Collaborative Consumption Creating trust Monetising assets - PowerPoint PPT Presentation

1 Collaborative Consumption Creating trust Monetising assets Disrupting markets October 2015

Collaborate Corporation Snapshot 2 Vision: Difference: Position: Growth: Overview: Be the leading ASX Marketplace First mover Pursuing a dual A more efficient way technology and trust company exploiting to access and advantage in key investment and platform can be collaborative monetise assets markets poised for internal development consumption scaled across explosive growth growth strategy multiple product opportunities to disrupt multiple categories industries

Company Overview 3 Collaborate Corporation Limited (ASX: CL8) operates peer-to-peer marketplaces where the ‘trust’ it creates allows individuals and companies to transact with each other for mutual benefit. Collaborate disrupts traditional business models in the physical asset rental market by enabling those with underutilised assets to rent them directly to those temporarily requiring usage of those assets. Renting assets is no longer the exclusive domain of dedicated rental companies. We are embracing the trend from ownership to access and reinventing the car, caravan and general item rental markets . We provide a more efficient way to access and monetise assets. Through our proprietary PeerPass platform we create trust by managing ID verification, credit checks, payments and feedback – maximising the potential for safe and efficient transactions. Leveraging PeerPass and drawing on extensive knowledge of the peer-to-peer model, Collaborate is now disrupting the finance and banking industry through an investment in a peer-to-peer SME lending business, allowing businesses to bypass banks and access funds directly from investors. The industry we operate in is called collaborative consumption, peer-to-peer or the sharing economy. We just call it a smart way to create value .

Corporate Snapshot 4 Directors & Senior Management 30 September 2015 Chris Noone – CEO and Director Ordinary shares (ASX:CL8) 336m Adrian Bunter – Non-Executive Director Listed options ($0.02, 30 Apr 2017) 156m (ASX:CL8O) Domenic Carosa – Non-Executive Director Market cap @ $0.021 $7.07m Jim Landau – Alternate Director to Domenic Carosa Cash on hand $0.81m Karen Logan – Company Secretary Anna Greenep – Chief Financial Officer Business Divisions Snapshot Shareholding breakdown (as at 30 September 2015) DriveMyCar Acquired February 2014 Board & management, Rentoid Acquired May 2014 5.90% MyCaravan Acquired October 2014 FundX 8.33% investment October 2015 Other Shareholders, 58.29% Top 20 (ex Board & management), 35.81%

What is Collaborative Consumption? 5 Collaborative Consumption allows idle assets The Problem: to be discovered and monetised How to monetise idle assets? I have a spare car that can be rented Not easy No trust = to find No insurance high risk customers Peer-to-Peer Marketplace The Solution: Matches owners & renters Collaborative Consumption or Insurance ‘peer -to- peer’ marketplaces : ID verification & credit checks Renters: Owners: Access a wider range I need to rent a Monetise of goods & services at under-utilised assets car for 2 months lower cost

Collaborative Consumption – Market Research 6 US Adult Population Market Projections • “Key sharing sectors have the potential to 44% were familiar with the sharing economy • 19% have engaged in a sharing economy transaction increase global revenues from roughly • 8% have participated in some form of automotive sharing $15 billion today to around $335 billion • 7% say they have participated as a provider by 2025.” • 81% agree it is less expensive to share goods than own them individually • 57% agree access is the new ownership “The peer-to-peer exchange of goods and • 83% agree it makes life more convenient and efficient services represents what some analysts say is a • 43% agree owning today feels like a burden potential $110 billion market .” Australia “Collaborative “5 out of 15 of the • 63% plan on participating in some collaborative economy activity consumption is the Forbes Hottest • 53% have participated in some collaborative economy in the last year megatrend that is Startups of 2014 • 61% are aware of collaborative economy services in Australia swallowing Silicon were peer-to-peer • 75% of Transport users said they would use the service again Valley” businesses”

Leading Peer-to-Peer Businesses 7 Raised $425m Raised $30m+ Raised $3.4bn Raised $81.1m Valuation $2.2bn Valuation $70.85m Valuation $34.9bn Valuation $130m+ Raised $1.3bn Raised $24.3m Raised $9.9m Raised $1.6bn Valuation $3.25bn Valuation $23.9m Valuation $7.4bn Raised $6.5bn Raised $52m Valuation $53.5bn Valuation $260m All figures in Australian dollars AUD/USD Ex Rate 0.73 - 19 October 2015

The Value of Trust & Reputation 8 The company that will dominate the Increasing $ As trust increases, peer-to-peer market will optimise trust more idle assets and maximise the value and number of become available for High h level l of trus rust transactions listing in peer-to-peer Collaborate builds trust by screening marketplaces Mass market customers before the first transaction and recording feedback after after each Large number of transaction, building a pool of high assets available reputation customers Medium dium level l of trus rust As the level of trust increases, the risk Early Majority profiles of asset owners will be satisfied Low level l of trust rust and more assets will enter the Medium number of marketplaces . Early adopters assets available Collaborate can charge a premium for Low number of assets access to its high reputation customer available base because asset owners are confident they will receive a return and their assets will be secure Social media Credit Security Comments & ID verification Collaborate aims to verification checks bond feedback ‘ dominate trust and maximise returns’ Increasing Trust

PeerPass : The Future of Trust & Reputation Management 9 Peer erPass Pass sets the standard for building trust in peer-to-peer marketplaces by verifying and managing online reputation e-Signing  Developed specifically by Collaborate to Social media verification empower peer-to-peer marketplaces Handover & Inspection App  Identity 5 years of technical development verification Reporting &  analysis Leverages proprietary Collaborate Credit technology and industry leading partners Contract checks management  PeerPass verification is the gateway to a ‘I’ve got my Secure online world of peer-to-peer advantages Comments & payments Feedback Goal: to be the standard for online reputation management in peer-to-peer marketplaces

An Opportunity to Profit from Disruption 10 Disruptive Opportunity Significant Revenue Potential Idle Assets = + Collaborative consumption is a Proof: Billion dollar plus valuations for Billions of dollars global megatrend early movers – Airbnb, Uber, Lending Club How Collaborate is addressing the opportunities Secure sustainable Peer-to-Peer PeerPass reputation Generate cost competitive marketplaces in key New categories will platform allows rapid savings, marketing advantage product categories be launched via entry into new synergies and new by inernal development categories revenue streams ‘owning’ trust as or investment PayPal ‘owns’ payments

11 Growing vehicle Advertising Australia’s first and 82% increase in 31% growth supply via private Australian car rental campaign driving Jul – Sep 2015 qtr page views May – largest peer-to-peer owners & fleet market size $3bn+ 67% of new users partnerships – over car rental operator vs previous qtr Sep 2015 September 2015 500 vehicles Source: IBIS Passenger Car Rental and Hiring in Australia: Market Research Report +others

– Advertising & PR 12 Media Coverage

13 Gross Revenue Revenue Breakdown $60 = Income for accounting per day Key Metrics purposes $45 24% per day Rental Net Rental Transaction Gross Profit $30 Days Booked 15% Value 26% per day Rental Transaction 14% Jul – Sep 2015 $362,045 $86,193 9220 Value = Cash flow 38% 61% 12% Increase vs Apr – Jun 2015 60% 31% 45% 62% 50% Owner Fee Admin Fee Insurance & Roadside & CC Owners can Save up to Total fleet Over Over Average Average Average Net Over Over receive up to valued at over Rental Gross Rental Days 62% 190,000 $4.7m 22,000 5,400 Transaction Revenue per Realised per 42% $11.4 m Value per Contract* Contract* compared to rental days paid out to registered Contract* rental $662 40.4 of the value of traditional car with no delivered vehicle users bookings $1,696 the vehicle in rental depreciation owners rental income companies costs per annum *Contract = Original contract plus any contract extensions. YTD September 2015. All other figures as at 30 th September 2015

Clear Gap in the Market for Mid-Term Rentals 14 Market Gap for 1 week to 1 year – DriveMyCar Car Share Car Rental Leasing Price Large potential customer base with limited competition 1 week – 1 year 1 hr-1 day 1 day- 1 week 1 year+ Rental Duration