Lmp Automotive Holdings, Inc. · OTC:LMPX
Lmp Automotive — IPO Roadshow (October 2019)
28 slides from Lmp Automotive's IPO roadshow presentation, Oct 25, 2019
Slide 1: Investor Presentation October 2019
Oc t o b e r 2019 INVESTOR PRESENTATION We enable consumers to: SU B SCRI B E , RE N T , B U Y O R SE L L VEHICLES ONLINE OR IN PERSON
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This information is published solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any security or related financial instrument . The summary may include “forward - looking statements” within the meaning of Section
Slide 3: Free Writing Prospectus
FREE WRITING PROSPECTUS This presentation highlights basic information about us and the proposed offering . Because it is a summary, it does not contain all of the information that you should consider before investing . We have filed a registration statement (including a preliminary prospectus) with
Slide 4: Offering Summary
O F F E RI N G SUMM A R Y Issuer: LMP AUTOMOTIVE HOLDINGS, INC. Expected Offering Size $17,750,000 Expected Price Range $5 - $6 per share Expected Listing/Symbol Nasdaq Capital Market / LMPX Shares Offered 3,227,500 Shares of Common Stock Over - Allotment Option 15% Pre IPO Common Shares Outstanding
Slide 5: The Market Opportunity
The automotive industry is undergoing a paradigm shift in the way consumers are purchasing and utilizing vehicles. We believe these DYNAMICS create a rare opportunity to invest in these growth segments of the industry which we believe are: 1. VEHICLE SUBSCRIPTIONS offers a flexible alternative to pu
Slide 6: Online is driving growth; mobility = rentals & subscriptions
$662.1 M $353.6 M $454.1 M $1.96 Billion C a r s . c o m C a r v a n a Third Party Auto Sites Revenue Growth 2013 2014 2015 2016 2017 2018 O N LI N E I S D R I V I N G G R O WT H ▪ Car buyers spend 59% of their time online researching . (Autotrader) ▪ Third - party sites are the most used sites for
Slide 7: Competitors and investors entering car sharing and rental
is betting that everyone hates rental - car companies and getting into the fight against America’s traditional rental - car companies. Peer - to - peer rental car app has raised $300 million in a round led by SoftBank. That brings its total funding to nearly $400 million, at an undisclosed valuation
Slide 8: Online-centric subscription, rental and sales model
We aim to disrupt the traditional way consumers access and purchase vehicles through our Online - Centric Subscription, Rental and Sales business model for better performance than the industry average. We anticipate organic growth of our current operations and the potential to acquire additional dea
Slide 9: What We Do
W H A T W E D O WE BUY at auction, off - lease and directly from OEM’S at wholesale and fleet rates. WE SUBSCRIBE or RENT a selection of our vehicles for short term and month - to - month use. WE SELL pre - owned vehicles and those used during rental or subscription. WE REPEAT this process to build
Slide 10: Our Market Position
SUBSCRIPTION ONLINE SALES R I D E S H A RE OFFERING CONSU M E R RENTALS PHYSICAL DEA L E R S H I P OEM DISCOUNT S OWNS INVENTO RY GROWTH BY DEALERSHIP ACQUI S ITION S Web Centric Automotive Retailer and Provider of Subscriptions, Rideshare, Rentals & Sales Peer - to - Peer Lease & Subscriptions P ee
Slide 11: We Buy Pre-Owned Vehicles at Auction and Off-Lease
WE BUY PR E - OW N E D V E H I C L E S AT A U C T I O N A N D O F F - LE A SE ▪ For pre - owned and new vehicle consumers, we believe our strategy and platform will offer a broader selection of vehicles than most of our competitors at a better value and provide us better margins on resale as well as
Slide 12: We Subscribe or Rent: Maximizing Revenue per Vehicle Unit
WE SUBSCRIBE OR RENT MA XI MI Z I N G R E V E N U E P E R V E H I C L E U N I T New vehicles are acquired through our fleet purchasing arrangements then placed into our subscription and rental fleet. In our subscription model, consumers have the option to pay an "all - in" monthly fee which includes
Slide 13: Subscription Market
S UB SC R I P T IO N MAR K E T Highly attractive model for millennials, who will represent 40% of the car buying market by 2020. (Automotive News.com, 2017) BENEFITS FOR CONSUMERS: ▪ Convenience - set up the subscription online and manage via a smartphone or computer ▪ Access to a range of vehicles
Slide 14: Rental Market
RENTAL MARKET Cars in Service 2017 Revenue 2018 Revenue 2,213,000 $ 28.6 Billion $ 30.03 Billion ▪ $30 billion in annual revenues. (Auto Rental News Fact Book, 2019) ▪ Rental fleet in U.S. of more than 2.2 million units. (Auto Rental News Fact Book, 2019) ▪ Average revenue per unit per month is at a
Slide 15: We Sell: Expanding Our Online Presence
▪ After a predetermined time period and/or mileage is achieved, new vehicles purchased in our fleet program for subscriptions and rentals are also placed on our e - commerce platform for sale nationwide. ▪ Vehicles acquired through auction, trade - ins, purchases, off - lease and from customers are
Slide 16: Used Vehicle Market
U S E D V E HIC L E MA R KE T ▪ 40 . 2 million used vehicles sold in 2018 , up from 39 . 3 million in 2017 , at an all - time high average price of $ 20 , 084 . (Edmunds Used Vehicle Outlook 2019 ) ▪ Highly fragmented . 43 , 000 used car dealerships with the largest owning about 1 . 7 % market share
Slide 17: We Repeat Our Cycle of Buy, Subscribe or Rent and Sell
WE REPEAT OU R C Y C LE OF B U Y, SU B SC R I B E o r R E NT A ND SE LL ▪ We plan to build and rebuild our fleet inventory through our balance sheet, free cash flow, financings and opportunistic acquisitions. ▪ Inventory size variety and pricing are the keys to sales throughput. Our plan is to estab
Slide 18: Our Simple Consumer Process
OUR SIMPLE CONSUMER PROCESS BU Y, S U BS C R I BE , R E N T O R S E L L A VE H I C L E ▪ B UY Visit lmpmotors.com, search for a vehicle, select a vehicle of interest, apply for credit online if needed, click “start purchase” then submit and a representative will contact you within 24 hours to arrang
Slide 19: Growth Strategies
G R O WT H S T R A T E GI E S 1. IN CR EAS E O N L IN E SAL ES AN D S UB S CR I PTIO N S ▪ Increase sales by building inventory through auction, wholesale dealer and manufacturer excess inventory off - lease and fleet purchases from OEM’s. In addition, opportunistic and accretive acquisitions. ▪ Inc
Slide 20: Expense Reduction via Acquisition
66.8% 68.9% 72.4% 73.6% 77.5% 78.0% L i t h i a A s b u r y A u t o n a t i o n G r o u p 1 S o n i c P e n s k e EXPENSE REDUCTION VIA ACQUISITON ▪ Expense reduction can be particularly lucrative for large, growing dealership groups when making acquisitions . This is due to the immediate incrementa
Slide 21: Financial Results
First Half 2019 2018 FULL YEAR 2018 2017 TOTAL REVENUES $6,648,227 $6,022,591 TOTAL REVENUES $16,610,786 $3,759,031 Gross Loss ( 225,585) ( 209,463) Gross Loss ( 1,956,989) ( 235,048) Total Costs of Revenues 6,873,812 6,232,054 Total Costs of Revenues 18,567,775 3,994,079 Loss from Operations ( 2,67
Slide 22: Balance Sheet and Cap Table
Cash $308 , 225 Accounts receivable 62 , 433 Automobile inventory, net 6 , 830 , 631 Other current assets 64 , 206 Total current assets 7 , 265 , 495 Property, equipment and leasehold improvements, net 494 , 766 Intangible assets 58 , 061 Right of - use asset 1,265,748 Deferred offering costs 1,150,
Slide 23: Use of Proceeds
U S E O F P R O C EE D S 1. I N C R E A S E O U R IN V E N T O R Y ▪ With fleet financing and proceeds from this offering, we intend to purchase new vehicles under our current fleet arrangements at wholesale costs directly from BMW, Mercedes, Land Rover, General Motors, Audi, Jeep, Toyota, Nissan, a
Slide 24: Executives and Board of Directors
EX E C U T I V E S AN D B O A R D O F DI R E C T O R S Samer “Sam” Tawfik , Founder, CEO, and Chairman of the Board - Prior to founding LMP Automotive Holdings, Inc . , Mr . Tawfik was the founder and Chief Executive Officer of Telco Group, Inc . which was acquired by Leucadia National Corp in 2007
Slide 25: Board of Directors (cont.)
BOARD OF DIRECTORS (c o n t . ) William “Billy” Cohen, Member of the Board – Mr . Cohen has served as a member of our board of directors and the Lead Independent Director since March 2018 . He is currently the Vice Chairman at Newmark Knight Frank, a global commercial real estate advisory firm . Mr
Slide 26: Board of Directors (cont.)
BOARD OF DIRECTORS ( cont.) Elias Nader, Member of the Board – Mr. Nader has served as a member of our board of directors since May 2019. Mr. Nader has over 25 years of experience in Finance and Accounting. He is a versatile, high - energy finance executive who leads companies through change and cha
Slide 27: Investment Highlights
INVESTMENT HIGHLIGHTS x Early mover in the vehicle subscription market integrating online and brick and mortar strategies x Focused on price - advantageous offerings addressing the mainstream demand x Virtuous cycle of “Buy, Subscribe or Rent, Sell, and Repeat” minimizing cost and maximizing revenue
Slide 28: Contact Us
CORPORATE OFFICES 601 North State Road 7 Plantation, FL 33317 O: (954) 895 - 0352 F: (954) 756 - 8112 lmpmotors.com C O N T A C T U S SUBSCRIBE, RENT, BUY OR SELL VEHICLES ONLINE OR IN PERSON Sam Tawfik, CEO
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