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Investor Presentation March 1st 2016
www.pudoinc.com
WELCOME TO
Filling The Void Between eCommerce
And The Consumer
What is PUDO?
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A reliable and secure Pick-Up Drop-Off point for your
ecommerce parcels
Allows you to pickup parcels at your convenience, including evenings
and weekends
Gives control over parcel pickup and delivery back to the consumer
PUDO is a disruptive business model with first mover advantage
PUDO is positioned to dominate the “Last Mile Delivery Solution In
North America”
PUDO IS THE CONNECTION BETWEEN
eCOMMERCE AND THE CONSUMER
What Is Driving The Need For PUDO ?
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The explosive growth of eCommerce – estimated at $3.5 trillion within
the next five years (Internet Retailer 7/29/15)
An unprecedented, and growing, number of parcel deliveries
Amazon spent over $8 billion dollars last year to deliver $4 billion in
product
Over 23 million parcels were stolen off door steps and porches in 2015
Apartment backlash – complexes and landlords stopping parcel
deliveries to their buildings
FedEx increases rates for residential deliveries
Consumers want delivery options and convenience
What Is Driving The Need For PUDO ?
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Sources: Pitney Bowes, UPS, BI Intelligence, InsuranceQuotes.com
The Holiday-Package
Waiting Game
FedEx customers
complain about late
Christmas deliveries
TRANSPORTATION 'Porch pirates' stealing people's holiday deliveries
As online orders increase, so do "porch pirate" thefts
23 Million Americans Have Had Packages Stolen from their Doorsteps (as of 12/1/2015)
Your Landlord Might Stop
Letting You Get Packages
At Home
UPS Struggles to Keep Up With Surge in Web Orders: On-time delivery rates are strained as more shoppers buy online … Most of the problems surfacing so far involve UPS, which does more residential deliveries than FedEx and has been trying to contain costs.
2015 Pulse Survey: “Today, almost half of shoppers (48%) have used ship-to-store options in the past year. Appeal stems from a combination of convenience and cost savings.”
PUDO Highlights
Growth Strong Potential 5
Stable recurring revenue
streams
• Extensive North American PUDOpointTM dealer
network.
• Canpar – preferred national courier partner in
Canada.
• U.S. courier network is in place that provides
100% coverage of U.S. to enable consolidated
returns.
• TNT Express Canada – preferred international
courier partner.
• AATAC partnership – national association for
convenience store owners of 80,000+
convenience stores across the U.S.
• PUDO is courier neutral.
• Named a Top 20 Technology Innovator by the
Canadian Innovation Exchange.
PUDO Advantage
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For Customers
• Free membership.
• Flexibility of choosing your
Pick-Up & Drop-Off location
near home, office or when
traveling.
• Email message notification
upon package arrival at
PUDOpoint.
• No additional cost for
members to use
PUDOpoint when product
purchased through a retail
affiliate such as Amazon or
Walmart .
For Shippers
• PUDOpoint’s are comprised of local
convenience stores with extended
hours.
o Eliminates ‘not home/not safe’
deliveries
o Saves courier redelivery costs
o Eliminates residential surcharges
o Saves Customer Service costs by
reducing inbound, outbound calls on
shipping issues
• Courier neutral.
• Latest user-friendly technology
ensures member satisfaction.
• Training & all materials supplied by
PUDO.
21 million
Targeted number of shipments
delivered & returned by our
PUDOpointTM locations, members &
partners by YE2017(1)
7 (1) Total shipments targeted for 2017 by all members, PUDOpointTM and partners.
(2) Targeted growth 2016-2018. See forward-looking statements in this presentation and pudoinc.com for further details.
2,200
6,500
11,800
May 2016E May 2017E May 2018E
Canada US
Locations in Operation
by PUDO’s Year-End(2)
300-400 PUDOpointTM locations going live per quarter
5,000+ PUDOpointTM locations signed up in North America
YE2016E YE2017E YE2018E
Rapid Growth Network
PUDOpointTM
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• 7-11s
• CST
• Numerous Independents
• AATAC Member stores (approximately 80,000)
3,549 PUDOpointTM locations
signed up in U.S.
Fed Ex UPS USPS
• Low setup cost $200 per PUDOpointTM
• Targeting 21 million shipments per year by 2017
Marginal set up cost
Independent & corporate dealers
33,000
4,400
2,400
3,500
National Postal Forum, USPS statistics May 2015
Retailers Save Up to
On return shipments using
PUDOpoints.
PUDO Offers Guaranteed Savings
For Retailers Returns
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30%
Return Cost to Retailers
5%-20%
2017 estimates in Canada
alone could represent over
$1 billion
No change in consumer behavior.
(1) Source: www.emarketer.com.
Traditional Return Model
High cost to Retailers since
retailers pay per item returned
PUDO’s Return Model
Consolidated returns cut costs
“Fashion discounter Rue La La said dealing with returns cost the
company $5M in 2013.” 5-20% of items purchased online are returned
R
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Returns (Retailers): • Minimum $3.00/shipment from retailers.
Retail program: Affiliate Program • 2%-10% commission on retail purchases.
Direct Sell: Avon, Amway, DSA • $2.00 - $3.00/shipment.
Estimated average number of
shipments annually per location:
2,000 by 2017(1)
Couriers Including Failed 1st Attempt: • $2.25 - $3.00/shipment.
Analytics Captured: • MILLIONS OF USERS
PUDOpointTM Dealers: • $150 annual fee.
(1) Source: Based on Company estimates of 6,100 locations times number of estimated shipments and returns of 21 Million by May year end 2017.
Recurring Revenue Sources
PUDO Is a Public Company
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Financial Highlights
• No trucks: third party regional
carriers that cover U.S. & Canada
• Cash & cash equivalents:
$1,000,000 CAD
(1) 30-day share volume November2015.
• CSE: PDO (July 2015)
• OTCQB: PDPTF (Dec 2015)
• High/Low: CSE $3.40 CAD
• Volume: CSE 444,600
shares(1)
• Shares Outstanding:
16,203,769
• Market Capitalization: $55.1
Million CAD
• Named a Top 20 Technology
Innovator by the Canadian
Innovation Exchange
CSE Data
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Completed a non-broker private placement raising $1,170,000
Entering the U.S market with PUDOpoints April 2016
Leveraging first mover advantage to dominate the last mile delivery
solution in North America
Preparing to up list to in second quarter
Plan to raise further funds in Fall 2016 to leverage it’s strategic
partnerships and carry out it’s aggressive expansion plans across the
U.S
Financing and Exchange
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Eleven employees
Approximately $70,000 a month burn rate
February 28 is year-end
Over 600 PUDOpoints trained and operating
500 - 600 parcels currently handled daily and increasing
Fast Facts
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PUDO is the conduit between millions of retailers, ecommerce companies
and tens of million consumers who want delivery options and convenience
for their online purchases.
PUDO has first mover advantage to dominate this market place.
PUDO has secured contracts to action its business plan in North America.
Over 600 PUDOpoints trained and operating.
PUDO is currently operating and generating revenue.
PUDO has multiple revenue streams.
Reasons To Invest In PUDO
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PUDO has minimal assets.
PUDO branding opportunity across North America PUDO will be in front of
millions of people a day.
PUDO will be collecting analytics from millions of people.
PUDO is well financed.
PUDO is expandable into other countries.
PUDO has an experienced management team.
Reasons To Invest In PUDO
Contact Us
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PUDO The e-commerce last
mile
delivery solution
Make PUDOpoint™ your last mile stop…
and don’t forget the milk!
Frank Coccia
President & CEO
PUDO Inc.
Direct Tel: 416. 807.7962
E-mail: [email protected]