This slide was used during a pitch competition last June 2017 for Techtonic Philippines

2. Financial Institutions won’t cater to the need of SMEs
SMEs Cashflow Issues
On board a
client
with no down
payment
30-90 day
receivables
Business
Expansion
Payroll /
Inventory

3. At Leverage we offer loans to
start-ups and SME market by
understanding their financial
needs and by connecting them
to right investors and lenders.
Since we are processing loans
online we can now disburse faster
and more efficiently compared
to traditional banks and other
financial institutions.
The Solution

4. Borrowers
As a borrower you have
accesses to hundreds
of lenders and VCs that
can fund your business
Leverage.ph
Our goal is to secure
the highest ROI to our
creditors whilst offering
SMEs and start-
ups, who have no
access to traditional
credit, a means of
funding cheaper than
the current market
average
Creditors
As an investor you have
access to hundreds of
SMEs looking for
partners and funds to
grow their business
Our aim is to address the market inefficiencies for both lenders
and
creditors in the Philippines
The Business Model

5. Employed Individuals
• Loan amount of up to PHP
15,000
• Payable in 30 days
• As low as 5.00% / month
• Employed by our business loan
clients
Self employed and SME
• Loan amount of up to PHP 1.00M
• Payable in 1-12 months
• As low as 3.50% / month
• Corporate Post Dated Check
Documentary Requirements:
1. Company ID and 1 Government ID (SSS, Passport, Drivers License)
2. Two (2) Months latest Pay slip together with payroll bank account (if applicable)
3. Latest COE (at least 2 months old)
4. Latest Proof of Billing (POB)
5. 3 references (relative or friend) - even same house, at least one (1) relative
6. Completely filled-up application form.
7. Co-maker with income (and/or owned house if renting)
Bridge Financing
PAYDAY LOANSBUSINESS LOANS
Services Offered
CAR LEASING
Grab and Uber Drivers
• No down payment
• Affordable monthly
payments
• Flexible terms
• Incentive schemes for lessee
• Low Insurance cost

6. Leverage analyzes and
understands the need of
clients for financial
bridging and financial
management.
Why us
We will guarantee
returns on our fixed
income funds once you
invest with us we will give
you a bond on those
returns for fixed locked in
period.
Why put your money in a
time deposit account
that is only earning 1%
per annum when you
could enjoy a return of a
minimum 1.00% per
month
We are transparent with
our financials and make
sure that you get the
most out of your
investments!
We will invest and
manage your money
basing on your risk
appetite.
We have already
historically paid our
investors and creditors in
the past and have
consistently delivered on
our promises
Higher Approval Rate
Scheduled Returns
No Hidden Fees Better Returns
Customized PortfolioHistorical Performance

7. Portfolio
Loan Size &
Composition

8. 316%
Growth in 1 year
200+
Business Owners
( Borrowers)
3000+
Employees
Milestones 8
Employees

9. Loan Structure
Self employed Individuals and SMEs
▰ Loan amount of up to Php 500,000
▰ Payable in 1-6 months
▰ As low as 3.5%/month (Add-on Rate)
▰ 5% Processing Fee
▰ 2.5% Late Fee
▰ Corporate Post Dated Check
9

10. Current Stats
▰ 200+ Clients
▰ Php 1.62 M Net Income 2017
▰ 300% Year on Year Growth
10

11. CurrentMarket
▰ Service
▰ Construction
▰ Manpower
▰ Manufacturing
▰ Retail
▰ Technology
11

12. Loan Comparison
12

13. Historical Financials

14. Historical Financials

15. Historical Financials
*2015 figure is operating income rather than Net Income

16. Historical Transaction Volumes
16
Year Transaction Volume
2015 ₱6 Million
2016 ₱47 Million
2017 ₱80 Million

17. Gross Revenue (5 Years)
₱16.9M ₱63.6M ₱157.2M ₱372.9M ₱920.6M

18. NOPAT (5 Years)
2018 2019 2020 2021 2022

19. Net Cash Flow

20. Yearly Summary
20
2018 2019 2020 2021 2022
Gross Revenue ₱16,900,332.72 ₱63,625,584.84 ₱157,279,224.85 ₱372,892,154.50 ₱920,631,892.54
Gross Profit Net of VAT ₱7,550,916.48 ₱40,757,391.53 ₱105,245,813.49 ₱266,658,363.45 ₱673,558,685.85
Cost of Sales ₱1,051,603.40 ₱4,125,427.41 ₱10,455,042.06 ₱25,021,501.64 ₱61,852,168.39
Total OPEX ₱1,427,691.39 ₱1,911,078.37 ₱2,868,202.58 ₱2,909,067.40 ₱3,685,453.19
Manpower ₱1,526,460.00 ₱2,472,253.80 ₱3,855,546.41 ₱4,278,667.43 ₱5,432,067.66
Net Profit Before Taxes ₱7,550,916.48 ₱40,757,391.53 ₱105,245,813.49 ₱266,658,363.45 ₱673,558,685.85
Corporate Tax ₱2,762,642.52 ₱12,227,217.46 ₱31,573,744.05 ₱79,997,509.03 ₱202,067,605.76
Earnings After Taxes ₱4,788,273.96 ₱28,530,174.07 ₱73,672,069.44 ₱186,660,854.41 ₱471,491,080.10

21. New Customer Pipeline
2018 2019 2020 2021 2022
Marketing 8 31 146 509 1757
Word of
Mouth 164 278 394 676 1304
Total 172 284 540 1185 3061

22. Customer Growth
▰ Network-based
▻ Word of Mouth
▻ Consistently
yields 3x annual
Growth
▻ Higher Net Worth
Clients
▻ Reduce Interest
Expense
▰ Technology
▻ Expands Reach
▻ Increased
Accessibility
▻ Targeted
Marketing
Campaigns
▻ Increases Business
Efficiency
▰ Funding Financiers
▻ Growth Multiplier
▻ Risk Reduction
▻ 10,000
Undocumented
Financiers in MM*
*Bangko Sentral Ng Pilipinas

23. Key Stats
▰ Bad Debt Rate: 4-9%, increasing Annually
▰ Client Rejection Rate: 25-60% increasing Annually
▰ Delayed Payment Rate: 25%
▰ WACC: 30%

24. Credit and Capital
Raise Goals
PHP 100,000,000.00
Loan Portfolio by December 2018
*Banking Reserves at 10% with an assumed default and delinquent rate of 5%
PHP 5,000,000.00
Target NET Revenue for 2018

25. Cash Requirement
*Banking Reserves at 10% with an assumed default and delinquent rate of 5%
PHP 25,000,000.00

26. Use of Funds
▰ Borrow multiple against it with the banks
▰ Build long-term debts
▰ Lower the interest expense
▰ Use the retained earnings (Php 10M) to upgrade financing
with the BSP
26

27. Cash Requirement
▰ Option A
▻ 12.5M Equity @11.07%
▻ 12.5M Debt – 3-5 years @
8% per annum
▻ Board Seat – Independent
▻ Shareholder Rights
▰ Option B
▻ 5 tranches of Php 5M paid over 2018
▻ Convertible Debt after 3rd year
▻ 1st tranche @ 4.75%
▻ Following tranches valued at time of
disbursement
▻ 0.5% Interest per month/Dividend Payout
(whichever is greater)
▻ Board Seat - Independent
▻ Shareholder Rights
Php 25 Million

28. Valuation Highlights
▰ Risk Adjusted
Valuation: PHP 100M
▰ Annual Failure Rate :
25%
▰ Cumulative Success
Rate: 24%
▰ Risk-adjusted Rate of
Return: 30%
▰ Rate of Return if All
Targets are met: 76%
28

29. Valuation Snapshot
FDEA® (Financial Drivers Effects Analysis) - Morningtide Capital Partners
Financial Drivers Year 1 Year 2 Year 3 Year 4 Year 5
Total Net Cash Flow
₱26,025,363 ₱19,503,801 ₱81,705,592 ₱151,680,990 ₱320,996,873
Toatl Net Cash Flow = Net Cash from Operating Activities + Net Cash from Investing Activities + Cash from Financing Activities
Working Capital
(₱856,982) ₱0 ₱0 ₱0 ₱0
Cash required for Safety Buffer: 1/6 Annual Salary + 1 month of COGS + 2 months of SG&A
NOPAT
₱4,788,274 ₱28,530,174 ₱73,672,069 ₱186,660,854 ₱471,491,080
NOPAT = EBIT Operating Profit - Tax on Operating Income. Operating Profit = Sales - COGS - SGA - Depreciation
FCF
₱26,326,373 ₱52,747,722 ₱106,729,843 ₱209,173,583 ₱443,213,765
FCF = (NOPAT + Depreciation) - (Invested Capital + NOWC)
Standalone 5 Year
Value
₱292,650,375
Vop = NPV(Free Cash Flows years 1-5 disc. at the Startup WACC)
Potential Value
₱391,206,423
Vop = NPV(Free Cash Flows years 1-5 + Terminal Value (disc. at Long Term WACC) discounted at short term WACC
Risk Adjusted Value
₱100,331,672
Vop=NPV(Free Cash Flows+Liquidation Value with expected failure rate) Failure Rate = 25.00%
Liquidation Value
₱475,711,221
TV = NPV(Liquidation Value @ long term WACC)
Investment %
11.07845%
Equity = Investment Needed/(Vop Failre
Rate + Investment Needed) Investment = Capital + Working Capital +Lowest Ending Cash Balance
₱12,500,000.00

30. Business Path
▰ Traditional – Profit
Centered
▰ Technology - Based
Lending

31. “The most important thing in
Business is Liquidity”
Francis Angelo A. Dolojan
Managing Director
francisdolojan@leverage.finance
Unit 3D Cypress Garden VA Rufino St. Legaspi Village Makati City Philippines
1229