Chris, Eric, Heidi, Shree, Uzra – 14 March 2007

COMPANIES
•Seamless integration
•Safe and Secure “We can’t
think of new
•Transparent process ways to keep
CONSUMERS consumers’
•Low maintenance ‘social
attention
span’.”

E
Rou
£n
n
t
d
er
a b out
CHARITIES
“We can’t
“I really want to compete
give, and do so •Unintrusive
against
regularly, but it’s •Trusted brand Tesco for
too big a hassle.” online
•One-Click transaction consumer
•Tax feedback money, so
why bother.”

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1. BACKGROUND and RESEARCH

ONLINE GIVING
• People want to give!
Additionally …
• People want to give regularly
• 8 of the 10 “Most Charitable Nations” are
• People want to give online European nations

• People want to support the • Internet is becoming an effective way to

attract “impulse givers” (CARE USA)
charity of their choice
ONLINE RETAIL
• Online retail is booming
• Retailers need “social value
propositions”
ONLINE CHARITIES
• Not maximising online
fundraising

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2. THE ROUNDABOUT SOLUTION
•A giving option at the point-of-sale of online storefronts
•It is a single-click, but offers choice of a variety of charities
•It is easy-to-use, anonymous (if so preferred), transparent, and secure

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Roundabout blurs the line between
purchasing and giving

4 COMPELLING Why’s
2. Independent and
trusted brand
3. Zero cost to retailers
4. Does not intrude on
retailer selling efforts
5. Retailers choose
charity offerings to
match their CSR
tendencies

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3. ROUNDABOUT OPERATIONS

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4. INCORPORTING ROUNDABOUT
•Located in the United Kingdom
–No direct competitor
–Large Scale Retailer Base
•Low employee count
–Management / Sales + IT personnel
•Low startup capital base
–5 equal portions of owner-managers’ seed funding equalling 50%
–50% debt financed (bank loan)
•Biggest risks:
•Volume – not signing enough retailers
•Protection – retailers attempting similar things on their own
•Slow consumer adoption
•Distinguishing characteristics:
•Timing (first mover)
•Charity Partners (this is our core business)
•Independent (builds trust)
•Sector classification: For-profit entity, online service-provider

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5. MARKETING & SALES STRATEGY

“Thi s is a b us ine ss
driven by re taile r
pa rtici pa tio n”

•Marketing Approach:
–Large-scale B2B, targeting Large retailers via Promotion Agency
specializing in philanthropy
–Small-scale B2C, via low-cost channels to raise brand awareness
–Co-operative Marketing with Charitable partners

•Market Strategy:
–Enhance internal Sales Capability
–Extended reach to EU based Retailers
–Monitor response / Refine sales approach

PHASE 1 PHASE 2
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6. UNDERLYING ECONOMICS

UK donations from small Economic Philosophy:

(<£10) donations: 27% SMALL CHANGE ADDS UP!

Total number of Roundabout donations

Number of
2,376,000 2,580,000 online
1,740,000
1,176,000 transactions in
696,000
2006: 10,5mn.
2008 2009 2010 2011 2012 Revenues in
excess of
FEE STRUCTURE £1bn.
• Average donation size: £0.50
• For donations ≤ £0.10 – Free! and for donations > £0.10 – 10%
• As revenues increase, expenses stay relatively fixed

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 7. SALIENT FINANCIALS

Income Statement Balance Sheet

Year ended 31 December (£000s) Year ended 31 December (£000s)

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
Turnover 220 716 1,327 2,258 3,519 Non-current Assets 0 0 0 0 0
G&A Expenses 239 641 697 747 807 Current Assets 20 29 441 1,489 3,403
Financed 50/50:
Operating Costs 22 22 22 22 23 Current Liabilities 0 0 0 0 0
BREAKEVEN:
Marketing Expense 3118 27
MONTHS
24 21 19 • Debt:
Net Current Liabilities £50,000
20 (HSBC)
29 441 1,489 3,403
PBIT (72) 25 584 1,468 2,671 • Equity:
Non-current Liabilities £50,000
47 44 40 36 32
Interest 6 6 5 5 4 Net Assets (28) (15) 400 1,452 3,371
Taxation 0 7 164 411 748 Stockholder's Equity (28) (15) 400 1,452 3,371
Net Profit (78) 12 415 1,052 1,919
Profit Margin -35% 2% 31% 47% 55%
Break-Even Analysis

£500,000
Statement of Cash Flows
Year ended 31 December (£000s) £400,000
Startup 2008 2009 2010 2011 2012 £300,000
Break-Even Po int
Operating Net Cash 0 (71) 18 421 1,057 1,923 £200,000 BREAKEVE
(18 months)
Corporate Valuation
Investing Net Cash (1) 0
£18.2M
0 0
:0 0 £100,000 N
•NPVNet(1-5):
Financing Cash £3.5M
100 (9) (9) (9) (9) (9) £-
•NPV (Terminal Value): £14.7M
May-08

Jan-11
Jan-08

Jan-09
May-09

Jan-10
May-10

May-11

Jan-12
May-12
Sep-08

Sep-10
Sep-09

Sep-11

Sep-12
Net Cash Flow 99 (80) 9 412 1,048 1,914
Cash Balance 99 20 29 441 1,489 3,403

Revenue Expenses

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 8. GOODWILL IS GOOD BUSINESS!
• Cost to charities: Zero
• Speed and volume-related benefits: Priceless!
35,583

34,800

Donations Turnover Net Profit (Loss)

29,800

24,800
22,835

19,800

13,415
14,800

9,800
7,235

3,519
4,800
2,225 1,327 2,258
220 1,052 1,919
716 415
12
(200)
(78)
2008 2009 2010 2011 2012

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Questions?

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