ETHOS VALUABLE OUTCOMES ETHOS VALUABLE OUTCOMES .

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ETHOS VALUABLE OUTCOMES ETHOS VALUABLE OUTCOMES http://ethosvo.org

Transcript of ETHOS VALUABLE OUTCOMES ETHOS VALUABLE OUTCOMES .

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ETHOSVALUABLE OUTCOMES

ETHOSVALUABLE OUTCOMES

http://ethosvo.org

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2012 Share offerRobert Pye

Air Commodore Andy Fryer

Major General Lamont Kirkland CBE

Tony Clarke

Gerald Callus

ETHOSVALUABLE OUTCOMES

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Agenda

• Ethos VO

• The offer

• Key people

• Concept

• Strategy

• Cluster 1: London / local government / Aldershot

• The business plan

• The exit

• Tennis Centre

• Our DD steps to completion

• Agree next steps / actions

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The Ethos VO offer 2012

Equity

• Ethos VO Ltd divided into 100m shares.

• Target exit value = £100m in five years

Offer

• Up to 20% (20m shares) of Ethos VO Ltd to be sold for £4m

• 10% of equity allocated to 12 most valuable members (see annex)

• Remaining 70% to be allocated over next five years

• No dilution necessary

• £100k = 500k shares = 0.5% of Ethos VO Ltd.

• Target value of shares on exit = £500k (x5 investment)

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Ethos VO Ltd – who are we?

Senior team

• Major General Lamont Kirkland CBE – general officer commanding 4th Division

• Air Commodore Andy Fryer – former deputy commander of the NATO AWACS force

• Robert Pye – former Ernst & Young director and vice president Thales

• Tony Clarke – former Ernst & Young executive and business change specialist

• Gerald Callus – former programme director, Thales

• Captain Mike Davis-Marks OBE – former commanding officer of HMS Turbulent

• Andy Uren – brand and communications lead

• A network of over 100 senior execs / companies

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Concept: mediating networks and institutions

ETHOS

Inputs: networks, knowledge, collaborationsOutcomes: services, projects, ventures

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Ethos VO Ltd – strategy

Values

• Collaboration, trust and moderation.

Vision

• Develop and scale Ethos resources, reputation and processes to address a wider range, number and complexity of problems at a local and global scale.

• To provide a five year exit opportunity for members via a growth strategy

Strategic focus 2012

• To generate sustained short-term revenue through the pursuit of opportunities to problem-solve through collaborative projects using the capabilities already inherent in the Ethos network. Build strong track record in delivery and reputation

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Ethos VO Ltd – strategy

Strategy: three hubs equals a cluster

• Aldershot (military node)

• Military sports sponsorship – Team Army

• Scaling to RN, RAF and combined sports

• Future prospects: Australia and USA

• Exploit retail opportunities (click-through)

• Local government (IT node)

• Ethos Drupal-based CMS in delivery to Caerphilly and Nottingham

• Further pipeline: Cambridgeshire, N Wales, Strathclyde

• London (mega-city network node)

• Cyber

• Post-crisis infrastructure management

• Brand development

Growth = launch one new cluster per year

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Aldershot: impressive results since January 2011

Sponsors

• 22 of which 14 are new

• More in negotiation

Funds raised

• Over £1m of sponsorship funds pledged / received

• £170k existing sponsorship transferred in

• Over £800k is new money

• Additional £40k raised for Royal British Legion at dedicated fundraising events

Expanding the scheme*

• Combined sports

• RAF

• Royal Navy

* Concept brands only at this stage

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Current Team Army sponsors

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Business plan: exit strategy

Equity (100m shares) allocated incrementally

• 60% to Ethos members according to contribution to Ethos strategy

• 10% allocated per annum according to value-added

• No dividends based on equity (cash earned as salary / subcontracts)

• Founder retains golden share

• 40% to investors

• 20% tranche in 2012

• 20% tranche in 2014

• No dividend policy before 2015

Liquidation of investment

• 2016 float or trade sale

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Business plan: member / costs / offer strategy

• Everyone a member with more or less equal opportunity

• Legally, a requirement for directors of limited liability companies as needed

• Operationally, requirement for governing councils (e.g. a cluster / hub)

• Equity discussed previously

• FTE member growth from 10 (today) to over 1,000 on exit.

• Member salary / income

• Low base salary

• Remainder is profit / income / results based

Other costs

• Vast majority of costs are people based

• Virtual / distributed for foreseeable future

• Low / no fixed assets – everything ‘cloud’ based

All offers based on services

• 10-20% net margin achievable

• Recurring revenue where possible (e.g. Team Army forever)

• Pricing on outputs not inputs where possible (e.g. Caerphilly)

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Business plan: cash balances at 29/11/2011

Ethos VO Ltd

• £67,271.87

Ethos Fundraising Ltd

• £200,698.11

Team Army Sports Foundation

• £10,000.00*

Statements at end of presentation

*managed on behalf of the charity

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Business plan: P&L

All figures £ 000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 102011 2012 2013 2014 2015 2015 2016 2017 2018 2019

Cluster 1 955 3,150 6,050 10,000 16,500 30,300 30,800 30,800 30,800 30,800

Aus/ USA/USA/Canada/ NZ Sponsorship

Rest of the world sponsorship

Platform / Memberships 200 500 1,000 2,000 4,000 8,000 8,000 8,000 8,000

Cluster 2 955 3,150 6,050 10,000 16,500 30,300 30,300 30,300 30,300

Cluster 3 - 7 - - 955 4,105 10,155 20,155 36,655 66,000 93,150 117,400

Total revenue 955 4,305 10,655 21,155 38,655 70,955 105,755 135,100 162,250 186,500

Growth % 451% 248% 199% 183% 184% 149% 128% 120% 115%

Operating Costs 100 2,153 5,328 10,578 19,328 35,478 52,878 67,550 81,125 93,250

Fixed Assets 215 533 1,058 1,933 3,548 5,288 6,755 8,113 9,325

Cluster 1 800 2,520 4,840 8,000 13,200 24,240 24,640 24,640 24,640 24,640

Central / Memberships / Marketing 500 1,000 5,000 6,000 3,000 4,000 5,000 5,000 5,000

Cluster 2 48 158 303 500 825 1,515 1,515 1,515 1,515

Cluster 3 - 7 - - 48 205 508 1,008 1,833 3,300 4,658 5,870

Total Costs 900 5,436 11,906 25,143 41,468 68,098 90,153 108,760 125,050 139,600

Profit & ValuationProfit Before Tax 55 -1,131 -1,251 -3,988 -2,813 2,857 15,602 26,340 37,200 46,900

Profit Margin (pre-tax) 5.8% -26.3% -11.7% -18.9% -7.3% 4.0% 14.8% 19.5% 22.9% 25.1%

Ethos Valuation 20,000 40,000 60,000 80,000 100,000 100,000 100,000 100,000 100,000

Full Time Equivalent personnel at year end 10 43 107 212 387 710 1,058 1,351 1,623 1,865 Clusters at year end 0 1 2 4 7 11 14 16 19 FTE / Cluster n/a 100 100 100 100 100 100 100 100

Members 100 2,000 5,000 10,000 20,000 40,000 80,000 80,000 80,000 80,000

Members Allocation 10% 10% 10% 10% 10% 10%

Equity Finance 20% 20%

Cumulative 10% 40% 50% 80% 90% 100%

Value of Equity Sale - 4,000 - 12,000 - -

Value of member allocation / FTE -£ 46.458£ 37.541£ 28.362£ 20.696£ 14.093£

Dividends - - - - - 1,143 6,241 10,536 14,880 18,760

Shareholders Reserves 55 2,925 1,674 9,686 6,873 8,587 17,948 33,752 56,072 84,212

Costs

Revenue

Equity Allocation

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Questions?

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Questions?

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