Investment Teaser 31 January 2019 Strictly Confidential
Disclaimer
Disclaimer • This Teaser confirms no obligations of the Company’s owners on making the Deal, and also is no kind of advertisement of the Company’s corporate rights. • The Teaser is not considered as a document liable to registration by a state authority of any state. • Notwithstanding the present Teaser has been prepared with maximum possible thoroughness, Company does not claim and not guarantee, in no way directly or circumstantially, its accuracy and completeness. The given Teaser includes assessments and opinions reflecting our views at the moment of preparation of the information, which may be changed thereafter and so can not be used in any official or other documents. • The Teaser includes some assumptions regarding future events. That assumptions are our subjective opinion and, in turn, may be either true or false. Thus there is no guarantee those events will be fulfilled in the future. • The present Teaser is provided to restricted number of recipients. • Date on the Teaser’s first page does not imply the information within to be complete and/or accurate as of that date. • Company enters into no commitment to update the information in the Teaser. • A recipient submitting the Teaser confirms the terms mentioned above.
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Agenda
Agenda and Company Snapshot
Overview •
XXXXX is a media and client relations management (MCRM) solution provider with an established reputation in Turkey .
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XXXXX is Turkey’s leading media database and press release distribution platform, with a wide-ranging portfolio that includes more than 80% of the country’s PR agencies.
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As an established firm with extensive geographical reach, XXXXX is ready to expand to the USA as a part of their globalization strategy.
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A global headquarters will be established in San Francisco, California in 2016, serving as a base for all North American operations.
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The main functions of XXXXX’s US branch will be to update the US media database, organize sales operations (both online and one-to-one sales) and support customers.
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The company is seeking investments of $7.5 million to fund its expansion operations.
Agenda Our Team
About Us
Problem and Solution
Business Goals
Market
Opportunity 3 XXXXX
Agenda
Company Snapshot Shareholding pattern
Management
XXXXX
Mr. XXXXX is the founder and CEO. He is a 90% shareholder of the company.
90%
Mr. XXXXX is the CTO of XXXXX and will work as the company’s product development coordinator. XXXXX and XXXXX will move to the USA to manage the operations of the company and create a team that will oversee US operations.
XXXXX 10%
XXXXX
Directors XXXXX and XXXXX
Achievements • XXXXX is named as 37th fastest grooving company in Turkey between the year 2011-2013 according to Turkey Fastest Growing 100 research done by Allworld Network, Tepav and TOBB. • XXXXX is in the list of 500 Biggest IT & Telecommunication Companies for the last 3 years (2013-2014-2015).
Target Customers PR Agencies, startups, and big corporates who manage PR operations with an in-house team.
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Our Team
Our Team
XXXXX • Mr. XXXXX is the founder, CEO and 90% shareholder of the company. • He graduated from Trakya University, Department of Computer Programming, in 1992 and Anadolu University, Department of Business Management, in 2004. After graduation he founded a software firm in the IT sector. • In 1995, he worked as a technical editor of Computer-World, and in 1997, he became the editor in chief for InformationWeek. Between 1999 and 2002, Aydın had business development positions in Superonline and Turkcell. • In 2004 he became a communication consultant at Bersay, one of the best-known communication consultancy firms in Turkey. Here he provided media relations consultancy to corporations like Google, Cisco, Panasonic and Turkish Telekom. • In 2008 Mr. XXXXX left his position at Bersay (one of the biggest PR companies in Turkey and affiliate of Ketchum) and become an entrepreneur, intending to solve a common problem for all those within the PR industry. In the same year, he founded XXXXX and managed to almost saturate his market in Turkey. This experience together with Mr. Aydın’s vision are the main reasons for his success.
XXXXX •
XXXXX is the CTO of XXXXX and works as the business and product development coordinator in the company. He graduated with a BS degree in Mathematics (2002) and his MS degree in 2008 in Software Engineering, both from METU (ODTU).
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His responsibilities include improving business capability, market research, project process development works as well as designing and managing the whole architecture of XXXXX. Prior to XXXXX, Emek was responsible for Internet Marketing for Mitsubishi, Komatsu and Temsa brands of Temsa Global, Sabanci Group. 5
XXXXX
About Us
Mission and Vision Statements
Mission
Vision
The company's mission is to increase efficiency for PR firms, providing easy, productive and more-effective media relations and helping journalists to reach PRoriginated information about corporates quickly and easily from anywhere in the world.
The company's vision is to become the top connection tool in the PR and journalism industries by converting and changing the main communication environment from email to XXXXX.
Goals • • • • •
To globalize XXXXX quickly, replicating their fast path to success in Turkey To increase productivity and efficiency and reduce costs in the PR industry To geographically expand into the North American, South America, European, Asian and Middle Eastern markets To be the go-to tool kit for PR agencies worldwide To position XXXXX as complete, modern, and indispensable tool for all age and experience groups in the PR industry
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About Us
Strengths and Weaknesses Strengths
Opportunities
• Strong focus on PR distribution (media database and press release distribution) • Complete tool for PR that covers all possible needs of PR professionals • Ability to attach unlimited amount of high-quality images and videos and documents • Since email technology is insufficient, journalist interface developed by XXXXX • Increases productivity and decreases operational costs. • Cloud-based platform available not only on web but also on mobile devices with native iOS and Android applications
• Easy new market entry and adaptation due to wellestablished business model • Incomplete competitor solutions present a significant opportunity to capture market share. • Fast-growing PR market creating expansion opportunities • In-house PR activity trend leading to more business for XXXXX • Growing number of freelancers • Little competition in target markets
Weaknesses
Threats
• Established competitors in the US market • Media monitoring service is not and will not be provided by XXXXX
• • •
XXXXX
Constantly changing privacy regulations Competitors’ customer loyalty Potential new competitors
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Problem and Solution
The Problem Having an up-to-date media database is critical for PR agencies. This is becoming a day-by-day issue due to the productivity inefficiencies in media relations and the lack of a decent technological infrastructure. Sending press releases through traditional ways to the growing amount of journalists is a massive waster of time and IT investment for PR agencies. Inefficiency in collecting, updating and maintaining data
Lack of decent technological infrastructure
Productivity inefficiencies Problems in managing media database
Ineffective mailing infrastructure Limitation in image sharing
High staff circulation
All of the above issues make it obvious that there is a need for a tool that thoroughly manages all these problems. XXXXX
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Problem and Solution
The Solution To solve this problem, XXXXX offers the following: •
A media database containing almost all the publications/media professionals (newspapers, TV, radio, web sites and blogs) in each local market where XXXXX provides their services.
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A cloud-based press release distribution and reporting tools for PR professionals.
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Ability to send unlimited high-resolution images and videos to thousands of media professionals in just a few seconds.
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The solution provided by XXXXX removes the need for more staff and expensive IT investments and helps cut labor costs, making it a very efficient solution for organizations of all sizes. In other words, using XXXXX is cheaper than not using XXXXX.
XXXXX is a comprehensive tool for PR agencies. It’s not only a media database or distribution platform but also a platform that provides a full suite of services, ending the problems of that PR and communication consultancy agencies face when conducting media relations.
PR agencies across the globe share the same problems and difficulties, and the current solutions are not equipped to offer what the market needs. XXXXX’s strong results in Turkey have already validated its solution to the major PR market/media problems. XXXXX
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Problem and Solution
Product Features Most updated and detailed media database
Reach detailed reports
record additional information
time sheet function Predefined, dynamic and categorized media list structure
keyword searches
Create, update and customize press releases
receive and share press release on Social Media
include unlimited amount of high-quality images, videos and documents
add many high resolution images
reach and categorize all press releases
innovative interface for journalists
Create own media lists client relations management feature
block undesired distribution
send press invitations
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Problem and Solution
Achievements Fulfill all the needs of PR agencies XXXXX used all year round XXXXX has managed to fulfil all the needs of the PR agencies and also managed to acquire as clients many small, medium and large agencies and the branches of global companies.
The medium and large sized companies have been using XXXXX’ services all year round. Only some very small agencies use XXXXX seasonally or as needed. Loyal Clientele
Most ICCO members are XXXXX clients ICCO (International Communication Consultancy Organization) counts in total 25 members in Turkey and 24 of these have been XXXXX’ clients.
XXXXX has had loyal clients for more than 5 years, and the majority of these clients are established global agencies.
Captured 80% of Turkey Market According to the early numbers of 2016, 80% of the PR agencies in Turkey market, use XXXXX as their primary tool for media relations, including 100% of all the global PR agencies in Turkey.
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Market
Industry Overview Public relations agencies manage the communications between an organization and the public in order to promote favorable relationships and to cast the organization in a positive light. This includes communication with the general public as well as with employees, investors, customers, analysts and other stakeholders. In contrast to advertising, PR campaigns aim for exposure through public interest and news items rather than paid advertisements. This gives messages third-party legitimacy. The Public Relations industry is moving into the mature stage of its life cycle. Industry value added (IVA), a measure of the industry's contribution to the overall economy, is forecast to increase at an annualized 3.2% between 2010 and 2020.
The industry's IVA growth is slightly higher than the annualized GDP growth of 2.2% over the same period, due to the industry's rapid adoption of social media and digital promotion, which have allowed for highly successful targeted campaigns. The global PR agency industry grew by 5%, from $13.5 billion in 2014 to an estimated $14.2 billion in 2015. The industry is expected to cross the $20 billion threshold by 2020. The revenue per capita for those firms reporting both fee income and headcount is an average of around $151,000.
The world’s top 250 PR firms reported fee income of around $10.7 billion in 2015, compared to $10.4 billion the previous year. The most notable change among the world's top 10 PR firms is the arrival of China's BlueFocus in ninth position. Elsewhere, there was little change, with the Top 10 reporting fee income of $4.9bn, up 4.4% compared to 2014. XXXXX
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Opportunity
The company is seeking $7.5 million, which will be used for marketing, and meeting operational costs of expansion 39%
341%
333%
Revenue Growth
Profits Growth
90% Operating Margin
Gross Margin
Revenue and Profits $140,000,000
Uses of Funds Marketing Operational Costs
Amount $2,100,800 $5,399,200 $7,500,000
$118,200,377 $107,492,646 $95,951,174
$120,000,000 $100,000,000 $80,000,000 $52,498,454 $46,305,135
$60,000,000
Sources of Funds Equity
Amount $7,500,000 $7,500,000
$40,000,000 $20,000,000
$10,554,540
$31,207,882
$8,956,624
$1,321,578 $1,381,436
$$(20,000,000)
Year 1$(1,839,595) Revenue
Year 2$(2,584,847) Gross Profits
Year 3
Year 4
Net Profits
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