the cloud for “me”Mass Customization 2.0: meCommerce Cloud Platform

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SelectEx Store Demo

http://directstore.logicmix.com/telenet/index.html

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Market Challenges Industry dominated by Mass Production

Factories in Far East set the rules:

• Min Order Qty 1000units+• Lead Times – 3-6 months +

Disconnect between Sales & Design in Europe & Nth America and Production in Far East. Flexibility and change are difficult to manage

Customization of technical workwear or performance wear is difficult to manage – changes can invalidate certification

Ability to Scale Customization historically has lead to expensive localised customization not globalised solutions

Net effect…

Pricing – factories charge significant premiums for small batch customized product or do not do it due to fabric and component MOQ’s

Inability to significantly scale small batch customization

Sales cycle are too long (6 months +)

Significant inventory issues

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Logicmix Software SolutionsLogicmix is a cloud computing company that develops mass customization e-commerce platforms for the apparel sector. The platforms link the user interface across the supply chain directly to the manufacturer a fully vertically integrated solution for mass customisation

Our software:

• Makes it easy for apparel brands to provide customized clothing to their customers (B2B and B2C), helping them to satisfy a growing market demand

• Helps our customers to significantly reduce their inventory holding, reduce their sales cycle and enhance their net margins

• Is built by people with a passion for innovation and delivered by people who have a deep understanding of apparel production and customization

Go To Market Strategy

• Build on traction in technical work wear sector but then also enter corporate wear, outerwear, sportswear markets and beyond…

• Targets are brands that currently have revenues from online sales of less than $180m per annum (larger companies will build their own (eg: Nike & Adidas))

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Business Benefits Increase flexibility of sales model – enabling a high value customer experience

Faster cost effective product development and deployment times

Increase effective net margin

Reduce Lead times significantly

• Design• Quotation • Samples• Certification• Production

Reduce Inventory significantly

• For our customer• For their customers too

Improve Production Efficiency

• Consolidation/Planning on product, pre-production, component and production

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Primary Target Markets

Technical Workwear

Hi Vis/ Chemical/ Waterproof/ Anti Static

Market Size $5Bn

Non Technical Workwear /

Uniform Corporate Wear

Market Size $25Bn

SportswearOuterwearRainwear

MerchandiseFashion

Market Size $75Bn

2012 2013

Total Market Size $100 Bn

Customization Accounts for 9% of this market (20% of workwear / 5% of other)

$9 Bn

Wholesale Value of Customization market

$5.5Bn

Software Spend = 1.75% of wholesale value (1% of retail value)

$95m

Logicmix Target = 25% $24m

Addressable Market

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Goals 18 Direct customers with over 250 users each by end 2015 generating recurring

software licensing revenue of €3m-€3.2m per annum

2 Proven VAR’s with 18 customers with minimum of 10 users each by the end of 2015 generating recurring software licensing revenue of €800,000-€1.5m per annum

Recognised by the market by 2014 as the “go to” people for enabling apparel brands to provide customized apparel to their customers

Software that continues to protect our “first mover” position

Software built by people with passion for innovation and delivered by people who understand customization models and apparel production

Software being deployed across multiple apparel niches, sportswear, leisurewear, outerwear markets

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Direct Pricing Model Platform as a Service (PaaS) – based on module usage - €3000 to €5000 per

month. Additional 14% per user per month for customer support.

• Select Designer – interface enabling end user to create designs • Select Store - e-commerce store to enable end users to purchase online• Select Builder – platform to enable designers/engineers to create their own

product templates• Select Manager – desktop app for Sales, Customer Service, C-Level Manager• Select Mobile – tablet version of Select Manager• Select Connect – Connectivity add ons – CRMs & ERPs

Software as a Service (SaaS) – based on number of users per company (monthly fee) – average €50 Licence fee per user per month. Additional 14% per user per month for customer support.

Professional Services (one off fee) – integration, training, module development (time and expense), template development creation (average €5,000 per template).

Consultant Costs per day Day Rate

Architect €2,000

Consultant/Engineer €1,200

Developer €800

Direct Sales

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Current Direct Client Pipeline

Target Direct Sales

Direct Target Volumes 2012 2013 2014 2015

No. of Direct Sales (PaaS Licencing) 0 2 8 18

No. of Direct Sales (SaaS Licencing) 0 500 2,000 4,500

No. of Direct Sales (Template Development) 0 20 34 72

No. of Direct Sales Days (Consultancy Services) 0 100 360 600

Direct Target Sales 2012 2013 2014 2015

Direct Sales (PaaS Licencing) €0 €91,200 €547,200 €1,142,964

Direct Sales (SaaS Licencing) €0 €228,000 €1,368,000 €2,508,000

Direct Sales (Template Development) €0 €100,000 €170,000 €360,000

Direct Sales (Consultancy Services) €0 €100,000 €360,000 €600,000

Total Direct Target Sales Revenue €0 €519,200 €2,445,200 €4,610,964

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Direct Sales Revenue

€0€91,200

€547,200

€1,142,964

€0

€228,000

€1,368,000

€2,508,000

€0€100,000

€170,000

€360,000

€0€100,000

€360,000

€600,000

€0

€500,000

€1,000,000

€1,500,000

€2,000,000

€2,500,000

€3,000,000

2012 2013 2014 2015

Direct Sales Revenue

Direct Sales (PaaS Licencing) Direct Sales (SaaS Licencing) Direct Sales (Template Development) Sales (Consultancy Services)

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Direct Sales Volume

02

8

18

0

20

34

72

0

500

2,000

4,500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

0

10

20

30

40

50

60

70

80

2012 2013 2014 2015

Direct Sales Volume

No. of Direct Sales (PaaS Licencing) No. of Direct Sales (Template Development) No. of Direct Sales (SaaS Licencing)

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VAR Pricing Model VAR Pricing

• All VAR’s will receive a 33% discount off all PaaS licence fees• All VAR’s will receive a 33% discount off all Template licence fees• All VAR’s will receive no discount on SaaS user licence fees. (We are looking for

our VAR’s to target low user volumes)• All VAR’s will receive no discount on any consultancy services that may be

required

VAR Pricing

Pricing VAR Pricing Sales Price

PaaS Licence Fee €3,819 €5,700

SaaS User Fee (Inc Maintanence) €57 €57

Template Development Fee €3,350 €5,000

Consultancy Average Daily Fee €1,000 €1,000

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Value Added Resellers (VAR’s) Current VAR

Current VAR Clients Pipeline

Target VAR Sales

Var Target Volumes 2012 2013 2014 2015

No. of VAR Sales (PaaS Licencing) 0 8 13 18

No. of VAR Sales (SaaS Licencing) 0 80 130 180

No. of VAR Sales (Template Development) 0 20 24 24

No. of VAR Sales Days (Consultancy Services) 0 0 0 0

VAR Sales Targets 2012 2013 2014 2015

VAR Sales (PaaS Licencing) €0 €290,244 €595,764 €798,171

VAR Sales (SaaS Licencing) €0 €43,320 €88,920 €119,130

VAR Sales (Template Development) €0 €67,000 €80,400 €80,400

VAR Sales (Consultancy Services) €0 €0 €0 €0

Total VAR Sales Target Revenue €0 €400,564 €765,084 €997,701

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VAR Sales Revenue

€0

€290,244

€595,764

€798,171

€0

€43,320

€88,920€119,130

€0

€67,000€80,400 €80,400

€0

€100,000

€200,000

€300,000

€400,000

€500,000

€600,000

€700,000

€800,000

€900,000

2012 2013 2014 2015

VAR Sales Revenue

VAR Sales (PaaS Licencing) VAR Sales (SaaS Licencing) VAR Sales (Template Development)

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VAR Sales Volume

0

813

180

80

130

180

0

2024 24

0

20

40

60

80

100

120

140

160

180

200

2012 2013 2014 2015

VAR Sales Volume

No. of VAR Sales (PaaS Licencing) No. of VAR Sales (SaaS Licencing) No. of VAR Sales (Template Development)

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Sales Performance Metrics

€0 €54,104€145,922 €202,552

0

17

22

27

0

5

10

15

20

25

30

€0

€1,000,000

€2,000,000

€3,000,000

€4,000,000

€5,000,000

€6,000,000

2012 2013 2014 2015

SALES REVENUE/EMPLOYEE EFFICIENCY

Sales (Consultancy Services)

Sales (Template Development)

Sales (SaaS Licencing)

Sales (PaaS Licencing)

Average Revenue Per Employee

Average # of Employees Per Year

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Key assumptions:Software sold on SAAS/PAAS basis + Professional Services (one off fee)R&D and Finance activities to take place in Suzhou, ChinaSales activities take place in Netherlands

Key Performance Metrics

0

10

21

36

0

5

10

15

20

25

30

35

40

-€1,000,000

€0

€1,000,000

€2,000,000

€3,000,000

€4,000,000

€5,000,000

€6,000,000

2012 2013 2014 2015

Key Performance Indicators

TOTAL SALES

TOTAL OPERATING EXPENSES

NET PROFIT

PaaS Clients

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Raymond Leung – CEO16 years experience in the software industry in various technical and managerial roles. Extensive experience in developing customization platforms for apparel sectorExperienced in various domains including Manufacturing, FS & TelecommunicationPreviously Professional Services Manager, Asia (Progress), and /Consulting Architect (IONA)

John McHugh– COOWorked in the software sector for 10 years in two companies specializing in internet systems and supply chain management systems. Involved in two start-ups, one internet company setup in 1994 which successfully sold in 1998, and one outsourced services company setup in 1998 which introduced him to China and the opportunities it provided.

Eli Barenholz – VP Direct SalesHighly experienced senior sales & marketing professional Extensive experience in the software and workwear industryFormer MD of Kwintet (Benelux) – Kwintet are Europe’s largest workwear companyFounder and MD of Startsoft – value add distributor of ICT security productsFounder and MD of B&B Corporatewear

Team

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Logicmix Investment Opportunity Proven & Developed IP and Software Assets

Key Management Agreed (inc Sales)

Customers in trial (Mulliez, Alsico, Rivertex, Occu, Ranpro, Reliable)

Clear strategy for Logicmix

Product/Sales and Financial Model

Funding to be sourced

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Investment Terms – Round Feb 2013 Objective of this it to get to Profitability

• Value Pre Money €1,500,000• Value Post Money €2,250,000

Total Funding Requirement: €750,000

• Logicmix Funding €430,000• Asset Purchase €320,000

33% of Logicmix Equity Available

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Investment Terms – Round Sept 2013 Objective is to Fund Growth

• Estimated Value Pre Money €6,000,000• Estimated Value Post Money €8,000,000

Total Funding Requirement: €2,000,000

• Company Funding • Enter US Marketplace• Enter Japanese/Chinese Marketplace

25% of Equity

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Financials P&LYear 2012 2013 2014 2015

Profit and Loss € € € €

Sales €0 €919,764 €3,210,284 €5,468,901

Costs €0 €288,767 €705,767 €1,013,100

W & S €0 €679,669 €1,125,045 €1,443,282

Total Cost €0 €968,435 €1,830,812 €2,456,382

Net Loss/Profit €0 €48,671 €1,379,472 €3,012,519

Equity Investment €0 €2,750,000 €0 €0

Cash Position €0 €2,247,059 €3,479,282 €6,258,899

Average # of Employees Per Year 0 17 22 27

Average Revenue Per Employee €0 €54,104 €145,922 €202,552

Average # of Customers Per Year 0 10 21 36

Average Rev per Customer Per Year €0 €91,976 €152,871 €151,914

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Summary Clear Strategic Direction;

Balanced risk/reward opportunity

Large and clear market opportunity

Logicmix enables:

• Focus on value added high margin returns• Expansion of customer profiles and sectors• Increased scalability

Logicmix well placed to execute due to:

• Low cost infrastructure• Management team in place• Support from existing customers