xInvestment Opportunity

April 2017

What is chatnfly The first omnichannel and multilingual transactional chatbot focused on the whole travel industry value chain

TODAY

APPS SERVICES LANGUAGES

TOMORROW

APPS SERVICES LANGUAGES

other

Voyeur Flight search Traveler Before the trip At Destination

And a whole NEW platform for advertisers High quality inventory Ads (CHATEM - Chat Engine Marketing)

Founders Serial entrepreneurs and deep tech profiles backed by an Angel Fund

Carlos Núñez CEO/COO

Juan Prim CEO/CMO

Daniel Martin CTO

Ernest Sales Angel Fund

Entrepreneur with experience in startups (Balandras, raised €200k & led 8 people), venture builders (Finleap, Berlin, led 5 analysts under lean methodologies) and an international career. Graduated in Business at ESADE and U. of Illinois.

Full-stack developer with 10+ years of experience in tech projects, entrepreneur and experience on several startups and deep knowledge of agile methodologies

IT international leader with distinguished 30-year career at Hewlett Packard, where he retired as Senior Vice-President. He is also a successful startup investor.

Serial entrepreneur for more than 30 years and investor with a large experience in Real Estate, Urban Planning and Stock Market sectors. Expert in scaling businesses from 0 to thousands of workers and millions in turnover

Quickly growing by attracting key talent

Sara Palma Art Director

Sportium UX Degree at Pompeu Fabra

Daniel Telles Full-stack Developer

Everis

Rodrigo Mejía Growth Hacker

JobTday ES, UK Wallapop USA

Pol Sendra Sr. Full-stack Developer

Absis Degree Comp. Science at UPC

Fran. Armengol Sr. Full-stack Developer

Several startups for 7 years (eyeOS, Communify, Please.to)

Juan Prim CEO/CMO

Finleap VBuilder, Berlin CEO own startup, UK Corporate, UK, PT, ES

Daniel Martin CTO

CEO/CTO Own startup, Atos, UOC, Other startups

MKT Squad Tech Squad

Ernest Sales Angel Fund

VP HP

SEGITTUR Public Admin.

Carlos Núñez CEO/COO

Serial entrepreneur 30+ years of experience

Victor Campello Data Science Director

Physics + Maths. MSc Theoretical physics and Machine learning

Operations Squad

Professional investors

Operators Analysts

Data Science Squad

Amanda Alba

Paula Fibla

Laia Molera

Data Scientists

Bernat Sopena

Cristina Costa

Irene Roma

Elisha Aswani Interim CMO

CMO Glovo Zapper

Ingrid Delgado

BS in Maths and Physics/Business MSc Big Data and Data Science

Problem Solution

Downloads multiple Apps clogging, slowing down and leaving no space on his device

Finds himself sent to different service providers

Opens multiple tabs with different service providers in a slow and frustrating process

Undergoes a tough cross-selling to obtain the service

Is misled with unexpected fees at the end of the process.

No need to download multiple Apps.

Books right at the moment when need it

Has a single contact in the agenda to access all the different services before and during the travel

Can complete the purchase without undesired redirections.

Total transparency with price. NO unexpected fees.

His/her session never expires being able to refresh the last search without starting from scratch.

In constrained to the session expiring on the device and having to re-start the whole process

With a user: When booking a flight, a hotel, a rental car,

a restaurant or an event, today a user:

Loss of opportunity to get noticed. Loss of potential revenues.

Adver(sersCONNECTwithusers

Opportunity to get noticed and to increase their sources of revenues.

NOLINKbetweenadver(sersandtravelers

Search and book flights on the web/app 1

Search and book hotels on the web/app 2

Search and rent cars on the web/app 3

Share experience with friends/family on the CHAT

Plans to travel start with a CHAT

?Services offered at destination: events, restaurants on the web/apps/hotel concierges

The user needs to go to several services outside of the channel in which the travel is planned, the CHAT

•  No retention / no

customer loyalty. The only way to interact with users is via spam mail and intrusive calls.

•  Disconnection due to coerced cross-selling

Trip planning - UX radical shift

Today

others

At destination

Before the trip

The user plans the trip, searches and buys flights, books hotels, enjoys the rest of the services and shares his experience from the CHAT

•  Integrated and frictionless process that ends-up being shared and recommended

With

Momentum - Market Size The travel industry globally is worth 7 trillion USD.

7 Apps and 7 languages put the whole world at our fingertips.

1.000 M

1.000 M

280 M

220 M

100 M

Users

7.300 M

700 M

4.000 M

Spain - Latam

USA, Europe

Canada, USA

Japan

Old USSR

Main area

World

China, Indonesia

World, USA, Europe

Spanish, English, Portuguese

English, Spanish

English, French

Japanese

Russian

Languages

7

Chinese

English, other

App

7

Other channels

160 M

500 M

1st phase. Any platform to offer the biggest possible inventory

2nd phase. Platform where any service provider can deploy their inventory directly, eliminating the middle men (intermediaries).

1st phase. Anyone who needs to fly.

2nd phase. Anyone who needs a guide (company) after the flight.

3rd phase. Anyone who hasn’t previously purchased a flight.

4th phase. B2B potential and corporate line

Product

Service Providers Users

The first centralized service provider in travel, global, omnichannel and multilingual

Natively scalable

•  100% functional •  API agnostic •  Text based •  Omnichannel

The Amazon of Travel

Architecture SCALABILITY

Webhook diagram & Sender OMNICHANNEL

Definition conversations’

processor TRANSLATABLE

CRM/Dashboard OPERATIONS

Datasets description/AI/

PNL

UX/UI IMPROVEMENT

Technology Our platform is built to be massively scalable

Multi-search engine for the best results

Data analysis to improve Artificial Intelligence

Assistance (timely) to the user at predefined critical points for UX improvement

Omnichannel system to receive and send to the different

channels.

other

other

Metasearchers - Skyscanner - Kayak - Momondo

- Consolidators - Low cost - Platforms - OTAs

GDS - Amadeus - Sabre - Travelport

Message Processor Text analysis

and user actions

Receiver Sender

Dash-board

SEARCHER BIG DATA

•  Totally functional •  Not scalable •  Not sustainable •  Exclusive concierge service

Expedia/Priceline/Ctrip have blocked their competitors via SEM/Display (AdWords /AdSense), hurting OTAs and in the near

future also the airlines

Web / Apps

Priceline

Expedia

OTAs & Metasearchers

Hu

ma

n-b

ase

d

Co

nc

ierg

e

US | Own App US | Own App / SMS US | OwnApp US | Own App

ETA.AI

Competition

US | Facebook UK | Facebook US | Facebook

AI-

Ba

sed

* T

ext

/ R

ule

s +

AI

Ba

sed

Chatbots

Plus many atomized players offering services at destination

Du

op

oly

Only Chat Apps can break the

high MKT costs barrier

Hotels, car rental and

other services.

Entry Barrier

World of

profits

Global | WhatsApp, Facebook, Telegram, SMS…

•  Totally functional •  Stable Sales Funnel •  Scalable and sustainable •  Potentially omnichannel & multilingual •  No human intervention required

•  Not functional in short/mid term •  Bad UX, unstable sales funnel •  Dependence on API functionalities for chats •  They end up pivoting to Apps and losing all value

(*) SeeAnnex1:UXCompe22on

Unique Value Proposition Competitive advantages

We are the first to have them all

Functional chatbot The first transactional chatbot fully functional, and without requiring human intervention. CHAT-FIRST.

Stable sales funnel First chatbot in having a stable sales funnel with an optimum UX.

Omnichannel chatbot We’re first mover in different Instant Messaging Platforms

Multilingual chatbot Easy to replicate the service in other languages and expand the business internationally..

The whole sales funnel and all revenue streams We can monetize all stages of the sales funnel with Big data (CHATEM), affiliation marketing and service fees.

Since we accompany the user throughout his/her trip We differ in cross-selling over time, we are a contact among your friends and family.

Acquisition Monetization Customer loyalty

Low cost activation Activating users for <0,50€ despite the SEM blocking by the Expedia/Priceline duopoly. Opportunity to block the channel.

1st

1st

1st

1st

(*) SeeAnnex2:WorldwideCompe22on

(*)

Business model Diversified revenue streams

A coming promising picture Growth metrics with very low marketing investment

We are experiencing a high growth of unique users since the beginning of the activity and sales activation of the last cohort

•  Growth has increased not only in terms of users but also searches and purchase rates

•  chatnfly fully transactional bot is automatically closing sales, being the average order value around 200€

Monetisation funnel Metrics in constant improvement

Stable sales funnel with constant improvement on both conversions and costs

Sales funnel improvement

Improvement of costs per action

3,5 Searches/

user

0,27€ activated

user

Date

First cohort (1 month)Second cohort (10 days)Improvement

Passenger data

Addres data

Payment Gateway Payment

4,60% 1,60% 1,00% 0,04%7,00% 3,10% 1,60% 0,35%52,50% 92,40% 68,10% 842,00%

Date Total investment Activation Search OK

purchasePassenger

dataAddres

dataPayment Gateway Payment

First cohort (1 month) 1.971,15 € 0,27 € 0,24 € 0,54 € 5,98 € 16,93 € 28,43 € 739,21 € Second cohort (10 days) 267,00 € 0,08 € 0,11 € 0,14 € 1,21 € 2,72 € 5,24 € 24,27 € Improvement -69,00% -52,83% -74,60% -79,70% -83,91% -81,59% -96,72%

Act

ivat

ed

Use

rs

OK

Pu

rch

ase

Ad

dre

ss

Pas

sen

ge

r

Gat

ew

ay

Pay

ToFu (Top of Funnel)

BoFu (Bottom of Funnel)

100% 61,2%

7% 3,1%

1,6% 0,35%

Costs drop in both parts of the Sales Funnel -ToFu (Top of Funnel) and BoFu (Bottom of Funnel)- due to improvement with the MKT campaign in the last cohort

-€

20,00€

40,00€

60,00€

80,00€

100,00€

120,00€

140,00€

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CostesAc7vaciónBoFu

DATOSPASAJERO DATOSDIRECCIÓN PASARELA PAGO

-€

0,50€

1,00€

1,50€

2,00€

2,50€

3,00€

3,50€

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CostesAc7vaciónTofu

ACTIVADOS PLANTILLA BUSQUEDA COMPRAAc(vated SearchForm Purchaseac(on Passengerdata

AddressData PaymentGateway

Ac(va(onCostsToFu Ac(va(onCostsBoFu

Payment

PRCampaign

Monetisation funnel Metrics in constant improvement

Everybody talks about us

Impact on media (+70 media, +10 interviews)

Comments from users, fans and public institutions

Carlos Romero, Director of R&D at SEGITTUR speaking about chatnfly in the UNWTO Congress on Smart Destinations

And many more…

Views of 1 Facebook video

+100.000 Facebook fans +10.000 followers on Twitter

Initial PR is building a loyal community of fans and followers

Financials - Unit Economics Projections are based on real industry data and first moment will already deliver a

strong user value

Financials - P&L Overview 2017 breakdown + 3year forecast

Extraordinary margins with +50% Profit / Revenue levels already during years 2-4

Financials - P&L Overview

Figures in Euros (€)

Net profit

Total Revenue

-1.382.726

2017 2018 2019 2020

6.084.441

12.703.641

17.6888.000

32.881.022

46.039.899

77.782.264

Regions where the mines are implanted (minimum critical mass of users) to penetrate in the market

Growth strategy Mine strategy

2. Explode mines to expand:

  “Bring a friend” program

  Great Social Ads investment

  Great media/press pressure

  Ads on TV

  Affiliate program with bloggers

1. Actions to get the critical mass:

  PR/Publicity

  Social Ads (Facebook & Twitter)

Operative objectives

  Language optimization

  Supply of services

Test Region

  Spain

Region 1

  UK, Holland, Denmark, Sweden and Australia

Region 2

  USA, Canada

Region 3

  Germany, Austria, Switzerland

Region 4

  France, Belgium

Rest of regions

  Italy, Brazil, UAE, Saudi Arabia, Mexico, Chile, Argentina,

Perú, Colombia, China, Russia, Japan, India

User Growth & Breakdown by Region

2.053.522&&&

13.839.790&&&

34.854.955&&&

79.940.875&&&

2017 2018 2019 2020

Aggregated activated users3,1% 1,7%

3,8%3,1%

1,2%

12,7%

3,9%

8,8%

3,2%

41,2%

4,2%

3,9%9,1%

Users by Region

Región01

Región02

Región03

Región04

Región05

Región06

Región07

Región08

Región09

Región010

Región011

Región012

Región013

Users by Region (%) Aggregated activated users

Growth strategy

(1)

(2)

(3)

PublicFunding

Publicfunding-Resolu2onMay2017Publicfunding-Resolu2onJuly2017

Funding Pre-Series A Conver(bleNoteTimeddiscountoverSeriesApre-moneyMinimuminvestmentà€300k

2.000.000€

Minimuminvestmentà€500k

MediaforEquity 1.000.000-2.000.000€

5.000.000€

3.000.000-5.000.000€MediaforEquity

CapitalIncrease

+

Use of Funds

Valida(onofdifferent

marketsandroll-outacross

Tier1Countries

GlobalRoll-out

Investments to date

Founders&Angels 420.000€SegiZur(1) 374.000€

Enisa(2) 300.000€

Closed

2.500.000€SMEInstrument(3)

Applica(onsprocessed

(equity fully owned by founders /angel fund) no VCs on board so far)

Use of Funds

Concept/ProductDev.

Valida(on/Mktlaunch

Marke(ngPush

Tier1countriesroll-out

Series A Use of Funds

Fly with us.

We are taking off

juan@chatnfly.comcarlos@chatnfly.com

,

User adds chatnfly to his contacts and sends

Hi

Step 1 Step 2 Step 3

Sends FORM filling basic

flight info.

Type OK to confirm purchase.

Using the FORM concept, in 3 easy steps the user books any flight

Typical chatbot

Annex 1: UX Approach Simple & Easy-to-fill Template FORM

§  Skyscanner Bot takes much longer to book and complete the flight purchase.

§  Requires one to ask everything making it prone for error and confusing.

§  It is not precise nor fast.

§  The user needs minimum 7 steps to complete the process

§  It is limited as it only provides city suggestions and the user needs to go to their website to complete the booking.

Annex 2: Other competitors Very different tech-stage, channel focus and scalability potential

NAME GEOGRAPHY CHANNEL REACH ESCALABILITY NAME GEOGRAPHY CHANNEL REACH ESCALABILITYAirAsia CHINA Instant Messenger Travel Concierge - human SpotHelp CHINA Instant Messenger + Chat Web Generalist Concierge - human

Alex Finds USA Instant Messenger Vertical Concierge - human Text Emma USA Instant Messenger Travel Concierge - humanAssi.st USA Instant Messenger Generalist AI Text My Pa INDIA Own App + Instant Messenger Generalist Concierge - human

Awesome UK Instant Messenger Generalist Concierge - human TravelFlan JAPAN Instant Messenger Travel Concierge - humanBusyOrders INDIA Instant Messenger Generalist AI TripChat USA Instant Messenger + Chat Web Travel Concierge - humanDelegateIt USA Own App + Instant Messsenger Generalist Concierge - human WishUp INDIA Own App Generalist Concierge - human

EASE USA Instant Messenger Generalist Concierge - human MeetLuka USA Own App Generalist AIEta.ai USA Own App Travel AI MeetCloe USA Instant Messenger Generalist Concierge - humanGenie DUBAI/USA Instant Messenger Generalist Concierge - human Hero UK Own App Generalist Concierge - human

GoButler USA Own App Flights AI Goodbox INDIA Own App Generalist Concierge - humanGoHero INDIA Own App + Chat Web Travel Concierge - human Alison UK Instant Messenger Travel Concierge - human

GoodService INDIA Own App Generalist Concierge - human Ana (Copa Airlines) PANAMA Instant Messenger / Own App Travel Concierge - humanHawte USA Instant Messenger / Own App Generalist Concierge - human Julie USA Instant Messenger Travel Concierge - human

HelloGbye CANADA Own App Travel AI Sofia PORTUGAL Instant Messenger Travel Concierge - humanHelpr ASIA Instant Messenger Generalist Concierge - human Expedia FB USA Instant Messenger Travel AI

Hola Gus MÉXICO Instant Messenger Generalist Concierge - human Skyscanner FB USA Instant Messenger Travel AIHyper USA Own App + SMS + mail Travel Concierge - human CheapFlights FB USA Instant Messenger Travel AI

InstaHelp USA Instant Messenger Travel Concierge - human CheapOair: Flight FB USA Instant Messenger Travel AIIthaka THAILAND Own App + Chat Web Travel Concierge - human Instalocate USA Instant Messenger Travel Concierge - human

KayakSnap USA Chat Web Travel Concierge - human Assist USA Instant Messenger Travel Concierge - humanKLM HOLLAND Instant Messenger Travel Concierge - human Hipmunk USA Instant Messenger Travel AILaiye CHINA Instant Messenger + Own App Generalist Concierge - human Taylor USA Instant Messenger Travel AI

LolaTravel USA Own App Travel Concierge - human Claire USA Instant Messenger Travel AILusiv UK Own App Generalist Concierge - human Carla USA Instant Messenger Travel AI

Ly.com CHINA Instant Messenger Generalist Concierge - human Cinch USA Instant Messenger Travel AIMagic USA Instant Messenger Generalist Concierge - human Tradeshift Go USA Instant Messenger / Own App Generalist Human + AI

Mission Control GERMANY Instant Messenger + Web Travel Concierge - human Mezi USA Instant Messenger / Own App Travel Human + AIMy Crusoe USA Chat Web Travel Concierge - human ReplyYes USA Instant Messenger Generalist Human + AI

Operator.com USA Own App + Instant Messenger Generalist Concierge - human Caravelo SPAIN Native Web Travel Human + AIPana USA Own App + SMS + mail Travel Concierge - human Destinia UK Instant Messenger Travel Human + AI