Slide 1: Placement by Excluded Offer $7 Million
For personal use only Vmoto Limited (ASX:VMT) Placement by Excluded Offer $7 Million May 2008 Lead manager to the Placement
Slide 2: Important Notice
Important Notice For personal use only This document has been created by Vmoto Limited (Company) of the Financial Services and Markets Act 2000 (“FSMA”) on the exemption from registration. In addition, no steps have been, or solely for use at the presentation to be made in May 2008. By basis that in
Slide 3: What is Vmoto Limited?
page 1 What is Vmoto Limited? For personal use only Vmoto Limited is a Main Revenue Sources globally branded scooter manufacturing and Scooters (motorcycles) 55.0% distribution group specialising in ... All Terrain Vehicles 20.0% • Motor scooters • Small Motor bikes Engines 15.0% • All Terrain Vehic
Slide 4: Vmoto Vertical Integration Strategy
page 2 Vmoto Vertical Integration Strategy What makes us different? For personal use only Vmoto Brand Design Vmoto will continue to source product from 3rd party manufacturers as required Manufacture The current manufacturing partner to Vmoto is QJ Group Factory Scooter Engines Building ATV’s Distri
Slide 5: Investment Highlights
page 3 Investment Highlights For personal use only • Vmoto – A globally recognised brand is now gaining recognition through rollout of the vertical strategy • Globally the motorcycle and scooter market is a US$50 bil industry, growing at 10+% pa. (Source: DATAMONITOR) • Only independent motorcycle g
Slide 6: Corporate Overview
page 4 Corporate Overview For personal use only Shareholder No of Shares % Diluted Board of Directors % Non Executive Chairman Lee Verios Mr C Chen 30,023,559 12.2% 11.4% Managing Director Patrick Davin Mr P Davin 20,000,000 8.2% 7.6% Executive Director / CEO Asia Charles Chen Mr W Ali 11,606,667 4.
Slide 7: Recent Developments
page 5 Recent Developments Creating Global Structure For personal use only Freedomotor Co Ltd, Shanghai PRC and Hong Kong SAR Distribution • Acquired 100% of Freedomotor Co Limited effective 1 January 2007. Base • Charles Chen (FMC founder) appointed to Board as an Executive Director Haiya Engine Ma
Slide 8: Vmoto – The Brand
page 6 Vmoto – The Brand Becoming a Household Name! For personal use only • Top selling 50cc & 125cc scooters in Australia in 2006 and 2007 • Brand Name is registered in 150 countries world wide with continuing global registration • Australia’s fastest growing scooter brand, outselling many global a
Slide 9: Global Market by Value 2005 – 2010
page 7 Global Market by Value 2005 – 2010 On the Increase! For personal use only 60 Motorcycles, Scooters, ATV combined 50 40 30 20 10 US$ Billion 0 2005 2006 2007 2008 2009 2010 Source: DATAMONITOR
Slide 10: Distribution of Vmoto Branded Product
page 8 Distribution of Vmoto Branded Product For personal use only Spain China USA UAE Australia Perth Australia: Headquarters New Zealand Nanjing China: Manufacturing Barcelona Spain: EU Distribution
Slide 11: Vmoto Distribution
page 9 Vmoto Distribution For personal use only • Shanghai based, international motorcycle trading and distribution company. (Agency/FMC) • 30 Major clients located in Europe with established distribution in over 50 countries • A full service motor cycle trading company providing services in new pro
Slide 12: Distribution of Original Equipment Manufactured Product (OEM)
page 10 Distribution of Original Equipment Manufactured Product (OEM) For personal use only Russia PolandGermany Spain Korea USA Vietnam UAE Brazil Australia New Zealand
Slide 13: Vmoto Design capability
page 11 Vmoto Design capability Staying ahead of the game For personal use only Capability • CSR Spain • Design Centre of motorcycle industry • Carlos Sotelo Designer for 10 years 2 proprietary designs for 2008 completed, 5 under development • Nanjing • Ex Honda Sundiro Engineers – Experts in Green/
Slide 14: Current Manufacturing facilities
page 12 Current Manufacturing facilities For personal use only Engine Plant • Produce sophisticated and high powered 50cc,125cc and 150cc engines, with 250cc units to be released near term • 50% of monthly production is being exported to Korea • Will continue to produce for OEM clients as well as fo
Slide 15: Our Future: The New Nanjing Manufacturing Facility
page 13 Our Future The New Nanjing Manufacturing Facility For personal use only • Completes Vertical Integration Strategy with scooter and engine production • Phase 1 Construction (10,200 sqm) commenced for first production second half 2008
Slide 16: The Vmoto Advantage
page 14 The Vmoto Advantage We own the entire process! For personal use only • Brand Protected • Maintain Factory Margins • Proprietory of Design • Increased Overall Retail Margin • Quality Control • Increased Competitiveness Margin Advantage Normal OEM Brand Margins Vmoto Margins Increased margin D
Slide 17: Comparables
page 15 Comparables For personal use only Honda Honda Motor Co. Ltd is Japanese company established in 1946. Honda distributes globally, primarily via wholly owned subsidiaries. Honda sells scooters as well as a vast range of other motorized products and equipment including Cars, motorcycles and sma
Slide 18: Financials: Snapshot and key drivers
page 16 Financials Snapshot and key drivers For personal use only Unit Capacity Margins and Expenses Total capacity 300,000 Gross Margin - Vmoto 17% to 25% products 2 Gross Margin - OEM 7% to 15% products 2 Average Revenue by Product (A$) 1 Employees 3 85 105 50 cc scooters $800 to $1,500 (Productio
Slide 19: Financials: Vmoto has invested for the future
page 17 Financials Vmoto has invested for the future For personal use only Vmoto estimates to be cashflow positive and profitable by December 2008 Invested heavily in scaling up production capacity and R EVENUE AND GR OSS P R OFIT ( $M) distribution – funded from cashflow 3 0 2 7 .0 • Nanjing Factor
Slide 20: Financials: Future growth and strategies
page 18 Financials Future growth and strategies For personal use only • CSR acquisition provides 14 distributors and platform for EU expansion Ramp up sales • Europe is one of the world’s largest scooter markets with 6M units sold annually in Europe • CSR sales to planned > 1,000 units / mth in FY20
Slide 21: Key Events and Newsflow
page 19 Key Events and Newsflow For personal use only CY 2008 CY 2009 OPERATIONAL Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Nanjing factory Phase 1 – Construction/Production Phases 2 & 3 EU Operations & Formal Launch US Distributor Appointed Asian Distributor(s) Appointed – Estimate FINANCIAL Cash Flow Break Even Ope
Slide 22: Summary
page 20 Summary For personal use only Vmoto Ltd is raising $7M to support the rapid integration of the Vmoto EU business, fund final payments to commence operations in the all new Chinese manufacturing base and associated capital raising / due diligence cost • Vmoto Europe – targeting $60M additiona
Slide 23: Board of Directors & Senior Management
page 21 Appendix 1 Board of Directors & Senior Management For personal use only Board of directors Senior management Lee Verios – Non-executive Chairman Terry Jones Lee joined the Board on 15 August 2007. He is currently Group Chief Operating Officer a Partner with International law Firm Deacons and
Slide 24: Global Market Snapshot
page 22 Appendix 2 Global Market Snapshot For personal use only Country scooter sales motorcycle sales total sales India 1,500,000 5,580,000 6,795,000 USA 100,000 1,000,000 1,100,000 Taiwan* 794,000 794,000 Japan* 707,000 707,000 Indonesia 1,800,000 3,200,000 5,000,000 Malaysia* 450,000 450,000 Fran
Slide 25: Vmoto Branded Products: Milan
page 23 Appendix 3 Vmoto Branded Products For personal use only milan “the original iconic 50”, “the scoot that started the revolution” Scooter Magazine Issue 8 2006
Slide 26: Vmoto Branded Products: Mionza
page 24 Appendix 3 Vmoto Branded Products For personal use only mionza Top 10 selling 50cc Scooter in Australia 2007
Slide 27: Vmoto Branded Products: Monaco
page 25 Appendix 3 Vmoto Branded Products For personal use only monaco Top 10 selling 125cc Scooter in Australia 2007
Slide 28: Vmoto Branded Products: Monte Carlo
page 26 Appendix 3 Vmoto Branded Products For personal use only monte carlo New 125cc Scooter Model
Slide 29: Vmoto Branded Products: Miami
page 27 Appendix 3 Vmoto Branded Products For personal use only miami Retro meets techno 125cc scooter
Slide 30: Vmoto Branded Products: ATV500
page 28 Appendix 3 Vmoto Branded Products For personal use only ATV500 Largest selling Chinese 500cc ATV in Australia
Slide 31: Vmoto Branded Products: New Products
page 29 Appendix 3 Vmoto Branded Products For personal use only new products Scartt and NKT new IP as part of acquisition of CSR
Slide 32: Advertising
page 30 Appendix 4 Advertising For personal use only ride me Style up with a vmoto www.vmoto.com.au rideme scooters www.vmoto.com.au
Slide 33: Contact Details
Contact Details For personal use only Vmoto World Headquarters Level 12, Number 251 Adelaide Terrace Perth, Western Australia, 6000 AUSTRALIA Phone +61 8 9221 6175 fax +61 8 9325 5313 t o . c o m w . v m o ww