Lmp Automotive Holdings, Inc. · OTC:LMPX
Lmp Automotive — IPO Roadshow (February 2020)
29 slides from Lmp Automotive's IPO roadshow presentation, Feb 5, 2020
Slide 1: Investor Presentation
Fe b r u a r y 2 0 2 0 INVESTOR PRESENTATION SU B SCRI B E , RE N T , B U Y O R SE L L VEHICLES ONLINE OR IN PERSON We enable consumers to:
Slide 2: LMP Automotive: Subscribe, Rent, Buy or Sell
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Slide 3: 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 4: The Market Opportunity
We believe that the automotive industry is undergoing a paradigm shift in the way consumers are purchasing and utilizing vehicles and that 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 alte
Slide 5: Online Is Driving Growth
$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 6: Industry Investment in Rental and Car-Sharing
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 7: 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 8: 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 9: 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 Onli
Slide 10: Unit Economics Example
UN I T E C O N O M IC S EXAM P L E Me r c e d e s - Be n z N e w 2 0 2 0 M od e l G L C 3 0 0 ▪ $44,215 retail sticker price, we purchase for $33,603 (approximately 24% discount). ▪ We use a factor of approximately 2.4% of our cost as the consumer’s monthly payment. ▪ We derive approximately $10,000
Slide 11: Dealership Acquisition Accretion Example
DEALERSHIP ACQUISITION ACCRETION EXAMPLE ▪ We believe we can acquire dealerships for pre - tax income multiples ranging from 4 - 8 times, which makes for a very attractive proposition in itself, given interest rates are at lifetime lows . ▪ Modeling what we believe is a conservative 35 subscription
Slide 12: 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 13: We Subscribe or Rent
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 14: 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 15: 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 16: 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 17: 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 18: 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 19: Cap Table
CAP TABLE as of February 5, 2020 February 2020 Common Shares Outstanding 8,691,323 Warrants (WAEP $6.25) 115,000 Options (WAEP $4.57) 344,500 INSIDER OWNERSHIP TABLE Common Shares % Sam Tawfik 3,785,037 43.55% William Cohen 150,150 1.73% Robert Morris 20,000 0.23% Elias Nader 5,000 0.06% Keith Locke
Slide 20: Financial Results
First Three Months September 2019 December 2019 FULL YEAR 2019 2018 TOTAL REVENUES $1,177, 887 $3,032,480 TOTAL REVENUES $10,858,594 $16,610,786 Gross Profits (Loss) ( 169,315) 247,874 Gross Profits (Loss) ( 147,026) ( 1,956,989) Total Costs of Revenues 1,347,203 2,784,606 Total Costs of Revenues 11
Slide 21: 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 22: 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 23: 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 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: Executives and Board of Directors (cont.)
EXECUTIVES AND BOARD OF DIRECTORS (c o n t . ) Bryan Silverstein, CFO – Mr . Silverstein joined our company in September 2018 as Controller and was appointed as Chief Financial Officer in November 2019 . He has established and maintained oversight of accounting processes, as well as assisted with op
Slide 26: 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 27: 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 28: 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 29: 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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