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Investor Presentation June 2012 www.rentalcompare.com “An eBay for Rentals”

Investor Presentation June 2012

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“ An eBay for Rentals”. Investor Presentation June 2012 www.rentalcompare.com. Our Goal. To make anything which can be rented available to anyone in the world through our web marketplace. Vendors / Rental Companies. Renters. Network Affect. Listings attract renters . - PowerPoint PPT Presentation

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Page 1: Investor Presentation June  2012

Investor PresentationJune 2012

www.rentalcompare.com

“An eBay for Rentals”

Page 2: Investor Presentation June  2012

To make anything which can be rented available to anyone in the world through our web marketplace.

Network Affect

Renters

To be their “go to first” online marketplace when they think

of renting anything

Vendors / Rental Companies

To be their most effective marketing partner and #1 source of rental inquiries

Our Goal

Page 3: Investor Presentation June  2012

Market OpportunityEquipment rental industry - a $33.5 billion market and growing

Rental companies: Compete for visibility on web Seek an efficient marketing channel

Highly fragmented vendor base is ideal for market maker

Renters: Seek a more efficient process given less time to search for rentals Options today include:

Web search using Google/Bing/Yahoo: must drill down into multiple rental company web sites to find specific items

Directories, which are entirely category based

Page 4: Investor Presentation June  2012

Compare Search results displayed by item in grid format

with photos

RentRenters arrange rentals directly with vendors / rental companies via RC’s quote request

service, email, or phone

Subscription Based Business Model

Free for renters

Vendors/rental companies pay fixed listing fees (recurring revenue) to list their products or services

RentalCompare: The SolutionRentalCompare aggregates vendors, renters and items for rent to create a vibrant online rental marketplace – “an eBay for rentals.”

Subscription Business ModelProfessional 1 Item $4.95Bronze 5 Items $9.95Silver 25 Items $19.95Gold 50 Items $49.95Unlimited Unlimited $99.95

THREE SIMPLE STEPS

Listing Package # of Items Monthly Fee

SearchRenters fill in search

keyword(s) and location

Page 5: Investor Presentation June  2012
Page 6: Investor Presentation June  2012

Equipment Rental Industry (North American and Canada, US$ Million) – including three market segments: party and event, general tool, and construction and industrial equipment; source: American Rental Association/IHS Global Insight

Equipment rentals are a $33.5bn industry and growing

Rental Industry Market Size

1 2012 American Rental Association/IHS Global Insight forecast

Page 7: Investor Presentation June  2012

Estimated 5MM Unique Rental Items 5,000,000 Unique Rental Items

X 90 Average Rental Days Per Year X $74 Average Rental Rate

$33,500,000,000X 10% Take Rate1

$3,350,000,000 Addressable Market 250,000 Rental Vendors/Service

ProvidersUS and Canada

Highly Fragmented Vendor Base Ideal for

Market Maker

50,000 200,000

Event Vendors Service Providers

Rest of World

1 Current “take rate” estimated at 4.8% which we believe can increase to 10% once the RentalComp marketplace has matured. Estimate consistent with “take rate” of US vacation rental website homeaway.com which has a similar subscription based business model and market dynamics2 As at February 29, 2012

Transforming a $33.5BN Fragmented Industry

US and Canada

5MM Total Rental

Items

500k RC Rental Items2

Page 8: Investor Presentation June  2012

Value Creation For Vendors/Service Providers

[ ]m Rental Vendors/Service Providers$386

Annual Listing Fee 1 Estimated Annual Rental Income

1 Average based on 5% Professional, 25% Bronze, 35% Silver, 25% Gold, and 10% Unlimited subscription listings.2 Annual listing fee as a percentage of estimated annual rental income.3Assumes 3 rental items booked per month through RentalComp inquiries with an average 3 day rental at $74/day.

$8,040 3

~21x:Estimated ROI forVendors/Service Providers

Value Proposition for Renters

Speed – RC is the fastest path to searching and comparing rentalsSize – widest variety of search resultsPrecision – keyword search for specific items, ex. “red sofa”Connection – fast quote request service and/or direct communication with vendors/rental companies

Outstanding Value Proposition

Current competition lacks critical mass of vendors/rental

companies and inventory4.8% Take Rate

2

Page 9: Investor Presentation June  2012

Increase Number of Listings Increase Revenue per ListingThrough …

Direct Marketing to Rental Companies

Largest Rental Inventory benefits from “Critical Mass”

New Geographies

New Rental Item Categories

Additional Features, ex. Proposal Generator, Mobile RentalComp, Rental Resource Directory

Reflected in …

Other Revenue Channels

Average Revenue Per

Listing Increasing the Base Listing Price

Add-ons, ex. Featured Listings

Advertising

eBlasts

Technology

Global Vision, Multiple Growth Drivers

Page 10: Investor Presentation June  2012

Stage 1, Complete2010-2011

Design and Create Web Platform; Generate Critical Mass of Vendors and Rental Items

Stage 22012 Capital

Raise

1. Build Sales Team2. Convert Rental Company Vendors/Service

Providers to Paying Customers – US & Canada 3. Refine Website

Stage 318-24 months,

following further capital raise

Expand to all markets, increase number of listings and revenue per listing

Execution Strategy

Page 11: Investor Presentation June  2012

Large, highly fragmented industry presents huge opportunity

Compelling value proposition Vendors and renters together in a more efficient, cost effective manner Offers renters a faster, more precise solution to finding rentals Offers vendors access to a global market Attractive ROI for vendors Recurring, subscription based business model

PTraction Website has been designed and created 500,000 rental products from over 1,000 vendors Supported by industry leaders – signed national accounts Generating revenue

Experienced team to exploit this opportunity

Why Invest in RentalCompare?

Page 12: Investor Presentation June  2012

Financing DetailsExisting Investors/Financing

Founders seed funded the company for 2 ½ years Approximately $500,000 invested to date

Supports RentalComp 1.5 years Operate in the black after 18 months Use of Proceeds

Expand sales/marketing team to market the site to Vendors/Clients Build SEO presence to increase its search position; develop programming

team to refine RC’s capabilities Develop “Affiliate” network with other marketing companies outside North

America to resell RC’s listing services Expand RC in the long-term as the international rental marketplace for

anything that can be rented.  

Capital Raise of $900,000