This document describes Optimal Management, an LLC that optimizes supply chains for multinational companies. It develops sophisticated mathematical models and numerical optimization methods to optimize global supply chain flows and transfer prices, integrating the solutions with SAP systems. The company is seeking $1.2 million in seed funding to patent its innovations and build prototypes. It has a experienced team and plans to generate revenue through licensing deals and consulting services.

1. Optimal Management, LLC
Participant in SAP Startup Focus
Development Accelerator
Resident at Skolkovo Innovation Center
We optimize Supply Chains of multinational companies

2. 2
Problem
Optimization of Global Supply Chains
How do you establish the most efficient Flow of Goods and
corresponding Transfer Prices if your assets are in multiple countries?

3. 3
• Expansion of globalization leads to complex supply chains
• Current optimization techniques are linear and limited in
scope
• Calculations for a mid size company involve millions of
variables and several terabytes of data
Problem
Optimization of Global Supply Chains

4. 4
SAP ERP
SAP APO
SAP HANA
Hadoop
Cluster
Innovative solution
Big Data and Advanced Analytics
• Sophisticated mathematical models of supply chains
• New numerical methods
• Modeling and Optimization on SAP HANA and Hadoop
• Seamless integration with SAP Business Suite

5. 5
Business model
• Assistance from SAP Startup Focus Development Accelerator at first steps
• Market through SAP and SAP Partner Network
The company will get its revenue from:
• Licensing the products
o Sales through SAP Price List
o Sales through SAP Partners
o Direct sales
• Revenue from consulting services on development of mathematical
models as well as training fees from partners involved in integration
50% revenue sharing model with
the companies selling our products

6. 6
Market Size
Total market size is the following
• SCM market was estimated by Gartner at $7.7 billion in 2011
o SCM market for multinational companies represents 25% of the total SCM
market and will grow with expansion of globalization
o More than 10,000 companies in this segment will be interested in our products
Targeted companies are
• Big multinational corporations, including
o BP, EADS, ArcelorMittal, Nestle, Toyota Motor, Intel, Pfizer, Gazprom, etc
• Upper segment of middle size companies, including
o Burberry, Bionorica, Kronotex, UMC(United Metallurgical Company),
Russian Sea, etc.

7. 7
Competition
Simultaneous optimization can yield up to 5% increase in profit
Products
Optimize revenues
through manipulation of
flow of goods
Optimize revenue
through manipulation of
transfer prices
SAP, Oracle, JDA Software
and others

(use fixed transfer prices)
─
THOMSON REUTERS
(Global Tax Planning)
─ 
(use fixed flow of goods)
Optimal Management  

8. 8
Intellectual Property
• Ph.D. thesis described mathematical model &
integration with SAP
• We are patenting the following innovations:
• Numerical algorithm
• Parallelization of Algorithm
• Data model
• Architecture

9. 9
• Experienced CEO with years of executive experience
• World renowned CSO
• 3 Dr.Sc and 2 Ph.D
• 200+ publications on Optimization and Numerical Algorithms
• SAP guru consultants on SCM
Team

10. 10
0
5
10
15
20
25
0
5
10
15
20
25
30
35
40
45
50
1st year 2nd year 3rd year 4th year 5th year
Sales
Expenses
Customers
Financials
#Customers
$Millions
$1.2M
Raised
$6.5M
Raised

11. Optimal Management, LLC
We are looking for $1.2M funding
on patenting and prototype
Russian Venture Company (RVC Seed Fund) can invest - $0.8M,
Needed private funding - $0.4M.
A seed investor is available to cover 50% of the required private funding = $0.2M
We optimize Supply Chains of multinational companies
In USA: Vitaliy Baklikov vitaliy.baklikov@optimalmngmnt.com
In Russia: Andrey Sukhobokov andrey.sukhobokov@optimalmngmnt.com

12. 12
Appendices
Q & A

13. 13
Value drivers
• Strong team of scientists + business professionals
• Patentable technology
• Scalable business model
• High margins (2 licenses cover the entire product cost)
• 8 times return on investment in 2 years

14. 14
Exit
• In 2 years (for seed investor):
- Sell shares to big VC (RVC, VEB, other)
• In 3-5 years:
- Trade sale to SAP, Accenture, IBM, Ernst &
Young, PWC, etc.
• In 7-10 years:
- IPO

15. 15
Where we are today
• Ph.D. thesis with product ideas was defended by a team
member
• Entered Skolkovo program through expert committee and is
now a contender for a grant
• Entered SAP Startup Focus Development Accelerator
program in May 2013
• Working on prototype

16. 16
What’s next
Timeline 05/13 10/13 03/14 08/14
Entered
SAP
Startup
Focus
Program
Proof Of
Concept Built
File patents
Pilot customer
Full Prototype
Next customer