Lmp Automotive Holdings, Inc. · OTC:LMPX
Lmp Automotive — IPO Roadshow (November 2019)
29 slides from Lmp Automotive's IPO roadshow presentation, Nov 27, 2019
Slide 1: Investor Presentation November 2019
November 2019 INVESTOR PRESENTATION SUBSCRIBE, RENT, BUY OR SELL VEHICLES ONLINE OR IN PERSON We enable consumers to: Issuer Free Writing Prospectus dated 11 / 27 / 2019 Filed Pursuant to Rule 433 under the Security Act of 1933 Relating to the Preliminary Prospectus dated 11 / 26 / 2019 Registration
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
OFFERING SUMMARY Issuer: LMP AUTOMOTIVE HOLDINGS, INC. Expected Offering Size $11,500,000 Expected Price Range $5 - $6 per share Expected Listing/Symbol Nasdaq Capital Market / LMPX Shares Offered 2,090,909 Shares of Common Stock Over - Allotment Option 15% Pre IPO Common Shares Outstanding 6,001,63
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
$662.1 M $353.6 M $454.1 M $1.96 Billion Cars.com True Car Car Gurus Carvana Third Party Auto Sites Revenue Growth 2013 2014 2015 2016 2017 2018 ONLINE IS DRIVING GROWTH ▪ Car buyers spend 59% of their time online researching . (Autotrader) ▪ Third - party sites are the most used sites for car shopp
Slide 7: Industry investment and financing developments
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: Disrupting how consumers access and purchase vehicles
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
WHAT WE DO WE BUY WE SUBSCRIBE or RENT WE SELL WE REPEAT at auction, off - lease and directly from OEM’S at wholesale and fleet rates. a selection of our vehicles for short term and month - to - month use. pre - owned vehicles and those used during rental or subscription. this process to build our i
Slide 10: Our Market Position
SUBSCRIPTION ONLINE SALES RIDESHARE OFFERING CONSUMER RENTALS PHYSICAL DEALERSHIP OEM DISCOUNTS OWNS INVENTORY GROWTH BY DEALERSHIP ACQUISITIONS Web Centric Automotive Retailer and Provider of Subscriptions, Rideshare, Rentals & Sales Peer - to - Peer Lease & Subscriptions Peer - to - Peer Subscript
Slide 11: We Buy Pre-Owned Vehicles at Auction and Off-Lease
WE BUY PRE - OWNED VEHICLES AT AUCTION AND OFF - LEASE ▪ 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 provide a diverse inve
Slide 12: We Subscribe or Rent: Maximizing Revenue per Vehicle Unit
WE SUBSCRIBE OR RENT MAXIMIZING REVENUE PER VEHICLE UNIT 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 vehicle access, and in
Slide 13: Subscription Market
SUBSCRIPTION MARKET 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 and swap o
Slide 14: Rental Market
RENTAL MARKET ▪ $ 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 an all time record of $ 1 , 130 (Auto Rental News, 2019 ) ▪ Ride sharing c
Slide 15: We Sell: Expanding Our Online Presence
▪ After a predetermined time period and/or mileage is achieved, new vehi cles 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 ar
Slide 16: Used Vehicle Market
USED VEHICLE MARKET ▪ 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 . (Carvan
Slide 17: We Repeat Our Cycle of Buy, Subscribe or Rent and Sell
WE REPEAT OUR CYCLE OF BUY, SUBSCRIBE or RENT AND SELL ▪ 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 establish a cluster of
Slide 18: Our Simple Consumer Process
OUR SIMPLE CONSUMER PROCESS BUY, SUBSCRIBE, RENT OR SELL A VEHICLE ▪ BUY 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 arrange payment and/or cre
Slide 19: Growth Strategies
Regional Strategy - We expect to benefit from logistical and operational efficiencies through creation of clusters of large, centrally located facilities . Focus on Geographic Concentration GROWTH STRATEGIES 1. INCREASE ONLINE SALES AND SUBSCRIPTIONS Sales ▪ Increase sales by building inventory thro
Slide 20: Regional Strategy and Expense Reduction via Acquisition
66.8% 68.9% 72.4% 73.6% 77.5% 78.0% Lithia Asbury Autonation Group 1 Sonic Penske Regional Strategy - We expect to benefit from logistical and operational efficiencies through creation of clusters of large, centrally located facilities . Each facility is expected to be supported by : - State - of -
Slide 21: Financial Results
Year Ended December 31 FULL YEAR 2018 2017 TOTAL REVENUES $16,610,786 $3,759,031 Gross Loss (1,956,989) (235,048) Total Costs of Revenues 18,567,775 3,994,079 Loss from Operations (6,458,916) (1,409,306) Other Expenses 31,377 14,356 NET INCOME $(6,490,293) $(1,423,662) FINANCIAL RESULTS Nine Months
Slide 22: Balance Sheet and Cap Table
Cash $2,073,672 Accounts receivable 118,399 Automobile inventory, net 8,147,676 Other current assets 291,438 Total current assets 10,631,185 Property, equipment and leasehold improvements, net 484,578 Intangible assets 68,297 Right of - use asset 1,183,272 Deferred offering costs 1,258,316 TOTAL ASS
Slide 23: Use of Proceeds
Regional Strategy - We expect to benefit from logistical and operational efficiencies through creation of clusters of large, centrally located facilities . Each facility is expected to be supported by : - State - of - the - art photo studios that provide optimal visual presentations of each vehicle
Slide 24: Executives and Board of Directors
EXECUTIVES AND BOARD OF DIRECTORS 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 with a valuation of $
Slide 25: Executives and Board of Directors (cont.)
EXECUTIVES AND BOARD OF DIRECTORS (cont.) 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 operati
Slide 26: Board of Directors (cont.)
BOARD OF DIRECTORS (cont.) 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 . Coh
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 ch a
Slide 28: Investment Highlights
INVESTMENT HIGHLIGHTS 28 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 reve
Slide 29: Contact Us
Sam Tawfik, CEO CORPORATE OFFICES 601 North State Road 7 Plantation, FL 33317 O: (954) 895 - 0352 F: (954) 756 - 8112 lmpmotors.com CONTACT US SUBSCRIBE, RENT, BUY OR SELL VEHICLES ONLINE OR IN PERSON
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