Picasso Capital Management

• The opportunity• The investment• The proposition• The needs• The concept• The strategy• The business model• The status and rollout• The team

contents

the opportunity

The virtual community integrating content, social media and retailing.

2016• $500k – (convertible note) funding initial

launch and demonstration

2017• $3.0m – funding the scaling and

development of the business.

the investment

the proposition• Retailers perform best in shopping centres supported by an

engaged community.

• All media are experiencing rapidly failing profitability due to dated revenue models.

• Social media still struggles to deliver profits due to a limited scope and revenue model.

• Producers and manufacturers now have shrinking margins and are forced to offer fewer products.

• Consumers are attracted to certainty, variety, significance, and connection, along with opportunities for growth and contribution.

Issue Business Problem - NEEDS Ys Solution

Social Media • Difficult to monetise• Connected but no community• Limited scope beyond chat

• Retail sales commissions and affiliate commissions

• Personalised and broad content• Building social media into a community

News Media • Difficult to monetise (most, including online, losing money)

• Losing revenue due to competition and ad blockers

• Limited and shrinking reach (note Facebook changes)

• Retail sales commissions and affiliate commissions

• Prioritising native advertising and content sales

• Increased reach, engagement and loyalty

Online Retail • Limited range and unique options reducing demand

• Unreliable delivery, reducing sales• Site complexity limiting the market• Low trust limiting customer base• High prices reducing visitations

• 600 retailers in the online shopping centre

• Guaranteed delivery times• Simple to use – single transaction for

unlimited purchases• Trust account and delayed retailer

payment arrangements• Direct from producers and manufacturers

Producers/Manufacturers

• Low margins at retail• Low level of expertise online• Low level of resources for online• Omni channel too expensive

• Online vertical integration• Full technical support• Full marketing support• Low cost of entry

the concept

Core Needs Social Media News Sources Online retail Ys

Certainty no yes limited Yes - accessible every day and always current

Variety limited limited no Yes – subjects and change driven by members

Connection limited no no Yes - members form part of an engaged community

Significance no no no Yes – high level personalisation and personal communication

Growth no limited no Yes – educational material as well as news and entertainment.

Contribution no no no Yes – a percentage of all revenue to charity and powerful advocacy

the model

community hubs

Yspeople.comOver 50s community

ysbeauty.comUnder 50s narcissists

retail malls

ysliving.comindoor, outdoor and fun

ysepicure.comfood, drink and accessories

yswellbeing.comhealth, beauty and pharmacy

ysfashion.commen’s, women’s and accessories

members of the community

partners providing content

shoppers of e-tailers

retailersin the shopping centre

member recruitmentattractions• Discounts, offers and prizes.• Goods and services.• Personalised window to the world.• Addresses six core needs.recruitment• Club, association and union affiliations.• Search engine optimisation.• Online advertising.• Social media and media relations.

member recruitmentattractions• Discounts, offers and prizes.• Goods and services.• Personalised window to the world.• Addresses six core needs.recruitment• Club, association and union affiliations.• Search engine optimisation.• Online advertising.• Social media and media relations.

partner recruitmentattractions• Targeting content and messaging.• Vehicle for native advertising.• Developing long-term relationships.• Advertising supported content.• Affiliate arrangementsrecruitment• Direct sales.• E-marketing.• Online advertising.• Social media and media relations.

partner recruitmentattractions• Targeting content and messaging.• Vehicle for native advertising.• Developing long-term relationships.• Advertising supported content.• Affiliate arrangementsrecruitment• Direct sales.• E-marketing.• Online advertising.• Social media and media relations.

shopper recruitmentattractions• Discounts, offers and prizes.• Range, eclectic products, exclusive brands.• Convenience, delivery, ease of use.• Reviews, blogs, tips, recommendations.• Security and trust.recruitment• The Ys community.• Search engine optimisation.• Online advertising.• Social media and media relations.• Direct and permission marketing

retailer recruitmentattractions• Facilitate vertical integration.• Technical and marketing support.• Access to international markets.• Supporting shop with content.• Low entry and ongoing costs.recruitment• Direct sales.• E-marketing.• Online advertising.• Social media and media relations.

retailer recruitment

content• Traditional Advertising• Native Advertising• Affiliate Fees

retailing• Sales Commissions• Annual fees• Marketing Fees

September 5, 2016

R&D Development Deployment Testing Commercialisation Profitability Notes

The Technology

Retail

Publishing/Social Media

Database Development

All Retail Malls

YspicureAustralia

YsLivingAustralia

YsWellbeingAustralia

Content

YsPeopleAustralia

YsBeautyAustralia

Nov 2016

LAUNCH

Yspeople.com

April 2017

LAUNCH ysepicure.com – food, wine and associated retail mall

Mid 2017

SECOND CAPITAL RAISING

$3.0M – commencement of scaling

Late 2017

yswellbeing.com – pharmacy health and beauty mallysfashion.com – men’s and women’s fashion/accessories

Late 2018

ysbeautyaustralia.com – health and beauty community

ysliving.com – quality of life and lifestyle mall

board of directorsEnnio Tavani – Non-Executive Chairman  Chartered Accountant and previous Senior Partner – Moore Stephens.Chairman - Orontide, Wellard Group and WA Farmers Direct.Founder and Partner – Bourne Griffiths, MSBG, and Moore Stephens WA30 years of experience in corporate finance and commercialisation.

D. John Carlson - Executive Director Founder and past director of marketing consultancy - Linc Integrated.Founder and past director digital consultancy - Linc Digital.Foundation chairman - Student Edge, Calico Global and Linc Capital.25 years experience in marketing, publishing and e-commerce.

Jeffery J. Leach – Non-Executive Director  Chairman of retailer – Future Pharmacy Group.Founder and chairman of investment house - J.J. Leach Group.Foundation director – online fitness business – Calico Global.35 years experience in retailing, pharmacy and commercial development.

D. John CarlsonA lateral thinker and successful entrepreneur, John has a passion for and track record of developing visionary ideas and making them work. In addition to developing and realising the potential of his own ideas, John has helped many other entrepreneurs conceive, establish and build successful businesses. John created the vision for Ys based on his experiences in digital communication, online marketing, social media and e-commerce over the past 10 years.

Taking from his own digital projects, his directorships and his clients, John has identified this opportunity to develop the next generation of digital business. Establishing and building Linc Integrated - a large WA-based marketing and digital consultancy - over 20 years placed John at the cutting edge of digital technology strategy. He understands that while technology is important, success on and offline is much more about the business model.   John's consultancy roles led him to becoming the foundation Chairman of Student Edge, conceptualising and helping to build an online portal that has nearly 1 million members. He was also instrumental in launching, as foundation Chairman, Calico Global, an international online health and wellbeing business.   John is proud of his early involvement in Student Edge and Calico Global, recognising both as successful online businesses, and views Ys as having more potential than both. He views Ys as a new generation of digital business, fully scalable and sustainable.

senior teamchief developer - George Brautigam • 30 years programming experience• 10 years experience in e-commerce development• 5 years with prominent start ups – Rent.com and Health Engine

editor in chief - Maxine Brown • 20 years experience in publishing• 10 years experience in online publishing• Employed for the start up of News LTD’s – Perth Now

design consultant – Phil Coles• 25 years experience in digital design and publishing

marketing manager – Kenley Gordon• Senior sales and marketing professional• 20 years industry experience

retail manager – to be confirmed

the facts

‘Shopping Link’ and ‘Curator’ incorporate a number of features not previously incorporated in online retail and publishing software.Ongoing development will ensure this software is always at the leading edge. Ys, the malls and the portals are supported by custom software developed by Picasso Capital Management.

technology

The world’s largest global village supporting the

world’s largest marketplace.

vision

charter

• Ys is the property of its members. They determine its future.

• Ys delivers certainty, variety, connection, significance, growth and contribution.

• Ys intends to develop a program to donate 0.5 per cent of all revenue to charities nominated by members.

• Ys empowers small businesses to compete with big business.

• Ys supports future generations – helping members leave the planet a better place.

customer experience

Range stock, products, brands, exclusivityConvenience ease of use and reliable deliveryValue competitive pricing, discounts and offersTrust credibility through honesty and transparencyPersonal personalisation, Yasmine and connectionsCommunication between all parties.Rewards gifts, discounts, offers, connectionsResponsiveness listening and respondingSimplicity easy to understand and engage with

research and development

Always staying ahead of the market, new features will be introduced at least on a quarterly basis.Initiatives will include:

• Virtual shop assistants• Market days• Point-of-sale interface• Regional sub-centres• Guaranteed delivery times • Centralised transport

resources

• Software platform fully developed with provision for ongoing R&D.

• Fully automated platform resulting in full staffing not exceeding 15.

• Software owned by PCM with Chief Programmer on contract.

• Business model fully scalable.

shoppingBringing together unlimited producers, manufacturers and retailers on a fully developed and automated software platform – with full marketing, management and technical support.

Facilitating for: • retailers – vertical integration. • consumers – range, convenience, price.

Taking Australian regulation to the world.

shopping   

FEATURES MARKETING

The PRODUCTThree initial malls with 200 + shops in each - with the potential for additional malls

Almost infinitely scalable in terms of malls, shops and markets – expanding with limited additional costo User friendlyo Personalisedo Single transaction

 

The MARKETProducers Manufacturers Retailers

Low cost of entryMarketingManagement Technical supportAustralian branding

In-house sales team securing and servicing e-tailers.

The CUSTOMER1. Members Range

Convenience Competitive pricingSecurityRelationshipAustralian regulation

Permission marketingRe-marketingSocial marketing

 2. Non-members Range

ConvenienceCompetitive pricingSecurityAustralian regulation

Content marketingSEOOnline and Offline advertising

The REVENUE Annual feesMarketing feesSales commissions

   

e-retailing  

Current Situation Issues

Retail E-tailing incorporates:• 8 per cent of retail in Australia • 16 per cent in Europe• 15 per cent of retail in the USAnd is growing 19 per cent/annum.In ten years, 50 per cent of retail will be online.Ali Baba’s biggest day was US$12 billion in sales.It is increasingly attractive to producers and manufacturers avoiding low margins from traditional retailersIncreasingly attractive to all retailers wanting to expand their reachConsistent with the increasing trend towards vertical integration which will dominate in 10 year’s time.

• In accessible to smaller producers, manufacturers and retailers due to high cost, lack of expertise and lack of resources.

• Limited capacity to develop loyalty and therefore repeat sales due to Google search

• Individual retailers unable to offer the range required to generate interest, sales and relationships

• Few sites offering the convenience, delivery and security shoppers require

• A lack of trust in sites based outside of first tier countries such as Australia

• Most sites less than user friendly

content

Bringing an unlimited number of people together in a community with free personalised community interfaces providing information, education, entertainment and services, along with discounts and other offers – building loyalty.

personalised content    Added Value Marketing

The Product Initially one portal growing to three portals – and potentially well beyond.

Almost infinitely scalable in terms of portals and audiences - with limited additional cost.- User friendly- Personalised interface- Tailored content

 

The Market Publishing partners providing content. Business partners offering services.Advertisers promoting goods and services.

Low cost of access to partners with highly sophisticated market targeting and individual personalisation.

In-house sales team – securing and servicing e-publishers.Team of in-house journalists providing support.

The Audience Members interested in the products and services tailored to their specific requirements.

High concentration of constantly updated information, entertainment, services and offers.

Content marketing.SEO.Social marketing. Driven by a team of journalists.

The Revenue Partner fees.Advertising fees.Affiliate fees.

   

e-publishing 

Current Situation Issues

e-Publishing

• Everyday enough information is placed on the internet to fill 168 million DVDs:

o Two million blog posts are written and published every day – 4.7 billion minutes are spent on Facebook daily

o 864, 000 hours of video are put on YouTube

o 18.7 million hours of music streamed daily.

• The curation of data is now one of the world’s fastest growing industries.

• The Huffington Post has 90 million subscribers

• There is strong demand for tailored media

• And increased demand for data mining.

• While portals have been used to sell advertising that have been less commonly used to deliver services and support a retail offering.

• Success requires a sophisticated software platform that facilitates content tailoring high quality journalism and curation, with content delivered by contributing partners, both paid and unpaid.

• Few portals integrate information with news, entertainment and the full suite of relevant services

• Few portals are developed to create a sense of belonging and active engagement.

• Ad blockers are killing advertising revenue.