Marti Technologies, Inc. · AMEX:MRT
Marti Technologies — SPAC Merger (January 2023)
60 slides from Marti Technologies's SPAC merger presentation, January 2023
Slide 1: Turkey's Leading Mobility App
TURKEY’S LEADING MOBILITY APP 01.04.2023
Slide 2: Disclaimers
Disclaimers 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
Slide 3: Disclaimers (cont'd)
Disclaimers (cont’d) 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
Slide 4: Galata has deep expertise and extensive experience in Turkey
Galata has deep expertise and extensive experience in Turkey Kemal Kaya CEO ● 35+ years of executive and management experience in Turkey ● Senior Advisor to The Blackstone Group Marti is an excellent match for Galata ● Former CEO of Yapi Kredi Group, one of the leading financial groups in Turkey Ann
Slide 5: Transaction summary
Transaction summary About Marti Transaction overview Due diligence conducted by Galata ● Marti is Turkey’s leading mobility provider, ● Galata is a NYSE American-listed special purpose ● Background checks on management and operating a fleet of e-scooters, e-bikes, and acquisition company which propo
Slide 6: Marti Overview
Marti Overview
Slide 7: We believe… Transportation is the number one issue in emerging market megacities
We believe… 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. 7
Slide 8: Leadership team…
Leadership team… Cankut Durgun Sena Öktem Alper Öktem Cofounder, President Cofounder, Deputy CEO Founder, CEO Erdem Selim Eyal Enriquez Onur Boztaş Chief Financial Officer Chief Strategy Officer Chief Vehicle Officer Source: Company information. 8
Slide 9: …backed by investors with strong knowhow of Turkey and mobility
…backed 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 Leading early stage VC and mobility
Slide 10: Marti is Turkey's mobility app leader today…
Marti is Turkey’s mobility app leader today… Key figures #1 travel app 59% in Turkey (iOS / Android)1 Market share2 4M+ 93% Unique riders3 Rides from daily commuters4 $138M 62% Full-Year Post-listing FD Full-Year Post-listing FD net revenues5 gross margin5,6 Source: Company information. Note: 1. Tra
Slide 11: …and Marti is on its way to becoming Turkey's first mobility super app
…and Marti is on its way to becoming Turkey's first mobility super app Environmentally friendly and complementary services for the daily commute Other Future Opportunities Mobility as a Service Provider Fintech Services Advertisement Car-Pooling 48,000+ currently fully-funded vehicles; expected to r
Slide 12: As Marti grows, scale is expected to further reinforce its competitive advantages
As Marti grows, scale is expected to further reinforce its competitive advantages Rider preference Single country focus Greater Increased vehicle demand / availability volumes Lower depreciation Lower price Better Lower vehicles with operating Vertical longer useful Better integration cost life marg
Slide 13: Turkey offers significant untapped mobility opportunities, but no mobility super app yet
Turkey offers significant untapped mobility opportunities, but does not have a mobility super app yet… All of the top 20 world economies have a mobility super app… except for Turkey Source: Company information. 13
Slide 14: … and Turkey needs immediate mobility solutions
… and Turkey needs immediate mobility solutions Inadequate public transportation and unpleasant mobility alternatives for last mile journeys High cost of car ownership1 High traffic congestion2 Hyundai i10 2,0 1.9x 64x 1,8 1,6 1,4 1,2 1.1x 1.1x 1.0x 1,0 0,8 Chevrolet Spark Dacia Sandero Dacia Spring
Slide 15: Marti has grown significantly with attractive margin levels, even during COVID
By addressing this unmet and underserved demand, Marti has grown significantly with attractive margin levels, even during COVID Marti offers LTM revenue is consistently growing3 LTM Net Revenue1 Operational Fleet (million $) (000 vehicle) Last mile connectivity - complementary to long Full curfew di
Slide 16: Low price elasticity of demand shown by recent price increase
Marti's service exhibits low price elasticity of demand, as evidenced by the results of its recent price increase ~25% price increase in 15 zones A Ride per vehicle per day in control B Factoring out the negative impact of compared with control group of 2 group declined by 16%, highlighting seasonal
Slide 17: Revenue per minute increased ~103% in TL, daily rides per vehicle declined ~13%
Revenue per minute increased ~103% in TL, while daily rides per vehicle declined only ~13%. ~103% increase in TL revenue per minute applied to Daily rides per vehicle declined only ~13%. reflect TL depreciation against USD 202.6 9M 2021 9M 2022 9M 2021 9M 2022 102.3 100.0 100.0 100.0 100 100 87.4 TL
Slide 18: Marti's presence remains a small fraction of the total addressable market
Despite its mobility leadership in Turkey, Marti's current presence remains a small fraction of the total addressable market in Turkey Today 2030 E Consumer Mobility Market1 TAM1 (TAM) Consumer Mobility Market1 CAGR: 3% (TAM) $65 - 75B $55 – 65B Shared Mobility Market2 (TSM) Shared Mobility Market2
Slide 19: Key investment highlights
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 fund
Slide 20: 1. Highly attractive market demographics
Single country focus 1. Highly attractive market demographics Highly urbanized society, with several large Large, young and growing population base1 and dense city centers % Population < Turkey has a 50 yrs2 58% 61% 62% 58% 54% 60% 62% 55% 76% population larger than Austria, 2021 Sweden and Italy Gr
Slide 21: 2. Clear market leader
Greater vehicle availability 2. Clear market leader Marti is the most downloaded travel Marti operates in 16 cities, representing ~71% of app in Turkey national GDP # of app downloads in millions1 Istanbul 30.4% 1.0% 4.3% 6.6 59% 2.0% 0.6% market 0.4% share 4.2% Ankara 9.2% 0.5% 1.1% Izmir 0.4% 0.4%
Slide 22: 3. Solid customer retention, reinforced by scale
Rider preference Increased demand Greater vehicle availability 3. Solid customer retention, reinforced by scale Commute accounts for more App opening to ride conversion ratio increases with vehicle availability2 than 90% of all rides1 54% 53% 48% 50% 43% 34% 25% 20% 15% 17% 10% 12% First and last mi
Slide 23: 4. Vertically integrated business model drives lower costs & higher revenues
4. Vertically integrated business model drives lower costs & higher revenues Marti’s in-house management across the micromobility value chain sets the company apart from other operators Mobility applications End user, operation, technical etc. ▲ ▲ ▲ ▲ ▲ ▲ ▲ Battery charging ▲ □ □ ▲ □ ▲ □ Fleet opera
Slide 24: In-house software
Rider preference Lower operating cost 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Vertical integration In-house software – system architecture Secure and scalable Supporting full in-house development of Backed by leading tech service software systems applica
Slide 25: In-house data analytics
Rider preference 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Vertical integration In-house data analytics – proprietary tools and systems Vehicle rebalancing to meet customer demand Automated grouping of battery swap tasks • Real-time modelling • Improved ef
Slide 26: In-house data: damage identification and health checker
Rider preference 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Vertical integration In-house data analytics – proprietary tools and systems Damage identification tool and self-diagnostics system Health checker app Damage prediction Self-diagnostics • In-house
Slide 27: In-house built consumer mobile app
Rider preference 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Vertical integration In-house built consumer mobile app PFGR %65 01:14 Easy location Quick unlock Easy navigation Easy docking Quick payment Easily find the nearest Quickly scan a QR code Easily na
Slide 28: In-house hardware capabilities
Lower operating cost 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Vertical Better vehicles with integration longer useful life In-house hardware capabilities Ability to produce customized products that suit local needs and deliver superior operational perform
Slide 29: Low labor cost
Lower operating cost 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Better margins and cash position Low labor cost Minimum wage in Turkey is similar to that in China 2021 Real Minimum Wage ($) ~$25,400 ~$25,100 ~$22,600 ~$22,100 ~$15,100 ~$4,900 ~$4,800 ~$880
Slide 30: In-house operations and control systems
Rider preference 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Vertical integration In-house operations and control systems Control room Regional operations dashboard ● 24x7 monitoring of warehouses and vehicles in different regions ● Coordination and mobiliza
Slide 31: In-house security systems
Lower operating cost 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Better margins and cash position In-house security systems and effective use of CCTVs result in low rates of theft and vandalism Surveillance and security systems in place across all operating
Slide 32: In-house maintenance
Better vehicles with longer useful life 4. Vertically integrated business model drives lower costs & higher revenues (cont’d) Better margins and cash position In-house maintenance and vehicle assembly lengthens useful life of equipment Warehouse maintenance teams Electronic repair teams reuse valuab
Slide 33: 5. Strong unit economics
Rider preference Better vehicles with longer Lower useful life operating cost 5. Strong unit economics Better margins and cash position Consistently improving unit economics Generations 1 & 2 Generations 3 & 4 Delta vehicles1 vehicles2,3 Daily net revenue per vehicle $2.77 $2.604 (6)% Daily net oper
Slide 34: More vehicles drive greater usage
Lower operating cost 5. Strong unit economics (cont’d) Better margins and cash position More vehicles drive greater usage Average # of vehicles deployed Average rides per vehicle per day # of Rides (thousand) (million) 82 4.1 2.9 2.4 2.2 2.2 28 27 103 18 9 32 33 6 17 2 2020A 2021A 2022E 2023E 1 FD 2
Slide 35: Greater revenue per ride driven by new modalities
Lower operating cost 5. Strong unit economics (cont’d) Better margins and cash position Greater revenue per ride driven by new modalities # of Rides Net revenue per ride Net revenue (million) ($) ($, million) 82 138 $1.68 $1.28 $1.12 $0.96 $0.88 28 27 35 18 25 9 17 10 2020A 2021A 2022E 2023E 1 FD 2
Slide 36: Improving unit economics
Lower operating cost 5. Strong unit economics (cont’d) Better margins and cash position Improving unit economics Net revenue per ride Net costs per ride2 Gross profit per ride3 ($) ($) ($) CAGR CAGR CAGR5 (11%) +85% +23% $1.68 $1.04 $0.81 $0.71 $0.65 $0.64 $1.28 $0.58 62% $1.12 $0.96 $0.57 $0.88 $0.
Slide 37: 6. Constructive regulatory framework
Single country focus 6. Constructive regulatory framework E-scooter regulatory framework – local requirements National Local server requirement for operational data 1 Permits awarded for five years at the national level upkeeping or reading 30% of scooters owned by each operator must be produced loc
Slide 38: 7. Strong ESG fundamentals
Rider preference 7. Strong ESG fundamentals Environmentally friendly transportation mode and 100% recycling By 2023, Marti could help save CO2 emission equivalent Supporting environmental sustainability to the carbon absorbed by ~1m trees1 p.a. 130 100% Electric vehicles – Currently 48,000+ fully-fu
Slide 39: Strong sustainability and governance setup with social commitment
Rider preference 7. Strong ESG fundamentals Strong sustainability and governance setup with social commitment Sustainable business model Strong corporate governance setup Supporting youth employment – 40%2 of Marti’s workforce is in the 15-24 Above average women participation in management roles - y
Slide 40: Financials
Financials
Slide 41: Financial performance and projections summary
Financial performance and projections summary Net Revenue Gross Profit2 Adjusted EBITDA3 ($, million) ($, million) ($, million) EBITDA 138 64% 96 62% 59% 85 54% 59 49% 85 (43%) 46 44% 35 45% 35 39% 25 0 (1) -4 0 17 32% 33% 34% 10 27% 15 1% (3%) 3 5 8 -15 (8%) -4 29% (12%) 1 4 1 4 1 4 2020A 2021A 202
Slide 42: Financial performance and projections summary
Financial performance and projections summary 2020A1 2021A1 2022 E 2023 E2 FD3 Rides (thousand) 8,737 17,786 28,186 27,005 82,169 Avg. Rides per Vehicle per Day 4.1x 2.9x 2.4x 2.2x 2.2x Avg. # of Vehicles Deployed 5,901 16,899 32,434 33,066 103,361 Net Revenue (thousand $) 9,763 16,999 24,683 34,662
Slide 43: Transaction Summary
Transaction Summary
Slide 44: Detailed transaction overview
Detailed transaction overview Key Metrics Sources ($, million) Uses ($, million) ● Expected pro forma enterprise value of ~$549.3 Cash Held in Trust 147.2 Cash to Balance Sheet 287.2 million at closing Issuance of Shares 450.0 Existing Marti Shareholders 450.0 ● Implied pro forma enterprise value of
Slide 45: Appendix
Appendix
Slide 46: Comparable peers overview
Comparable peers overview We are here today… …and our journey could take us here Micro-mobility Mobility super app 46
Slide 47: Financial benchmarking
Financial benchmarking Micromobility Mobility super apps Revenue CAGR (‘21A-’FD1) Peers average: 30% Peers average: 45% 185% 30% 47% 63% 24% Gross Margin (’FD1) Peers average: 15% Peers average: 45% 62% 53% 41% 27% 15% EBITDA Margin (’FD1) Peers average: 5% Peers average: (4%) 43% 5% 9% 11% (26%) So
Slide 48: Operational benchmarking
Operational benchmarking Funds Raised # of Vehicles Funds Raised De-SPAC Valuation Company Headquarters Operational Countries ($, million) (thousand) / # of vehicles ($, million) 81 481 1,543 4506 1 2 623 674 9,277 2,4006 28 2 31 8 3,780 3006 3 3 660 1355 3,407 2,0007 22 Peers Average 438 70 5,488 S
Slide 49: Non-GAAP reconciliations
Non-GAAP reconciliations (in thousands $) 20201 9M 20212 20211 9M 20222 2022E 2023E FD Net Loss (4,630) (6,086) (14,472) (7,479) (9,309) (18,511) (1,381) Depreciation and 2,936 5,725 6,147 6,891 8,788 10,766 37,336 Amortization Income Tax Expense 0 0 888 0 (334) (8,964) (413) Financial Income (17) (
Slide 50: Balance Sheet
Balance Sheet1 (in thousands $) 2020 2021 (in thousands $) 2020 2021 Current assets 5,583 17,973 Current liabilities 10,546 10,418 Accounts Payable 817 2,034 Cash and Cash Equivalents 3,502 13,216 Short-term Financial Liabilities 8,604 5,644 Accounts Receivable 88 177 Lease Liabilities 444 651 Inven
Slide 51: Balance Sheet
Balance Sheet1 (in thousands $) 9M 2021 9M 2022 (in thousands $) 9M 2021 9M 2022 Current assets 19,374 12,457 Current liabilities 7,054 14,656 Accounts Payable 2,912 3,137 Cash and Cash Equivalents 14,967 4,798 Short-term Financial Liabilities 1,724 7,364 Accounts Receivable 628 201 Lease Liabilitie
Slide 52: Profit and Loss Statement
Profit and Loss Statement (in thousands $) 20201 9M 20212 20211 9M 20222 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) (4,284)
Slide 53: Cash Flow Statement
Cash Flow Statement1 (in thousands $) 2020A 2021A (in thousands $) 2020A 2021A Cash flow from operating activities Cash flow from financing activities Net loss (4,630) (14,472) Adjustments to reconcile net loss to net cash used in operating Proceeds from issuance of convertible notes 8,425 100 3,875
Slide 54: Cash Flow Statement
Cash Flow Statement1 (in thousands $) 9M 2021 9M 2022 (in thousands $) 9M 2021 9M 2022 Cash flow from operating activities Cash flow from financing activities Net loss (6,086) (7,479) Adjustments to reconcile net loss to net cash used in operating Proceeds from other borrowings - 2,000 7,449 9,854 a
Slide 55: Risk Factors
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 incurred
Slide 56: Risk Factors
Risk Factors • If we breach covenants under our outstanding debts, we could be held in default under such loans, which could accelerate our repayment dates and adversely affect our business.The operators of digital storefronts on which we publish our mobile application in many cases have the unilate
Slide 57: Risk Factors
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 or economic instability in Türkiye. • We are subject to ce
Slide 58: Risk Factors
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 initial public offering, the process does not use the services of one or more underwriters, which could resu
Slide 59: Risk Factors
Risk Factors • The NYSE American may delist New Marti’s securities from trading on its exchange, which could limit investors’ ability to make transactions in New Marti’s securities and subject New Marti to additional trading restrictions. • Galata cannot assure you that its diligence review has iden
Slide 60: Let's Ride!
LET’S RIDE!