blitz justin may6th (1)

BUSINESS PLAN

CEO: Rafael TejedaCFO: Luis Torreblanca

Recargatel!The vending machine for wireless cell phone top-ups in developing economies.

PROPOSITION SUMMARY

Target: Cash economies, starting in Mexico.

Problem: Scratch cards for prepaid cell-phones have high cost for low value recharges.

Solution: Pay phone that acts like a vending machine to top up cell phones.

HIGHLIGHTS

1000 devices already fielded, collecting $10m per annum in Monterrey, Mexico.

Daniel Hajj Abounrrad (CEO America Movil, son-in-law of Carlos Slim) on advisory board.

Expect order of 100,000 units in ###. Business will generate a lot of cash.

MARKET

End User• Income < $100 / week – 13.7m in

Mexico• No bank account, landline or computer

Operator• Family owned store – 1m in Mexico• Cash economy – no bank account / CC

Distributor• Cell phone operators – 80m users in

Mexico• 56m potential users currently unserved

PRODUCT

• Buy time for a prepaid cell phone.

• Use as a regular payphone.

Phone Functions

• Remote management system.

• Local representative retrieves cash.

Management

Wireless Pay Phone Vending Machine

COMPETITIVE ANALYSIS

45%

31%

14%

10%

Diestel

Recargas Noreste

Paga Todo

Others

COMPETITIVE ANALYSIS

Diestel• Strengths• Weaknesses

Recargas Noreste• Strengths• Weaknesses

Paga Todo• Strengths• Weaknesses

GO TO MARKET STRATEGY

Operations in Monterrey, Mexico City, Guadalajara & Leon

GO TO MARKET STRATEGY

Value Chain – Set Up

Pop & Mom Store

Activities/Role

Order a $510 USDWiphone

Mobile CarrierMargin: $146 USD Recargatel

Margin: $84 USD

Activities/Role

Deliver the Wiphoneto the Mobile Carrier(Full Cost: $280 USD)

GO TO MARKET STRATEGY

Value Chain – Ongoing

End Customer

Needs

Buy a $1 USD prepaid time

Convinent location

Pop & Mom StoreMargin: 4%

Activities/Role

Prepaid InventoryTake care of Wiphone

RecargatelMargin: 5%

Activities/Role

Time Air Distribution(Mobile Agregator)WhiPone support

Mobile CarrierMargin: 91%

Activities/Role

Wireless NetworkAvilable

MANAGEMENT TEAM

Rafael Tejeda, CEO

Melissa Guerrero,

CTO

Antonio Gerling,

VPM

Johanna Olmos, VPLO

Luis Torreblanca,

CFO

ADVISORY BOARD

Daniel Hajj AbounrradSon-in-Law, Carlos Slim; CEO America Movil (Wireless Industry Leader in America : more than 200 million customers world wide).

Jaime Parada AvilaGeneral Chief of Innovation and Competitiveness in Monterrey.

Francisco Gil DiazCEO TEMM ( Movistar) Latin America and former Mexican Treasury Secretary

Carlos Tejeda ElizondoWiphone technology Co-Inventor (with more than 15 year of experience in the field).

FINANCIALS

Financials 2010 2011 2012 2013 2014

Transactions $40m $160m $220m $350m $500m

Revenues $5.3m $20m $35m $50m $70m

Expenditure $7m $18m $30m $42m $64m

Net ($1.7m) $2m $5m $8m $16m

Company Market Cap circa $80m

FINANCIALS

[Use of Funds]

EXIT STRATEGY

Focus on building a strongly cash flow positive business from the cash economy.

Validate in Mexico, begin market trials in India and China.

Look for acquisition exit by telecoms company or Visa / Mastercard / micropayments corp.

SUMMARY

Proven business model (vending machines)

Clear need – 56m potential users Pilot success (1000 units already

deployed) Advisory Board validates the business Expect to achieve revenues of $m in

2014 Telecoms companies a likely acquisition

exit Seeking $5m for 30% in preferred stock

“This is a really attractive technology that is innovative and necessary” Mateo Mendoza, General Manager of Public Telephony from Telefonica Movistar

rtejeda@rctelecomex.com

Recargatel!The vending machine for wireless cell phone top-ups in developing economies.

PROJECT GOALS

High-level timing goals

Relationship to other projects

Ultimate goal of project

DESCRIPTION

Describe the project in non-technical terms

Use the following slides to discuss status, schedules, budget, etc.

For more info . . .List location or contact for specification (or other related documents)

COMPETITIVE ANALYSIS

• You may want to allocate one slide per competitor

Competitors

• Your strengths relative to competitors

Strengths

• Your weaknesses relative to competitors

Weaknesses

COMPETITIVE ANALYSIS, CONT.

Competitor• Strengths• Weaknesses

Competitor• Strengths• Weaknesses

Competitor• Strengths• Weaknesses

TECHNOLOGY

New technology being used Benefits

Standards being adopted Benefits

Standards specifically being ignored Drawbacks and benefits

DYA: Define your acronyms!

TEAM RESOURCES

State assumptions

about resources allocated to this

project

People

Equipment

Locations

Support and outside services

Manufacturing

Sales

PROCEDURES

Highlight any procedural

differences from usual projects of

this typeDiscuss requirements, benefits, and issues of using new procedures

For more info . . .List location or contact for specification (or other related documents)

SCHEDULE

Review high-level schedule

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CURRENT STATUSHigh-level overview of progress against schedule• On-track in what areas• Behind in what areas• Ahead in what areas

Unexpected delays or issues

RELATED DOCUMENTS

Marketing plan

Location

Contact name/phone

Budget

Location

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Post-mortem

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Submit question

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