Teaser Memorandum - BallReady Inc.

This report is solely for the use and benefit of W Co.,Ltd. and should not be relied upon by any other part

Teaser Memorandum BallReady Inc.

March, 2016

Table of Contents

1. Company Overview 2

1.1. Outline 2

1.2. History 2

2. Key Investment Attractions 3

2.1. Smart Pet Care Service - Function of IoT Based on BallReady 4

2.2. Expected Valuation for market development 4

3. Industry Overview 5

3-1. Industrial Condition & Overlook 5

4. Financial Figures 6

4.1. Financial Information 6

4.2. Projection 6

Teaser Memorandum - BallReady Inc.

This report is solely for the use and benefit of W Co.,Ltd. and should not be relied upon by any other part

1. Company Overview

1.1. Outline

BallReady was incorporated in April of 2013 to become be an innovative creator of unique and

smart devices in the pet care market.

In September 2015, BallReady debuted in Korea and beginning in 2016 we began to set our

Sights on targeting the global market.

With many ideas on improving BallReady, we hope that it becomes one of the foremost IoT

smart pet care products on the market.

Description

Established 2013. 4

Type Manufacturing

Product Pet care service & device, Launched at 2015. 9

Shareholder S. K Park 52.7% & Others

Address 234, Beotkkot-ro, Geumcheon-gu, Seoul, Korea

Employee 5

1.2. History

Time Description

2013. 04 Incorporated in the name of BallReady

2013. 12. Perform Personal angel/matching fund(Korean venture investment) & start-

up supporting business

2014. 03. Won the grand prize in smart product start-up contest in Seoul Technopark

2014. 04. Selected in “the 2nd Brovo Restart” & Awarded technical development fund

support hosted by SK Telecom.

2014. 07. Certified as a venture company. (technologyl guaranted fund)

2014. 09. Accelerated in Orange(French global Telecom) Fab Asia

2014. 09. Won the best GMV innovation

2014. 10. Won the first prize in innovation part hosted by IITA & US MAC

2015. 05. Received the suitability enrollment certlficate of telecast equipment

2015. 07. Performed technical development supporing project by small manyfacturers

2015. 11. Won the consume best prize in small & mediun home appliance contest

2015. 11. Won the gold prize in Korean invention patent contest

2015. 12. Selected as one of 300 K-Global promising enterprises.

Teaser Memorandum - BallReady Inc.

This report is solely for the use and benefit of W Co.,Ltd. and should not be relied upon by any other part

2. Key Investment Attractions

2.1. Pet-care service fused existing BallReady goods with IoT function

BallReady is building pet-care platform by fusing existing BallReady goods(automatic ball-shooting

& automatic feeding) with IOT function(Bluetooth&wifi)

Teaser Memorandum - BallReady Inc.

This report is solely for the use and benefit of W Co.,Ltd. and should not be relied upon by any other part

2.2. Attractive Valuation by Market Growth

- Existing BallReady goods ease managing dogs by its’ original function (ball-shooting, dogs’ response, rewarding

feeding), but the next generation goods should graft IOT-based communication technology onto data

management technology.

- The data of exercise & food quantity for dogs by BallReady will be stored in cloud server and

provided with customers by mobile or web in the form of dogs’ career & patter through data

analysis process

Privilege Stamp

Teaser Memorandum - BallReady Inc.

This report is solely for the use and benefit of W Co.,Ltd. and should not be relied upon by any other part

3. Industry Overview

3.1. Industrial Condition & Overlook

Privilege Stamp

Teaser Memorandum - BallReady Inc.

This report is solely for the use and benefit of W Co.,Ltd. and should not be relied upon by any other part

4. Financial Figures

4.1. Past Financial Figure

subject 2013.12.31 2014.12.31

Ⅰ. Sales 0 0

Ⅱ. Sales Cost 0 0

(sales cost ration) 0% 0%

Ⅲ. Gross Profit 0 0

Ⅳ. Selling And Administrative Expenses 117,625,748 268,372,390

(Depreciation) 1,613,871 1,991,784

(Amortization On Intangible Asset) 0 0

(Ratio of Selling And Administrative Expenses) 0% 0%

Ⅴ.Operating Income (117,625,748) (268,372,390)

Ⅵ. Net Income (69,606,677) (154,571,647)

EBITDA (67,992,806) (151,041,853)

EBITDA Adjustment 0 0

Adjusted EBITDA (67,992,806) (151,041,853)

(Source:: BallReady, Sale Analysis)

4.2. Projection

subject 2015 2016 2017

Sales 24,000,000 2,630,000,000 8,920,000,000

Sales Cost 10,000,000 1,540,000,000 4,580,000,000

Gross Profit 14,000,000 1,090,000,000 4,340,000,000

Gross Profit % 58.33% 41.44% 48.65%

Selling And Administrative Expenses 30,000,000 450,000,000 1,120,000,000

S&A % 125% 17.11% 12.56%

Operating Income (16,000,000) 640,000,000 3,220,000,000

Operating Income % -66.67% 24.33% 36.10%

Interest Income 12,000,000 15,000,000 15,000,000

Income Before Income Taxes (28,000,000) 625,000,000 3,205,000,000

Income Tax Expense 0 54,564,335 621,000,000

Net Income (28,000,000) 570,435,664 2,584,000,000

- Annually we are aimed at earning 26billion(PBP) in ‘16, 89billion(PBP) in ‘17 by launching a new model

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