Twenty20 Network Solutions

Mike Glover - Founder CEO

A better way

Confidential: intended for investors

No representation or warranty is made as to the accuracy, reliability or completeness of any information in this document
 Company overview
➔ Mumbai-based digital technology platform
➔ Resets way buyers & suppliers interact
◆ reducing market friction and saving costs for both

➔ Exploits power of network and collaboration

◆ to evolve and enhance engagement process
◆ releases significant locked-in value which cannot otherwise be released

➔ Targets transactions in fast-growing India construction market (~ $400 billion

in 2015 & estimated to be $1 trillion by 2025 according to KPMG)
➔ Monetisation derived from share of value created - not dependent on
subscriptions or advertising
➔ Free-to-use for all stakeholders and can create value from very first
transaction
 THE PROBLEM WE ADDRESS

Buyers currently pay for supplier inefficiency

● Selling is highly inefficient - resulting in:
○ Wasted sales & marketing costs (cost implication: 2% - 5%)
○ Unsold unused spare capacity (cost implication: 5% - 30%)
● This inefficiency is already priced into existing supplies
● Buyers unable to unlock this cost saving potential for themselves

Success rate <1% on average

Source: Salesforce.com
 HOW WE DO IT

Network & Collaboration

Our digital transaction platform enables smarter connection &
collaboration mechanisms which unlock this cost saving potential

Builders / Developers can Suppliers can efficiently increase their New value generated works for all
anonymously aggregate their sales (without impacting market price) spend categories including large
spend to gain additional and simultaneously reduce costs and strategic spend categories
(incremental) savings
 THE POTENTIAL

Indian Construction market value estimated

to be $1 trillion by 2025
Addressable spend for our platform at least 35%

➔ Population growth, growing middle class,

urbanisation and need for critical
infrastructure are all driving strong and
sustainable construction growth dynamic.
Population [bn]: 2015 Population [bn]: 2100

Catch up
potential

➔ Construction companies have started to

scale, but market & supply chain remains
highly fragmented

➔ Value for supply chain collaboration

Construction material consumption data underlines
and disintermediation is very high huge current potential - cement being a good indicative
reference material
 THE DIFFERENCE

Business Model
We aggregate demand and better align it to supplier capacity

Platform offer
incentive to
buyers

Buyers benefit from Suppliers increase their sales at Each stakeholder shares in value
aggregated spend to ensure no additional cost, and benefit created according to the extent of
a better deal than they can from better capacity utilisation their contribution
negotiate on their own on a no-win / no-cost basis
 SHARED GAIN

Value proposition
Stakeholders on both sides of a commercial transaction win
Suppliers can easily afford to offer platform Buyers gain additional new savings by:
incentives to buyers, funded by: - Enabling the cost savings at their
- Lower cost of acquiring new customers suppliers
- Realising profit potential of unsold spare - Reducing market place friction
capacity - Collaborating with their peers and the
- Cost savings recovered down their own supply chain together
supply chain

Example Example
A Cement Business with low current A Top Tier Contractor with addressable
Operating Profit margin can offer buyers spend of ~$60 million p.a.
savings of 12% (on current market price) - Can target savings of at least 7%,
- Resulting in increased sales of 10% across all spend categories
- With Operating Profit margin improving - Yielding >$4 million paid as new
from 0.6% to 7% (> 12 times) revenue stream
 THE BENEFITS

Buyer benefits Supplier benefits

Anonymous aggregation of spend to multiply Buyers gain additional new savings

Free access to buyers when they are ready to buy
buying power without constraining choice of - On
–effectively a new freetop of anything
sales channelthey
withcan
highly
supplier or product negotiate
qualified(imminent) leads for themselves
- With no compromise on what
Savings realised paid in cash – making
they buy
Sale of unsold unused or capacity
spare who theywithout
buy from
procurement a significant revenue generating
compromising market price
contributor to its organization's bottom line

Savings can be applied to all types of spend – No win – no cost. No risk to engage, as supplier
strategic and indirect (large or small), including on offers remain confidential to the buyer(s) selected
already existing supply contracts only

Unlike consortia buying schemes, larger buyers do Highly granular market intelligence on market
not dilute competitive advantage to small buyers buying activity and market pricing
 Platform technology
We are a multi-sided platform - adapted to meet the more
sophisticated needs of B2B transactions

➔ Digital interactions: ➔ Transaction data management:

◆ 3 way anonymised connections
● up and down the supply chain
● peer-to-peer
◆ Direct, discreet, & individualised
one-on-one transactions
◆ Individual deal data capture
◆ Aggregation benefit capture
◆ Value share mechanisms

➔ Market data management:

◆ Real-time, bottom up driven market data
◆ Available to stakeholder users in
anonymised format to highlight market
trends

E-commerce platforms
- Digitised convenience
- Value creation in B2C space
(but limited to indirect spend and
SME spend in B2B space)
- Fully variable pricing not
enabled
- No aggregation benefit
mechanisms
Competition
E-procurement platforms
- Offer efficient solutions mainly
targeting efficiency of sourcing
process itself
- Often linked to ERP systems
- No aggregation mechanisms
across buyers
- Usually subscription required
Consortia buying
- Generally non-digitised solutions
which align buyers buying same
product from same supplier
- Buyer choice constrained
- Smaller buyers gain at expense
of large buyers

Why Twenty20’s solution is better
Variable pricing model
Discreet & individualised
transaction negotiation
- No impact to integrity of
market price competition
- Competitive cost
advantage of large buyers
maintained
OUR EDGE
Aggregation of demand
Buyers negotiate their individual
best deal
And add leveraged benefit of
buying power of many buyers
Benefiting from alignment of
aggregated demand to supplier
unused capacity
Without dis-benefits of consortia
Buyers do not have to buy same
product from same supplier
Or pay same price for same
product
Supplier margins not squeezed
 Market approach
INITIATORS VIRAL GROWTH DRIVERS

● Early adopters ● High stickiness

○ Collaboration partners ○ Frequent, repetitive, long-term user
■ 3 key high profile Developers engagement
■ Additional incentives ○ All spend categories are relevant
■ As value creation reference ○ Mutual gain (buyers & suppliers)

● Intermediary market channel ● Incremental value generation for

○ Readymix suppliers each member through:
■ Large key spend category for ○ Increased spend penetration
construction
○ Platform membership growth
■ Unused capacity is consistent issue
■ Can benefit from procurement &
sales simultaneously (both sides) ● Free-to-use platform

Users have nothing to lose - Platform is free-to-use - No-win / no-cost basis

 CO-OPETITION

Our Foundations
Success is based on strong foundations
Mike Glover - Founder CEO
➔ Previous MD of Lafarge Aggregates &
Concrete India.
➔ Extensive senior-level management
experience across a range of roles
➔ Experience in varied market contexts

New Value Creation FREE-to-use Network

➔ Digitisation and participation in collaboration ➔ Platform for buyers to buy collectively

economy represents huge value potential
➔ Our growth will be fuelled by mutual interest and
shared gain
➔ We eliminate value-destroying elements of
competition - replacing it with co-opetition
➔ Platform for Suppliers to facilitate more
efficient sales
➔ Works alongside any / all existing procurement
/ sales tools
 Money
➔ Monetisation derived from share of value created from each
transaction (no advertising / subscriptions)
$1.2 million
➔ Financial projections predicated around growing active
₹8.5 Crore
membership to 10,000 buyers by end of YR3
Raise required
➔ Sales mix assumption (large & small buyers) - av. buyer
spend through platform starts at $10k only per month rising
to ~$25k after 3 years penetration growth
◆ Note: Large Builder / Developer spend can be as much as $6
million per month and generate $420k of platform savings $12 million
₹86 crore
➔ Assumption - Buyers projected to generate between 6% and
8% additional savings by using platform Projected Year 3 EBITDA
➔ Platform's (retained) revenue earnings represent <1.5% of
prevailing market rates
 FUNDS DEPLOYMENT

Launch first platform model and

validate key assumptions

Validation of business / market Platform efficiency / Scalability & Functional

assumptions performance evolution

➔ Problem quantification ➔ Usability ➔ Develop user MIS presentation

➔ Solution fit & optimisation ◆ Efficiency of platform journey options (user dashboards)
➔ User engagement model ◆ Critical and frequently used ➔ Virtual private video-meeting
functions
verification (negotiation tool)
➔ Platform performance metrics
➔ Resourcing to support user ➔ Phase 2 rebate engine
◆ Conversion rate
interface engagement ◆ Learnability & Return rate ➔ Data security
◆ Value creation per user
 ATTRACTIVE PROPOSITION

INVESTMENT HIGHLIGHTS
➔ Increases sales / reduces costs for
➔ Multiplier of buyer spending power
suppliers
◆ irrespective of size of
◆ allows confidential & fully
organization / size of order
variable / differentiated pricing
➔ Reduces transaction friction to ➔ Drives frequent, repetitive and long
create value simultaneously for term user engagement
buyers and suppliers ◆ (high stickiness)

➔ Generates granular market

➔ Free to use platform for buyers &
transaction data at a level not
suppliers
currently available
➔ No change to current market practice
➔ Clear cut monetization model
Confidential: intended for investors / behaviour
◆ as
No representation or warranty is made based
to the on shared value creation
accuracy, reliability or completeness of any ◆ simple enhancement to capture
◆ not dependent on
information in this document
the transaction and enable the
subscriptions or advertising
collaboration mechanisms