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ATvalueBusiness Proposal
TableofContents 4. S/W Development
1. Affiliated Research
Center / Organization
2. Patents
3. Research Outcomes
1. Carcok Service
2. Visual Caller Ring
3Car Supply in Asian Region ATvalue Business Plan
Purchasing and Securing Cars for Export
by ATvalue
ATvalue Export Procedure
Local Automobile Supply Business
Estimated Capital and Procurement Plan
Estimated Sales and Profit/Loss
1 Introduction
1. Overview
2. History
3. Board of Directors and Share-
holders
4. Organization
2 Business
1. Export of Used Cars
1. Export of Used Cars
2. Used Car Export Flow
3. Business Strategy
2. Export of New Cars
4. New Car Export Market
5. Business Flow
6. Business Strategy
3. Valuable Business
7. Educational Business
8. Development of Export
Automation System Com-
plex
9. Integrated Payment Sys-
tem
10. Green Scrap Service
4 Investment Proposal
01. Introduction
ATvalue Information
4
1. Overview
Company Name ATvalue Co., Ltd
Established February 1, 2011 (Incorporated)
President Min suk Kim
Capital 250,000,000 Won
Employees 28 (20 + 8(Specialists Outsourced))
Head Office 194-51, Okryeon-dong, Yeonsu-gu, Incheon, Korea
Seoul Office Rm. 505 Haksan Cosmos, 110, Gwangjang-dong, Gwangjin-gu, Seoul, Korea
Major Business Export Trade, Overseas Circulation, SW and Web Development, Education
2. History
2010 Signed an expert contract with Cagayan De Oro (Philippines)
2009 Signed an export contract with Ghana
2008 Signed an export contract with Iraq for the new car, Bongo III
2007 Signed an export contract with Vietnam
2006 Signed an export contract with Jordan
2005 Established Samil Trading
December 2011 Established business tie-up with YMCA for training for export practices
December 2011 Established business tie-up with Automobile Academy for export practices
December 2011 Applied for patent for Carcok Service
October 2011 Trial operation of the integrated export management system, ‘One
Pass Service’
May 2011 Established Russian corporation, Koreacar.co (Ussuriisk, Уссурийск)
April 2011 Concluded an export contract with Stanislav Russia
April 2011 Began to develop mobile ‘Carcok Service’
March 2011 Began to develop ‘Carcok Service’, the integrated export management system
March 2011 Established a new Development Division in Seoul
February 2011 Changed the company name to AT value
2011
2005~2010
5
May 2012 Brocoling – Applied for patent for the Automatic Calling Method for Wireless Mobile
Telephone Device and Its System
March 2012 Brocoling – Applied for patent for the Transmission Holding Advertisement Method
for
Smart Devices and Its System
March 2012 Venture certificate
February 2012 Established affiliated research center
February 2012 Officially opened integrated export management system ‘Carcok
Service’
January 2012 Trial operation of integrated export management system ‘Carcok
Service’
January 2012 Established business tie-up with Korea Insurance Development Insti-
tute
2012
6
3. Board of Directors and Shareholders
Profile of Executives
CEO
Ji ho Yang
•Kookmin Bank
•Hanshin Inc.
•Grand Industrial Development
•Directly and indirectly supervised the establishment of various incubating com-
panies and managed their operations
•C.E.O of Seoul Biz Base
•C.E.O. of Hanwon Motors
•Managed KIH Kookmin Venture Fund and Seoul Ventures Holdings Company
•Consulting for the financial structure of Korea Aerospace Industries (KAI)
•Executive director for Doctor for Doctor, KS Music
•Investment inducement and M&A for Sejong High Tech, Donga Precision Machin-
ery, Samju Mulsan, Hanrim ST, Hyundai Machinery, etc.
•Lecture on management, investment, and corporate M&A at various universities
•Lecture on start-up business consulting
7
3. Board of Directors and Shareholders
•Korea Finance Security: The company is in charge of transporting cash to 12 banks in Korea, builds and retains clients through efficient online marketing system. : Kookmin, Hana, Cheil, Shinhan, Woori, Exchange, City, etc.•NOW I&S: Online movie ticketing service provider, provides online marketing and KTF services• Ace Real Estate Consulting: Developed a system which systematically manage the establishment of committees, management of members by district, calculation of price of right, and information on the allocation of apartment by size for nationwide redevelopment and reconstruction promotion committee and association•Samil Real Estate Corporation: Developed programs for the calculation of the price of right of redevelopment association members and for promoting integrated marketing, analyzing and designing margins for new construction project. Developed and managed websites for 100 designated member stores•Samkyung C&M: www.jtech.co.kr, Established the network marketing system for redevelopment and reconstruction through on/offline training, books, blogs, and online club sites• Arcade Construction (C.E.O): Construction through the development of www.arcadecon.co.kr site, analysis of profit feasibility, construction of urban lifestyle residence, one room, multiplex house, and townhouses through PM or CM• ATvalue (C.O.O.): Concluded export contracts with various countries around the world, training of individuals on starting used car export business, and devel-oped and applied for patent for Carcok Service which systematized the existing used car export process
COO
Min suk Kim
Profile of Executives
8
3. Board of Directors and Shareholders
CTO
Yeong mo Yoo
January 1996 ~ December 2000 Hyundai Motors
Overseas Division
March 2001 ~ January 2005 Hyundai Motors Middle
East Division
March 2005 ~ January 2010 C.E.O. of Samil Trading
February 2011 ~ Present ATvalue
Profile of Executives
9
3. Board of Directors and Shareholders
CSO
Yeong jin Yoo
•Homano Trading Management Support Team
•Established Samil Trading
•Samil Trading Used Car Export Devision
•Joeun C&D Used Car Export Division (Exclusively
for Russia)
•Present: ATvalue Export Division Manager (Over-
seas Sales)
•Present: YMCA and Automobile Academy instruc-
tor for export practices
Profile of Executives
10
3. Board of Directors and Shareholders
CMO
Won ho Jeong
January 1995 ~ January 2001 KIA Motors Sales Division
April 2001 ~ January 2005 Hansung Motors Sales Team Manager
June 2005 ~ January 2007 Auto Parts Seoul Branch Manager
May 2007 ~ March 2011 TN Trading Executive Director
February 2011 ~ Present ATvalue
Profile of Executives
11
직원 이력
• PM for North Korean Defector Residence and Settlement
Support System of the Ministry of Unification
• Developed automobile inspection system for Road Traffic
Safety Authority
• Ship clearance system for Korea Coast Guard
• Developed agricultural technological information and appli-
cation system for Rural Development Administration
• Developed agricultural technological information DB for Ru-
ral Development Administration
• Developed H.E Engineering network outsourcing manage-
ment system
• Internet international telephone billing system for Money-
phone
• Text and Voice Recognition System for Moneyphone
• ARS Public Service Guide System for Gwangyang City Gov-
ernment
• Developed electronic approval system for Jeonju City Gov-
ernment
• Developed the group ware for Opennet
• Hankook Tire Internal Document Circulation System
• Developed MRP2 system for Korea Johnson & Johnson
• Developed Dr. C compiler at BIT Computer
3. Board of Directors and Shareholders
Head of Re-
search Center
Yeong seung
Lee
12
4. Organization
Manage-
ment and
Planning
Division
Research
Center
Export
Operation
Division
Auction
Team
Sales Divi-
sion
Organization Map
CEO
COO
Overseas
Operation
Division
13
4. OrganizationExperience of Staff _ Export Division
Manager Jin ho Seok8 years of experience
• Shinho Trade, Clerk
• Sunwoo Motors Repair Team
• Hyundai Glovis Automobile Analysis Team
• ADECAR Manager of Auction Division
• Present: ATvalue Manager of Overseas Export Division
Manager Myeong gi Lee12 years of experience
•Manager, Hanmi Auto Service
•Daemyeong Trading, Head of Automobile Division
•Present: ATvalue Overseas Distribution Manager(Russia)
Manager Deok jae Goh10 years of experience
•Hyundai Auto Service, Repair Team
• SY Trade
•C.E.O. of Car Max Auto Service
•Present: ATvalue Manager of Overseas Export Division
Assistant Manager Hyang jae Kim3 years of experience
• Majored in Arabic Language, Chosun University
• Eins School, Teacher
• Present: ATvalue Overseas Distribution Man-
ager (Middle East, Asia)
14
4. Organization
Manager Dae hee Park5 years of experience
• Hansung Motors Sales Division
• KIA Motors Sales Division
• Sungeun Trading
• Autozen Automobile Division
• Present: Manager, ATvalue Export Division
Manager Dae jin Choi7 years of experience
• Dongbu Fire Insurance Vehilce Investigation Team
• Founder and C.E.O. of Dongjin Trade
• Hangil Trading Middle East Division
• Present: Manager, ATvalue Export Division
Experience of Staff _ Export Division
4. Organization
15
Manager Geon yeong HongGraduated from Dept. of Visual Design, Hongik UniversityDecember 2004 Produced the flash animation for Kyobo Life Audi-tor’s OfficeJuly 2005 Designed the brochure and took photographs for the Ad-vanced Program for Cultural Contents, Seoul National UniversityAugust 2005 Produced the commemorative video for the 30th an-niversary of Korea Management InstituteDecember 2005 Oye Hyang Industry homepage design, coding, flashJanuary 2006 mineERP homepage design, coding, flashFebruary 2006 Apoteke homepage design, coding, flashMarch 2006 Produced video describing the recruitment for Daum Communication2006 Hongik University Graduate School of Architecture & Urban Design homepage designApril 2007 ~ June 2008 EA Mobile Korea web design, mobile con-tents design2007 Exhibition Video for the Reception of Gutenberg Award (Ger-many) by Professor Sang soo Ahn2009 Web design for Sindoh Ricoh Central Branch2008~2011 Team manager for IT Division of Samkyung C&M
Senior Researcher Gwan gook Kim
• UBIVELOX SE Division
• SimpleSync maintenance & repair
• Developed the global version of SimpleDrop
• Designed and developed NeoSimpleSync
• Developed SKT RealEdu, educational application
Experience of Staff _ Affiliated Research Center
Researcher Min ji Sohn
•Developed u-City Event Monitoring System (Silver Prize at the
Software Competition 2009 at Baekseok University)
•Developed Android based food ordering system
•Developed Android based electronic product follow-up service
management system
•(Grand Prize at the Software Competition 2010 at Baekseok Uni-
versity)
Team Manager Min woong Jeong
• Developed plant management system for Na-tional Arboretum • Web renewal of economic news for the Ministry
of Finance and Economy• Developed and managed Hanjin Apartment
Sales Site• Developed broadcast monitoring and music
source filtering system for SBS• Developed ‘Carcok Service’ of ATvalue
02. Business _ Export of Used Cars
ATvalue Business
Export Trade Business
1. Export of Used Cars
17
• Middle East: Iraq, Jordan, UAE, Yemen, Syria
• Africa: Sudan, Egypt, Ghana, Nigeria
• South America: Costa Rica, Nicaragua, Chile, Paraguay
• Asia: Russia, Mongolia, Tajikistan, Kyrgyzstan, Kazakhstan, Uzbek-
istan, Philippines, Cambodia, Laos, Vietnam
■ Export of new and used cars
■ Forwarding and shoring
■ Discovery of new buyers and pioneer of emerging market
Major Clients (24 Coun-tries)
Overseas Car Distribution Business
■ Russia prohibited the import of right-hand drive cars de-creased the demand for Japanese used cars, increased the demand for Korean used cars.
■ Established the Russian corporation, Koreacar.co, in May 2011, and engaged in used car circulation and sales activities according to local demand.
■ Expanding sales network in the far east Russian region and securing local dealers
1) Export Trade of Used Cars
1. Export of Used Cars
18
1) Export Trade of Used Cars
19
1. Export of Used Cars
Export Amount ($)
Export Scale (Quantity)
Scale of Used Car Export
Currently, the domestic consumption market for used cars is stagnant due to excessive competition, economic downturn,
and increase of oil price. However, the overseas market is stable and also shows high growth potentials in terms profit.
Maintains approximately 20% or higher growth rate every year
Growth of Used Car Export Market
20082009
20102011
0
5
10
15
20
25
30
Export Amount
Export Scale
Amount: $600 Million
Scale: 150,000
Amount: $1 BillionScale:
190,000
Amount: $1.25 BillionScale:
240,000
Amount: $1.53 BillionScale:
290,000
1) Export Trade of Used Cars
1. Export of Used Cars
20
‘Hot’ Response to Korean Used Cars in Over-
seas… Seeking a Way Out through Export
(KBS1, November 17, 2011) View News
Civil War in Libya Drawing to an End... Used
Car Export Complex Coming to Life
(YTN, August 26, 2011) View News
Economy is Expected to Look up for Some-time with the Export of Used Car at Sokcho Port (Yeonhap News, December 5, 2011)
4,529 used cars were ex-
ported to Russia through
Sokcho Port in 2011
Increased greatly from
833 cars in 2009 and
1,138 cars in 2011
2009 833 Cars37% Increase
300% Increase2010 1,138 Cars
2011 4,529 Cars
97th Edition of Close Up Industry
(E-Daily, May 23, 2012) View Program
2) Growth of Used Car Export Market
21
1. Export of Used Cars
Export of Korean Used Cars
2) Growth of Used Car Export Market
Jordan
Russian Federa-tionMongolia
Libya
Ghana
Laos
Chile
Vietnam
Kirghizstan
Cambodia
Philippines
Costa Rica
Kazakhstan
Thailand
Tajikistan
Egypt
Sudan
Nicaragua
Iraq
Yemen
USA
Uzbekistan
Pakistan
Cote d'Ivoire
U.A.E
Myanmar
Nigeria
Syria
Israel
AfghanistanSahrawi Arab Demo-cratic Republic
Peru
Iran
Vanuatu
Ethiopia
Guatemala
Tanzania
Madagascar
Dominican Re-publicArmenia
Guinea
Belarus
Turkmenistan
Tunisia
Djibouti
Paraguay
Marshall Islands
Lithuania
116 Others
Total
2010 2011Amount($1,000)
Quantity Amount($1,000)
Quantity2010 2011
Amount($1,000)
Quantity Amount($1,000)
Quantity
1. Export of Used Cars
Rank Country2008 2009 2010
AmountNumber of Cars
Ratio (%) AmountNumber of Cars
Ratio (%) AmountNumber of Cars
Ratio (%)
1 Jordan 188,849 54,954 20.5 268,722 52,962 34.7 326,478 74,530 39.12 Libya 87,488 18,163 6.8 149,570 32,692 19.3 134,537 26,531 16.13 Vietnam 179,682 14,418 5.4 218,318 25,776 28.2 186,960 14,402 22.44 Laos 29,794 8,025 3.0 28,677 9,683 3.7 62,730 11,414 7.55 Ghana 20,124 13,332 5.0 21,951 9,326 2.8 33,528 11,324 4.06 Sudan 36,073 10,892 4.1 45,293 14,014 5.8 40,424 10,168 4.8
7Philip-pines
9,415 3,677 1.4 22,973 7,405 2.9 32,298 8,191 3.8
8 Kirgizstan 53,286 27,645 10.3 18,751 8,895 2.4 16,926 6,896 2.0Total 604,711 151,106 100.0 774,255 160,753 100.0 833,881 163,456 100.0
Major Clients and Export Scale (Top 8 Countries) Unit: $ 1,000
2010 2011
Russia 12,168 ($151,667,000) 29,753 ($409,790,000)
Due to the ban on right-hand drive cars of Russia, the import of Japanese cars is restricted while the preference for Korean cars is increasing.Our export share increased from 2% up to 7%.
Export of Korean Used Cars to Russia
2) Growth of Used Car Export Market
1. Export of Used Cars
Comparison of Domestic Consumption and Export
ItemDomestic Con-
sumptionExport Remarks
Purchase of Cars
All Types of CarsCars Preferred in Each
CountryEX) Russia: 4WD, SUV, Starex, etc.
MarginProportion to
Domestic Market Price
Higher than Domestic Mar-ket Price
Price is determined at a high level compared with
domestic market price due to current production
line and lack of technology
Tax Benefit None8% of Purchase Price is Re-
turned
8% of the purchase price is returned in accordance with deemed input tax deduction on recycling of scrapped materials etc. (Article 108 of the Restric-tion of Special Taxation Act)
Average Period of Sales
1 month ~6 months
1 week ~ 1 month High turn over ratio, low inventory ratio
Save on maintenance and management expenses
Follow-up Ser-vice
Possible Buyer’s responsibilityTT: Exported only after the price of the car is paid
FOB: Overall risks and burden of expenses are
handed over from the seller to buyer
2) Growth of Used Car Export Market
24
2. Used Car Export Flow
Step 5 Cancellation of Car Registration
Step 2 Purchase of Cars
Step 6 Customs Clear-ance
CI PL
Step 9 Export and Tax
Gu Office
Request Shipper for EmbarkationCustoms Agent: Issue Export Permit
Step 1 Order from Overseas Buyers
Export contract with AT value’s overseas buyer
Purchase cars from Carcok Service users and member stores
Step 3 Transportation of Cars
Deliver cars to the head office of AT value
Step 4 Delivery of Cars to Logistics Cen-ter
Arrival at AT value Logistics Center (In-cheon) and inspec-tion
Application for Can-cellation of Registra-tion
Step 7 Buyer CarConfirmation
Confirm cars with overseas buyers
Step 8 Payment of Fees and Distribution of Profits
Payment of Logistic FeesDistribute profits to investors
Load cars and exportProcess post-proce-dures (tax)
Checklist▶
Liability Insur-ance▶
Checklist▶
Checklist▶Liability Insur-ance◀
25
2. Used Car Export Flow
Contract – Buyer Contract
ALTERNA (Russia) Asia bus DV (Russia) SMILE (Russia) ROSKOR (Russia)
BuyerBusinessStatus
1) Used Car Export Contract
2. Used Car Export Flow
26
We send out the purchase list to sellers such as used car trade complex, sales representatives for new cars, rent-a-car compa-
nies, transportation companies, and individuals through on/offline purchase marketing network and purchase cars.
Used Car Sellers3,450 Sellers / 25,031
Dealers
Sales Representative for New CarsATvalue DB
and Hyundai, Kia, Ssangyong, GM, etc.
22,215 Dealers
Rent-a-Car Compa-nies
Rent-a-Car Compa-nies around the
Country 1,027
Transportation Com-panies
10,098 Companies
IndividualsList of Members + DB
38,000
Sending out Purchase List
2) Purchase of Cars to Export
27
Bid for Used Cars
■ Reverse Auction System – The head office directly secures items based on the database of the auction list
2. Used Car Export Flow2) Purchase of Cars to Export
1. We established the business tie-up with Carsdaq
which exclusively handles the trade of used cars
in Gmarket, the Korean branch of eBay, the
world’s largest online shopping mall and we
opened Atvalue’s own exclusive page for the pur-
chase of export cars and introduced the matching
system that preferably receives the information
about export cars, making it possible to secure a
large number of cars.
2. We established business tie-up with (MPark)
Land, the biggest used car trade complex in Ko-
rea to have 15,000 cars supplied with priority.
3. We also established business tie-up with Renault
Samsung, Chevrolet, and Ssangyong Motors to
have the supply of 2,000~3000 aged cars each
month.
4. We also have contract with express bus, intra-city
bus, and other bus companies such as Dongyang
Express Bus to have the supply of 50~100 aged
busses each month.
Sell Cars to Export
2. Used Car Export Flow2) Purchase of Cars to Export
29
2. Used Car Export Flow
1. Check Car2. Check Document3. Inquiry -Inquire Original (Check for Provision Seizure, Bonds) -Inquire Business Registration (for business ownership) -Inquire Accident History (for accident)4. Sign Contract (Pay Price and Take Over)
Major Procedures
• Sales Contract
Document to Prepare
• Certificate of Seal Impres-sion
• Vehicle Regis-tration
Document Received
■ Use of Car Analysis Tool1.Work on 3 Criteria
(hood, both front fenders, and front panel) or rear fender
-500,000 won for popular cars
-1,000,000 won for regular cars
-2,000,000~4,000,000 won for luxury cars
2.Work on both wheel houses, roof, a filler, b filler
-1,500,000~2,000,000 won for popular cars
-3,000,000~4,000,000 won for regular cars
- Cost varies depending on car price for luxury
cars
3. Single house
-1,000,000~1,500,000 won for popular cars
-1,500,000~2,000,000 won for regular cars
- Cost varies depending on car price for luxury
cars
4. Replacement of
doors
-100,000 won for popular cars
-100,000 won for regular cars
-1,000,000 won or higher for luxury cars
5. Replacement of
hood
-200,000 won for popular cars
-300,000 won for regular cars
-2000,000 won or higher
6. Painting
- 50,000 won deduction on each cut
-9 or more cuts: Require full coating
(1) 500,000 won deduction on small cars
(2) 700,000 won deduction on medium cars
(3) 1,000,000 won deduction on large cars
The analysis tool is used at the purchase
to appraise the car accurately and maximize profit at
the sales stage!
2) Purchase of Cars to Export
30
2. Used Car Export Flow
1. Prepare CI (Commercial Invoice), PL (Packing List)
2. Attach the certificate for the cancellation of vehicle registra-tion to CI and PL and send to the customs agent
3. Issue of export declaration
Major Procedure • CI(Commercial Invoice)
• PL(Packing List)
Document to Prepare
Delivery of purchased cars to logistics center. Inspection of car status before consignment, insure car for the loss during con-
signment process.
차량의 국내 등록 말소1. Preparation of documents re-
quired for the cancellation of the vehicle registration
-Application for the cancellation of registration, invoice
2. Submission of documents to the Gu Office
-Application for the cancellation of registration, invoice, vehicle registration, certificate of seal impression, license plate
3. Issue of the Certificate for the Cancellation of Vehicle Registra-tion
Major Procedure• Application for the Cancellation of Registration (for Export)• Invoice
Document to Prepare
• Certificate for the Cancellation of Vehicle Reg-istration
Document Received
3) Consignment and Inspection of Cars
4) Vehicle Registration Cancellation Procedure
31
2. Used Car Export Flow
1. Prepare CI (Commercial Invoice), PL (Packing List)
2. Attach the certificate for the cancellation of vehicle registra-tion to CI and PL and send to the customs agent
3. Issue of export declaration
Major Procedure • CI(Commercial Invoice)
• PL(Packing List)
Document to Prepare
• Certificate for Export Decla-ration
Document Received
1. Confirmation of cars by buyer
2. Compare with vehicle registration (per-
formance inspection table)
3. Hand over vehicle and export permit
when there is no trouble
Major Procedure
5) Customs Clearance
6) Confirmation of Cars by Buyer
32
2. Used Car Export Flow
Advanced Payment Base
Cars are loaded to the ship after the buyer confirms actual cars. Payment is made after confirmation, and then the cars
will be handed over.
T/T [Telegraphic Transfer Remittance]
Transferred to the account designated by the other party through the bank.
Since the money is directly sent to the account without requesting the bank for collection, the payment is fast, fees are
saved, and the risk in the delay of payment is eliminated.
FOB (Free On Board) refers to the trade condition where the seller (exporter)
loads the promised cargo to the ship designated by the buyer (importer) and
shoulders overall expenses and risks until the cargo is handed over to the
importer on the ship.
In other words, the burden for overall risks and expenses is transferred from
the exporter to the importer when the cargo is loaded to the ship at the
export port over the railing on the ship’s side.
Since the buyer takes overall responsibilities after cars are loaded to the ship,
the exporter does not take responsibilities for follow-up service, insurance, or
loss of cars.
7) Payment
33
2. Used Car Export Flow
Deemed input tax deduction on recycling of scrapped materials etc. (Article 108)
In case a collector (ordinary taxable person) of recyclable waste resources and used goods (limited to used cars) acquires
such resources or goods from an entity which cannot issue a tax invoice such as the central government, local government,
tax-exempted business, persons subjected to simplified taxation, and individuals and manufactures, processes, or supplies
them, deem input tax up to a certain rate and deduct it from output tax in order to promote environmental preservation
through the efficient collection of waste resources.
-Deduction Rate for Used Car
- Applicable Business: Those who registered as automobile sales business in accordance
with the Automobile Control Act, those who export used cars
- Applicable Items: Used goods – The “used car” according to the Automobile Control
Act, however, excluding the cars for which the period between the manufacture
date recorded in the original register of the car and the date the declaration of
export is received as recorded in the export performance report is less than 1 year
in case of exporting used cars.
Acquisition Value x 9/109
8) Export and Tax
2. Used Car Export Flow
34
PeriodInvestment
(Purchase Price per Car)
Number of Cars Pur-chased
Margin per Carⓐ
Deduction (Re-turn) of Input Tax for Recy-clable Waste Resources
Deduction (Re-turn) of Input Tax for Recy-clable Waste Resources
ⓑ
Accumulated Profits( + )ⓐ ⓑ
Profit Rate
2 Months 20,000,000 1 1,000,000 0.08 1,600,000 2,600,000 13%
4 Months 20,000,000 1 1,000,000 0.08 1,600,000 5,200,000 26%
6 Months 20,000,000 1 1,000,000 0.08 1,600,000 7,800,000 39%
8 Months 20,000,000 1 1,000,000 0.08 1,600,000 10,400,000 52%
10 Months
20,000,000 1 1,000,000 0.08 1,600,000 13,000,000 65%
12 Months
20,000,000 1 1,000,000 0.08 1,600,000 15,600,000 78%
14 Months
20,000,000 1 1,000,000 0.08 1,600,000 18,200,000 91%
16 Months
20,000,000 1 1,000,000 0.08 1,600,000 20,800,000 104%
18 Months
20,000,000 1 1,000,000 0.08 1,600,000 23,400,000 117%
20 Months
20,000,000 1 1,000,000 0.08 1,600,000 26,000,000 130%
22 Months
20,000,000 1 1,000,000 0.08 1,600,000 28,600,000 143%
24 Months
20,000,000 1 1,000,000 0.08 1,600,000 31,200,000 156%
total
Investment: 20 Million Won / Purchase Price for 1 Car: 20 Million Won / Export Price: 21 Million Won (Margin = 1 Million Won)
Deduction (Return) of Input Tax for Recyclable Waste Resources: Estimated at 8% / other ancillary charges excluded
Car Export Simulation
35
3. Business Strategy
3. Collect carsand secure smooth supply
2. Supplier Ad-vantage Contract
4. Minimize Car Loss and Damage
1. Manage and Discover Buyers
Used Car
(for expor-tation)
BuyerDeman-
der
ATvalueSupplier
Gain ProfitsCon-tinue Trade
More prompt, aggressive, and systematic discovery and management of buyers compared with
existing small used car exporters.
- We secured dealers fluently speaking the language of the buyer for enhanced sales activities.
- We operate meeting facilities and lounge for buyers in export offices.
- We provide the information on export volume directly from the shippers leaving to buyer’s nations to
buyers.
- We are expanding the trade and export volume from supplier to 1 buyer to B2B trade across borders.
1) Management and Discovery of Buyers
36
3. Business Strategy
Risk hedge for the cancellation of buyer order
- If 10% of contracted price is paid in advance at the con-
tract, goods will be supplied preferably
- There are far more demands than the supply in the current
market.
We sign the contract with the advantage to the supplier,
and if a buyer breaches the contract terms, we can export
the same type of cars to another buyer on the same terms.
Exemption clause concerning the period for secur-ing cars for exportation
2) Supplier Advantage Market Contract
37
3. Business Strategy
We inspect our cars in each stage and are thoroughly insured in order to minimize loss from the pur-
chase cars to warehousing at the distribution complex and delivery to buyers.
3) Minimize Loss during Circulation Process
02. Business _ Export of New Cars
ATvalue Business
39
1. New Car Export Market
- New car exporters springing up everywhere
The demand for Korean cars is increasing in the regions
without factories of Korean car makers such as Hyundai,
KIA, Ssangyong, etc. However, consumers have to wait a
long time to purchase new cars through local official im-
porters and a number of small new car exporters are estab-
lished in Korea for the high profit rate compared with the
cars parallel-imported from Korea.
However, each manufacturer is limiting the purchase of
their cars sold in Korea by individuals or corporations to pro-
tect local official importers that the new car exporters are
hiring part-time brokers who lend their names for the pur-
chase of new cars.
1) Demand and Supply of Korean Cars (New Cars)
40
2. Structure of New Car Export Business
Contract with Overseas BuyersLarge quantity based contract in the regions without
official dealers
ATvalue
Domestic Manufacturer (Head Office)
Direct contract with the head offices of Hyundai, KIA, Ssangyong, etc.
Order from Overseas BuyersSmall quantity based contract regardless of the local
official importer
New Car Exporter
Domestic Manufacturer (A-
gency)Due to the limitation on the number of purchases,
companies are borrowing names of part-time bro-
kers to buy new cars
2) New Car Export System of ATvalue
41
Overseas
Buyer
2. Business Flow
ATvalue
P-Bond30~40%L/C or TT
Domestic
ManufacturerHyundai, KIA,
Ssangyong, etc.
L/C or TT
Supply of Cars
Supply of Cars
1) ATvalue New Car Export Flow
42
3. Business Strategy
Contract – Buyer Contract
Contract with Syria for the Supply of 500 Tuscon IXATvalue concluded the contract with supplier advantage with buyers around the world
the company developed through many years of experience in trade based on the mar-
ket structure where supply is noticeably small compared with the demand.
1) Car Export Contract
3. Business Strategy
43
Supply and Business Facilities of Hyundai/KIA carsin the Middle East/Africa/Europe
Branches help securing lo-cal buyers and steady management as well as import/export related oper-ations.
We established 2 branches in the Middle East and 1 branch in Russia including Iraq, Syria, and Jordan con-sidering the relationship with the operating facilities directly managed by manu-facturer’s local branches.
Operation of Follow-up Service CenterWe are also operating follow-up service centers along with the branches to help local sales by buyers and are plan-ning to increase the number of operating centers gradually following the sales.
Middle East
Europe Middle East
Africa
Eastern Europe
2) Establishment of Branches
02. Business _ Valuable Business
ATvalue Business
45
1. Valuable Business – Educational Business
■ ‘Used Car Export Practice’ course at YMCA and Automobile
Academy
■ ‘Used Car Export Practice and Business Registration’
course for Carcok Service members
01Automobile
IndustryWorkers
Has basic knowledge about automobiles,
persons engaged in related industries with poten-
tial to show quick progresses by learning about
export practices
02General Public
Interested in Export
General public who understands the benefit of export, but
could not approach export business due to lack of actual
experience
03Future
Entrepreneurs
Future entrepreneurs wishing to
start a business safely with a small
capital (Supports the entire course
from beginner to practice)
1) Educational Business
46
1. Valuable Business - Educational Business
Job training for workers from multicultural familyDisplay enhanced communication skills by understanding the used car export business in the trade be-
tween countries around the world.
Job training for workers from multicultural families who can be ignored as cheap-laborer.
Training and ApplicationNegotiation with overseas buyers / Customer response / Import dealer for corresponding country
Fulfilling social function with the training courses related with the export of used cars
Job training for persons with disabilitiesProvide the opportunity to start a business or to learn in connection with the Korea Employment Promo-
tion Agency for the Disabled under the Ministry of Labor.
Organize training programs customized for the skill level of the individuals with disabilities, help finding
jobs in export related areas.
Training and ApplicationExport administration / Repair and automobile related services
1) Educational Business
47
1. Valuable Business - Educational Business
Small and Medium Business Adminis-
tration /Ministry of Knowl-
edge Economy ATvalue Trade Center
Korea Employ-ment Promotion
Agency
Board of Ed-ucation
Multicultural Family Support
Center
Local Public Offices
Small Business Development
Center
Ministry of Labor
Composition of Education Infra-
structure
Certification of Life-Long Education
Refund Course of Ministry of
Labor
Support for the Business Com-
mencement
Persons with Disabilities and
Multicultural Families
Future En-trepreneurs
Provide Training
Creation of Jobs and Shar-
ing of Work
Support for Successful Start-up of Business
Step 1 Business Tie-Up for Start up Business and Employ-ment
Step 2 Train Targets
Step 3 Achieve Edu-cation Goals
Support for Busi-
ness Com-
mence-ment
System of Educational Business
1) Educational Business
48
1. Valuable Business - Educational Business
Comparison of Staring Export Business and Starting Other Businesses -Initial Investment-
ComparisonBBQ Restaurant
(100m2)Export Business
(660m2)Remarks
Store Purchase Cost(Deposit)
Class B Commercial District50,000,000 won
Coffee Shop (100m2)
Class B Commercial District100,000,000 won
(Incheon Export Complex)3,500,000 won
In other forms of business, the store pur-chase cost increases when the premium is
added
Membership Fee 10,000,000 won 10,000,000 won None Exhaustible expenses (not refunded)
Facilities Cost(Interior) 40,000,000 won 100,000,000 won 10,000,000 won
(Office Setting)
Initial facilities cost which will be eliminated at the closure of business is the most burden-
some cost for those who start the business
Fixtures and Cost of Products 20,000,000 won 120,000,000 won20,000,000 won
(Purchase of Cars)Used car export business can be started
with at least 5,000,000 won
Total At least 120,000,000 WonAt least 330,000,000 Won 30,000,000 won90,000,000 won~ 300,000,000-
won compared with other forms of businesses
-Fixed Monthly Cost -
ComparisonBBQ Restaurant
(100m2)Export Business
(660m2)Remarks
Rent 5,000,000 won
Coffee Shop (100m2)
7,000,000 won 1,200,000 wonFor other businesses, the rent increases when the premise is located in class A commercial
districtLabor Costs 10,000,000 won 5,000,000 won 5,000,000 won
Miscellaneous Costs 2,000,000 won 1,200,000 won 500,000 won Electricity, utilities, and other supplies expenses
Total 17,000,000 won 13,200,000 won 6,700,000 won Approximately 50% of fixed cost compared with other forms of
businesses
Training of Future Entrepreneurs for Used Car Export BusinessThere are no institutes that provide exclusive training on the export of used cars. We transmit our know-how about export procedures and business
management to future entrepreneurs, and provide the opportunity to establish independent companies by supporting training fees and the fund for
staring a business.
1) Educational Business
2. Valuable Business – Development of Export Automation Sys-tem Complex
49
Automated system for every one to export
Deliver cars from those who wish to ex-port used cars (individuals/companies)
Scan license plate – send export informa-tion
Inspect vehicles/check results
Buyer matching
Remittance of Payment / Notification of Expected Returns on Purchase
Loading / Exporting
Once the car is delivered to ATvalue Logistics Center, all data
are collected and export related procedures will be automati-
cally progressed. Designed to help the user to easily export
cars without sophisticated knowledge and experience about
exporting used cars.
The user only needs to bring the car and approve the ex-
port.
With the delivery, the export related documents will be pre-
pared automatically through the scanning of the license
plate, and all related processes such as the preparation for
export from the confirmation of fine payment status to the
inspection of car condition and repair, as well as the contract
with buyer and shippers will be automatically completed.
ATvalue Automation System
2) Development of Export Automation System Complex
Prospective Tenant
Companies
- Exporter
- Salvage Yard
- Repair Shop
- Gas Station
- Consignment Service
- Lodging Service
- Food Service
- Convenience Store
- Car Wash
- Loader
- Used Parts Shop
- Car Articles Shop
- Tire Exclusive Shop
- Wheel Exclusive Shop
- Tinting Exclusive Shop
- Plating and Painting
Shop
- Korea Customs Service
Office
- Gu Office Branch
- Post Office
- Educational Facilities
- New Car Dealer
- Used Car Dealer
- Entertainment Facilities
including screen golf
Yard for Export Cars
Example of Complex
Deliver cars from those who wish to export used cars (in-
dividuals/companies)
Scan license plate – send ex-port information
Inspect vehicles/check re-sults
Buyer matching
Remittance of Payment / No-tification of Expected Returns
on Purchase
Loading / Exporting
ATvalue Automation System
2. Valuable Business – Development of Export Automation Sys-tem Complex
2) Development of Export Automation System Complex
Conservation of resources and increase of energy efficiencyIncreasing the efficiency of the export operation through the development of export automation system can conserve the
resources that used to have been wasted through complexity of process and increase the energy efficiency.
- Saves time and material resources that were consumed from the visit of individuals or companies to various organiza-
tions in obtaining required documents to inspection, repair, and scrapping.
Creation of Jobs and Contribution to Local EconomyCreation of jobs in different areas due to the need for manpower following
the companies moving into the complex and the system automation.
Expansion of start up businesses and employment leading to the increase
tax income and the enhancement of the quality of life of the local residents.
Activation of local economy through individuals/companies/organization
coming in from various regions of the country for the export of used cars.
Exporter
ATvalueAuto-mated
Logistics Center
Export
Export
GuOffice
KoreaCustoms
Office
Shipper
Buyer
Export by Existing Exporter ATvalue Export Complex
2. Valuable Business – Development of Export Automation Sys-tem Complex
2) Development of Export Automation System Complex
AT value
3. Valuable Business – Integrated Payment System
Vicarious payment of various bills including fine, seizure/collateral, etc.Payments related with the car such as fine, seizure/collateral shall be made to each of the corresponding organizations, however, ATvalue logistic center pays for all at once.
Corresponding Organization
Corresponding Organization
Corresponding Organization
Corresponding Organization
Corresponding Organization
Carwith
Default
Carwith
Default
Carwith
Default
Carwith
Default
Carwith
Default
Carwith
Default
Carwith
Default
Carwith
Default
Carwith
Default
Carwith
Default
Payment of bills for each vehicle at corresponding organization
Vicarious payment for all bills by ATvalue
3) Integrated Payment System
53
4. Valuable Business – Green Scrap Service
Increased Recycle Rate of Scrap Cars- Existing car scrapping business has been centering
on some valuable parts such as scrap iron, however,
the remnants of the scrap car after compression
and refrigerant gas are mostly neglected in the na-
ture.
- Possible to increase the scrap car recycle rate
which currently remains at 84% due to lack of prof-
itability and technological strength up to 95% by in-
creasing the export of parts and retrieval rate of
rare metals through the introduction of refined
technologies.
Business Tie-Up with Manufacturers-Setting up a business tie-up on parts export and scrap car with manufacturers that are experienc-
ing conflict between corporate profit and environment protection concerning legal enforcement to
derive a way to create profits mutually.
-The manufacturer can reduce large scale facilities investment and infrastructure development
which require enormous capital compared with the profitability under expectation through the
Green Scrap System.
4) Green Scrap ServiceGlass Polish-Cerium
UV Guard Glass-Cerium
Diesel Fuel Additive-Selenium, Lanthanum
Hybrid Nickel-Manganese Battery-Lanthanum-Cerium
Catalyst Conversion Device-Cerium, ZirconiumLanthanum
Electric MotorNeodymium Magnet
Hybrid Electric Motor & Generator-Neodymium, praseodymium, dysprosium, terbium
LCD Screen-Europium, yttrium, cerium
54
4. Valuable Business – Green Scrap Service
Expansion of the Export of Used Parts and Domestic Consumption Market- Export and sales of reusable parts through thorough inspection and performance test.
- Secure market for models that could not be exported due to the shortage of parts.
- Expand market through insurance firms – Induce customers through the used parts supply market for
high quality used parts costing about half of the price of new parts and the premium reduction policy
of insurance firms.
Green Scrap Service Membership Program- We signed the membership contract with car scrapping compa-
nies throughout the nation and are increasing profits by training
them to maximize recycle rate. We are also engaged in used parts
exporter/agency business.
- Enhancing the service quality of overall scrap car market and in-
creasing profit for car scrapping businesses.
- Expansion of direct sales market through the multilingual shop-
ping mall for used parts.
• Multilingual Parts Shopping Mall
• Training for Maximizing Recycle
Rate
• Used Parts Export Agency
Green Scrap Ser-vice Mem-ber Store
Green Scrap Ser-vice Mem-ber Store
Green Scrap Ser-vice Mem-ber Store
Joint Green Scrap Ser-
vice
4) Green Scrap Service
02. Business _ Software Development
ATvalue Business
56
1. Software Development
Organization of Affiliated Research Center
Application Developer
Head
Development Team Manager
Sw Devel-oper
Design
Established the affiliated research center in February 2012
Authorized by Korea Industrial Technology Association (KOITA)
ATvalue engaged in the development of the integrated online export system since 2011 and is accumulating automobile export related techniques and know-hows. The company is developing updates and a variety of products required by service stabilization in the future
1) Affiliated Research Center
57
1. Software Development
Title of Patent: A Method of Providing Automobile Export
Agency Service Using Reverse Auction
Applicant: ATvalue
Application No.: 10 – 2011 -0145322
1) Affiliated Research Center
58
1. Software Development
Title of Patent: Applied for patent for the Transmis-sion Holding Advertisement Method for Smart De-vices and Its SystemApplicant: ATvalueApplication No.: 9 – 1999 -000503-9
1) Affiliated Research Center
Title of Patent: Applied for patent for the Automatic Calling Method for Wireless Mobile Telephone Device and Its SystemApplicant: ATvalueApplication No.: 9 – 1999 -000503-9
59
2. Software Development - Carcok
Carcok Service greatly simpli-
fied the time and expenses ac-
tually consumed during the ex-
port of cars through the online
service.
The existing user with export
experience as well as the user
without the experience can eas-
ily follow the export procedure.
2) Export Service - Carcok
CustomerEnter initial car
information
Gu OfficeCancel the Vehi-cle Registration
Customs AgentExport Permit
Gu OfficeReport for Export
Performance
Tax AccountantTaxation Proce-
dure
BuyerSign Contract and Pay Price
Enter car information
Send information to DB for the cancellation of vehicle registration
Completion of the cancellation of vehicle
registration
Send to DB (PL, CI)
Export Permit (Export License)
Send tax performance report to DB
Completion of taxation process
Send information to taxation DB
Pay price for car
Purchase contract
Hand over car and export li-cense
60
2. Software Development - Carcok
Automatically prepares all documents required for export
Enter basic information of the ve-hicle
Select the inquiry cat-egory and enter vehi-
cle number >>
Real time inquiry of vehicle information in connection with public institutions (Na-tional Tax Service, THE Min-istry of Land, Transport and Maritime Affairs, Korea Cus-toms Service) and partners (Korea insurance develop-ment institute)
Check the acci-dent history im-mediately*Carcok’s inquiry service is available 24 hours unlike the inquiry system of other companies and it also involves very simple information inquiry pro-cedure.
3) Automatic Export Document Preparation Technology
4) Vehicle Information Inquiry Technology
2. Software Development - Carcok
Register Car for Auction
List Up Auction Items
Bidding
Provides the service which equally enables all functions of
Carcok Service on mobile device (smartphone)
*Enabled Korea’s first export related mobile service
Seller and bidders
can easily join the
auction through
web or mobile en-
vironment.
5) Real Time Auction 6) Mobile Service
2. Software Development - Carcok
Sends the export related docu-
ments saved to personal informa-
tion storage to the selected re-
ceiver through fax or e-mail using
My Documents feature of the App
License No: xxGA 1234Model: K7Maker: KIA
Inquiry Service
Auction Service
Export Service
Select the service you need
Inquire Market Price
Photograph the license plate
Recognizes the license plate pho-
tographed with a smartphone, inquires
the original register of the vehicle, the
accident history, business registration,
sales price trend, and vehicle data in real
time.
7) Document Transfer
8) Automatic Recognition of License Plate
Step 1 Save within Document
Step 2 Send Re-quired Documents
Business Operator Re-lated Documents (Seal,
Transcript, Business Reg-istration)
Export Related Docu-ments (Cancellation Cer-tificate, Export License,
CI, PL)
Brocolring
The user can watch the advertisement while the user makes a
call or receives a call to collect mileage point that can be used
to pay for communication bills, goods or services provided by
partner companies.
Plays advertisements customized to the location, time, age,
and individual characteristics to provide the information suit-
able to the user and enhance advertisement effect.
통화를 연결합니다
YES NO
SendWatch
AD ReceiveCollect Mileage Points
UsePoints
Watch AD
Again
• If the user places the phone to the ear or is not watching the AD while making a call, the user will not receive the notice for reception.
• When the receiver presses the Call button, he or she will be given the notice that the caller is watching the advertisement, and when he or she brings the phone to the ear, the proxim-ity sensor will enable the call
*Title of Patent: Applied for patent for the Transmission Holding Advertisement Method for Smart Devices and Its System (10-2012-0050818)
2. Software Development - Brocolring1) Introduction
Collecting and Using Mileage Points
Using the points provided while watching advertisement, the user can pay for communication bills and goods and services of
partner companies, or other services such as PRECALL*.
Collect Points Convert Points Use Points
2. Software Development - Brocolring1) Introduction
Development Background _ Mobile advertisement market is recording steady growth every year due to the increase of smartphone users in Korea
420,000
800,000
Sept.2009
Dec.2009
Mar.2010
Jun.2010
Sept.2009
Dec.2010
Mar.2011
Jun.2011
Sept.2011
Dec.2011
Mar.2012
Jun.2012
26 Million
23 Million
20 Million
18 Million
15 Million
11 Million7 Million
4 Million2.4 Million1.4 Million
Status of Smartphone Users in Korea
2007 2008 2009 2010 2011 2012
174 Billion199 Billion 274 Billion
336 Billion
435 Billion
560 BillionSize of Domestic Mobile Advertisement Market
Increase of Budget52%
Undefined 4%
Decrease of Budget19%
Unchanged25%
Plan to increase mobile adver-tisement by domestic adver-tiser in 2012
*Source: Korea Broadcasting Corporation, Korea Communications Commission,
TN SRI Regular Survey/ Google
2. Software Development - Brocolring1) Introduction
Development Background _ Change in the communication market from 3G to 4G will be changed from existing banner and image oriented mobile advertisement to real time video
2011
1,000
2012
2013
2014
2,000 3,000 4,000 5,000 6,000
(10,000 People)
120 1,377 3,813
1,598 728 3,228
2,894 245 2,659
4,232 245 1,321
Digital WCDMALTE
Division 1G 2G 3G 4G
Technology Analogue Digital WCDMA LTE
Transmission Speed
10kbpsor Less
~64kbps~100mbps
~600mbps
Service VoiceVoice,Text
Voice, Text,
mms, In-ternet
Multimedia
Change in Share of LTE
Change in Communication Technology by Generation Real Time Video Advertisement
Advent of more effective advertisement due to the advancement of communication technology
2. Software Development - Brocolring1) Introduction
Combination of Mvoip (Mobile Internet Phone) and Brocolring
It is expected that the number of ordinary call will decrease and the data communication will increase due to the stabiliza-
tion of LTE network
Call for free and collect points
brocolring
Commercialization of Mvoipby Advancement of Technology
Potential of Real Time Video ADas the new mobile advertisement media
Effective profit model making best out of the changes in the communication market
2. Software Development - Brocolring1) Introduction
System of brocolring
Brocolring business is comprised of the developer, partners (distributor, mileage point accepting companies), user, adver-tisement agency, and advertiser, and each of them play their roles individually
Developer
•Development, maintenance, and repair of App
•Management of web and mobile site
•Development of additional product and services
Advertisement Agency
•Induction of advertiser•Production and organiza-tion of advertisement
•Advertisement
Advertiser
•Provision of advertise-
ment rates
Partner (Distributor)
•Distribution of App
•Secure users
•Advertisement
User
•View advertisement
•Use of points
•Recommendation of user
Call for free and col-
lect points
BrocolringPartner (Point)
•Provide the place to use
points
•Point conversion and
recognition system
2. Software Development - Brocolring2) Commercialization Plan
Composition of Entire Business Structure
AdvertisementAgency
User
CommunicationCompany
Advertiser
Advertiser
Advertiser
PointPartner
Distribution Partner
BroColRingBrocolring Dis-tribution Con-tractDistribution of Advertisement Profit
Distribute BrocolringInstall partner App
Direct distributionSend advertisementProvide points
Use of PointCommunication Charge/PartnerPurchase of Goods, etc.
Share advertise-ment profitAdvertisement sales/production
-Mvoip Company (Existing)
-New Company in the Mar-
ket
2. Software Development - Brocolring2) Commercialization Plan
1 Strategic Business Tie-Up
• Reduction of initial expenses for App advertisement and distribution
• Requires public confidence for inducing large adver-tiser
• Possibility of inducing partner’s users and potential customers
Ex) Setting up a business tie-up with My People (DAUM) which maintains 20 million users in the existing Mvoip
market will enable the induction of existing users and facilitate the induction of large advertiser and new users
based on brand awareness.
Conditions in Selecting Partner Role of Developer
Capital StrengthExisting UserPossibility of In-ducing New Users
Brand Aware-
ness
Development
of Application DevelopInducing Elements
Distribution
of Profits
Developing the business structure to establish the Win-Win relationship with the partner preparing to expand existing business and tap into the new market along with the commercialization of Mvoip market
2. Software Development - Brocolring2) Commercialization Plan
2 Tie-up with Advertisement Agency• Receive order for large advertisement through the tie-up with adver-
tisement agency and create profits stably• Receive orders for advertisement and reduces operating expenses of the
advertiser• Organize advertisement customized for the target (location, sex, and
age, etc.)
Advertiser Advertisement Agency Developer
Request for Advertisement
Pay for Advertis-ing Expenses
Manufacture Advertisement
Distribution of Profit
Pay for Advertising Expenses
Organize Advertisement
Register App
2. Software Development - Brocolring2) Commercialization Plan
3 Partnership for the Usage of Point
• Set up a business tie-up with the companies that accepts the points that the user collected
• Developing a number of ways to use the points is connected to the increase of users
• Advance payment with the point gives advantages in the negotiation with partners for contracts
and provides more benefits to users.Pay for communication bill (Partner-ship with mobile communication provider)- The user can automatically pay for the communication bill with the collected points every monthly- The developer pays the mobile communication provider for the settled amount
*Need to develop a payment system in connection with the bankUse as mileage point (Partnership with corresponding company)- Provide a number of companies that accept points
2. Software Development - Brocolring2) Commercialization Plan
App Market Distribution _ Android market / App store
Viral Marketing _ Provide App guide and information about benefits through blogs, internet Knowledge data-base, and online club sites
Push message _ Banner type advertisement in portal sites and IT related sites
Related Key Word AD _ Expose App name when searching partners and related key words
Overture Marketing _ Expose the search of mvoip related key word on the top
Exposure of Advertiser in Partner Sites _ Maximize advertisement effect through the exposure in mutual web sites
Star Marketing _ Use the image of celebrities that users are familiar with
Noise Marketing _ Compare features and advantages compared with App
PUSH Strategy – Maximum exposure to user and potential user
2. Software Development - Brocolring2) Commercialization Plan
*PRECALL_ Additional function for user convenience
Pull Strategy – Induce users by maximizing the advantages of the App in addition to the provision of mileage points
Integration with Game _ Expose advertisement inside the game to enhance the concentration to advertisement and pro-vide additional mileage points to the user
Character Product _ Addition of a variety of avatars and icons that add fun to use
Gift Shop _ Enabled the exchange of gifts and coupons between users
Membership Benefits _ Provision of mileage points to subscribers and recommenders when a member joins directly or through the recommender
Event _ Events and gimmicks for the promotion of App
Simplification of Use _ Simplification of the input of personal information required for login and the use of mileage points
Development of Additional Services and Related Products _ Provision of a variety of differentiated contents competitive with other contents
*PRECALL: Inquires whether the receiver is available for a phone call through a message before making a call, auto-matically makes a call when the receiver is available
2. Software Development - Brocolring2) Commercialization Plan
Car Supply in Asian Region ATvalue Busi-ness Plan
ATvalueExport of Cars / Rent-a-Car and
Transportation Busi-ness
Asian RegionIncrease of Automo-
bile Supply Rate
Increase of Road Utilization Rate In-
cluding Asian Highway
• Business Goal
– Increase car supply in Asian region to increase the use of Asian Highway and land route and contribute to the ad-
vancement of tourism and logistics industry.
• Background
– According to the economic circumstances of most countries in Asia, it is difficult to purchase luxurious cars produced
in Europe and America that the progresses in the car market is small.
– The car demand in Asian region is increasing but the supply is not smooth due to insufficient investment into infra-
structures such as the local manufacturing facilities and repairing facilities.
– Roads such as Asian Highway are being developed, but the number of car owners is small that the utilization rate is
low.
Car Supply in Asian Region ATvalue Business Plan
Car Supply in Asian Region ATvalue Business Plan
ATvalue Export Complex
Asian Highway Branches in
Each Country/Car Sales, Rent, Repair, and
Transportation
Local Distribution Com-
plex of ATvalue in Each
Country
Establishment of Main Offices
and Infrastructures in Corre-
sponding Countries for the
Sales of Used and New Cars /
Rent-a-Car / Car Lease Busi-
nesses
Plan the business suitable for the circumstances of each region by connecting with major
hub points of the Asian Highway
Target Areas – 6 Countries including Russia, Myanmar, Vietnam, Philippines, Kazakhstan, Tajikistan
Car Supply in Asian Region ATvalue Business Plan
AH1: Area with warm cli-
mate and advanced tourism
and leisure industries Suit-
able for rent-a-car business.
AH6: Runs throughout Rus-
sia, suitable for businesses
based on the export of used
cars than tourism and leisure
industries due to climatic
conditions
AH6
AH1
Car Export
ATvalue
(Korea Overseas)
Local Car Sales
Local Corporation
Operation of Local
Car Business
(Rent-a-Car, Trans-
portation)
Local Corporations
Car Supply in Asian Region ATvalue Business Plan
• Export of Korean used cars → Local corporation
• Apply the competitive car supply system designed for higher profit to local market
• Export to local corporation with the margin rate of 10%
• 9/109(≒8.25%) of the purchase price returned due to the deduction of tax for the
purchase of used cars
• Local corporation, imports cars from ATvalue
• Sell in the local market with 30%~100% margin on the import price (including tariff)
• Share profit by 50% with the head office of ATvalue
• Operate local repair station and follow-up service centers
• Increase sales rate through the tie-up with financial/capital firms
• Supply of battery refresher
• ATvalue operates businesses such as rent-a-car or taxi by exporting new cars for business purpose
• Import with the same margin rate for used cars, and produce 100% of profit through the business operation in 1 year
• Supply 500 new cars (Russia) every 6 months• Sell cars operated for 1 year as used car• High profit rate compared with the direct export of used cars
ATvalue Busi-ness
Car Supply in Asian Region ATvalue Business PlanCar Supply and Investment Plan for 6 Asian Nations
Unit: 1,000 $
Business Period for Each Country
Country Investment Ratio 80,357
January 2013 Russia 47% 37,500
July 2013 Vietnam 17% 13,660
September 2013 Myanmar 10% 8,035
February 2014 Kazakhstan 10% 8,035
July 2014 Tajikistan 8% 6,696
February 2015 Philippines 8% 6,428
Car Supply in Asian Region ATvalue Business PlanGoal for Car Supply in 1 Year in 6 Asian Nations
Country
Total Export from Korea in Previous Year (2011)
Goal for the Export
of Used Cars
Goal for the Export of
Cars for Op-eration (New
Car)
Goal for Total Export in the Next Year by
ATvalue
Remarks
Russia 29,753(4,712,258)
3,500(81,850)
1,000(23,740)
4,500(105,590)
Planning to increase the share in domestic car export to Russia up to 20% and the ratio of Ko-rean used car in Russia up to 3% as of 2013 --- Expecting the increase of market ratio in Rus-sia due to the investment to facilities such as follow-up service centers
Vietnam10,288
(139,930)1,150
(15,680)300
(6,720)1,450
(22,400)
Many construction companies around the world are tapping into Vietnamese market, ur-banizing many regions and also increasing car demands
Myanmar827
(18,730)1,200
(12,070)200
(4,040)1,400
(16,110)Began to open automobile market, expecting high growth rate
Kaza-khstan
4,880(23,290)
2,000(11,200)
200(4,800)
2,200(16,000)
Wealthy nation among Middle Eastern and Asian nations, steady demand for expensive cars, export increased as the level of Korean used cars elevated
Tajikistan4,804
(13,460)2,000
(5,600)100
(2,400)2,100
(8,000)Country with low income level, steady increase of inexpensive Korean cars
Philippines7,486
(35,389)1,200
(5,600)100
(2,400)1,300
(8,000)Expecting the increase of used car export due to the relaxation of restrictions on car import
Unit: Cars(1,000,000 won) Applied the Exchange Rate of 1$ = 1,150 won
Car Supply in Asian Region ATvalue Busi-ness Plan
ATvalue Automobile Ex-portCar Purchase / Export Procedure
ATvalue
Purchase of
Cars(Secure Cars to Ex-
port)
ATvalue
Export of Cars
(Delivery to Export
Logistics Complex)
Local Corpora-
tion
Supply of Cars
to Importing
Country(Delivery to Import Lo-
gistics Complex in Each
Country)
Car Supply in Asian Region ATvalue Business Plan
• Send out purchase list to 100,000 databases including new car dealers, used car com-panies and dealers, individual members, rent-a-car companies, and transportation com-panies
• Carcok (developed by ATvalue) – Auction system• Business tie-up with M Parkland, contract for the supply of cars for export with priority.• Business tie-up with eBay – G Market and Auction, contract for the supply of cars for ex-
port with priority.• Secure vehicles through the contract for supply of aged vehicles with Renault Samsung,
Chevrolet, Ssangyong Motors, etc. / supply of aged busses with express bus, intra-city, and regular bus companies such as Dongyang Express Bus
• Public advertisement marketing through Brocolring
• Development of vehicle export logistics complex
• Automation of export procedure such as Carcok Service and the recognition of li-
cense plate
• Development of import logistics complex in each country (import operation, rent-
a-car, used car / new car dealers, repair shop moving into head office)
• Management of rent-a-car and repair shops located in the border areas of Asian
Highway
• Place vehicles to public institutions, transportation company, etc.
Export
84
Used Car Sellers3,450 Sellers / 25,031
Dealers
Sales Representative for New CarsATvalue DB
and Hyundai, Kia, Ssangyong, GM, etc.
22,215 Dealers
Rent-a-Car Compa-nies
Rent-a-Car Compa-nies around the
Country 1,027
Transportation Com-panies
10,098 Companies
IndividualsList of Members + DB
38,000
Sending out Purchase List
Car Supply in Asian Region ATvalue Business PlanPurchasing and Securing Cars for Export by ATvalue
Head Office Infrastructure and DB
85
Most exporters are having difficulties in supplying cars to export due to the worldwide in-
crease of demand for Korean used cars, however, ATvalue has the infrastructure and the
database for car suppliers developed through many years and is capable supply cars
steadily.
We have purchase dealers with excellent sales capacity and skills for thorough analysis
and inspection about the problems that may take place in the future due to the condition
of the car to bring maximum profits.
New Car Dealers 22,215 Dealers including Hyundai, KIA, Ssangyong, GM, etc.
Used Car Companies / Dealers
3,450 Trading Companies / 25,031 Dealers
Individuals List of Members + DB 38,000 people
Rent-a-Car Companies Rent-a-Car Companies Nationwide: 1,027Companies
Transportation Companies 10,098 Companies
Car Supply in Asian Region ATvalue Business PlanPurchasing and Securing Cars for Export by ATvalue
Head Office Infrastructure and DB
86
Bid for Used Cars
■ Reverse Auction System – The head office directly secures items based on the database of the auction list
Car Supply in Asian Region ATvalue Business PlanPurchasing and Securing Cars to Export by ATvalue
Online/Mobile Real Time Auction
Car Supply in Asian Region ATvalue Business Plan
1. We established the business tie-up with Carsdaq
which exclusively handles the trade of used cars in
Gmarket, the Korean branch of eBay, the world’s
largest online shopping mall and we opened At-
value’s own exclusive page for the purchase of ex-
port cars and introduced the matching system that
preferably receives the information about export
cars, making it possible to secure a large number of
cars.
2. We established business tie-up with (MPark) Land,
the biggest used car trade complex in Korea to have
15,000 cars supplied with priority.
3. We also established business tie-up with Renault
Samsung, Chevrolet, and Ssangyong Motors to have
the supply of 2,000~3000 aged cars each month.
4. We also have contract with express bus, intra-city
bus, and other bus companies such as Dongyang
Express Bus to have the supply of 50~100 aged
busses each month.
Sell Cars to Export
Purchasing and Securing Cars to Export by ATvalue
Business-Tie up for Supply of Cars
88
Once the car is delivered to ATvalue Logistics Center, all data are collected and export related proce-
dures will be automatically progressed. Designed to help the user to easily export cars without sophisti-
cated knowledge and experience about exporting used cars.
The user only needs to bring the car and approve the export.
With the delivery, the export related documents will be prepared automatically through the scanning of
the license plate, and all related processes such as the preparation for export from the confirmation of
fine payment status to the inspection of car condition and repair, as well as the contract with buyer and
shippers will be automatically completed.
Car Supply in Asian Region ATvalue Business PlanATvalue Export Procedure
Car Supply in Asian Region ATvalue Business PlanATvalue Export Procedure
Conservation of resources and increase of energy efficiencyIncreasing the efficiency of the export operation through the development of export automation system can conserve the
resources that used to have been wasted through complexity of process and increase the energy efficiency.
- Saves time and material resources that were consumed from the visit of individuals or companies to various organiza-
tions in obtaining required documents to inspection, repair, and scrapping.
Creation of Jobs and Contribution to Local EconomyCreation of jobs in different areas due to the need for manpower following
the companies moving into the complex and the system automation.
Expansion of start up businesses and employment leading to the increase
tax income and the enhancement of the quality of life of the local residents.
Activation of local economy through individuals/companies/organization
coming in from various regions of the country for the export of used cars.
ATvalueAuto-mated
Logistics Center
Export
GuOffice
Export by Existing Exporter ATvalue Export Complex
Exporter
Export
GuOffice
KoreaCustoms
Office
Shipper
Buyer
Car Supply in Asian Region ATvalue Busi-ness Plan
Yard for Export Car
Example of Complex
Deliver cars from those who wish to export used cars (individuals/compa-
nies)
Scan license plate – send export informa-
tion
Inspect vehicles/check results
Buyer matching
Remittance of Payment / Notification of Ex-
pected Returns on Pur-chase
Loading / Exporting
ATvalue Automation System
ATvalue Export Procedure
Entrance of Car
※ This is the image produced based on the as-
sumption that the head office purchases and pre-
pares the site for lease business. If the site is
rented, only the most required companies will be
accommodated.
Car Supply in Asian Region ATvalue Business Plan
1. Development of Export Logistics Complex Site Area: 495,867m2
If land is rented, 1.5 billion won a month / 18 billion won a year will be required. (Rent for each pyeong (3.3m2: 10,000 won) For purchase of land, 5,00 billion won will be required (construction cost not included). Site Location: Songdo, Incheon
Prospective Tenant Companies
- Exporter- Salvage Yard- Repair Shop- Gas Station- Consignment Ser-
vice
- Lodging Service- Food Service- Convenience Store- Car Wash
- Loader- Used Parts Shop- Car Articles Shop- Tire Exclusive Shop-
Wheel Exclusive Shop
- Tinting Exclusive Shop- Plating and Painting Shop- Korea Customs
Service Office- Gu Office Branch- Post Office
- Educational Facilities- New Car Dealer- Used Car Dealer- Entertain-
ment Facilities including screen golf
ATvalue Export Procedure
※ This is the image produced based on the
assumption that the head office purchases
and prepares the site for lease business. If the
site is rented, only the most required compa-
nies will be accommodated.
※ The cash flow and income and expenditure
analysis data in this proposal were prepared
based on the assumption that the site will be
rented.※ Can be accommodated based on separate financing with the Korea Development Bank, KDB Capital, Hana Capital,
etc.
Car Supply in Asian Region ATvalue Business Plan
• Establishment of Local Used Car Trade Corporation (Different corporate characteris-
tics and profit distribution depending on the terms of establishment in each country)
Used Car Trade Business System of Local Corporation
ATvalueExport Cars
Ex.) Price for purchase of cars in Korea 2,0700,000 won
Local CorporationImport Cars
Local Sales
10% Profit compared
with the purchase
price
Ex.) Export Price
23,000,000 won
~100% Profit compared
with the purchase price
Ex.) Sales price (46,000,000
won)
~200% tax (different in each country)
compared with import priceEx.) Car import tax
4,600,000 wonRussia, fixed tax for each
model
Car Supply in Asian Region ATvalue Busi-ness Plan
ATvalue Car Operation BusinessRent-a-Car, Transportation
• Transportation Business• Supply vehicles to public institutions or establish and operate a transportation company depending on
the circumstances of the county.• Establish a transportation company and export and use ATvalue‘s cars.
• Rent-a-Car Business• Establish AH(Asian Highway) Rent-a-Car Companies: Open rent-a-car agencies near the national borders
of the Asian Highway and other hotspots• Operate agencies with ancillary facilities in the beginning and end of the Asian Highway in each country
and the area with high demand for rent-a-car to enhance convenience for road users and business effi-ciency.
Sell after 1 Year – For both rent-a-car and transportation businesses, sell cars operated for 1 year as used cars to create high profits compared with the export of Korean used cars.
Tap into the market aggressively and form a local automobile market infrastructure following the increase of lo-cal traffic and highways
Car Supply in Asian Region ATvalue Business PlanCar Operation Business
Car Supply in Asian Region ATvalue Business PlanCar Operation Business Flow
Purchase / Export of New Cars
Import of New Cars / Operate in Rent-a-Car and Taxi Busi-
nesses
Operate for 1 Year and Sell as Used Cars
Profit from the Export of New Cars
10% profit rate compared with domestic purchase
Operating Profit
100% of annual income rate compared to the
import price of the vehicle (including tax)
Profit from the sales of operated cars
60% of the market price of used cars
Car Supply in Asian Region ATvalue Business PlanComparison of Profit from Car Operating Business and Profit from Ex-port of Used Cars
Busi-ness
ATvalue Car Purchase
Price
ATvalue Car Export
Price
Deduction of Input
Tax
ATvalueOperating
Profit
Purchase Price of Cars by
Local Cor-poration
(Including Tax)
Operating Income of Local Cor-poration
Sales Price of Cars by Local Cor-poration
Total In-come of
Local Cor-poration
10% profit from purchase
price
9/109 of pur-chase price
Export Price-Purchase Price + Deduction of Input Tax
100% of the Import Price of Cars through
Operation
Sell Operated Cars at 60% of
the Market Price
Operating In-come + Sales
Price – Pur-chase Price
Export of Used Cars
18,482 20,535 1,526 3,580 24,643 0 35,714 11,071
Car Op-eration
Business(New Cars)
20,089 22,321 0 22,321 28,571 28,571 21,428 21,428
Increased profit rate from exporting and operating new cars in local area
Ex.) Comparison of the Export Sales of Used Cars and the Operation of New Cars by Russia Grand Starex
Unit: $
Through the cooperation for the supply of new cars manufactured in Korea (Hyundai, Kia, Ssangyong, etc.), ATvalue is exporting and supplying vehicles to the areas that the manu-facture has not set up conditions for sales and manufacturer is expanding their domain of sales.
Increase the collection rate for exportable ve-hicles owned by individuals and reduce market-ing expenses ATvalue through the nationwide advertisement using Brocolring, the application developed by the affiliated research center.
Car Supply in Asian Region ATvalue Business Plan
Hyundai Motors Sales Subsidiaries
Purchasing and Securing Cars Exported by ATvalue
Business Consultation with New Car Makers about Supply of Vehicles
Marketing through the Advertisement Solution Developed by the Affiliated Research Center
Car Supply in Asian Region ATvalue Busi-ness Plan
Local Car SupplyVarious business plans for smooth supply of exported cars
Car Supply in Asian Region ATvalue Business PlanLocal Car Supply Channel
Warehouse in Car Logistic Complex in Each CountryComplete import procedures within the logistic complex and distribute cars for
each business
Import Car
Used Car Trading
Company
Trans-portation Company
Car Leas-ing Com-
pany
State In-stitution/Company
Complete import procedures within the logistic complex and distribute cars for each business
Scale of Car Supply and Operating Business for the 1st Year
ATvalue
BusinessInvestment
Scale(Annual)
Export Scale Export Value Total Income
Used Car Export 65,714 312,500 73,057 7,321
Rent-a-Car 9,464 44,642 10,625 1,160
Taxi Business 9,464 44,642 10,625 1,160
84,821 401,785 94,482 9,642
(Unit: 1,000 $)
Russian Corporation
Business ImportImport Value
Operating Income
Sales Total Income
Used Car Export 312,500 73,035 78,660 5,625
Rent-a-Car 44,642 10,625 11,696 9,196 10,267
Taxi Business 44,642 10,625 11,696 9,196 10,267
401,785 98,482 23,392 102,946 26,160
(Unit: 1,000 $)
03. Used Car Export Business and Investment Plan
Car Supply in Asian Region ATvalue Busi-ness Plan
• The income level of most Asian countries is not high Expand the chance to own a car for the general public who does not have enough money to purchase a car by introducing the installment sales system in connection with financial institutions.
• Financial institutions can secure safety for local business by providing loans on the car, the secu-rity in kind.
• The money from car sales will be provided to head office as a lump sum payment from the finan-cial institution.
• Currently, we established business tie-up with KDB Capital Corp., Hana Capital, and Hyundai Capi-tal and are providing the service.
Local Car Supply Business
Installment Sales Service in Connection with Financial Circles
Car Supply in Asian Region ATvalue Busi-ness Plan
• Help the smooth circulation of automobiles by resolving the follow-up service issues of the domes-
tic export car market and seek for long-term business development by enhancing user satisfaction.
• Set up shops near major hotspots and Asian Highway.
• For new cars, the manufacturer provides the infrastructures that it is easy
to set up the shop.
• Space rented by repair shops: 330m2 area.
Local Car Supply Business
Repair Service
• Enhance the satisfaction of buyers and expand market by eliminat-
ing the disadvantages of domestic car export business, the parts
supply and follow-up service.
• Increase the sales ratio of Korean used cars and seek for a way to
diversify the models that can be exported for a long term by ex-
porting the parts of used cars and expanding supply network.
• Open online shopping mall for domestic used parts in the future in
many languages to facilitate the import from any country.
Expansion of Auto Parts Market
Strong pole
Lever block
Plate jack
Air pump
Plate hammer
Plate base
Panel safer
Molding clipper
Cut saw
Paint dryer
Break oil changer
Air conditioner re-frigerants changer
Air conditioner vac-uum pump
Tire auto air injector
Oil drain
Air operated grease pump
Air compressor
alignment
Tire desorption ma-chine
Wheel balance
press
Mission oil changer
Power oil changer
Drum/disk grinder
Machinist Peen Hammer
Soft Hammer
Wrench Set
Socket wrench
Socket
chain pipe wrench
Antifreeze changer
Torque wrench
Moving tool box
Mobile Floor Crane
Trans mission jack
Jack
Spray gun
Engine holder
Break pad changer
Monitor type bore scope
Oil filter wrench
Pressure gauge
Timing light
Tab & die set
Recoil tab
Undercoating.Sticker remover
Welding machine
Auto clamp
Dust collector
Hot fan
Bearing puller
Component cleaner
Engine flushing
Wheel dolly
Gear oil injector
Battery charger
Steam car cleaner
Cam shaft timing tool
Car Supply in Asian Region ATvalue Busi-ness Plan
• Eliminate customer inconveniences such as the climatic issues and discharge issues of the battery,
the expendable part, by supplying the battery refresher parts to secure competitiveness. (The bat-
tery refresher is mounted to the existing battery to extend life and maintain the best charged/discharged
status, exclusively supplied by ATvalue)
• Mounted to cars exported and supplied to all regions in order to cope with cold regions on AH6 route and to
extend the life of the battery.
Local Car Supply Business
Other Services
Unit: 1,000 $
Division1st Year 2nd Year 3rd Year 4th Year 5th Year
Total(2013) (2014) (2015) (2016) (2017)
Sales 98,515 103,538 107,904 114,330 123,374 547,661
Sales Cost 84,849 87,851 91,761 97,513 104,758 466,734
Sales Management Ex-penses 7,111 7,741 8,506 9,343 10,258 42,961
Ordinary Income 6,554 7,944 7,636 7,472 8,356 37,965
Ordinary Income Af-ter Distribution 6,554 30,624 36,732 37,867 40,417 152,195
Ratio of Ordinary In-come After Distribu-
tion7% 30% 34% 33% 33% 7%
Local Automobile Supply Business
Estimated Sales and Profit/Loss (ATvalue)
Unit: 1,000 $
Division1st Year 2nd Year 3rd Year 4th Year 5th Year
Total(2013) (2014) (2015) (2016) (2017)
Sales 92,400 144,864 153,401 159,317 165,233 715,218
Sales Cost 95,758 99,375 103,158 107,126 111,302 516,722
Sales Management Ex-penses
2,800 3,602 3,927 4,213 4,491 19,035
Ordinary Income -6,158 41,885 46,315 47,977 49,440 179,460
Ordinary Income Af-ter Distribution -6,158 24,022 23,158 23,989 24,720 89,730
Ratio of Ordinary In-come After Distribu-
tion-7% 17% 15% 15% 15% 13%
Estimated Sales and Profit/Loss (Russia)
03. Used Car Export Business and Investment Plan
04. Investment Proposal
ATvalue Business
1. Investment Request: 8,035,714 $
2. Purpose of Fund
Usage ATvalue Head Office Russian CorporationMyanmarese Corpo-
ration Total
PurposeInvestment to the
Export of Used CarsInvestment to the
Export of Used CarsInvestment to the
Export of Used Cars
Amount 35,714,285 $ 37,500,000 $ 7,142,857 $ 8,035,714 $
Investment Period September 2012 September 2012 December 2012
3. Major Conditions
- 8,035,714 $ to the head office of ATvalue
- ATvalue invests 50% to Russian and Myanmarese corporations, respectively (condition: 50% of profit)
- The profit of head office and the profit of local corporations will be shared with investors (ratio can be adjusted)
04. Investment Proposal
4. Profit Structure
(1) Profit and Loss according to Head Office Export (1st Year)
Division Income Expenditure Profit and Loss (1st Year) Profit and Loss (2nd Year)
Export of Used Cars
Used Car Export 73,080Export of Cars for Lease
211,964Purchase Tax Deduction
4,238
Used Car Purchase65,772
New Car Purchase for Lease 19,076
Other Expenses/Taxes 8,422
Used Car Area 7,308Lease Area 2,119
Other ▲4,166
Total 98,515 93,271 5,243Accumulated Current Net
Income29,742
Unit: 1,000 $
(2) Distribution of Profit based on the Operation of Local Corporations
Division Income ExpenditureProfit and Loss
(1st Year)Profit and Loss
(2nd Year)Divi-dend
Russian Corpora-
tion
Used Car Sales 78,743Used Car Operation
6,828Taxis Operation 6,828
Used Car Purchase 72,346
Rent Car Purchase 11,706
Taxi Purchase 11,706Other Expenses / Taxes
2,800
Used Car Area 6,397Rent Car Area ▲4,877
Taxi Area ▲4,877Other ▲2,800
Used Car Area 27,573Rent Car Area 8,958
Taxi Area 8,958Other ▲8,961
92,400 98,558 ▲ 6,158 36,527 17,863
Myan-marese
Corpora-tion
Used Car Sales 19,305Used Car Operation
1,630Taxi Operation 1,630
Used Car Purchase 16,399
Rent Car Purchase 2,795Taxi Purchase 2,795Other Expenses /
Taxes ▲ 769
Used Car Area 2,906Rent Car Area ▲ 1,165
Taxi Area ▲ 1,165Other ▲ 769
Used Car Area 4,904Rent Car Area 2,885
Taxi Area 2,885Other ▲ 2,297
22,566 23,767 ▲ 192 8,378 4,815
114,967 134,153 ▲ 6,350 44,906 22,679
04. Investment Proposal
Unit: 1,000 $
5. Profit Structure for 5 Years
Division Investment 1st Year 2nd Year 3rd Year 4th Year 5th Year Total
ATvalue
Russia
Myanmar
35,714
37,500
7,142
6,554 7,945
17,863
4,815
7,636
23,158
5,937
7,472
23,989
6,406
8,356
24,720
7,341
37,965
89,728
24,500
Operating
Income
Dividend
Dividend
Total 80,357 6,554 30,624 36,732 37,867 40,417 152,195
Deduction of Corporate Tax
1,310 6,125 7,346 7,573 8,083 30,439
Current Net In-come
5,243 24,499 29,385 30,294 32,333 121,756
6. Analysis of Investment Earnings Rate
Division ATvalue Russia Myanmar Total
(1) Payback Period
(2) Current Net Value (8%)
(3) Internal Rate of Return
5.71 Years
▲10,755
▲5.04%
3.52 Years
9,061
15.10%
2.91 Years
5,394
28.15%
3.70 Years
12,132
12.99%
*The major reason the low profit of the head office is the rent for the land secured for exportation.
- 136.4 billion won profit in 5 years with 90 billion won investment (Earnings Rate: 51.6%)
04. Investment Proposal
Unit: 1,000 $
Unit: 1,000 $
Future leading figure in the world market!
ATvalue Co., Ltd.
Professional automobile exporter!
Value Innovation
Provide the best value to customers
Relationship Innova-tion
Build trust of all inter-ested parties
Trading Innovation
Aim at customer-oriented export structure
Competence Innova-tion
Establish the best global competence
The Best Exporter of Korea