Ortocalendar.
Proofofconcept is complete: wehave aJaguar F-Type Sco-leasedto four,arm’slength customers,
and working extremelywell(pleaseseeour testimonialson the following slide).
We’re ready togrow: wehave hundreds ofsubscribers, numerous leadsforthe next cars, and a
provenability to acquire moreon demand.Thetop carscustomers want toco-lease next include the
Range RoverSport,Porsche 911 CarreraS, and MaseratiGran Turismo.
Further accomplishments include:
• Takingour first£9,000 ofrevenue (netofVAT)
• Buildinga highlysophisticatedsharing platformin-house
• Receiving mediaattentionin theFT, TheSunday Times,TechCrunch, and more
• Securing a bespokeinsurance dealspecificallyforco-leasing
• Being authorisedby theFinancial Conduct Authority
• Enteringtalkswith atopgloballeasingcompany aboutanassetfinance partnership
• Completingour seedfundinground in June 2015 for£113,500
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Customer testimonials
13
“I don’tneedacar allthe time,so the Orto modelworksperfectlyforme.I’ve gotplentyofdaystobookwhenIneed
themandI lovethe familiarity ofhaving the samecareverytime.It’s veryconvenient –Orto dropoffand collect the car,
anddealwiththe cleaning and maintenance.AndI didn’tneedto spendahuge sumonacarthatsitsaround gathering
dustanddepreciating.I’d recommendOrto withouthesitation.”
- Chris,Jaguar F-TypeSCoupe,April2016
“I’d beenplaying withthe ideaofbuying asportscarforawhile. But witha2-yearoldson,the largeinitial outlaywashard
to justify. WithOrto I getto drive aphenomenalsportscarwhenIneedit –and itfeelslike the car’smine.I love thatthe
car’sdeliveredto mydoor,and thateverything’swrappedupinthe fixed monthlycost. It’s averypersonalservice;I
alwaysspeakdirectlyto the founders,who doeverything theycanto help.”
- William,JaguarF-TypeSCoupe,April2016
“I’ve ownedperformancecarsin the pastand gotlimited use outofthem–butstill hadthe costand headacheof
insurance, servicing etc. Orto isaverysensibleidea:allthe enjoyment,without the drawbacks.It’s averysimple andcost
effective wayto dothings; IknowwhatI’m getting eachmonth.The bookingsystemisapieceofcake touse andthe
handovershave beenseamless.All-in-allaveryenjoyableexperience.”
- Ali,JaguarF-TypeSCoupe,April2016
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Competitive landscape
14
Thistablesetsoutthedifferentmodelsthatwe competewith andhow we compare tothem:
What it is Who's out there What it costs How we compete
Sole ownership
Buying a either a new or a
used car as a cash
purchase.
This is a personal
option financed
with the individual's
cash.
New Jaguar F-Type S: upfront: £66,565;
monthly: £0; total est. two-year cost: £26,853
Used Jaguar F-Type S: upfront: £46,000;
monthly: £0; total est. two-year cost: £14,200
We offer lower upfront and whole-term costs whilst
removing the chores of ownership such as insurance
and maintenance. As we refine our model over time we
plan to make used cars available for co-leasing for
those customers who are less attracted by the prospect
of a brand new vehicle.
Leasing and
finance
Leasing a car alone on a
long term contract or taking
out a secured loan to buy a
car.
Jaguar Finance,
BMW Finance,
Black Horse, Close
Brothers.
A Jaguar F-Type S from Jaguar Finance
including options and after an assumed
discount on a two-year term costs £37,169 for
the whole term, or £41,120 on a three-year
term.
We bring the same advantages as with sole ownership,
except with an emphasis on a significantly reduced
monthly cost and the whole-term cost reduction is even
more pronounced. We will explore longer co-leasing
terms with our partners in due course.
Short term
rental
Renting a car on a short
term basis from a company.
Avis Prestige,
Hertz Prestige,
smaller
independent
companies.
A four-day booking for a Jaguar F-Type S in
June 2016 cost £997, or a daily cost of £250. At
this cost 85 days would come to £21,186, so for
two years (170 days), £42,373.
Supercar clubs
Companies that own a fleet
of supercars to which
customers have short term
access in exchange for an
annual fee
Auto Vivendi, P1.
Direct comparisons are difficult as supercar
clubs offer very high-end vehicles usually
starting at £100k. Auto Vivendi offer a
membership for £25,000 per year that they say
results in an average of 70 days driving, so
£50,000 for two years.
Peer-to-peer
Renting a car on a short
term basis from an individual
owner.
Easy Car Club,
Hiya Car.
As at 22/07/16 there were no premium sports
cars available for comparison.
In addition to the lack of comparable cars available, the
Google reviews for Easy Car Club indicate that peer-to-
peer services are unlikely to present an attractive
option for those seeking convenience.
We are a significantly more cost-effective approach to
having a car over a long-term period than rental or
supercar clubs and with these options you don't have
'your' car. We also offer less complexity with a simple
online booking system and day alowance rather than
points-based systems and more convenience with
inclusive collection and delivery. Rental and supercar
clubs specialise in offering a variety of short term
driving experiences. Through our business model
developments we will make additional variety available
to customers for whom this is desirable.
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Competitive advantage
15
Co-leasing is abrand newbusiness opportunity. Orto isideally placedto own this space because:
• We’re first tomarket: toour knowledgewe’re thefirstcompany toembrace and drive co-
leasinginthe UKthrough our proven market proposition(11).
• We’re a great team: wecombine leadership,technology,and customer experience
excellencewith a passionfor cars and a proven track record ofworking effectivelytogether.
• We embrace technology: our Orto-developedsharing platform,including theOrto calendar,
istheresult ofcountlesshours ofexpertdesignanddevelopment,and our in-house
capabilitymeans wecan respondtoopportunitiesquicklyand toahigh levelofquality.
• Design and brand: we’ve takencare todevelopour non-pretentious,accessibleyet
aspirationalbrandingto differentiateusfrom other autoservice brands.
• We have marque freedom: we can supply any brand tofacilitate‘dream garages’,
differentiatingusfrom any potentialfuturemanufacturer propositions.
• We’re focused on theexperience: our customers want acar experiencethat enhances
their lifestyleandmakes themfeelspecial,servedthrough an easy, onlinesystemthat they
can control from thecomfort oftheir deskor smartphone. Thisisexactly whatwe deliver.
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Go to market strategy
In co-leasing our first car, we have proven that acombination of car-specific online display
advertising and PR isa highly effective way to generate leads. We then convert these leads
through our website, supported by telephone, email, and live chat.
Our marketing strategy for the next six to 12 months istherefore to continue to operate a small
and lean digital marketing capability –the simpler the better –and to only spend on activities
that guarantee ROI and that can be implemented rapidly for immediate impact. We will
execute this strategy by expanding volumes in our existing display marketing, whilst adding
new email list andvideo marketing channels.
In terms of resources, we will take on apart-time Marketing Manager with expertise in digital
marketing to provide additional experience commensurate with our additional spending level.
We will work with them to plan, produce, and deliver our campaigns with the objective of
gradually growing our sales target every two months i.e. after a‘warm up’ month in M1post-
raise, we aim toco-lease two cars in M2and M3, three in M4 and M5,four in M6and M7, and
so on throughout the three-year projections shown on slide 23. However, in reality, as we
progress we will do everything we can to maximise penetration in our target market.
16© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
3. The team
©	2016	Orto.	In	commercial	confidence. 17
The founders
18
Josh Darling
Prior toOrto, Joshspent10 years developingnew organisationsanddelivering
change in thehighlycomplex health sector.He hasledand managedteams to
developand execute planstacklingavariety ofbusinesschallenges,including
enterprisecreation; long-term businessplanning;deliveringperformance
transformation programmes; helpingtoturn around around loss-making
departments;and identifyingand achieving newmarket opportunities.
Jules Copeland
Julesisthe technologicaldriving forcebehindthe company. Obsessedwith
technologyand cars sincechildhood,he spentthelast15 years buildingand
managing websitesand webapplications.AsSenior DeveloperatNinetyTen,
he builtthe Engageplatform, areconfigurable privatesocialnetwork for
organisations.Always keentopush technologytoitslimits,heseesthe powerin
connecting disparatetechnologiestosolverealworld problemsin easytouse
ways.
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Board and investors
19
Board and investors
Wehave 10 investors from arange ofbackgrounds who are representedon our boardby our two
leadinvestors:Chris Clark andJohn Deverill.
Chris Clark
Followingasuccessful career inthe city andeightyears atHermes Private Equity,Chris started
investinghis ownmoney instart-ups andsmaller MBOs andisnow a ‘serialentrepreneur’ with a
verifiabletrack record:
• Founder ofJasmine Healthcare, which generates£5.6m revenue and £1.8millionEBITDA
• Cornerstone investorin theearly stageMBO ofVibrant Energy Matters, which generates
£8.8mrevenue and £1.1m EBITDA andwas listedin theTimesFastTrack 100 in 2014
• Lead-investorin thebuy-in/buy-out ofWTGTechnologies,where healsoheldexecutive
positions,including CEOand FD.Having recruited a new CEO,he thentookupa Non-
Executiverole andsupportedthe CEOin achieving asuccessful trade saleinAugust
2015 thatreturned a2.8xmoney multipletoinvestors
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Board and investors
20
Chris was the leadinvestor in thefirstfundinground ofOrto in 2015 andwillprovide
complementary skillsand experiencetothat ofJoshand Jules.
JohnDeverill
John isthemanaging partner ofGE Healthcare’sadvisory business. Hehas personallybuiltand
run anindependentspecialistconsultancy, andworked asa partner in otherconsultancies and has
beensalesand marketingdirector ofa FTSE100 company. Prior toallofthisJohn was an army
officerfor 18years.
In additiontothecommercial experience gainedinhis own right,John advisesnumerous boardsof
publicand privatehealthcare, focussedorganisationson matters ofstrategy,organisational
development,transformation andgrowth.
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Advisors and commercial relationships
21
Advisors
Wedraw on awealth ofexperiencefrom our advisors andour commercial relationships.Our
advisors include:
• Brett Akker,co-founder ofStreetcar and Lovespace
• Richard Atkinson,Technology Director atNandosand formerly Chief InformationOfficer
atJustGiving
• RussellCookeLLPSolicitors
• Arnold HillLLPAccountants
Commercial relationships
Our commercial relationshipsinclude Lookers,Jaguar LandRover, AllenandAllen Insurance,
ParkLet,theRAC, and Stripepayment services. Weare regulatedbythe FinancialConduct
Authority.
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
4. Summary financials
©	2016	Orto.	In	commercial	confidence. 22
Y1 Y2 Y3
Total new cars 44 114 186
Total cars on the road 44 158 300
Total new customers 176 456 744
Total customers 176 632 1,200
% of 60k pot. London market 0.29% 1.05% 2.00%
Total revenues £633,111 £2,750,603 £6,162,880
Of which co-leasing £599,911 £2,623,170 £5,897,913
Of which additional services £33,200 £127,433 £264,967
Total expenses £893,675 £2,667,666 £5,488,585
EBITDA (£55,405) £1,154,543 £3,187,520
EBITDA % -9% 42% 52%
Net profit (£260,563) £82,937 £674,295
Net profit % (41%) 3% 11%
*
**
Summary financials
23
This tablesets out our anticipatedperformance for the first three years post-raise. The projections are for London only and
exclude thefurther options for expansion set out on slide 11. Forecast net profit by M12 of Y3 is 13%.
All figures excl. VAT
* Revenues from
upfront fees are
recognised inthe
the month in which
they are invoiced,
whilstfor statutory
purposes the annual
accounts will defer
the income over the
durationof each
car’s term
** Expenses are
brokendownonthe
following slide
*** Improving unit
economics broken
downon slide 25
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Capital and operating expenses/costs
24
Denotes spending associatedwithphysicalassets.All other spending relatesto operating expenses/costs.
Forecast cash flow costs by category Y1Forecast P&L expenses by category Y1
Expense £ % Cost £ %
Pay £270,300 30% Deposits	on	customer	cars £545,600 38%
Depreciation	on	customer	cars £160,281 18% Pay	(including	marketing	support) £270,300 19%
Insurance £152,750 17% Secured	debt	repayments £173,057 12%
Collection	and	delivery	costs £69,130 8% Insurance £152,750 11%
Customer	acquisition £68,200 8% Other	overheads	(including	app	dev.) £62,000 4%
Other	overheads £62,000 7% Collection	and	delivery	costs £69,130 5%
Interest	payments £44,877 5% Customer	acquisition	(media	spend	only) £68,200 5%
Premises £23,000 3% Interest	payments £44,877 3%
Maintaining	vehicles £22,300 2% Premises £23,000 2%
Vehicle	storage £20,836 2% Vehicle	storage £20,836 1%
£893,675 100% Maintaining	vehicles £22,300 2%
£1,452,051 100%
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Revenues Car	1 Car	17
Upfront	fees	(total	for	four	customers) £4,205 £7,497
Monthly	fees	(total	for	four	customers) £27,899 £37,490
End	of	term	gain	from	sale	of	car £3,442 £3,442
£35,546 £48,428
Expenses
Customer	acquisition	(for	four	customers) £4,000 £1,000
Interest £16,515 £4,200
Depreciation £17,250 £17,250
Insurance	(years	one	and	two) £14,500 £5,000
Collection	and	delivery £7,440 £7,440
Maintenance £2,400 £2,400
Storage £2,160 £2,160
£64,265 £39,450
Gross	margin (£28,720) £8,978
Gross	margin	% -81% 19%
Unit economics
25
Weexpecttoseeapproximately-81%grossmarginonourfirstcar
bytheendofitstwoyearterm. Thisistheresultofcostssuchas
financeandinsuranceforasinglecaroperatingunderanew
modelbeinghigherthanwearelikelytoseeatgreatervolumes.
Oncewereachapproximately17carsinY1,M7weexpecttosee
19%grossmarginpercaroveratwo-yearterm.Inadditiontothe
pricingimprovementssetoutonslide11,thisassumesthefollowing
costimprovements:
Customeracquisition:startingfrom£1,000percustomer,or
£4,000percar,a5%reductiononacar-by-carbasistoafloorof
£250percustomer,or£1,000percar.
Interest:startingfrom20%APR,oranaveragemonthlyinterest
paymentof£688overa24-monthloantermwitha20%deposit,a
7.5%reductionofouraveragetotalmonthlyinterestpaymentsper
caronacar-by-carbasistoafloorof£175percar,permonth,which
representsanAPRof5.1%.IndicativeAPRfromLloydsCommercial
Finance foracommercialloansecuredagainstacaris5.6%(13).At
thispointwewouldbefinancingc.£1mspreadover17cars.
Insurance:startingfrom£10,000percar,a7.5%reductionofour
averagepremiumpercaronacar-by-carbasistoafloorof£2,500
percar.Thiscomparestoaprivateinsurancepolicywithfour
unrelateddriversinsuredfor15,000milesperyearcostingc.
£1,500(14).Atscalewemayseektoself-insure.Directrevenues and costs for co-leasing only:excludesadditional
services. AllfiguresexcludeVAT.
Gross profit percar after two year term
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
5. Investment
©	2016	Orto.	In	commercial	confidence. 26
Investment required
Current round
Our priorities for the next 12 months are to build our customer base and improve our
pricing potential whilst reducing our major costs to establish positive unit economics.
We are therefore seeking £415,000 of equity investment with a pre-money valuation
of £1.66m (20% equity) to invest –combined with our revenues –in the cars, people,
marketing, and technology set out on slide 24.This investment will help us reach our
Y1 target of44 cars (176 customers) and £633,000 of revenue net of VAT.
Future rounds
Based on our target growth we expect to be cash flow positive by Y3,M1. Once
we’ve achieved our Y1 targets,we therefore expect to require a further £500,000 to
£1m of investment in 12 months’ time –at the start of Y2– so we can grow toreach
158 cars (632 customers), an annualised revenue run rate of £4.1m net of VAT,and
become self-sustaining by the end of the year. Further investment requirements at
this point will be determined by our approach toexpansion.
27© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Exit options
28
Asa result of the extensive change the automotive industry isundergoing at the moment
(see slide nine), there are a growing number of well-established firmstaking large stakes
in relatively new businesses. Examples include Volkswagen and Gett, General Motors and
Lyft, and Toyota and Uber. Indeed we ourselves as an early stage business are talking to
one of the leading global leasing companies about partnering on co-leasing as part of
their broader innovation programme.
We therefore anticipate the most exciting exit opportunities for our investors will be
through sale to a strategic buyer such as amajor leasing company, rental company, or
manufacturing group in Y5 toY8. The target would be to achieve a10 to 20 times
investment multiple at this point.
A good real-world example isof the company co-founded by one of our advisors, Brett
Akker, in 2004. In 2010 they sold UK-based Streetcar to Zipcar for £32.5m. Zipcar was
attracted to them as they saw the opportunity for rapid growth through acquisition in a
growing industry, and with the development we have describe in this document, Orto
would represent an excellent opportunity for astrategic buyer with the same goal.
© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Conclusion
Inconclusion, a reminder ofwhy we believe Ortois a great investment opportunity:
1. Ortois an innovative newapproach tocar sharing forsportscars that providesallthe
pleasureofhaving your dreamcar but for40% ofthe normalcost and none of thehassle.
2. We’rein an industry that isripefordisruption, we’ve alreadyachieved proofofconcept,
we have greattestimonialsfromourcustomers, and numerous leadsforthe next cars.
3. Wearea fully committedteamcomprising greatcapability in leadership,technology, and
customer experienceexcellence.
4. Undercurrent assumptions we’retargetingnet profitabilityof 11%in threeyears and 13% in
Year3, Month 12.
5. We’reaimingto deliverour investors an investment multiple ofup to20 timeson exit in
five toeight years.
We’rereadytomakeOrtoa huge success. We’dloveyou to beapart ofit. Thank you.
29© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
Josh Darling, Co-Founder | 07949 242 735 | josh@orto.uk.com
© 2016 Orto Sharing Ltd

More Related Content

What's hot

TapCab Business Plan
TapCab Business PlanTapCab Business Plan
TapCab Business PlanEric Dahl
 
10 Step Marketing Plan - UBER
10 Step Marketing Plan - UBER10 Step Marketing Plan - UBER
10 Step Marketing Plan - UBERKEN5JK
 
Competitor Analysis Meru vs Ola cabs _Amit Katyayan
Competitor Analysis Meru vs Ola cabs _Amit KatyayanCompetitor Analysis Meru vs Ola cabs _Amit Katyayan
Competitor Analysis Meru vs Ola cabs _Amit KatyayanAmit Katyayan
 
Pitch Deck for Enlive
Pitch Deck for EnlivePitch Deck for Enlive
Pitch Deck for EnlivePitch Decks
 
IS 300: Uber Truck Pitch
IS 300: Uber Truck PitchIS 300: Uber Truck Pitch
IS 300: Uber Truck PitchTeresa Chuang
 
Car wash service center
Car wash service centerCar wash service center
Car wash service centerSAIPRASAD RANE
 
Corporate Automobile Lease Proposal PowerPoint Presentation Slides
Corporate Automobile Lease Proposal PowerPoint Presentation SlidesCorporate Automobile Lease Proposal PowerPoint Presentation Slides
Corporate Automobile Lease Proposal PowerPoint Presentation SlidesSlideTeam
 
Bolt founder story - how to make an impact? Martin Villig / TechChill 2020, R...
Bolt founder story - how to make an impact? Martin Villig / TechChill 2020, R...Bolt founder story - how to make an impact? Martin Villig / TechChill 2020, R...
Bolt founder story - how to make an impact? Martin Villig / TechChill 2020, R...Martin Villig
 
UBER-Current Strategy, Competition Analysis and Global Expansion
UBER-Current Strategy, Competition Analysis and Global ExpansionUBER-Current Strategy, Competition Analysis and Global Expansion
UBER-Current Strategy, Competition Analysis and Global ExpansionShaminder Saini
 
Supply Demand Gap Analysis of Uber Cab
Supply Demand Gap Analysis of Uber CabSupply Demand Gap Analysis of Uber Cab
Supply Demand Gap Analysis of Uber CabShreya Solanki
 
Carsharing, Ridesharing, Carpooling and all...
Carsharing, Ridesharing, Carpooling and all...Carsharing, Ridesharing, Carpooling and all...
Carsharing, Ridesharing, Carpooling and all...Hugo Guyader
 
[OtoSharing] Pitch Deck v2.1.5
[OtoSharing] Pitch Deck  v2.1.5[OtoSharing] Pitch Deck  v2.1.5
[OtoSharing] Pitch Deck v2.1.5Minh Hoang
 
Uber's Business Model _ Abii-Ndoh, Godwin
Uber's Business Model _ Abii-Ndoh, GodwinUber's Business Model _ Abii-Ndoh, Godwin
Uber's Business Model _ Abii-Ndoh, GodwinGodwin Abii-Ndoh
 
Sneak - dtac accelerate batch 7
Sneak - dtac accelerate batch 7Sneak - dtac accelerate batch 7
Sneak - dtac accelerate batch 7dtac Accelerate
 

What's hot (20)

TapCab Business Plan
TapCab Business PlanTapCab Business Plan
TapCab Business Plan
 
10 Step Marketing Plan - UBER
10 Step Marketing Plan - UBER10 Step Marketing Plan - UBER
10 Step Marketing Plan - UBER
 
UBER
UBERUBER
UBER
 
Competitor Analysis Meru vs Ola cabs _Amit Katyayan
Competitor Analysis Meru vs Ola cabs _Amit KatyayanCompetitor Analysis Meru vs Ola cabs _Amit Katyayan
Competitor Analysis Meru vs Ola cabs _Amit Katyayan
 
Pitch Deck for Enlive
Pitch Deck for EnlivePitch Deck for Enlive
Pitch Deck for Enlive
 
IS 300: Uber Truck Pitch
IS 300: Uber Truck PitchIS 300: Uber Truck Pitch
IS 300: Uber Truck Pitch
 
Scoosh pitchdeck
Scoosh pitchdeckScoosh pitchdeck
Scoosh pitchdeck
 
Car wash service center
Car wash service centerCar wash service center
Car wash service center
 
UBER
UBERUBER
UBER
 
RideConnect Pitch Deck
RideConnect Pitch DeckRideConnect Pitch Deck
RideConnect Pitch Deck
 
Corporate Automobile Lease Proposal PowerPoint Presentation Slides
Corporate Automobile Lease Proposal PowerPoint Presentation SlidesCorporate Automobile Lease Proposal PowerPoint Presentation Slides
Corporate Automobile Lease Proposal PowerPoint Presentation Slides
 
Uber case study
Uber case studyUber case study
Uber case study
 
Bolt founder story - how to make an impact? Martin Villig / TechChill 2020, R...
Bolt founder story - how to make an impact? Martin Villig / TechChill 2020, R...Bolt founder story - how to make an impact? Martin Villig / TechChill 2020, R...
Bolt founder story - how to make an impact? Martin Villig / TechChill 2020, R...
 
UBER-Current Strategy, Competition Analysis and Global Expansion
UBER-Current Strategy, Competition Analysis and Global ExpansionUBER-Current Strategy, Competition Analysis and Global Expansion
UBER-Current Strategy, Competition Analysis and Global Expansion
 
Supply Demand Gap Analysis of Uber Cab
Supply Demand Gap Analysis of Uber CabSupply Demand Gap Analysis of Uber Cab
Supply Demand Gap Analysis of Uber Cab
 
Carsharing, Ridesharing, Carpooling and all...
Carsharing, Ridesharing, Carpooling and all...Carsharing, Ridesharing, Carpooling and all...
Carsharing, Ridesharing, Carpooling and all...
 
[OtoSharing] Pitch Deck v2.1.5
[OtoSharing] Pitch Deck  v2.1.5[OtoSharing] Pitch Deck  v2.1.5
[OtoSharing] Pitch Deck v2.1.5
 
Uber's Business Model _ Abii-Ndoh, Godwin
Uber's Business Model _ Abii-Ndoh, GodwinUber's Business Model _ Abii-Ndoh, Godwin
Uber's Business Model _ Abii-Ndoh, Godwin
 
Getmyparking ppt
Getmyparking pptGetmyparking ppt
Getmyparking ppt
 
Sneak - dtac accelerate batch 7
Sneak - dtac accelerate batch 7Sneak - dtac accelerate batch 7
Sneak - dtac accelerate batch 7
 

Similar to Orto - Pitch Deck - August 2016

Leasing Global Market Report 2018
Leasing Global Market Report 2018Leasing Global Market Report 2018
Leasing Global Market Report 2018SainathMuntha1
 
Business Fleet Africa April 2023.pdf
Business Fleet Africa April 2023.pdfBusiness Fleet Africa April 2023.pdf
Business Fleet Africa April 2023.pdfTristan Wiggill
 
Institutional Presentation - February/17
Institutional Presentation - February/17Institutional Presentation - February/17
Institutional Presentation - February/17Localiza
 
Business Fleet Africa October 2022.pdf
Business Fleet Africa October 2022.pdfBusiness Fleet Africa October 2022.pdf
Business Fleet Africa October 2022.pdfTristan Wiggill
 
Institutional Presentation
Institutional PresentationInstitutional Presentation
Institutional PresentationLocaliza
 
Institutional Presentation 2T14
Institutional Presentation 2T14Institutional Presentation 2T14
Institutional Presentation 2T14Localiza
 
Localiza institucional inglês
Localiza institucional   inglês Localiza institucional   inglês
Localiza institucional inglês Localiza
 
COTG Final Example
COTG Final ExampleCOTG Final Example
COTG Final ExampleDima Makei
 
carwow insights workshop 2018
carwow insights workshop 2018carwow insights workshop 2018
carwow insights workshop 2018Bryony Snelling
 
Institutional Presentation - November, 2014
Institutional Presentation - November, 2014Institutional Presentation - November, 2014
Institutional Presentation - November, 2014Localiza
 
Localiza institucional inglês
Localiza institucional  inglêsLocaliza institucional  inglês
Localiza institucional inglêsLocaliza
 
Institucional Presentation - April/15
Institucional Presentation - April/15Institucional Presentation - April/15
Institucional Presentation - April/15Localiza
 
The extended warranty market in china by daxue consulting
The extended warranty market in china by daxue consultingThe extended warranty market in china by daxue consulting
The extended warranty market in china by daxue consultingDaxue Consulting
 
Institucional Presentation - May/15
Institucional Presentation - May/15Institucional Presentation - May/15
Institucional Presentation - May/15Localiza
 
Institucional Presentation - May/15
Institucional Presentation - May/15Institucional Presentation - May/15
Institucional Presentation - May/15Localiza
 
Localiza institucional inglês
Localiza institucional   inglêsLocaliza institucional   inglês
Localiza institucional inglêsLocaliza
 
Investor Relations Presentation - Jul/2018
Investor Relations Presentation - Jul/2018Investor Relations Presentation - Jul/2018
Investor Relations Presentation - Jul/2018Localiza
 
Leasing global market report 2019
Leasing global market report 2019Leasing global market report 2019
Leasing global market report 2019GUDURUSRIKANTH1
 
Institucional Presentation - May/15
Institucional Presentation - May/15Institucional Presentation - May/15
Institucional Presentation - May/15Localiza
 

Similar to Orto - Pitch Deck - August 2016 (20)

Cdx17 deck
Cdx17 deckCdx17 deck
Cdx17 deck
 
Leasing Global Market Report 2018
Leasing Global Market Report 2018Leasing Global Market Report 2018
Leasing Global Market Report 2018
 
Business Fleet Africa April 2023.pdf
Business Fleet Africa April 2023.pdfBusiness Fleet Africa April 2023.pdf
Business Fleet Africa April 2023.pdf
 
Institutional Presentation - February/17
Institutional Presentation - February/17Institutional Presentation - February/17
Institutional Presentation - February/17
 
Business Fleet Africa October 2022.pdf
Business Fleet Africa October 2022.pdfBusiness Fleet Africa October 2022.pdf
Business Fleet Africa October 2022.pdf
 
Institutional Presentation
Institutional PresentationInstitutional Presentation
Institutional Presentation
 
Institutional Presentation 2T14
Institutional Presentation 2T14Institutional Presentation 2T14
Institutional Presentation 2T14
 
Localiza institucional inglês
Localiza institucional   inglês Localiza institucional   inglês
Localiza institucional inglês
 
COTG Final Example
COTG Final ExampleCOTG Final Example
COTG Final Example
 
carwow insights workshop 2018
carwow insights workshop 2018carwow insights workshop 2018
carwow insights workshop 2018
 
Institutional Presentation - November, 2014
Institutional Presentation - November, 2014Institutional Presentation - November, 2014
Institutional Presentation - November, 2014
 
Localiza institucional inglês
Localiza institucional  inglêsLocaliza institucional  inglês
Localiza institucional inglês
 
Institucional Presentation - April/15
Institucional Presentation - April/15Institucional Presentation - April/15
Institucional Presentation - April/15
 
The extended warranty market in china by daxue consulting
The extended warranty market in china by daxue consultingThe extended warranty market in china by daxue consulting
The extended warranty market in china by daxue consulting
 
Institucional Presentation - May/15
Institucional Presentation - May/15Institucional Presentation - May/15
Institucional Presentation - May/15
 
Institucional Presentation - May/15
Institucional Presentation - May/15Institucional Presentation - May/15
Institucional Presentation - May/15
 
Localiza institucional inglês
Localiza institucional   inglêsLocaliza institucional   inglês
Localiza institucional inglês
 
Investor Relations Presentation - Jul/2018
Investor Relations Presentation - Jul/2018Investor Relations Presentation - Jul/2018
Investor Relations Presentation - Jul/2018
 
Leasing global market report 2019
Leasing global market report 2019Leasing global market report 2019
Leasing global market report 2019
 
Institucional Presentation - May/15
Institucional Presentation - May/15Institucional Presentation - May/15
Institucional Presentation - May/15
 

Recently uploaded

VIP Kolkata Call Girl Entally 👉 8250192130 Available With Room
VIP Kolkata Call Girl Entally 👉 8250192130  Available With RoomVIP Kolkata Call Girl Entally 👉 8250192130  Available With Room
VIP Kolkata Call Girl Entally 👉 8250192130 Available With Roomdivyansh0kumar0
 
Short-, Mid-, and Long-term gxxoals.pptx
Short-, Mid-, and Long-term gxxoals.pptxShort-, Mid-, and Long-term gxxoals.pptx
Short-, Mid-, and Long-term gxxoals.pptxHenryBriggs2
 
《加州大学圣克鲁兹分校学位证书复制》Q微信741003700美国学历疑难问题指南|挂科被加州大学圣克鲁兹分校劝退没有毕业证怎么办?《UCSC毕业证购买|加...
《加州大学圣克鲁兹分校学位证书复制》Q微信741003700美国学历疑难问题指南|挂科被加州大学圣克鲁兹分校劝退没有毕业证怎么办?《UCSC毕业证购买|加...《加州大学圣克鲁兹分校学位证书复制》Q微信741003700美国学历疑难问题指南|挂科被加州大学圣克鲁兹分校劝退没有毕业证怎么办?《UCSC毕业证购买|加...
《加州大学圣克鲁兹分校学位证书复制》Q微信741003700美国学历疑难问题指南|挂科被加州大学圣克鲁兹分校劝退没有毕业证怎么办?《UCSC毕业证购买|加...wyqazy
 
Collective Mining | Corporate Presentation - April 2024
Collective Mining | Corporate Presentation - April 2024Collective Mining | Corporate Presentation - April 2024
Collective Mining | Corporate Presentation - April 2024CollectiveMining1
 
High Profile Call Girls Kolkata Trisha 🤌 8250192130 🚀 Vip Call Girls Kolkata
High Profile Call Girls Kolkata Trisha 🤌  8250192130 🚀 Vip Call Girls KolkataHigh Profile Call Girls Kolkata Trisha 🤌  8250192130 🚀 Vip Call Girls Kolkata
High Profile Call Girls Kolkata Trisha 🤌 8250192130 🚀 Vip Call Girls Kolkataanamikaraghav4
 
OKC Thunder Reveal Game 2 Playoff T Shirts
OKC Thunder Reveal Game 2 Playoff T ShirtsOKC Thunder Reveal Game 2 Playoff T Shirts
OKC Thunder Reveal Game 2 Playoff T Shirtsrahman018755
 
如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书
如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书
如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书Fir La
 
VIP Kolkata Call Girl Rishra 👉 8250192130 Available With Room
VIP Kolkata Call Girl Rishra 👉 8250192130  Available With RoomVIP Kolkata Call Girl Rishra 👉 8250192130  Available With Room
VIP Kolkata Call Girl Rishra 👉 8250192130 Available With Roomdivyansh0kumar0
 
Nicola Mining Inc. Corporate Presentation April 2024
Nicola Mining Inc. Corporate Presentation April 2024Nicola Mining Inc. Corporate Presentation April 2024
Nicola Mining Inc. Corporate Presentation April 2024nicola_mining
 
如何办理圣何塞州立大学毕业证(文凭)SJSU学位证书
如何办理圣何塞州立大学毕业证(文凭)SJSU学位证书如何办理圣何塞州立大学毕业证(文凭)SJSU学位证书
如何办理圣何塞州立大学毕业证(文凭)SJSU学位证书Fir La
 
Call Girl Kolkata Sia 🤌 8250192130 🚀 Vip Call Girls Kolkata
Call Girl Kolkata Sia 🤌  8250192130 🚀 Vip Call Girls KolkataCall Girl Kolkata Sia 🤌  8250192130 🚀 Vip Call Girls Kolkata
Call Girl Kolkata Sia 🤌 8250192130 🚀 Vip Call Girls Kolkataanamikaraghav4
 
VIP Kolkata Call Girls Bidhannagar 8250192130 Available With Room
VIP Kolkata Call Girls Bidhannagar 8250192130 Available With RoomVIP Kolkata Call Girls Bidhannagar 8250192130 Available With Room
VIP Kolkata Call Girls Bidhannagar 8250192130 Available With Roomrran7532
 
如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书
如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书
如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书Fir La
 
定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一
定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一
定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一Fir La
 

Recently uploaded (20)

VIP Kolkata Call Girl Entally 👉 8250192130 Available With Room
VIP Kolkata Call Girl Entally 👉 8250192130  Available With RoomVIP Kolkata Call Girl Entally 👉 8250192130  Available With Room
VIP Kolkata Call Girl Entally 👉 8250192130 Available With Room
 
@9999965857 🫦 Sexy Desi Call Girls Karol Bagh 💓 High Profile Escorts Delhi 🫶
@9999965857 🫦 Sexy Desi Call Girls Karol Bagh 💓 High Profile Escorts Delhi 🫶@9999965857 🫦 Sexy Desi Call Girls Karol Bagh 💓 High Profile Escorts Delhi 🫶
@9999965857 🫦 Sexy Desi Call Girls Karol Bagh 💓 High Profile Escorts Delhi 🫶
 
Short-, Mid-, and Long-term gxxoals.pptx
Short-, Mid-, and Long-term gxxoals.pptxShort-, Mid-, and Long-term gxxoals.pptx
Short-, Mid-, and Long-term gxxoals.pptx
 
《加州大学圣克鲁兹分校学位证书复制》Q微信741003700美国学历疑难问题指南|挂科被加州大学圣克鲁兹分校劝退没有毕业证怎么办?《UCSC毕业证购买|加...
《加州大学圣克鲁兹分校学位证书复制》Q微信741003700美国学历疑难问题指南|挂科被加州大学圣克鲁兹分校劝退没有毕业证怎么办?《UCSC毕业证购买|加...《加州大学圣克鲁兹分校学位证书复制》Q微信741003700美国学历疑难问题指南|挂科被加州大学圣克鲁兹分校劝退没有毕业证怎么办?《UCSC毕业证购买|加...
《加州大学圣克鲁兹分校学位证书复制》Q微信741003700美国学历疑难问题指南|挂科被加州大学圣克鲁兹分校劝退没有毕业证怎么办?《UCSC毕业证购买|加...
 
Collective Mining | Corporate Presentation - April 2024
Collective Mining | Corporate Presentation - April 2024Collective Mining | Corporate Presentation - April 2024
Collective Mining | Corporate Presentation - April 2024
 
Model Call Girl in Udyog Vihar Delhi reach out to us at 🔝9953056974🔝
Model Call Girl in Udyog Vihar Delhi reach out to us at 🔝9953056974🔝Model Call Girl in Udyog Vihar Delhi reach out to us at 🔝9953056974🔝
Model Call Girl in Udyog Vihar Delhi reach out to us at 🔝9953056974🔝
 
High Profile Call Girls Kolkata Trisha 🤌 8250192130 🚀 Vip Call Girls Kolkata
High Profile Call Girls Kolkata Trisha 🤌  8250192130 🚀 Vip Call Girls KolkataHigh Profile Call Girls Kolkata Trisha 🤌  8250192130 🚀 Vip Call Girls Kolkata
High Profile Call Girls Kolkata Trisha 🤌 8250192130 🚀 Vip Call Girls Kolkata
 
OKC Thunder Reveal Game 2 Playoff T Shirts
OKC Thunder Reveal Game 2 Playoff T ShirtsOKC Thunder Reveal Game 2 Playoff T Shirts
OKC Thunder Reveal Game 2 Playoff T Shirts
 
如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书
如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书
如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书
 
VIP Kolkata Call Girl Rishra 👉 8250192130 Available With Room
VIP Kolkata Call Girl Rishra 👉 8250192130  Available With RoomVIP Kolkata Call Girl Rishra 👉 8250192130  Available With Room
VIP Kolkata Call Girl Rishra 👉 8250192130 Available With Room
 
Nicola Mining Inc. Corporate Presentation April 2024
Nicola Mining Inc. Corporate Presentation April 2024Nicola Mining Inc. Corporate Presentation April 2024
Nicola Mining Inc. Corporate Presentation April 2024
 
Call Girls 🫤 Mukherjee Nagar ➡️ 9999965857 ➡️ Delhi 🫦 Russian Escorts FULL ...
Call Girls 🫤 Mukherjee Nagar ➡️ 9999965857  ➡️ Delhi 🫦  Russian Escorts FULL ...Call Girls 🫤 Mukherjee Nagar ➡️ 9999965857  ➡️ Delhi 🫦  Russian Escorts FULL ...
Call Girls 🫤 Mukherjee Nagar ➡️ 9999965857 ➡️ Delhi 🫦 Russian Escorts FULL ...
 
如何办理圣何塞州立大学毕业证(文凭)SJSU学位证书
如何办理圣何塞州立大学毕业证(文凭)SJSU学位证书如何办理圣何塞州立大学毕业证(文凭)SJSU学位证书
如何办理圣何塞州立大学毕业证(文凭)SJSU学位证书
 
Call Girl Kolkata Sia 🤌 8250192130 🚀 Vip Call Girls Kolkata
Call Girl Kolkata Sia 🤌  8250192130 🚀 Vip Call Girls KolkataCall Girl Kolkata Sia 🤌  8250192130 🚀 Vip Call Girls Kolkata
Call Girl Kolkata Sia 🤌 8250192130 🚀 Vip Call Girls Kolkata
 
VIP Kolkata Call Girls Bidhannagar 8250192130 Available With Room
VIP Kolkata Call Girls Bidhannagar 8250192130 Available With RoomVIP Kolkata Call Girls Bidhannagar 8250192130 Available With Room
VIP Kolkata Call Girls Bidhannagar 8250192130 Available With Room
 
如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书
如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书
如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书
 
定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一
定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一
定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一
 
Call Girls 🫤 Nehru Place ➡️ 9999965857 ➡️ Delhi 🫦 Russian Escorts FULL ENJOY
Call Girls 🫤 Nehru Place ➡️ 9999965857  ➡️ Delhi 🫦  Russian Escorts FULL ENJOYCall Girls 🫤 Nehru Place ➡️ 9999965857  ➡️ Delhi 🫦  Russian Escorts FULL ENJOY
Call Girls 🫤 Nehru Place ➡️ 9999965857 ➡️ Delhi 🫦 Russian Escorts FULL ENJOY
 
Call Girls in South Ex⎝⎝9953056974⎝⎝ Escort Delhi NCR
Call Girls in South Ex⎝⎝9953056974⎝⎝ Escort Delhi NCRCall Girls in South Ex⎝⎝9953056974⎝⎝ Escort Delhi NCR
Call Girls in South Ex⎝⎝9953056974⎝⎝ Escort Delhi NCR
 
young call girls in Yamuna Vihar 🔝 9953056974 🔝 Delhi escort Service
young  call girls in   Yamuna Vihar 🔝 9953056974 🔝 Delhi escort Serviceyoung  call girls in   Yamuna Vihar 🔝 9953056974 🔝 Delhi escort Service
young call girls in Yamuna Vihar 🔝 9953056974 🔝 Delhi escort Service
 

Orto - Pitch Deck - August 2016

  • 1. Orto Sharing Ltd Co-leasing for sports cars Pitch deck | August 2016 Josh Darling, Co-Founder | London | +447949 242 735 | josh@orto.uk.com | orto.uk.com
  • 2. Contents © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document. 2 Section Page Summary 3 1. The business 4 - 7 2. The market 8 - 16 3. The team 17 - 21 4. Summary financials 22 - 25 5. Investment 26 - 29 Please note this document is accompanied by a notes document, financial forecasts, and a riskassessment, which are available on request. Referencesto the notes document are denoted by a numberin brackets e.g. (1).
  • 3. Summary Five reasons to be excited about this investment opportunity: 1. Orto is an innovative new approach to car sharing for sports cars that provides all the pleasure of having your dream car but for 40%of the normal cost and none of the hassle. 2. We’re in anindustry that is ripe for disruption, we’ve already achieved proof of concept, we have great testimonials from our customers, and numerous leads for the next cars. 3. We are a fully committed teamcomprising great capability in leadership, technology, and customer experience excellence. 4. Under current assumptions we’re targeting net profitability of11% in three years and 13% in Year 3,Month 12. 5. We’re aiming todeliver our investors aninvestment multiple ofup to 20 times on exit in five to eight years. 3© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 5. The pain point… The world isfull of people who love cars, but findit hard to justify buying their dream car. That’s because they know getting acar just for fun is expensive, inefficient , and a lot of hassle; whilst renting or using acar club meansyou don’t have ‘your’ car and introduces complexity, additional costs, and inconvenience. 5 …The solution Costcomparison with traditional ownership models fora Jaguar F-Type S (1) Orto’s co-leasing service solves this problem by letting people share asingle car with three other people on along term basis -giving them all the driving they want, whilst reducing the cost by over 60% and taking away all the chores. £0 £10,000 £20,000 £30,000 £40,000 £50,000 £60,000 £70,000 UPFRONT COST MONTHLY COST RUNNING COST WHOLE TERM Orto Leasing / finance Sole ownership (lump sum cash purchase) UPFRONT COST MONTHLY COST RUNNING COST WHOLE TERM ORTO % OF COST Orto £2,249 £489 £0 £13,496 NA Leasing / finance £5,000 £1,273 £2,890 £37,169 36% Sole ownership (lump sum cash purchase) £66,565 £0 £2,890 £26,853 50% © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 6. Co-leasing service overview 6 Fourunrelated customers co- lease asingle new car worth between £40k and £100k Customers joina car on atwo-year term oneat atimethrough the orto.uk.com showroom. They can familiarise themselves withthe system and make any pre-sale bookings theywouldlikebefore theybuyand complete their security checks andpayments online. The customers booktime with their car throughtheir Ortocalendar Each customer has 85 days per year whichtheybook viatheweb and anapp. The system has inbuilt rules toguarantee fairness of access, includingweekends, whichwe havedeveloped through countlesshours of specialist development and user testing. Ortotakes care ofall the details foran upfrontand monthly fee Theall-inclusivefees include collectionanddelivery, valet, insurance, maintenance,storage whenthecar iswithOrto, road tax, and more. Attheend of theterm customers’ payments simply cease and theycan either‘walk away’, or benefitfrom incentivesto joinanother car. © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 7. Orto’s business model 7 We charge customers anupfront fee when they joina car, followed by all-inclusive monthly fees throughto the end of the car’s two-year term. The processworksas follows: • We order acar from our supply partner and make it available for co-leasinginour online showroom. • Customers jointhe car one at a time, making any pre- sale bookings they would likebased onthe car’s delivery date. We take anauthorisationfor the upfront fee on the customer’s paymentcard to lock in their bookings. • Once the car is ready for delivery(fromtwo weeksto three months depending onwhether we order from stock or as a freshbuild) we take the upfront fees, purchase and register the car inOrto’s name, insure it, and deliver itto the customer withthe firstbooking. • The customers pay their monthly subscription throughout the term. • At the end of the term we sell the car, clear the finance, and retain the difference. Our innovative model providesastrong foundationby setting up long-term, highvalue relationships withour customers. We also see greatopportunity to provide them with a range of value-adding additional services: • Access to more amazing cars: accessto hourly and short-termrentals throughthe Orto calendar for those customers who wantextravariety ona short-term basis: we planto facilitate these vehiclesthrough3rd parties and take a 10% commissionor cut. • Regular car leases: for those customers who wanta full-time car on top of their co-leasedcar: we planto deliver this serviceonabrokerage basis, with contracts subjectto a ‘finder’s fee’ paidto us by the underwriting leasing company. • Orto Experiences: providesrecommendations to customers onplaces and events they mightlike to visitwhilstthey have their car booked. We planto take a 10% commissionor cuton facilities arranged. Core co-leasing service Additional services © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 9. Growth incar sharing Industry trends 9 2024 $6.4bn 2014 $1.1bn In2015, Navigant Research projected that theglobal car sharing industry will grow from $1.1bnin 2014to $6.4bnin 2024 – a490% increase over thenext decade (3). Growth inonline car buying Research conducted in2016 for Buyacar.co.ukin theUK found significant growth between2013 and 2016 inthose happy to buya new caronline without seeing it first (5). 2016 31.3% 2013 17.5% Growth insubscription pricing Theautomotiveindustry isundergoingsignificantchange, driven by globaleconomic developments, volatileoilprices, lowinterestrates, peakauto sales,and theapproaching declineoftraditionalcar ownership (2).As aresult, weexpect toseethefollowingtrends, which underpin thegrowing demand we seein our targetmarket, toaccelerateover the nextfiveyears: 2016 42% IBM’s2016research paper ‘ANew Relationship: People and Cars’ found 42%of their 16,000global respondents wereveryinterested in subscription pricing, putting access above ownership (4). © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 10. Target customer Our target customers are professionalsin major citiesearning between£50,000 and £150,000 per year. In London,our initialmarket, thisrepresents about400,000 people(6).At themoment, our customers tendtobemen agedbetween30 and 45,butwe believethis willexpandasgreater participationfrom women inthe autosector islongoverdue and,as wegrow, oldercustomers will bemore likelytoembrace alternativestotraditionalbuying andownership. Initial target customers in London=400,000 Our market research in 2012 found10.2% (7)ofrespondentswere very interestedinjoiningour service, which basedon our targetdemographic wouldequateto40,000 privatecustomers in Inner London.However, three factors suggestthis findingisnow conservative: 1) the Ortoco-leasing modelwe have todayismore accessiblethan thefractional ownership modeltested,2)as aresult ofthetrends setouton slidenine, interestinsharing modelshas grown significantlysince thattime, and 3)in additiontotheir findingsonsubscription pricing,IBM alsorecently foundthat 24% oftheir 16,000 respondentswere very interestedin fractionalownership (8).Therefore, wehave assumed an interestlevelof15%, orc. 60,000 potentialcustomers in InnerLondon. Initial potential customers in London= 60,000 10© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 11. Potential market 11 We’veproven with our firstcar that fora quarter share ofa Jaguar F-TypeS onan all-inclusive contract, these customers are willingtopayapproximately 27%ofthecost ofleasinga car alone. Once Orto isestablished,weanticipatethiswillincrease tothe 36% indicatedinthe price comparison on slidefive:£2,249upfront and £489per month includingVAT(or £1,874upfront and £408 permonth net ofVAT),totalling£11,258for thetwoyear term, or £5,629annualised. Annualised revenue per customer net ofVAT: £5,600 Atan annualisedrevenue percustomer of£5,600 netofVAT,thiswould translateintoa potential market inLondonof£336m per year (9).In lateryears we plantoexpand tootherUK citiessuch as Birmingham, Leeds,Manchester, and Bristol,and major Europeancitiessuch asBerlin, Madrid, Rome, andParis. Basedon populationsizesrelativetoLondonthe scaleofopportunityis estimated tobe£269m across theseother UKcities(£605m in total)and £1.27bnacross theseEuropean cities (10), or £1.88bnintotal. Potential markets: London=£336m; UK =£605m; Europe = £1.27bn; total = £1.88bn © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 12. Current traction 12 The service is upand running: orto.uk.com isfully liveand processingcustomers fromfirstvisit to payment and the daily managementofbookingsby customers through the Ortocalendar. Proofofconcept is complete: wehave aJaguar F-Type Sco-leasedto four,arm’slength customers, and working extremelywell(pleaseseeour testimonialson the following slide). We’re ready togrow: wehave hundreds ofsubscribers, numerous leadsforthe next cars, and a provenability to acquire moreon demand.Thetop carscustomers want toco-lease next include the Range RoverSport,Porsche 911 CarreraS, and MaseratiGran Turismo. Further accomplishments include: • Takingour first£9,000 ofrevenue (netofVAT) • Buildinga highlysophisticatedsharing platformin-house • Receiving mediaattentionin theFT, TheSunday Times,TechCrunch, and more • Securing a bespokeinsurance dealspecificallyforco-leasing • Being authorisedby theFinancial Conduct Authority • Enteringtalkswith atopgloballeasingcompany aboutanassetfinance partnership • Completingour seedfundinground in June 2015 for£113,500 © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 13. Customer testimonials 13 “I don’tneedacar allthe time,so the Orto modelworksperfectlyforme.I’ve gotplentyofdaystobookwhenIneed themandI lovethe familiarity ofhaving the samecareverytime.It’s veryconvenient –Orto dropoffand collect the car, anddealwiththe cleaning and maintenance.AndI didn’tneedto spendahuge sumonacarthatsitsaround gathering dustanddepreciating.I’d recommendOrto withouthesitation.” - Chris,Jaguar F-TypeSCoupe,April2016 “I’d beenplaying withthe ideaofbuying asportscarforawhile. But witha2-yearoldson,the largeinitial outlaywashard to justify. WithOrto I getto drive aphenomenalsportscarwhenIneedit –and itfeelslike the car’smine.I love thatthe car’sdeliveredto mydoor,and thateverything’swrappedupinthe fixed monthlycost. It’s averypersonalservice;I alwaysspeakdirectlyto the founders,who doeverything theycanto help.” - William,JaguarF-TypeSCoupe,April2016 “I’ve ownedperformancecarsin the pastand gotlimited use outofthem–butstill hadthe costand headacheof insurance, servicing etc. Orto isaverysensibleidea:allthe enjoyment,without the drawbacks.It’s averysimple andcost effective wayto dothings; IknowwhatI’m getting eachmonth.The bookingsystemisapieceofcake touse andthe handovershave beenseamless.All-in-allaveryenjoyableexperience.” - Ali,JaguarF-TypeSCoupe,April2016 © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 14. Competitive landscape 14 Thistablesetsoutthedifferentmodelsthatwe competewith andhow we compare tothem: What it is Who's out there What it costs How we compete Sole ownership Buying a either a new or a used car as a cash purchase. This is a personal option financed with the individual's cash. New Jaguar F-Type S: upfront: £66,565; monthly: £0; total est. two-year cost: £26,853 Used Jaguar F-Type S: upfront: £46,000; monthly: £0; total est. two-year cost: £14,200 We offer lower upfront and whole-term costs whilst removing the chores of ownership such as insurance and maintenance. As we refine our model over time we plan to make used cars available for co-leasing for those customers who are less attracted by the prospect of a brand new vehicle. Leasing and finance Leasing a car alone on a long term contract or taking out a secured loan to buy a car. Jaguar Finance, BMW Finance, Black Horse, Close Brothers. A Jaguar F-Type S from Jaguar Finance including options and after an assumed discount on a two-year term costs £37,169 for the whole term, or £41,120 on a three-year term. We bring the same advantages as with sole ownership, except with an emphasis on a significantly reduced monthly cost and the whole-term cost reduction is even more pronounced. We will explore longer co-leasing terms with our partners in due course. Short term rental Renting a car on a short term basis from a company. Avis Prestige, Hertz Prestige, smaller independent companies. A four-day booking for a Jaguar F-Type S in June 2016 cost £997, or a daily cost of £250. At this cost 85 days would come to £21,186, so for two years (170 days), £42,373. Supercar clubs Companies that own a fleet of supercars to which customers have short term access in exchange for an annual fee Auto Vivendi, P1. Direct comparisons are difficult as supercar clubs offer very high-end vehicles usually starting at £100k. Auto Vivendi offer a membership for £25,000 per year that they say results in an average of 70 days driving, so £50,000 for two years. Peer-to-peer Renting a car on a short term basis from an individual owner. Easy Car Club, Hiya Car. As at 22/07/16 there were no premium sports cars available for comparison. In addition to the lack of comparable cars available, the Google reviews for Easy Car Club indicate that peer-to- peer services are unlikely to present an attractive option for those seeking convenience. We are a significantly more cost-effective approach to having a car over a long-term period than rental or supercar clubs and with these options you don't have 'your' car. We also offer less complexity with a simple online booking system and day alowance rather than points-based systems and more convenience with inclusive collection and delivery. Rental and supercar clubs specialise in offering a variety of short term driving experiences. Through our business model developments we will make additional variety available to customers for whom this is desirable. © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 15. Competitive advantage 15 Co-leasing is abrand newbusiness opportunity. Orto isideally placedto own this space because: • We’re first tomarket: toour knowledgewe’re thefirstcompany toembrace and drive co- leasinginthe UKthrough our proven market proposition(11). • We’re a great team: wecombine leadership,technology,and customer experience excellencewith a passionfor cars and a proven track record ofworking effectivelytogether. • We embrace technology: our Orto-developedsharing platform,including theOrto calendar, istheresult ofcountlesshours ofexpertdesignanddevelopment,and our in-house capabilitymeans wecan respondtoopportunitiesquicklyand toahigh levelofquality. • Design and brand: we’ve takencare todevelopour non-pretentious,accessibleyet aspirationalbrandingto differentiateusfrom other autoservice brands. • We have marque freedom: we can supply any brand tofacilitate‘dream garages’, differentiatingusfrom any potentialfuturemanufacturer propositions. • We’re focused on theexperience: our customers want acar experiencethat enhances their lifestyleandmakes themfeelspecial,servedthrough an easy, onlinesystemthat they can control from thecomfort oftheir deskor smartphone. Thisisexactly whatwe deliver. © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 16. Go to market strategy In co-leasing our first car, we have proven that acombination of car-specific online display advertising and PR isa highly effective way to generate leads. We then convert these leads through our website, supported by telephone, email, and live chat. Our marketing strategy for the next six to 12 months istherefore to continue to operate a small and lean digital marketing capability –the simpler the better –and to only spend on activities that guarantee ROI and that can be implemented rapidly for immediate impact. We will execute this strategy by expanding volumes in our existing display marketing, whilst adding new email list andvideo marketing channels. In terms of resources, we will take on apart-time Marketing Manager with expertise in digital marketing to provide additional experience commensurate with our additional spending level. We will work with them to plan, produce, and deliver our campaigns with the objective of gradually growing our sales target every two months i.e. after a‘warm up’ month in M1post- raise, we aim toco-lease two cars in M2and M3, three in M4 and M5,four in M6and M7, and so on throughout the three-year projections shown on slide 23. However, in reality, as we progress we will do everything we can to maximise penetration in our target market. 16© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 18. The founders 18 Josh Darling Prior toOrto, Joshspent10 years developingnew organisationsanddelivering change in thehighlycomplex health sector.He hasledand managedteams to developand execute planstacklingavariety ofbusinesschallenges,including enterprisecreation; long-term businessplanning;deliveringperformance transformation programmes; helpingtoturn around around loss-making departments;and identifyingand achieving newmarket opportunities. Jules Copeland Julesisthe technologicaldriving forcebehindthe company. Obsessedwith technologyand cars sincechildhood,he spentthelast15 years buildingand managing websitesand webapplications.AsSenior DeveloperatNinetyTen, he builtthe Engageplatform, areconfigurable privatesocialnetwork for organisations.Always keentopush technologytoitslimits,heseesthe powerin connecting disparatetechnologiestosolverealworld problemsin easytouse ways. © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 19. Board and investors 19 Board and investors Wehave 10 investors from arange ofbackgrounds who are representedon our boardby our two leadinvestors:Chris Clark andJohn Deverill. Chris Clark Followingasuccessful career inthe city andeightyears atHermes Private Equity,Chris started investinghis ownmoney instart-ups andsmaller MBOs andisnow a ‘serialentrepreneur’ with a verifiabletrack record: • Founder ofJasmine Healthcare, which generates£5.6m revenue and £1.8millionEBITDA • Cornerstone investorin theearly stageMBO ofVibrant Energy Matters, which generates £8.8mrevenue and £1.1m EBITDA andwas listedin theTimesFastTrack 100 in 2014 • Lead-investorin thebuy-in/buy-out ofWTGTechnologies,where healsoheldexecutive positions,including CEOand FD.Having recruited a new CEO,he thentookupa Non- Executiverole andsupportedthe CEOin achieving asuccessful trade saleinAugust 2015 thatreturned a2.8xmoney multipletoinvestors © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 20. Board and investors 20 Chris was the leadinvestor in thefirstfundinground ofOrto in 2015 andwillprovide complementary skillsand experiencetothat ofJoshand Jules. JohnDeverill John isthemanaging partner ofGE Healthcare’sadvisory business. Hehas personallybuiltand run anindependentspecialistconsultancy, andworked asa partner in otherconsultancies and has beensalesand marketingdirector ofa FTSE100 company. Prior toallofthisJohn was an army officerfor 18years. In additiontothecommercial experience gainedinhis own right,John advisesnumerous boardsof publicand privatehealthcare, focussedorganisationson matters ofstrategy,organisational development,transformation andgrowth. © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 21. Advisors and commercial relationships 21 Advisors Wedraw on awealth ofexperiencefrom our advisors andour commercial relationships.Our advisors include: • Brett Akker,co-founder ofStreetcar and Lovespace • Richard Atkinson,Technology Director atNandosand formerly Chief InformationOfficer atJustGiving • RussellCookeLLPSolicitors • Arnold HillLLPAccountants Commercial relationships Our commercial relationshipsinclude Lookers,Jaguar LandRover, AllenandAllen Insurance, ParkLet,theRAC, and Stripepayment services. Weare regulatedbythe FinancialConduct Authority. © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 23. Y1 Y2 Y3 Total new cars 44 114 186 Total cars on the road 44 158 300 Total new customers 176 456 744 Total customers 176 632 1,200 % of 60k pot. London market 0.29% 1.05% 2.00% Total revenues £633,111 £2,750,603 £6,162,880 Of which co-leasing £599,911 £2,623,170 £5,897,913 Of which additional services £33,200 £127,433 £264,967 Total expenses £893,675 £2,667,666 £5,488,585 EBITDA (£55,405) £1,154,543 £3,187,520 EBITDA % -9% 42% 52% Net profit (£260,563) £82,937 £674,295 Net profit % (41%) 3% 11% * ** Summary financials 23 This tablesets out our anticipatedperformance for the first three years post-raise. The projections are for London only and exclude thefurther options for expansion set out on slide 11. Forecast net profit by M12 of Y3 is 13%. All figures excl. VAT * Revenues from upfront fees are recognised inthe the month in which they are invoiced, whilstfor statutory purposes the annual accounts will defer the income over the durationof each car’s term ** Expenses are brokendownonthe following slide *** Improving unit economics broken downon slide 25 © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 24. Capital and operating expenses/costs 24 Denotes spending associatedwithphysicalassets.All other spending relatesto operating expenses/costs. Forecast cash flow costs by category Y1Forecast P&L expenses by category Y1 Expense £ % Cost £ % Pay £270,300 30% Deposits on customer cars £545,600 38% Depreciation on customer cars £160,281 18% Pay (including marketing support) £270,300 19% Insurance £152,750 17% Secured debt repayments £173,057 12% Collection and delivery costs £69,130 8% Insurance £152,750 11% Customer acquisition £68,200 8% Other overheads (including app dev.) £62,000 4% Other overheads £62,000 7% Collection and delivery costs £69,130 5% Interest payments £44,877 5% Customer acquisition (media spend only) £68,200 5% Premises £23,000 3% Interest payments £44,877 3% Maintaining vehicles £22,300 2% Premises £23,000 2% Vehicle storage £20,836 2% Vehicle storage £20,836 1% £893,675 100% Maintaining vehicles £22,300 2% £1,452,051 100% © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 25. Revenues Car 1 Car 17 Upfront fees (total for four customers) £4,205 £7,497 Monthly fees (total for four customers) £27,899 £37,490 End of term gain from sale of car £3,442 £3,442 £35,546 £48,428 Expenses Customer acquisition (for four customers) £4,000 £1,000 Interest £16,515 £4,200 Depreciation £17,250 £17,250 Insurance (years one and two) £14,500 £5,000 Collection and delivery £7,440 £7,440 Maintenance £2,400 £2,400 Storage £2,160 £2,160 £64,265 £39,450 Gross margin (£28,720) £8,978 Gross margin % -81% 19% Unit economics 25 Weexpecttoseeapproximately-81%grossmarginonourfirstcar bytheendofitstwoyearterm. Thisistheresultofcostssuchas financeandinsuranceforasinglecaroperatingunderanew modelbeinghigherthanwearelikelytoseeatgreatervolumes. Oncewereachapproximately17carsinY1,M7weexpecttosee 19%grossmarginpercaroveratwo-yearterm.Inadditiontothe pricingimprovementssetoutonslide11,thisassumesthefollowing costimprovements: Customeracquisition:startingfrom£1,000percustomer,or £4,000percar,a5%reductiononacar-by-carbasistoafloorof £250percustomer,or£1,000percar. Interest:startingfrom20%APR,oranaveragemonthlyinterest paymentof£688overa24-monthloantermwitha20%deposit,a 7.5%reductionofouraveragetotalmonthlyinterestpaymentsper caronacar-by-carbasistoafloorof£175percar,permonth,which representsanAPRof5.1%.IndicativeAPRfromLloydsCommercial Finance foracommercialloansecuredagainstacaris5.6%(13).At thispointwewouldbefinancingc.£1mspreadover17cars. Insurance:startingfrom£10,000percar,a7.5%reductionofour averagepremiumpercaronacar-by-carbasistoafloorof£2,500 percar.Thiscomparestoaprivateinsurancepolicywithfour unrelateddriversinsuredfor15,000milesperyearcostingc. £1,500(14).Atscalewemayseektoself-insure.Directrevenues and costs for co-leasing only:excludesadditional services. AllfiguresexcludeVAT. Gross profit percar after two year term © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 27. Investment required Current round Our priorities for the next 12 months are to build our customer base and improve our pricing potential whilst reducing our major costs to establish positive unit economics. We are therefore seeking £415,000 of equity investment with a pre-money valuation of £1.66m (20% equity) to invest –combined with our revenues –in the cars, people, marketing, and technology set out on slide 24.This investment will help us reach our Y1 target of44 cars (176 customers) and £633,000 of revenue net of VAT. Future rounds Based on our target growth we expect to be cash flow positive by Y3,M1. Once we’ve achieved our Y1 targets,we therefore expect to require a further £500,000 to £1m of investment in 12 months’ time –at the start of Y2– so we can grow toreach 158 cars (632 customers), an annualised revenue run rate of £4.1m net of VAT,and become self-sustaining by the end of the year. Further investment requirements at this point will be determined by our approach toexpansion. 27© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 28. Exit options 28 Asa result of the extensive change the automotive industry isundergoing at the moment (see slide nine), there are a growing number of well-established firmstaking large stakes in relatively new businesses. Examples include Volkswagen and Gett, General Motors and Lyft, and Toyota and Uber. Indeed we ourselves as an early stage business are talking to one of the leading global leasing companies about partnering on co-leasing as part of their broader innovation programme. We therefore anticipate the most exciting exit opportunities for our investors will be through sale to a strategic buyer such as amajor leasing company, rental company, or manufacturing group in Y5 toY8. The target would be to achieve a10 to 20 times investment multiple at this point. A good real-world example isof the company co-founded by one of our advisors, Brett Akker, in 2004. In 2010 they sold UK-based Streetcar to Zipcar for £32.5m. Zipcar was attracted to them as they saw the opportunity for rapid growth through acquisition in a growing industry, and with the development we have describe in this document, Orto would represent an excellent opportunity for astrategic buyer with the same goal. © 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 29. Conclusion Inconclusion, a reminder ofwhy we believe Ortois a great investment opportunity: 1. Ortois an innovative newapproach tocar sharing forsportscars that providesallthe pleasureofhaving your dreamcar but for40% ofthe normalcost and none of thehassle. 2. We’rein an industry that isripefordisruption, we’ve alreadyachieved proofofconcept, we have greattestimonialsfromourcustomers, and numerous leadsforthe next cars. 3. Wearea fully committedteamcomprising greatcapability in leadership,technology, and customer experienceexcellence. 4. Undercurrent assumptions we’retargetingnet profitabilityof 11%in threeyears and 13% in Year3, Month 12. 5. We’reaimingto deliverour investors an investment multiple ofup to20 timeson exit in five toeight years. We’rereadytomakeOrtoa huge success. We’dloveyou to beapart ofit. Thank you. 29© 2016 Orto. In commercial confidence. Numbers in brackets refer to accompanying notes document.
  • 30. Josh Darling, Co-Founder | 07949 242 735 | josh@orto.uk.com © 2016 Orto Sharing Ltd