Marti Technologies, Inc. · AMEX:MRT
Marti Technologies — Galata Acquisition — SPAC Merger (January 2023)
60 slides from Marti Technologies's SPAC merger presentation, Jan 5, 2023
Slide 1: Turkey's Leading Mobility App
TURKEY’S LEADING MOBILITY APP 01.05.2023 01.04.2023
Slide 2: About this Presentation
About this Presentation This confidential presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to an investment in connection with a possible transaction (the “Business Combination”) involving Marti Technologie
Slide 3: Use of Projections
Use of Projections This Presentation contains financial forecasts for the Company with respect to certain financial results for the Company’s fiscal years 2022 through 2023 . The Company’s independent auditors have not audited, studied, reviewed, compiled or performed any procedures with respect to the
Slide 4: Marti is an excellent match for Galata
Marti is an excellent match for Galata Profitable and scalable unit economics reinforcing a discernible competitive advantage Favorable regulatory structure encouraging growth and opportunities for data - driven digital distribution Further industry consolidation opportunities Low penetration rates
Slide 5: Transaction summary
5 ● Marti is Turkey’s leading mobility provider, operating a fleet of e - scooters, e - bikes, and e - mopeds, serviced by proprietary software systems and IoT infrastructure ● Marti has achieved strong growth and best - in - class unit profitability 1 ● As the #1 travel app on the iOS & Android sto
Slide 6: Marti Overview
Marti Overview
Slide 7: We believe…
We believe… 7 Transportation is the number one issue in emerging market megacities Everything on wheels will be electric… …and everything electric will be shareable Source: Company information.
Slide 8: Leadership team
Onur Boztaş Chief Vehicle Officer Leadership team… 8 Cankut Durgun Cofounder, President Sena Ö ktem Cofounder, Deputy CEO Alper Ö ktem Founder, CEO Eyal Enriquez C hief Strategy Officer Erdem Selim C hief Financial Officer Source: Company information.
Slide 9: Backed by investors with strong knowhow of Turkey and mobility
…b acked by investors with strong knowhow of Turkey and mobility Marti’s diverse investor base includes the leading mobility funds in the Valley and MENAT region, the largest private equity fund in Turkey and the largest provider of international finance to Turkey 9 Leading early stage VC and mobili
Slide 10: Marti is Turkey's mobility app leader today
10 Marti is Turkey’s mobility app leader today… Key figures #1 travel app in Turkey (iOS / Android) 1 4 M + Unique riders 3 62 % Full - Year Post - listing FD gross m argin 5 ,6 9 3 % Rides from daily commute rs 4 $ 1 38 M Full - Year Post - listing FD net revenues 5 59 % Market share 2 Source: Comp
Slide 11: Environmentally friendly and complementary services for the daily commute
Environmentally friendly and complementary services for the daily commute …and Marti is on its way to becoming Turkey's first mobility super app 4 8 ,000+ currently full y - funded vehicles; expected to reach ~ 115 ,000+ by the end of Fully Deployed Model 7 Other Future Opportunities Advertisement F
Slide 12: Scale reinforces Marti's competitive advantages
Lower depreciation Single country focus Greater vehicle availability Lower operating cost Rider preference Increased demand / volumes Lower price Better margins and cash position Faster vehicle expansion Better vehicles with longer useful life Vertical integration 12 As Marti grows, scale is expecte
Slide 13: All top world economies have a mobility super app except Turkey
All of the top 20 world economies have a mobility super app … except for Turkey Turkey offers significant untapped mobility opportunities, but does not have a mobility super app yet… Source: Company information. 13
Slide 14: Turkey needs immediate mobility solutions
14 64x 12x 8x 6x Inadequate public transportation and unpleasant mobility alternatives for last mile journeys … and Turkey needs immediate mobility solutions High cost of car ownership 1 Dacia Sandero Dacia Spring Chevrolet Spark Hyundai i10 Min Cost of Owning a New Car / Min Monthly Wage Low metro
Slide 15: Attractive gross profit margin levels
15 (24%) (14%) 2% 11% 8% 39% 35% 33% 38% 41% 42% 38% 39% 35% (45%) (30%) (15%) 0% 15% 30% 45% 60% Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Gross Margin (pre-depreciation) 2 Attractive gross profit margin levels (LT M) 3 By addressing this unmet and underser
Slide 16: Price increase analysis in 15 zones
16 Source: Company information. 1. Weighted average of price change is based on number of vehicles. Individual price change by z one varies between 10% and 51%. 2. 2 zones in Istanbul (Asia and Europe - 2) are used as control groups since prices did not change d uring analysis period. 3. Istanbul Eu
Slide 17: Revenue per minute increased while daily rides declined only slightly
Revenue per minute increased ~ 103 % in TL, while daily rides per vehicle declined only ~ 13 % . 17 Source: Company information. Note: Price change is only one of the factors impacting daily rides so this analysis needs to be viewed as a directional and co rrelated view rather than a definite causal
Slide 18: Current presence a small fraction of total addressable market
Despite its mobility leadership in Turkey, Marti's current presence remains a small fraction of the total addressable market in Turkey 18 Marti ’s current market presence 3 $0.02B $ 55 – 65 B Consumer Mobility Market 1 (TAM) Shared Mobility Market 2 (TSM) $ 10 – 15 B Marti ’s estimated market presen
Slide 19: Key investment highlights
1. Highly attractive market demographics 2. Clear market leader 3. Strong customer retention, reinforced by scale 4. Vertically integrated business model driving lower costs and higher revenues 5. Strong unit economics 6. Constructive regulatory framework 7. Strong ESG fundamentals 19 Key investment
Slide 20: 1. Highly attractive market demographics
1 1 1 1 2 2 2 4 10 Austria Poland Sweden France Italy UK Spain Germany Turkey 20 1. Highly attractive market demographics 9 10 38 47 60 65 68 84 85 Austria Sweden Poland Spain Italy France UK Germany Turkey % Population < 50 yrs 2 202 1 Growth (%) 3 Source: BMI, CityPopulation. Note: 1. 2021 figures
Slide 21: 2. Clear market leader
21 Source: Sensor Tower, GDP data per city from Turkstat. Note : 1. As of September 30 , 2022 (as per data.ai, fka App Annie) as compared to five competitors. Only micromobility operators included in analysis. Market share figures reflect M ar ti's performance across the aggregate of its existing th
Slide 22: 3. Solid customer retention, reinforced by scale
3. Solid customer retention, reinforced by scale 22 App opening to ride conversion ratio increases with vehicle availability 2 10% 12% 15% 17% 20% 25% 34% 43% 48% 50% 53% 54% 1000 800 600 500 400 300 200 100 50 40 30 20 Distance of rider to the nearest vehicle (m eter ) Rider preference Increased de
Slide 23: 4. Vertically integrated business model
23 4. Vertically integrated business model drives lower costs & higher revenues Mobility applications End user, operation, technical etc. ▲ ▲ ▲ ▲ ▲ ▲ ▲ Fl eet operations Battery c harging ▲ □ □ ▲ □ ▲ □ Repair & M aint e n a nce ▲ □ □ ▲ ▲ ▲ ▲ Re balancing ▲ □ □ ▲ □ ▲ □ V ehicle manufacturing Vehicle
Slide 24: In-house software system architecture
24 Maps Payments App Server Data Server Design for Failure ! Horizontal Scaling Secure and scalable software syste ms Multiple instances, automatic service restart and regular server backups to avoid interruptions S upporting full in - house development of applications Backed by leading tech service
Slide 25: In-house data analytics
25 In - house data analytics – p roprietary tools and systems 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Vehicle rebalancing to meet customer demand Automated grouping of battery swap tasks Swap1 Swap3 Swap5 Swap4 Swap2 Vertical integration • Real - time mo
Slide 26: Damage identification tool and self-diagnostics system
26 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Vertical integration Damage identification tool and self - diagnostics system Health checker app Vehicle : PBR2 Location: IZMIR Reason: Last 7 rides average distance low. Average distance: 655.81 meters Vehicle
Slide 27: In-house built consumer mobile app
In - house built consumer mobile app 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Vertical integration Easily find the nearest Marti and reserve it Quickly scan a QR code and start your ride Easily navigate to your destination using directions Park easily wit
Slide 28: In-house hardware capabilities
28 Ability to produce customized products that suit local needs and deliver superior operational performance In - house hardware capabilities Final vehicle is designed based on local geographic needs and cost - benefit ratio of individual components 40+ product prototypes are evaluated by hardware t
Slide 29: Low labor cost
29 Low labor cost 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Better margins and cash position Source: Trading Economics for China and India; OECD for the rest. 202 1 Real Minimum Wage ($) Minimum wage in Turkey is similar to that in China ~ $25,400 ~ $25,10
Slide 30: In-house operations and control systems
Control room 30 ● Live status check 24x7 ● Fleet deployment adjusted as per usage ● Any operational need is addressed promptly ● 24x7 monitoring of warehouses and vehicles in different regions ● Coordination and mobilization of field teams as needed for prompt response ● Battery replacement (swap) t
Slide 31: In-house security systems result in low theft and vandalism
In - house security systems and effective use of CCTVs result in low rates of t heft and vandalism 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Surveillance and security systems in place across all operating cities 31 Marti ’s innovative physical IoT based ca
Slide 32: In-house maintenance and vehicle assembly lengthens useful life
• Centrally located, Istanbul - based teams • Repair battery, IoT board, IoT lock, engine driver and other valuable parts In - house maintenance and vehicle assembly lengthens useful life of equipment Electronic repair teams reuse valuable components 32 Warehouse maintenance teams • Vehicle repair &
Slide 33: Consistently improving unit economics
33 Consistently improving unit economics + 122 % 5 Generations 3 & 4 vehicles 2 ,3 Generations 1 & 2 vehicles 1 Delta Daily net revenue per vehicle $2.77 $ 2 . 60 4 Daily net operating costs per vehicle $2.25 $1. 4 5 Daily gross margin $0.52 $1. 1 5 All - in vehicle costs $660 $63 4 Payback period d
Slide 34: More vehicles drive greater usage
34 5. Strong unit economics (cont’d) Average rides per vehicle per day Average # of vehicles deployed ( thousand ) # of Rides (m ill ion ) M ore vehicles drive greater usage 17 32 33 103 2020A 2021A 2022E 2023E FD Avg. # of vehicles deployed 9 18 28 27 82 2020A 2021A 2022E 2023E FD 4.1 2.9 2.4 2.2 2
Slide 35: Greater revenue per ride driven by new modalities
35 10 17 25 35 138 2020A 2021A 2022E 2023E FD Net revenue per ride ($) # of Rides (million) Net revenue ($, million) 5 . Strong unit economics (cont’d) G reater revenue per ride driven by new modalities Lower operating cost Source: Company information. Note: 1. 2023 estimates assume receipt of proce
Slide 36: Improving unit economics
$1.12 $0.96 $0.88 $1.28 $1.68 2020A 2021A 2022E 2023E FD Net costs per ride 2 ($) Net revenue per ride ($) Gross profit per ride 3 ($) 5 . Strong unit economics (cont’d) 36 Improving unit economics Gross profit per ride ($) Gross profit margin (%) + 23 % CAGR 2020A 2021A 2022E 2023E 2023FD $0.30 $0.
Slide 37: Constructive regulatory framework
37 6 . Constructive regulatory framework Operational permits awarded at district level E - s cooter regulatory framework – local requirements 30% of scooters owned by each operator must be produced locally , starting in December 2024 Districts receive a "per scooter per day" fee Able to be operated
Slide 38: Strong ESG fundamentals: environmental
7 . Strong ESG fundamentals 38 Environmentally friendly transportation mode and 100% recycling 130 35 Replacement Journeys E-scooter By 2023, Marti could help save CO 2 emission equivalent to the carbon absorbed by ~ 1m trees 1 p.a. Total Lifecycle Emissions (g C0 2 / km) (73%) Reduction Supporting
Slide 39: Strong ESG fundamentals: social and governance
Major 7 . Strong ESG fundamentals 39 Strong sustainability and governance setup with social commitment S ustainable business model Strong corporate governance setup Supporting youth employment – 40 % 2 of Marti ’s workforce is in the 15 - 24 years age group, which is a vulnerable unemployed segment
Slide 40: Financials
Financials
Slide 41: Financial performance and projections summary
41 Adjusted EBITDA 3 ($, million) Gross Profit 2 ($, million) Financial performance and projections summary Net Revenue ( $, million) 0 0 (1) - 4 59 -15 35 85 EBITDA Adj . EBITDA Adj . EBITDA Margin 3 5 8 15 85 27% 32% 33% 45% 62% 29% 34% 39% 44% 49% 54% 59% 64% -4 46 96 Gross Profit Gross Profit Ma
Slide 42: Financial performance and projections summary
42 Financial performance and projections summary Source: Company information. Note: 1. Based on audited GAAP results for the years ended December 31, 2021 and 2020. 2 . 2023 estimates assume receipt of proceeds from the ~$ 62.0 million in convertible note PIPE commitments plus assumed incremental PI
Slide 43: Transaction Summary
Transaction Summary
Slide 44: Detailed transaction overview
Detailed transaction overview Sources ($, million) Uses ($, million) 44 Pro-Forma Ownership Breakdown3 Key Metrics ● Expected pro forma enterprise value of ~$549.3 million at closing ● Implied pro forma enterprise value of 4.0x FD1 net revenue of $138 million and 9.3x FD1 EBITDA of $59 million ● Mar
Slide 45: Appendix
Appendix
Slide 46: Comparable peers overview
Comparable peers overview 46 Micro - mobility …and our journey could take us here Mobility super app We are here today…
Slide 47: Financial benchmarking
62% 15% 41% 53% 27% 185% 30% 47% 24% 63% Financial benchmarking Micromobility 47 Mobility super apps Revenue CAGR (‘21A - ’ FD 1 ) Gross Margin ( ’ FD 1 ) Peers average: 15 % Peers average: 30 % Source: Marti projected financials, CapitalIQ . CapitalIQ data as of December 12 , 2022. 1. FD refers to
Slide 48: Operational benchmarking
48 Operational benchmarking Company Headquarters Funds Raised ($ , million ) # of Vehicles ( thousand ) Funds Raised / # of vehicles De - SPAC Valuation ($ , million ) Operational Countries 81 4 8 1 1, 543 450 6 1 623 67 4 9,2 77 2,400 6 28 31 8 3,780 300 6 3 660 135 5 3,407 2,000 7 22 Peers Average
Slide 49: Non-GAAP reconciliations
49 Non - GAAP reconciliations (in thousands $) 2020 1 9M 2021 2 2021 1 9M 2022 2 2022E 2023E FD Net Loss (4,630) (6,086) (14,472) (7,479) (9,309) (18,511) (1,381) Depreciation and Amortization 2,936 5,725 6,147 6,891 8,788 10,766 37,336 Income Tax Expense 0 0 888 0 (334) (8,964) (413) Financial Inco
Slide 50: Balance Sheet
50 Balance Sheet 1 (in thousands $) 2020 2021 Current liabilities 10,546 10,418 Accounts Payable 817 2,034 Short - term Financial Liabilities 8,6 04 5 ,644 Lease Liabilities 444 651 Deferred revenue 42 713 Income tax liability - 588 Accrued expenses and other c urrent liabilities 639 790 Non - Curre
Slide 51: Balance Sheet
51 Balance Sheet 1 (in thousands $) 9M 202 1 9M 202 2 Current liabilities 7,054 14,656 Accounts Payable 2,912 3,137 Short - term Financial Liabilities 1,724 7,364 Lease Liabilities 1,130 2,343 Deferred revenue 894 1,107 Income tax liability - - Accrued expenses and other c urrent liabilities 396 705
Slide 52: Profit and Loss Statement
Profit and Loss Statement (in thousands $) 2020 1 9M 2021 2 2021 1 9M 2022 2 Revenue 9,763 13,986 16,999 18,620 Cost of Sales (9,518) (12,491) (16,743) (16,912) Gross Profit 245 1,495 256 1,708 Selling and marketing expenses (257) (1,120) (1,256) (478) General and administration expenses (3,235) (4,
Slide 53: Cash Flow Statement
53 Cash Flow Statement 1 Source: Company information. 1. Based on audited GAAP results for the years ended December 31, 2021 and 2020. (in thousands $) 2020A 2021A Cash flow from operating activities Net loss (4,630) (14,472) Adjustments to reconcile net loss to net cash used in operating activities
Slide 54: Cash Flow Statement (9M)
54 Source: Company information. Note: 1. Based on Company - prepared GAAP results for the nine months ended September 30, 2022 and 2021. (in thousands $) 9M 202 1 9M 202 2 Cash flow from operating activities Net loss (6,086) (7,479) Adjustments to reconcile net loss to net cash used in operating act
Slide 55: Risk Factors
55 Risk Factors Risks Related to Marti’s Business and Industry • We have a relatively short operating history and a new and evolving business model, which makes it difficult to evaluate our future prospects, forecast financial results and assess the risks and challenges we may face . • We have incur
Slide 56: Risk Factors
56 Risk Factors • If we breach covenants under our outstanding debts, we could be held in default under such loans, which could accelerate our rep ayment dates and adversely affect our business.The operators of digital storefronts on which we publish our mobile application in many cases have the uni
Slide 57: Risk Factors: Risks Related to Türkiye
57 Risk Factors Risks Related to Türkiye • Our headquarters and other operations and facilities are located in Türkiye and, therefore, our prospects, business, financial condition and results of operations may be adversely affected by political o r economic instability in Türkiye . • We are subject
Slide 58: Risk Factors: Galata and the Business Combination
58 Risk Factors Risks Related to Galata and the Business Combination • Because New Marti will become a publicly traded company by virtue of the Business Combination as opposed to an underwritten i nit ial public offering, the process does not use the services of one or more underwriters, which could
Slide 59: Risk Factors
59 Risk Factors • The NYSE American may delist New Marti’s securities from trading on its exchange, which could limit investors’ ability to mak e t ransactions in New Marti’s securities and subject New Marti to additional trading restrictions. • Galata cannot assure you that its diligence review has
Slide 60: Let's Ride!
LET’S RIDE!