December 31, 2016 Presentation
Forward-Looking Information This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, but rather on current expectations, forecasts, estimates, and projections about global, national and regional economic conditions as well as industries that are major markets for Starrex International, Ltd. and projections about future events. These forward-looking statements are subject to risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Therefore, all statements, other than statements of historical fact, are to be considered forward-looking. There can be no assurances that such forward-looking statements will prove accurate and, therefore, readers are cautioned that such statements may differ materially from actual future events. Readers are referred to the documents, filed by the Company on Sedar at www.sedar.com, and more specifically such recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.
Executive Summary Starrex International, Ltd . is a provider of financial services to mortgage banks and purchasers of residential real estate. Starrex’s subsidiary, Property Interlink, LLC, is a licensed appraisal management company(“AMC”) providing comprehensive evaluations of residential real estate. Property Interlink is licensed and active in active in thirty-eight states within the U.S. as of December 31 2016, with near term plans for organic growth. Discovery phase acquisition targets are under review. Existing Blue, Expansion Red
Capital & Share Structure Shares Outstanding 14,480,827 PERCENTAGE OF SHARES Options Outstanding 750,000 Fully Diluted Shares 15,230,827 Mgmt & Directors Market Capitalization OTC $14.5M US 26% QB December 31, 2016 Other 74% Net income (loss) 9 months ($639,466) US September 30, 2016 Cash & Receivables $483,079 US September 30, 2016 Total Shareholders, 799 December 31, 2016 OTCQB: STXMF Listing Date: May 15, 2015 CSE: STX Listing Date: December 10, 2013
2016 Highlights • Property Interlink, LLC expanded the footprint, added licensing and operations in over 10 States. • Licensed / operating in 38 States as of December 31, 2016 • Gross Revenue in the quarter ending September 30, 2016 at an all time high of $1,815,625 US
What is an Appraisal Management Company? An Appraisal Management Company “AMC” is an independent entity through which mortgage lenders order residential real estate valuation services for properties on which they are considering extending loans to homebuyers.
Appraisal Management Statistics • Appraisal units increased from 730 per Property Interlink LLC month in January 2015 to a peak of 2015-2016 Operational Statistics 1,374 per month in August of 2016. 45% 1600 * Data as of December 31, 2016 40% 1400 35% 1200 Net Appraisal Revenue Number of Appraisals 30% 1000 25% 800 20% 600 15% 400 10% 200 5% 0% 0 Net Revenue # Appraisals Linear (Net Revenue)
Business Model Cost Starrex has an operational advantage over the traditional Appraisal Management Company, “AMC”. While most AMC’s utilize independent contractors, Starrex hires staff appraisers to perform services. Value The employee appraiser model affords Starrex and its Value Value Competency subsidiaries more control over services rendered, Competencies Planning Creation Realization Innovation thereby reducing turn times for delivery of product and ensuring internal quality control. Expansion of the Starrex footprint is focused on: Organic growth through relationships with mortgage banks. Revenue Acquisitions of existing mortgage service’s business;
Expansion During 2016, Starrex expanded licensing and operations in more than 10 states, aligning the appraisal management company with banking relationships. Starrex is in the discovery phase of strategic acquisitions and targets. Starrex operates in: Alabama Maine Oklahoma Alaska Maryland Oregon Arizona Massachusetts Puerto Rico Arkansas Missouri Rhode Island California Montana South Carolina Colorado Nebraska South Dakota Florida Nevada Texas Georgia New Jersey Utah Hawaii New Mexico Virginia Indiana New York Washington, DC Kansas North Carolina Washington Louisiana Ohio Wyoming Starrex targeted expansion states: Existing Minnesota Michigan West Virginia Expansion Mississippi
Mortgage Service Industry United States Mortgage services, such as appraisal Mortgage Applications management companies, are critical to the mortgage industry. On average, more than 89 180 million homes are sold or refinanced in the 160 165.97 United States each year. Each of these sales requires an appraisal to facilitate the close of a 140 Mortgage Applications in millions residential mortgage. 120 100 With a current $6.5 billion market size, the 80 appraisal industry is significant with annual 71.71 60 growth averaging 7.6%. 40 29.37 20 - 2013 2014 2015 *Source: Trading Economics; Mortgage Bankers Association
Competition: Appraisal Management Top Appraisal Management Companies There are thousands of appraisal management companies (“AMC”) in the United States. 200 The top four AMC’s during 2014 grossed CoreLogic more than $800 million in revenue. All of these AMCs had independent vs staff appraisers. 150 Solidifi Starrex is not aware of any comparable or larger 200 Streetlinks AMC operating with the staff appraiser model. 250 TSI Appraisal 0 50 100 150 200 250 $ IN MILLIONS
Financial Highlights Property Interlink, LLC • Gross revenue reached an all time high in Revenue by Quarter September 2016 of $1,815,625. 2,000,000 1,800,000 • Revenues follow the seasonal housing market, with downturns in the last quarter 1,600,000 and lower housing sales in the United 1,400,000 States, and upturns into the summer. 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
Management & Directors Matthew D. Hill – Chairman, C.E.O. President Senior Vice President, Starrex to November 2016, previously President Property Interlink, senior level executive in mortgage industry for past several years, including mortgage originations, appraisal services, real estate and construction; Entrepreneur; previously COO of publicly traded industrial services company, Athletic Director for Klein Youth Lacrosse. Ronald K. Mann – COO, Investor Relations Officer, Director, Audit Committee Member Businessman; previously CEO of two publicly traded mining companies, CFO and Director of the Investment Dealer subsidiary of a Canadian Chartered Bank, Director of publicly listed companies for over 25 years, member of the Law Society of Upper Canada since 1977. Dr. Deborah M. Ramirez, CFA – Chief Financial Officer Capital Markets Specialist; Entrepreneur; previously CFO of publicly listed manufacturing and holding companies, CFO and Director of holding company for mortgage originations, servicing and REO, Chartered Financial Analyst and Financial Consultant.
Management & Directors P. Garrett Clayton – Director Chief Executive Officer and Principal of Amcap Mortgage Ltd., a mortgage bank and direct residential mortgage lender based in Houston, Texas; Principal and managing partner of Clayton & Ramirez, Attorneys and Counsellors at Law, PLLC Charles Burns – Director, Audit Committee Chairman Businessman and real estate investor; Director of Phoenix Canada Oil Company Limited, a publicly traded company listed on the TSXV Exchange, Canada. Garfield J. Last – Director President of Mind and Management Corporation, Turks & Caicos, BWI, a company that provides Director and Officer services for Investment Companies resident in the Turks & Caicos Islands, British Virgin Islands and Bermuda. Mr. Last has been a Director and Officer of significant private companies for over 40 years. From 1982 to 1986, Mr. Last was the President and Director of Barrick Gold Corporation, currently the world’s largest gold producer. Registered Professional Engineer in the Province of Alberta, Canada.
Stock Performance – OTCQB update 10,000 15,000 20,000 25,000 5,000 0 2015-01-05 2015-01-21 2015-01-26 2015-02-06 2015-02-17 2015-03-26 2015-04-22 2015-04-27 Stock Performance - OTCQB 2015-05-14 Starrex International, Ltd. 2015-05-27 2015-05-29 2015-06-03 2015-06-05 2015-06-19 2015-06-30 2015-07-10 Volume 2015-07-20 2015-07-22 2015-07-28 2015-08-21 2015-09-17 Close 2015-10-19 2015-10-26 2015-11-03 2015-11-11 2015-11-13 2015-12-02 2015-12-15 2016-02-26 2016-04-01 2016-04-25 2016-05-31 2016-08-22 2016-09-29 2016-10-27 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 Snapshot January 25, 2017
Contact Us OTCQB: STXMF CSE: STX Ronald K. Mann Investor Relations Starrex International Ltd. Telephone (647) 981-2782 www.starrexintl.com Email: rmann@starrexintl.com
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