GEOGRAPHIC

ADVANTAGEChina-Mongolia-Russia transfer corridor

GROWTH OPPORTUNITYChina increasing bilateral trade with One Belt One Road countries

RIGHT TIMINGPoor or lack of implementation of FMS systems at major trucking companies. Popularization of social media

01TRUCK FREIGHT SYSTEM

02PROBLEM FOR SHIPPERS

FINDING TRUCKERSFor international Shippers outside of Mongolia have very small information and choice on transportation

UNTRACEABILITYMost of cargoes doesn’t have technical means for tracking shipments online both for international and domestic routes

TARDINESS & LACK OF RESPONSIBILITYQuotation system of chain of partners takes forever to get quotation. Most probably starting shipment on-time and receiving on-time is very rare privilege. In most cases very hard to settle disputes regarding shipment

03PROBLEM FOR TRUCKERS

FINDING LOADSHard to find loads, spending most of time waiting for clients under Gurvaljin bridge. Inefficiency in planning leads to biggest problem for trucking companies - to find return loads.

INEFFICIENCY & EXCESS or SHORTAGE OF SUPPLYLack FMS systems creates major problems in efficient management. Lack of BI and interactive information exchange creates excess of shortage of supply.

LATE PAYMENT CYCLELong period of time for settling payments for loads

04

Shipper ApplicationTrucker Application

Shipment ordering systemFleet Management System

ERP system

SOLUTION

05

Shipper Application• Placing orders

• Planning shipments

• GPS tracking shipment

• Payment Escrow module

• Communications

• Service evaluation

Trucker Application• Finding loads

• Planning shipments

• GPS

• Fleet management

• Fuel reporting

• Payment module

• Chat

HOW IT WORKS

Web application• Order management

• Contracting

• Driver scoring system

• FMS

• ERP & business analytics

• Payment processing

• Third party cooperation

SOLUTION

06

• 6 trillion ton-kilometers of cargo including China

• 380 Billion ton-kilometers including Russia, Kazakhstan and others

• 5.9 billion ton-kilometers – Domestic market

MARKET

TAM 900 trillion MNT (360 billion USD)

SAM 57 trillion MNT (22.5 billion USD)

SOM 3.184 trillion MNT (1.27 billion USD) (265 Bil (30%domestic market) + 2,85 billion MNT(5% International))

*rate per ton-kilometer 150 MNT

Trucks registered

REVENUE MODEL

COMMISSION

3%-10% (Against average 30-40% of value-chain logistics brokers)

TRANSACTION FEE

0.5%-5% Depending on domestic and international transaction rate

OTHER• Capital gains

• Value added service subscription fee

• Leasing

• Insurance

• Third party cross sale

07

15%

FOR SHIPPERS• Direct marketing (Social media, Physical lead

generation)

• Inbound strategies

• Classic marketing

• Value added usage of applications

• Bring-your-network bonuses

MARKETING 08

FOR TRUCKERS• Software incentive (Free ERP, FMS, except

hardware)

• Direct marketing (Social media, Physical lead generation)

• Organization of industry events

• Organization of free courses on ERP and FMS

CURRENT SALES FORCE• In-house CRM

• Call center

• Customer database (e-mail server/database, phone database, social media database)

• Inbound strategies

PENETRATION• 80’000 USD projected for stage 1

(Domestic)

• Pareto principle for international partners

• Customer conversion rate is about 0.5-1,6 USD

PROJECTED TRACTION

WHAT WE HAVE ACHIEVED

• Fleet Management System launched and implemented on clients

• Mobile and web application launch planned on September

• Payment gateway solution launched

• Marketing and sales team formed

• Validation have done with more than 250 companies with success rate of 83%

09

PROJECTED NUMBERS

COMPETITION

RUSSIA / CIS

• Trans.eu

• Eastern part of Russia have weaker competition

10

DOMESTIC MARKET

• Facebook groups with delivery posting• GPS systems mostly Vendor solutions

from China• FMS/ERP from costlier opponents

CHINA

• Huochebang – Partnership or competition?

USA / International

• Omnitracks• Convoy• Uber Freight

ADVANTAGES 11

WE HAVE

• In-house Payment Processing company for additional revenue, handling easier settlements and escrow services

• Sorted database of clients collected during 13 years of operation

• Free Zone – Company registered at AltanbulagEconomic Free Zone, gives tax free policy for first 5 years with following years of tax discounts

• Good network of business partners in CIS countries

TEAM 12

CORE TEAM

• 5 engineers• 3 sales person• Ongoing outsourcing contract with

leading local HR agencies, legal firm and accounting company

DIVERSIFICATION

• We have in team Kazakh nationalities for easier stepping into Kazakhstan and Kyrgyzstan markets in 2020

EXPERIENCE

• 13 years of experience in technology industry• We have installed first ATM networks for 5 major banks in Mongolia• Developed our payment gateway and device payment solution• Ongoing PCI certification• Our engineers developed our Development Framework based on Java Spring,

Spring Boot, Vue JS, Bootstrap, Jquery, HTML5, Micro-service technologies• Developed many software solutions (FMS, GPS, POS, F&B, ERP Monitoring

systems, Back-end systems, Mobile applications)

FINANCIAL NEEDS 13

STAGE 1

2018-2019

• Main development and Domestic market – 300’000 USD

• Need - 250’000 USD• Self funded until now – 50’000 USD

STAGE 2

2020

• Kazakhstan & Kyrgyzstan – 0,5 Million USD

STAGE 3

2020-2023

• Russia and other CIS – up to 5 million USD

Questions?

Grow With US!