Business plan 2013 by Benjamin Barber

MANAGEMENT SUMMARY

SINGAZ BUSINESS PLAN

MANAGEMENT SUMMARY

CONTENT 01 MANAGEMENT SUMMARY

02 INTRODUCTION

03 OUR PLAN

03.1 Mission and Vision 03.2 Products and services

9 9

04 SITUATION ANALYSIS

04.1 Organisation 04.2 The market 04.3 SWOT

15 18 21

05 STRATEGY

05.1 Target groups 05.2 Objective 05.3 Positioning 05.4 Marketing mix

23 25 26 26

APPENDIX

Founders Management Team Project planning Retail concept SINGAZ scooter models

31 32 34 36 40

MANAGEMENT SUMMARY

SINGAZ is an organization specialised in designing, producing and selling electric scooters and bicycles uniquely and directly to consumers and businesses on a European scale. More than 60% of the European population lives in an urban environment. Across Europe the tremendous increase in traffic in and around cities on a daily basis has lead to enormous congestion problems with all the negative consequences. Air pollution and noise increase year after year. The urban traffic accounts for 40% of CO2 emissions and 70% of emissions of other pollutants from road traffic. SINGAZ offers a contribution to help solve the problem while at the same time build a profitable company. At present, most of all electric scooters sold in Europe (and bicycles) are produced in Asia. Most models come from the same plants (or are cloned), making them very alike in terms of appearance and performance. Distribution takes place primarily via the regular retail network in two-wheelers. The current players primarily operate as wholesaler / distributor in which the margin for the retailer is discounted in the final price. Via Flagship stores in cities with over 450,000 inhabitants with a high density of scooters SINGAZ scooters and bicycles will be marketed. By elimination of the wholesaler, the SINGAZ scooters and bicycles are very competitively priced. The first SINGAZ flagship stores will be located in Barcelona, Amsterdam, Berlin and London. These cities are attractive and promising markets to set up shop. The cities strongly welcome clean alternatives in the urban environment in order to reduce CO2 levels. After these four locations, stores will be set up worldwide. SINGAZ aims for maximum durability in manufacturing and selling urban transport solutions in the form of electric scooters and bicycles. I.e humans and the environment throughout the entire process - from drawing board to Flagship Store â&#x20AC;&#x201C; will be charged at the minimum possible rate. Much attention is paid to design and user friendliness of the products. SINGAZ scooters are definitely fun to use. In addition: The high sensitivity of theft of scooters in general has for years meant extremely high insurance premiums for consumers. The SINGAZ products have a low as possible theft sensitivity. Leading insurance brokers in The Netherlands and Spain are willing to form an exclusive alliance yielding very attractive benefits and options to end users. Giving SINGAZ a distinctive competitive advantage over its competitors.

According to Pike Research the market for electric two-wheelers is growing strongly. Over the next few years the market volume of electric two-wheelers in Western Europe is estimated to grow to $ 20.4 billion in 2016. SINGAZ recognises the market potential of durable and sustainable transport in urban areas. Clean alternatives are already gaining market share. At present there are many (small) players, but no real market leader.

INTRODUCTION

‘WE CAN’T SOLVE PROBLEMS BY USING THE SAME KIND OF THINKING WE USED WHEN WE CREATED THEM.’ ALBERT EINSTEIN

It is a fact that the global climate is changing. The conclusions of the report of the Intergovernmental Panel on Climate Change (IPCC)1 published in 2007 are quite unambiguous on this point. There is no more doubt that mankind is the leading cause of these climate changes due to burning of fossil fuels and through industrial and agricultural activities. The consequences of the way we use the earth are far reaching, both for mankind and for the environment. The increase of extreme weather conditions and changes in precipitation patterns are already causing more damage than ever before. More droughts are leading to an increase in forest fires and desert formation. This will increasingly affect countries already suffering from a shortage of clean drinking water. Developing countries in particular are vulnerable to climate change because they often simply do not have the resources needed to adapt. If we wish to leave the generations after us a liveable planet, but also guarantee the continued existence of our economic system, fundamental changes have to be made. So far, addressing these problems has been the exclusive domain of governments and not for profit organisations. We are convinced that we can and may no longer hide behind that. The solution has to start with taking responsibility, both at the individual level and at the level of organisations. At SINGAZ we accept that challenge, and we take the opportunity to actively contribute to a more liveable and healthier society by providing smart urban sustainable

solutions. Merging our ideals and our commercial objectives we create a niche in the market by developing and marketing our electric scooters and bicycles.

The Intergovernmental Panel on Climat Change (IPCC) was created by the United Nations in order to evaluate and summarise the present scientific, technological and socio-economic knowledge concerning global warming. The IPCC publishes a report every five or six years; the most recent one was published in 2007.

For a full overview of the consequences of global warming we make reference to the 2007 IPCC report: IPCC Fourth Assessment Report: Climate Change 2007 (AR4).

SINGAZ scooters and bicycles are the ideal alternatives for the ‘dirtier’ modes of urban transport. By informing the target groups and offering an affordable alternative to traditional modes of transport we eliminate misconceptions about electric transport and makes switching to sustainable transport a logical choice.

OUR PLAN

Worldwide over 60% the population live in an urban environment.. The increase in traffic in and around cities leads to daily traffic jams with a range of negative consequences. Air and noise pollution keep rising every year. Urban traffic is responsible for 40% of CO2 emissions and 70% of other road traffic pollut ant emissions.3 SINGAZ scooters and bicycles are the ideal alternatives for the ‘dirtier’ modes of urban transport.. By informing the target groups and offering an affordable alternative to traditional modes of transport we eliminate misconceptions about electric transport anvd makes switching to sustainable transport a logical choice.

03.1

03.2 PRODUCTS AND SERVICES Currently almost all scooters and bicycles sold worldwide are produced in Asia. Most models are manufactured in the same plant or are cloned, so there is little variety in terms of design and performance. The manufacturing process is ,in most cases not environmentally sustainable, and quality is often poor. Sales mainly take place through the regular two-‐wheeler retail network. The current market players therefore mainly act as wholesalers, so that retail prices are higher than if products were sold directly from the factory to the consumer. In addition to our scooters and bicycles, we will offer a range of products and services which will add value to our brand and promote a SINGAZ lifestyle .

MISSION AND VISION By giving smart, clean alternatives to existing polluting urban transport, SINGAZ will contribute substantially to improving the quality of life and mobility in large urban areas. We focus primarily on developing, manufacturing and selling electric two-wheelers (scooter and bicycles), striving for optimum sustainability. SINGAZ represents a different way of thinking and living. Our products are excellent,innovative and affordable SINGAZ offers consumers and companies an opportunity to contribute to a better and cleaner environment for future generations without compromising on quality, performance, comfort or design.

Mission: By developing and offering sustainable urban transport solutions to both private individuals and companies SINGAZ aims to provide an alternative to traditional – fossil fuel based – modes of transport in order to contribute substantially to reduction of CO2 emissions and improving the living environment in large urban areas.

Vision: By raising awareness of the importance of sustainable energy in urban transport ,our aim is to be at the forefront of this fast growing market .

Commission of the European Communities – Green Paper COM(2007) 551.

SINGAZ BUSINESS PLAN

OUR PLAN

03.2.1 SCOOTERS AND BICYCLES SINGAZ scooters and bicycles are distinctive and easily recognisable. The bicycles and scooters are based on existing models (platforms), and adapted to our technical and design specifications. The scooters and bicycles are designed by the SINGAZ design team and built exclusively for us. They are not clones of existing models, but brand new designs developed in collaboration with Delft University of Technology and the Industry. SINGAZ scooters have a modern image in keeping with the SINGAZ ‘lifestyle’ appeal The basic models can be customised to requirements. A widely held misconception about electric scooters is that they are underpowered compared to petrol models. Recent developments in particular in lithium-ion batteries have closed this gap. SINGAZ collaborates with the renowned companies and the university of applied science in Delft on the development of a light-weight, high-power removable battery that will make the range `practical for everyday use .

We are firm believers in the Cradle to Cradle (C2C) philosophy, and we strive to ensure that all materials used in our products at the end of their lifetime can be safely recycled.

The essence of the cradle-to-cradle principle lies in the concept: Waste is food. All materials used must be able to be usefully recycled in another products. There should be no loss of quality and remaining waste products should be reused or be environmentally neutral, squaring the circle making waste into fuel.

Thus, C2C goes beyond sustainable development. Sadly, 100% C2C production is not yet possible. However, organisations can implement many C2C elements in their production process, optimising it in terms of C2C. SINGAZ aim is to develop products using only components that minimise environmental impact, and that after use: Can literally serve as food (compost) for the earth

Our base model has the following specifications:

Can be up cycled Can be recycled

Power consumption

48 Volt / 20 AH lithium-ion polymer battery

Range

25-30 km

Power output

2,0 kW

Top speed

45 km/h

We believe in sustainability, as a condition for all future business models ! For SINGAZ, sustainability is not limited to products. Manufacturing and assembly will be located geographically where sales outlets exist in order to: Provide jobs for local people.

Price

Reduce carbon footprint (transport) and thus make significant savings Make pricing transparent and competitive.

Source: www.cradletocradle.nl

SINGAZ BUSINESS PLAN

03.2.2 TOTAL CONCEPT As an urban sustainable solutions company , SINGAZ through its flagship stores offers products and services fully in line with The SINGAZ â&#x20AC;&#x153;Lifestyle Philosophy â&#x20AC;&#x153;. Our flagship stores will nurture the sense that choosing a sustainable lifestyle is a matter of making the right choices without compromising on design, fun and functionality. 5

The flagship stores offer the following products: Electric scooters and bicycles Accessories and parts Fashionable Clothing ( used and redesigned ) Helmets Fashion accessories and services: B2B sales Lease of electric scooters and bicycles Sustainability information desk SINGAZ insurance Service and maintenance

The retail concept based on direct sales from flagship stores was developed in detail in close consultation with Rodney Firtch, Delft University of Technology and DASTRO, and is attached as an appendix.

OUR PLAN

Flagship stores will be launched in cities with over 450,000 inhabitants. Cities with high volumes of scooter and bicycles volumes, that actively pursue CO2 emission reductions, are our primary targets. In the course of 2014/2015, we plan to open flagship stores in Barcelona, Amsterdam, Berlin, and London. Our plan is to open a further 10 -‐15 stores worldwide within a period of 5 years.

Removable battery GPS for theft prevention Unique SINGAZ application Audio outlet for polytones , create your own sound!

03.2.3 SERVICE AND MAINTENANCE As opposed to petrol-powered scooters, electric scooters need relatively little maintenance, SINGAZ has developed for its community members a comprehensive customer Service plan ( The Bright Ride and The Bright Ride Plus ) with the following services : 24/7 availability by telephone all year round Breakdown service, within the city where a SINGAZ outlet is located Update of our software Free sharing app Free of charge replacement vehicle during repairs (fleet owners) Advertisement revenues Our loyalty scheme

03.2.4 WHY A SINGAZ? The key USPs at a glance: Innovative and ‘cool’ design Better performance and easier handling through new (removable) battery technology Manufacturing and assembly locally Movement through lifestyle Actively being able to change society Anti-theft ‘smart start’

Commission of the European Communities – Green Paper COM(2007) 551.

SITUATION ANALYSIS

MANAGEMENT

SINGAZ SL. ESPAĂ&#x2018;A

INVESTORS

SINGAZ DEUTSCHLAND GmbH

FSS BCN SL

FSS BERLIN GmbH

FOUNDATION

SINGAZ UK Ltd.

SINGAZ NL BV

FSS LONDON Ltd.

FSS AMSTERDAM BV

04.1 ORGANISATION

04.1.1 OPERATING COMPANIES

The organisational chart shows the future structure of the organisation (in the first two years)

A general manager (recruited from within the country) will be appointed in each country where SINGAZ operates to direct and oversee operations. The Dutch and Spanish companies are already in place . HER/ HIS responsibilities will include :

04.1.1 HOLDING COMPANY All shareholders will be represented in the SINGAZ Holding. For this purpose the Holding company will own the rights (name, logo, future patents etc.). In the future, SINGAZ Holding will manage the country managers. Responsibilities of the Holding are : Formulating and supervising vision, mission and strategy Marketing & Sales global Finance ITC HRM (general policy and recruitment) R&D Purchasing Lobbying local and central government to promote urban sustainable solutions Monitoring of retail concept development

Recruiting, motivating and educating staff Local fine tuning of the general sales strategy (consumers and B2B ) Realisation of sales targets (quantitative and qualitative) Protecting and expanding the SINGAZ brand Collecting and collating market information (trends, complaints, customer suggestions).

SINGAZ BUSINESS PLAN

SPAIN

04.1.3 FLAGSHIP STORES Each country where SINGAZ operates will have at least one flagship store. The flagship stores, will reflect the SINGAZ “lifestyle “ philosophy though the one stop shopping experience , this includes a variety of products and services, through point of sale to after sales services.

General manager responsible for day to day business 1fte FLAGSHIP STORE BARCELONA

Flagship store manager 1 fte Sales assistant 1 fte Maintenance technician 1 fte THE NETHERLANDS

04.1.4 OPERATIONS In order to guarantee high levels of quality and services we will recruit locally from unemployed people who have the necessary skills and experience needed for the organic growth of SINGAZ Our people will share the SINGAZ ethos relating to urban sustainable solutions ‘Lifestyle’. The members of the management team of SINGAZ Holding will be ” hands on “ , on a day to day basis, liaising with management and monitoring progress in each country .The holding company will oversee day to day operations . This system will ensure that the board is provided with all relevant information, keeping focus on the market, thus being able to respond quickly and assist and correct where necessary.

04.1.4.2 STAFF (FIRST 24 MONTHS) HOLDING

Chief Executive Officer focus areas retail, marketing, day to day business and communication 1 fte Chief Commercial Officer focus 1 fte Chief Sustainability Officer to lobby local and central government Chief Financial Officer focus area finance 1 fte Office Manager

General manager responsible for day to day business 1 fte FLAGSHIP STORE AMSTERDAM

Flagship store manager 1 fte Sales assistant 1 fte Maintenance technician 1 fte UNITED KINGDOM

General manager responsible for day to day business 1 fte FLAGSHIP STORE LONDON

Flagship store manager 1 fte Sales assistant 1 fte Maintenance technician 1 fte GERMANY

General manager responsible for day to day business 1 fte FLAGSHIP STORE BERLIN

Flagship store manager 1 fte Sales assistant 1 fte Maintenance technician 1 fte

SITUATION ANALYSIS

04.1.4.3 SHAREHOLDERS In the new organisational structure, the relationships, authorities and duties of the new directors/major shareholders are laid down. SINGAZ expects its shareholders: To be prepared to make a long-term investment To subscribe to our vision on urban sustainable solutions and electric transport To assess our business operations Where possible to provide introductions to potential customers (B2B) and relevant networks and/or relations

04.1.4.4 SUPERVISORY BOARD In addition to expertise and experience, networks are a key instrument for SINGAZ to realise its stated objectives. Another vital part in the growth of the organisation is for the strategy initiators to regularly ‘touch base’ with experienced businessmen, strategists and experts. To promote this, SINGAZ intends to create a supervisory board’ of five members. The purpose and added value of this supervisory board should be: ‘Touching base’ with and advising the board on vision, strategy and realisation Sharing expertise and experience with the organisation. Where possible arrange introductions to potential B2B customers and relevant networks. In view of the stated objectives, the following areas of expertise should be represented on the supervisory board: Knowledge and experience in, the world of politics and the government, (e.g. a former minister or state secretary). Business experience, preferably gained as a board member of a major international retail organisation, and having an active network at this level;

04.1.4.5 STRATEGIC COLLABORATION PARTNERS AND ADVISERS We are in close collaboration with companies and institutions’ who share our ‘Lifestyle’ philosophy. Rieju (www.rieju.es) -A leading Catalan family business that has designed and produced motorbikes and scooters in-house for over 75 years. Recently designed its first electric scooter. Currently 1 scooter is on market and 1 in development for SINGAZ exclusively Ànima Barcelona (www.anima.es) -A leading industrial design agency with an international focus and clients. From the beginning the agency has worked for organisations in the automotive sector. In recent years it has gained a lot of experience designing electrically powered cars and motorbikes. Willis Spain & Portugal (www.willis.com) -Part of the second-largest insurance broker in the world. Our partner outside the Netherlands in developing our insurance. Van Kampen Groep (www.vkg.com) -The largest financial full service provider and authorised underwriting agent in the Netherlands of major insurance companies such as AIG, Lloyds, Delta Lloyd and Nationale Nederlanden. Van Kampen Groep is also highly experienced in developing and drafting unique insurance policies. Involved in the SINGAZ anti theft design process as insurer. Also our partner in the development of SINGAZ insurance. Dastro (www.dastrodesign.nl) -Dastro is an independent design agency specialised in designing shop interiors (retail design). This agency translated the retail concept drafted by Rodney Fitch and Delft University of Technology into a real shop. Rodney Fitch – Internationally reputed Retail Design & Management expert. Founder of Fitch (www.fitch.com) and experienced retail concept development consultant for leading brands. Delft University of Technology (www.io.tudelft.nl) A team of 6 students from the Industrial Design faculty (IO) supervised by 2 professors will work 6 months on developing three new SINGAZ scooter models.

Knowledge of, experience with, and vision on marketing & communication, preferably gained as aboard member of a large international organisation.

Firma (www.firma.es) -Upfront and leading advertising agency in Barcelona responsible for the practical translation of our communication strategy (website, brochures, corporate identity, etc.).

Knowledge and, experience in the field of sustainability (e.g. a consultant, professor or Chief Sustainability Officer)

XXL (www.xxlcomunicacion.com) Leading Spanish PR agency that works for well known brands such as Nike, Ferrari or Custo Barcelona.

SINGAZ BUSINESS PLAN

04.2 THE MARKET The market for electric two- wheelers is growing strongly and will expand further. At present, China is by far the largest market for electric two-wheelers (over 95% market share), with Western Europe a distant second. Over the next few years, the Western Europe’s market share will increase to 3.4%, compared for example to the United States with 1.9%. This represents an estimated global turnover of USD 20 billion by the year 2016. At present, the Netherlands is the largest market for electric two-wheelers in Europe. The rest of Europe is expected to catch up over the next few years, but the Netherlands will remain market leader. Electric scooter sales projections suggest only France and Italy will overtake the Netherlands by 2015. We feel this growth projection underestimates the market potential in absolute numbers. The reason why we have chosen to open our first flagship store in Barcelona is that it has the highest rate of motorised two- wheelers in Europe. One third of ‘traffic movements’ in the city is on motorbikes, scooters or mopeds. Almost 40,000 motorised two-wheelers are sold in Barcelona every year, half of which are scooter models. However, the market share of electrically powered two-wheelers remains negligible (0.1%). Keeping the recent growth of the Dutch market for electric two-wheelers as a model a market share of 1.9% of total sales of motorised two- wheelers in theBarcelona region is a realistic target.

Despite the fact that we are in a growth market with huge potential, there is as yet no real market leader. This leaves enough space for new players to claim market share . Major players like Honda, Yamaha, Piaggio and Peugeot have introduced electric scooter models which will increase competition. The market for electric bicycles is more straightforward, in particular in the Netherlands. With a joint market share of over 10% of the bicycle market the leading players, like Batavus, Gazelle, Giant, Sparta and Union, largely control the electric bicycle market, and newcomers like SINGAZ and Halfords ( its Cumberland brand ) will have to use price and lifestyle appeal in order to give a competitive edge. West Europa VS 200.000

150.000

100.000

50.000

0 2010

2011

2012

2013

2014

2015

Additionally, Barcelona has ambition to become Europe’s most sustainable city and has already put in place a number of schemes. 6

2010 Q1 Pike Research, Hurst, Dave; Wheelock, Clint: Research Report - Electric two-wheel vehicles

2016

SITUATION ANALYSIS

04.2.1 INFLUENCES

04.2.2 CONSUMER MARKET

Europe is ageing. The over 65 group is expected to increase by over 15% between 2005 and 2015. This means that the target group for electric bicycles will expand in the future. A TNO study indicates that electric bicycles will also encourage pensioners and commuters to cycle more and longer distances.

Current research figures don’t differentiate between petrol and electric bikes and scooters or bicycles. However there is nothing to suggest that there is a significant difference in break down within European countries The Spanish market is potentially one of the biggest in Western Europe.

The same study found that 20% of those interested in buying an electric bicycle would make this choice for the benefit of the environment. Clearly, consumers are becoming more environmentally conscious, which steadily increases the weight of public opinion on politics and the private sector.

The motorised two wheeler market in Spain currently totals some 180,000 units. Scooters on average make up almost 60% of the market (85% of under 50cc sales and 55% of over 50cc sales). Strikingly, more than four times more scooters are sold in the more powerful segment (>50cc) compared to the lighter versions.

Urban congestion has forced city authorities to focus on finding solutions. Examples are London bike lane project , Amsterdam bicycle infrastructures and Barcelona Bicing program.

Eurostat (European Union) Data.

TNO2008 Elektrisch fietsen - marktonderzoek en verkenning toekomstmogelijkheden (TNO 2008 Electric bicycles, market research and future potential): Hendriksen, I; Engbers, L; Schrijver, J; Gijlswijk, van R; Weltevreden, J; Wilting, J.

2010 Q1 Pike Research, Hurst, Dave; Wheelock, Clint: Research Report -Electric two-wheel vehicles Eurostat (European Union) Data. TNO2008 Elektrisch fietsen -marktonderzoek en verkenning toekomstmogelijkheden (TNO 2008 Electric bicycles, market research and future potential): Hendriksen, I; Engbers, L; Schrijver, J; Gijlswijk, van R; Weltevreden, J; Wilting, J.

The Netherlands

The Netherlands Germany France Italy Rest of Western-Europe

France Rest of Western-Europe

35.000

500.000

30.000

400.000

25.000 300.000

20.000

200.000

15.000 0.000

100.000

5.000

0 2010

2011

2012

2013

2014

2015

2016

0 2011

2012

2013

2014

2015

2016

2017

SINGAZ BUSINESS PLAN

The market share of electric two wheelers is presently negligible (0.1%). We believe that this is mainly due to the absence of attractive alternatives and lack of information. The prominence of sales in the more powerful segment shows that the target group prefers power engines. This limits the competitiveness of the current generation of electric scooters In the Netherlands at this time almost half of all new scooters (both mopeds and scooterettes) are sold to the 36 to 55 age group. Electric bicycles are mainly popular in older target groups. No extensive research has been made on why people would switch from petrol to electric scooters, but the findings of the TNO study into electric cycling cited above show that 20% of people who are interested in buying an electric bicycle would do so to replace a less environmentally friendly mode of transport. The main reasons for not buying an electric bicycle were the high prices and the fact that respondents did not consider themselves part of the target group. Young people between 16 and 25 represent one third of the moped market in the Netherlands but only 15% of the scooterette market. The majority of electric scooters sold in the Netherlands is of the latter category, with a market share of almost 6.5%. The conclusion appears justified that the market for electric scooters at this time is concentrated in the over 26 group, which highlights the image problem of electric scooters among young people. In 2010 the joint market shares of electric scooters and scooterettes in the Netherlands rose by over 1.5% year on year to over 4.5% of total sales13. Scooterettes showed the largest increase (almost 2%). All signs are there that this trend will increase globally over the next few years. 9

Source: Anesdor 1st half year 2010.

July 2010 -VWE Bureau voor voertuigdocumentatie en informatie (Vehicle Documentation and Information Bureau).

al survey by Accenture of a large number of CEOs, stakeholders and world leaders shows that 93% of CEOs are convinced that sustainability is a critical factor for the future success of their com-足 pany. In the same survey, 91% of CEOs said that their company would employ new technologies (e.g. renewable energy, energy efficiency, information and communication technologies) to address sustainability issues over the next five years. Various governmental authorities have announced incentives in the context of current agreements and treaties, and in some cases have already introduced them. However, many companies are unaware or not fully aware of this. SINGAZ intends to play an active role in informing companies and organisations on sustainability issues and mobilising them to make long-term commitments. We are planning to approach sectors such as hospitality, transport and government.

Annual new scooters sales (mopeds and scooterettes) first half year 2010 Source: VWE

04.2.3 BUSINESS MARKET A growing trend among companies is to place sustainability high on their agendas. For example, a glob-

This will be followed up by outlet in the context of developing our retail concept.

TNO2008 Elektrisch fietsen - marktonderzoek en verkenning toekomstmogelijkheden (TNO 2008 Electric bicycles, market research and future potential): Hendriksen,I; Engbers,L; Schrijver,J;Gijlswijk, van R; Weltevreden,J; Wilting,J.

SITUATION ANALYSIS

04.2.4 COMPETITION

Brand/Model

EVT 4000e

Consumptio n Actiradiu s

Power

LiPo 48V/20Ah

opp. 45 km

2,0 kW

€

LiPo 1920 Wh

21 Wh/km

90 km

2,8 kW

€ 2.101,-

Battery

Top

Pric e -

€ 2.184,90 km 21 Wh/km 2,8 kW LiPo 1920 Wh The electric two-wheeler mar- EVT168 ket is still young and there is Yamaha EC03 € 2.300,40 km 1,4 kW LiPo 50V/15Ah as yet no clear world leader. € 2.725,70 km 27 Wh/km 1,5 kW LiPo 1920 Wh A number of smaller players Ranger € 2.825,are active in the market, most Govecs SC 1.4 90 km 1,4 kW LiPo 48V/40Ah of whom operate with clear € 2.995,50 km 1,5 kW LiPo 48V/40Ah Ego-Ret ro strategy . However, the pro€ 3.299,130 km 2,4 kW 21 Wh/km jected growth of the electric Qwick Emoto 87 LiPo 2688 two-wheeler market has en- Metr o € 3.342, 70 km 1,5 kW 41 Wh/km LiPo 2880 couraged established brands to € 4.699,75 km 4,0 kW 32 Wh/km enter the market . Some major Noveco Novox players now have one or more electric (and/or hybrid) models within their range. . ship stores cutting out the middleman) and SINGAZ lifestyle philosophy. The table above compares the specifications of our base model with a number of competitors. We have Our aim is to promote the public image of ‘sustainalimited the comparison to models using lithium-ion bility’ in general and of electric two-wheelers in parbatteries, omitting the weaker silicon- gel types. They ticular. SINGAZ two-wheelers are distinctive in terms may be cheaper than lithium batteries, but due to their of price, C2C, design and performance that dispelling lack of power and inferior charging capacity they canmisconceptions about electric scooters and bicycles. not compete with petrol models. Furthermore, we continuously strive to perfect our It is significant that due to direct factory sales the two-wheelers in technological terms (strengthenSINGAZ base model is far cheaper than comparable ing). In this context we have already entered into a scooters from competing brands. Clearly, SINGAZ number of strategic alliances, which has resulted in provides ‘more value for less money’. SINGAZ models a far lighter and stronger removable battery with a are priced to compete with all petrol and silicon-gel reduced charge time. models currently on the market. The modular battery system makes it easier to increase the range of the base model by adding a battery.

Weak • newcomer (relatively inexperienced) • dependent on prime locations (high rent levels)

internal

The table on the right shows the main strengths, weaknesses, opportunities and threats that emerged from the analyses. By comparing the opportunities and threats with our strengths and weaknesses in a confrontation matrix, we have developed a multidisciplinary strategy that emphasises our uniqueness in a growing market. We will concentrate and exploit our unique retail concept (flag-

Strong

Opportunity externa l

04.3 SWOT

• growth market (both consumer and B2B) • environmentally and price conscious consumers • increasing prosperity and urbanisation • CO2 emissions on political agenda > tax incentives, subsidies and premiums • pricing of competing models

Threa t • time > expected growth of competition from major players like Trek, Giant, Yamaha and Honda • limited infrastructure (e.g. availability charging stations) • image

STRATEGY

05.1 TARGET GROUPS In the external analysis we have distinguished between business and consumer markets. We further segment these primary target groups. For consumers, we employ our values associated to our brand; for the business market we focus on intended use.

05.1.1 CONSUMER TARGET GROUP SEGMENTED BY AGE

05.1.2 BUSINESS MARKET TARGET GROUPS Partly due to increasing political and social pressure, the business market is ahead of the consumer market. Companies are increasingly aware that sustainable business is a condition for continuity. This is why we will initially target companies that are already operating sustainably in some way or plan to start doing so. We will focus on the business market where the usage of electric scooters and bicycles is applicable. We We focus on the following sectors:

Secto r

Use

Government > practice what you preach

Personal transport

Hospitality/tourism > leasing companies, hotels

Personal transport

Restaurants and delivery service

Freight transport

Automotive > replacement vehicles

Personal transport

Transport > courier and postal companies like TNT, DHL and TPG

Freight transport

Business services > e.g. real estate companies

Personal transport

Industry > e.g. port authorities

Personal transport

Produc t

SINGAZ BUSINESS PLAN

05.1.2.1 FURTHER BUSINESS MARKET SEGMENTATION

05.1.2.1.1 SPAIN (BARCELONA FLAGSHIP STORES)

Countries, markets and cities are so diverse that we must make a specific choice for a maximum of five sectors per country (and sometimes per city) on which we will focus initially. Our starting point is that we will focus on sectors that already widely use motorized two wheelers but where electric two wheeler penetration is relatively low or nil. Furthermore, the companies must be able to reap strong benefits compared to traditional petrol-guzzling motorized two wheelers in terms of price, image and stoppage due to maintenance and/or repair. The latter, in particular, offers great opportunities.

The Spanish market offers considerable scope because it is virtually virgin territory with huge potential.

05.1.2.1.2 NETHERLANDS (AMSTERDAM FLAGSHIP STORE) Since the Dutch market currently leads the EU in terms of electric two wheeler use there are â&#x20AC;&#x201C; in contrast to Spain â&#x20AC;&#x201C; relatively few sectors with significant potential in combination with low penetration. We believe that the sectors below offer scope for considerable growth over the next few years since the market is just nearing a breakthrough. The next few years will show considerable growth. We anticipate that in near future within europe various countries will adopt the trend of offering subsidies on electric sector purchase.

05.1.2.1.3 GERMANY ( BERLIN FLAGSHIP STORE ) -/- no to little market penetration +/- limited market penetration + /+ significant market penetration

We anticipate that in near future within europe various countries will adopt thetrend of offering subsidies on electric sector purchase.

05.1.2.1.3 UNITED KINGDOM ( LONDON FLAGSHIP STORE ) We anticipate that in near future within europe various countries will adopt the trend of offering subsidies on electric sector purchase. -/- no to little market penetration + /- limited market penetration + /+ significant market penetration

STRATEGY

05.2 OBJECTIVE In it’s first two years, SINGAZ will be active in 4 countries Spain, Germany , the United Kingdom and the Netherlands. Our objective is twofold: realising the projected sales and market share and promoting the desired image and increasing brand recognition. We will focus primarily on the designated sales areas (locally) and secondly on a wider area (nationwide in Spain and the Netherlands). After the first 2 year we plan to open flagship stores in other countries worldwide and will adjust the objective accordingly.

05.2.1 SALES The sales projections described below exclude sales generated from accessories and additional products and services . Comprehensive figures are provided in the financial appendix. In the calculation of the number of units sold we assume a market share of 1.9% of the total Barcelona scooter market. For Amsterdam we assume a market share of 1.9% of the total Dutch moped and scooterette market The correction factors in the table reflect the opening dates of the Amsterdam and Barcelona stores . Projected sales will be equally divided between the consumer market the B2B market. Despite the fact that the B2B market is leading in terms of sustainability, we believe that our unique retail concept and the SINGAZ “lifestyle “ philosophy will attract early adopters.

05.2.2 BRAND RECOGNITION AND IMAGE The current market for electric scooters and bicycles is fragmented and public perception is sceptical SINGAZ, through innovative design and technological advance aims to “break the mold” and positioning themselves as market leaders The Lifestyle Philosophy carried through at all levels of the organisation, will encourage a change of perceptions by the consumer.

05.3 POSITIONING Studies have shown that consumers and businesses are insufficiently aware of the advantages of sustainable products and services. which . For this reason, SINGAZ will endeavour to inform and educate. STRATEGY 2008 the McKinsey Quarterly, Helping ‘green’ products grow - Sheila M.J. Bonini, Jeremy M. Oppenheim.

The SINGAZ “lifestyle “ brand represents: Lifestyle with a high ‘cool factor’ Make informed choice to be sustainable Quality (performance) SINGAZ DISTINGUISHES ITSELF FROM THE COMPETION THROUGH:

A unique retail concept (flagship stores cutting out the middleman) Scooters (and bicycles) with superior:

05.2.1.1 B2B SALES Based on the ratio of consumer sales to B2B sales mentioned above, we project sales of € 862,817 in the first twelve months of operations.

Performance Design Sustainability (Cradle-to-Cradle) Easy of use (e.g. removable battery) Price/quality ratio Better service and aftersales

SINGAZ BUSINESS PLAN

Removable battery

05.4 MARKETING MIX There are number of marketing mix models. Despite primarily a substantial part of our sales will come through B2B sales The market for electric two wheelers is mainly sustainable consumer product For this we have chosen for the traditional 4P model. However the non business market is of equal importance to us.

05.4.1 PRODUCTS AND SERVICES In the first year SINGAZ will market 3 motorised two wheeler models and 1 electric bicycle, and associated accessories and a range of services. Our products are distinctive from our competitors’ due to the latest innovation, price , future application of the Cradle 2 Cradle philosophy in the production process and customising options for consumers.

GPS for theft prevention Unique sin gaz application Audio outlet.

05.4.1.2 BATTERY We are collaborating closely with Delft University of Technology and a German manufacturer in the development of battery technology . The lithium-ion batteries currently on the market are relatively expensive and do not have the right properties to meet these demands. For example, charging is still too time consuming, and lifespan is limited. The new SINGAZ battery currently available overcomes these limitations and problems. It is removable and modular, so one, two or even three batteries can be used depending on the desired capacity and range. It is CEE certified and mostly recyclable. SINGAZ batteries can be charged in two ways, either by connecting the vehicle to a power socket,or by removing the battery and placing it in a charging unit. Furthermore, all SINGAZ scooters are equipped with a unique Battery Management System (BMS) that enables the rider to monitor the battery’s performance and personalise the settings.

05.4.1.3 ACCESSORIES In order to make the customer’s shop experience as complete as possible, we will introduce a range of accessories and associated products under the SINGAZ brand name. Practical, trendy and sustainable.

05.4.1.1 ELECTRIC SCOOTERS AND BICYCLES

Scooter and bike covers in trendy prints

The three SINGAZ scooters and motorcycle have varying levels of finishing, they are priced accordingly, and can all be customised.

Locks

All models will be equipped with: Anti-theft ‘smart start’

Waterproof clothing Helmets, standard or with Bluetooth technology Maintenance gear and kits Bags Recycled clothing Fashion accessories

STRATEGY

05.4.1.4 OTHER PRODUCTS AND SERVICES SINGAZ will form alliances with various business sectors to create further benefits for SINGAZ riders.

05.4.1.4.1 INSURANCE Excellent security features on SINGAZ vehicles minimise the risk of theft. Leading insurance brokers in the Netherlands and Spain are willing to form an exclusive alliance, yielding the following benefits and options: Significantly lower premiums (at least 40%) and excess for SINGAZ riders SINGAZ look & feel Higher payments in the event of damage Discounts for SINGAZ riders on other insurance products of our partners.

05.4.1.4.4 LEASE SINGAZ will also move into leasing electric scooters and bicycles. This will contribute to the operating result and also create an extra marketing tool. Getting more SINGAZ scooters on the road raises the brand profile and ultimately sales numbers.

05.4.2 PRICE By cutting out the middleman and selling directly to end users, we can offer top quality two wheelers at competitive prices without compromising our margins. Since price is one of the reasons why electric scooters are not considered an attractive alternative to traditional scooters, we will certainly stress this point in our communication. Despite the SINGAZ sustainability label, accessories are also competitively priced. The average margin on the accessories is 82%.

Joint promotions through partners’ database

Sales

Cross-selling of other financial products

05.4.1.4.2 TELECOM COMPANIES We are focusing primarily on global mobile phone provider, but collaboration with local partners is also possible. SINGAZ riders will be able to buy subscriptions and call time at lower rates.

05.4.1.4.3 RINGTONES (POLYPHONIC) Electric scooters are practically noiseless. This may not be an advantage as it compromises safety on the street. Also, youngsters especially find it not exciting to ride a silent scooter. SINGAZ scooters can be equipped with a sound unit connected through Bluetooth Sounds can be downloaded from the Internet, ranging from ‘normal’ scooter sounds to a Harley Davidson.

Production

Margin

1425 Condor

2525

Panthera

3025

05.4.3 LOCATION Flagship stores will be launched in cities (areas) with over 450,000 inhabitants. Cities that already have high motorized two wheelers and bicycle rates are at the top of our list. In the course of 2014 and 2015, we plan to open flagship stores in Barcelona, Amsterdam. London and Berlin We have chosen Barcelona for our first flagship store because it has the highest rate of motorised two wheelers in the EU. One third of ‘traffic movements’ in the city is on scooters, mopeds or motorbikes, offering a huge potential market. In addition, the city has the ambition of becoming the most sustainable city in Europe, and has already created various schemes to improve sustainable transport .

SINGAZ BUSINESS PLAN

05.4.3.1 RETAIL CONCEPT

05.4.3.2 BUSINESS TO BUSINESS

SINGAZ scooters, bicycles, associated products and services are exclusively sold through our web shop and in our flagship stores. Contrary to what is customary in this market, our flagship stores will not sell other brands of scooters and bicycles.

In order to save costs, the B2B sales team will be based in the same location as the flagship stores. This has the advantage that customers can explore our scooter and bicycles models in store. We will show the various ways models can be customised.

In the flagship stores everything is aimed at giving SINGAZ customers the one stop shopping experience. Aswell we will offer a range of sustainable products and services at competive prices due to our business model.

We have already started our B2B sales from offices (Amsterdam, Barcelona and Ibiza) ,which will generate presence in the market .

Information plays a vital part of our concept. Our flagshipstores will have separate information desks, to help and advise our customers.

05.4.3.3 DISTRIBUTION

The shop interior and fittings will be fully compliant with our sustainability approach,(C2C). For this purpose we are collaborating with Rodney Fitch. The concept design details are set out in the appendices.

We aim to automate this process as far as possible to reduce handling to a minimum. The scheme below shows the order flow process. To minimize costs and

SinGaz Process Order Flow Factory (outsourced) PO Reception

Inbound Transportation E-mail PO

Procurement Create PO

Warehous e (outsourced) Availability

Pick

Quality Check

Pack

Parcel

Outbound bay

Booking shipment

Pick up & distribution

Invoice creation

Outbound Transportation

SinGaz

SinGaz Sales Local

SinGaz End-user

Order information

Order reception

Shop order in system

Customer order

Delivery in shop

Delivery to customer

Invoice creation

Reception of invoice

YES

Production

Packing

All our products are distributed from a central warehouse in Spain. Purchase orders are processed by SINGAZ headquarters and passed on to the central warehouse, and if the product is not in stock, to the respective manufacturer/supplier. All orders are prepared for dispatch at the end of the day so that (stocks permitting) orders can be delivered to the re spective flagship store or end-user within 24 hours (within Spain).

Outbound bay

Parcel

Booking Physical Distribution to warehouse

Reception of invoice

Inbound bay

Pick up & distribution

Information

Physical distribution

STRATEGY

cutting out the middle man our products are made to order with a delivery date from 4-6 weeks. Through this our production process is cost effective. The flagship stores will hold stock for direct demand which can be customised in place .Through this strategy we will be able to respond quickly to demand We aim to automate this process as far as possible to reduce handling to a minimum. The scheme below shows the order flow process.

05.4.4 PROMOTION In order to overcome pre conceptions and enhance the image of electric scooters and bicycles we will use the internet and social media and distinguish ourselves through online and offline promotion. However, our core message is the same for online and offline promotions. SINGAZ vehicles : Are the perfect alternatives for traditional urban transport Offer ‘more value for less money’.

Pop-up stores at events where the target group is strongly represented . Ambassador scheme (pop stars, sportsmen and women, film and TV stars, etc.) ‘Take a test-drive’ (like the BMW joyride campaign) Fairs and meetings Green Graffiti

05.4.4.2 ONLINE Having a website is no longer a matter of choice: people expect businesses to operate on the Internet. The SINGAZ website is not just a web shop, but also a strategic tool to help us realise our objectives. A strong online strategy is essential for online business operations to be successful. This is why Search Engine Optimisation (SEO), Search Engine Advertising (SEA) online accountability and a Social Media Plan play a key role in our strategy., as power is shifting from the advertiser to the consumer. LISTEN

Match traditional scooters and bicycles for performance .

Set up webcare team

Produce stylish vehicles with a cool modern image “ lifestyle “

Discover the needs of our end-user; market feelers

Beside our core message, we will continuously provide potential SINGAZ riders with broad information on sustainability and transport. This is vital to overcome preconceptions about our products.

Reduce losses due to complaints Encourage reviews and rankings GET INVOLVED

Have ‘real people’ create business accounts that ap pear personal on all social networks Develop activities on various networks that ‘give’

05.4.4.1 OFFLINE We will campaign below the line and above the line both locally, regionally and nationally. The resources used will vary from the traditional to guerrilla style promotion. Print campaign in dailies and weeklies Print campaign on posters and flyers, locations to be determined Joint promotions with partners

Reward participants and offer extras THE PROMISE

Viral campaigns in various online media Get under people’s skin Promote the brand among the general public

APPENDIX

FOUNDERS SINGAZ JOHN BROEKMAN (CO-FOUNDER,1964)

KENNETH ERSELINA (CO-FOUNDER,1965)

John at an early age began his professional career in the hospitality business. He started with the turn around of several well known but ailing restaurants in Amsterdam. His talent was recognised by an international brewer, in witch he was asked to develop strategies and new hospitality concepts. In his last job he lead and managed the complete reorganisation and refurbishment of one of the major beach hot spots on the Dutch coast. Moving to Ibiza 20 years ago he partnered in a leading interior and exterior design agency. A few years later he started his own company in this field. John is responsible for marketing, business development and management of the often large scale and complex projects his company partakes in.

Kenneth has been an strategy consultant/entrepreneur for the past 17 years and has developed strategies and has advised businesses in the area of managing diversity, Human Resources and more recently on sustainability. In this role he has always been responsible for international business development aimed at key personnel of companies, NGOâ&#x20AC;&#x2122;s and government. His company was considered as one of the leading companies in its field in Europe. Over the years international companies as Ahold, Randstad, SHV Gas, KPMG, the Dutch Government and the European Union have held strong relationships with the company.

In addition, eleven years ago he acquired a hotel on the Balearic island Formentera and managed to turn Banderas into a hotel frequented by the beau monde and leading successful entrepreneurs from all over the globe. After selling the hotel he focussed on his business interests in Ibiza.

Besides his professional work for almost a decade he has been on the board of Paradiso, Amsterdam, the renown concert hall in the city. He is the founder of two foundations: Diversity Top 50, a yearly ranking of the best performing companies on diversity and Tuvalu Living, a foundation with aims to promote a sustainable building construction of homes. In 2006 he was chosen as the first black Entrepreneur of The Netherlands.

John is an enthusiastic cook and host, he loves to spend time in his garden.

Kenneth is an active sportsman (catamaran sailing, cycling) and enthusiastic bird watcher.

SINGAZ BUSINESS PLAN

KENNETH ERSELINA (47) Role: Chief Sustainability Officer. Nationality: Dutch. Education: VU University of Amsterdam - Antropology / Royal Netherlands Marine Corps.

KENNETH ERSELINA

Work: 17 years of experience as strategy consultant/ entrepreneur (topics: sustainability, diversity & HR), 10 years of experience as board member of Paradiso Amsterdam (finance commitee). Private: married, two children, Amsterdam

JOHN BROEKMAN (48) Role: Chief Executive Officer. Nationality: Dutch. Education: University of Applied Sciences (HvA) International Business and Management / Management Trainee at Mölnlycke AG, Sweden (2 years).

JOHN BROEKMAN

Work: 20 years of experience as manager/entrepeneur in the Hospitality Business, construction business and retail. Private: married, two children, Ibiza (Baleares).

INOCENCIO GONZÁLEZ (40) Role: Chief Research & Development Officer. Nationality: Spanish. Education: University of Oviedo - Mechanical Engineering / EADA - Escuela de Alta Dirección y Administración (Barcelona) - Master in Marketing.

INOCENCIO GONZÁLEZ

Work: 14 years of experience in the automotive industry (motorcycling manufacturing) as product manager and R&D manager with main focus on electric vehicle development and manufacturing. Private: married, two children, Barcelona.

APPENDIX

GREGORY PAU NEWMAN (41) Role: Strategic advisor Nationality: Spanish/UK Education: Universidad de barcelona. Hotel management.

GREGORY PAU NEWMAN

Work: Been an Entrepenour the last 16 years setting up to three different buisnises that later sold on. Actually Strstegic adviser to SIN-GAZ, member of the board of RIVISA ICM, and project leader in the RIVINDIA project in Delhi (India). Private: Married,Two children, lives in Barcelona, Ibiza and Delhi

JAN WILLEM MARCHAL (47) Role: Director of Pedelec Development Nationality: Dutch. Education: VWO, SICI (Serotta International Cycling Institute), BikeMechanics Amsterdam

JAN WILLEM MARCHAL

Work: More than 20 years of experience as entrepreneur/ producer of high end custom build (award winning) travel, race & MTB bikes, founder/owner of MEES. Private: married, four children, Amsterdam

IGOR BEUKER Role: Chief Marketing Officer Nationality: Dutch Education: Erasmus University Rotterdam Work: Trendwatcher, acclaimed speaker, entrepreneur Private: Single, living in Amsterdam and Ibiza

IGOR BEUKER

34 APPENDIX

PROJECT PLANNING

Phase 1 Production of test models, testing & CE approval (test models) Phase 2 Refurbishment and decoration Flag Store Phase 3 Marketing & Sales Phase 4 Purchase accessories and apparel Phase 5 Set up operational and logistics process Phase 6 Recruitment, selection & training staff Phase 7 start production Opening Flag Store Barcelona

Month Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Opening Flag Store Barcelona

SINGAZ BUSINESS PLAN

MANAGEMENT SUMMARY

SINGAZ BUSINESS 35 PLAN

36 APPENDIX

RETAIL CONCEPT

SINGAZ BUSINESS PLAN

APPENDIX

SINGAZ SINGAZ BUSINESS BUSINESS PLAN PLAN

MATERIALS All materials uses in our shops follow the cradle to cradle principles.

STONE WALLS

GLASS WALLS

WOODEN FURNITURE

BAMBOO WALLS

WOODEN FLOORS

MANAGEMENT SUMMARY APPENDIX

SINGAZ BUSINESS PLAN

DRAGONFLY

APPENDIX

DRAGONFLY We call this one Miss Barcelona, designed with female riders in mind; simple, fashionable and light.

SINGAZ BUSINESS PLAN 41

SINGAZ BUSINESS PLAN

CONDOR

APPENDIX

CONDOR The first SINGAZ electric scooter, the Condor, is now immediately ready for delivery. It is our urban hero, easy in use and with a modern design!

SINGAZ BUSINESS 43 PLAN

SINGAZ BUSINESS PLAN

PANTHERA

APPENDIX

PANTHERA For the allround rider and the rider whose priority is power and speed.

SINGAZ BUSINESS PLAN

TUVALU

APPENDIX

SINGAZ BUSINESS 47 PLAN

TUVALU E-BIKE

AVAILABLE IN 2014

SINGAZ BUSINESS PLAN