Company overview.

1. Introduction To LTI
Leasing Technologies
International, Inc.
221 Danbury Road Wilton, CT 06897
203-563-1100 www.ltileasing.com

2. Discussion Topics
 LTI Overview
– LTI At A Glance
– Background
– Markets
– Marketing Efforts
– Operations
– Credit Process
 Outlook
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3. LTI At A Glance
 Specialty finance company founded in 1983
 LTI serves emerging growth companies and venture capital
backed startups in the U.S.
 We offer equipment leases and loans to customers as a growth
and equity conservation tool
 Since inception, LTI has originated over $300 million in
transactions involving over 500 customers
 Transactions typically range in size from $250,000 to $2.5
million. Terms typically range from 18 to 48 months (36 month
average)
 Headquartered in Wilton, CT. Regional offices in Boston and
LA. Services are offered nationally.
 15 employees
 Privately owned
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4. LTI Background: Brief History
 Founded in 1983 by Jerry Sprole, George Parker and Arnie Hoegler
 Originally focused on FMV leasing of technology equipment to Fortune
companies until the early 1990s
 In the early 1990s, LTI made the strategic decision to target emerging
growth and venture capital-backed startups
 LTI grew profitably to over $100 million in assets and $19 million in
revenues by 2000 (achieved 15 consecutive years of profits and
booked over $300 million in leases over this period).
 A terminated purchase of LTI by a Fortune 500 energy company just
prior to the 2001 downturn led to LTI’s restructuring/downsizing
through 2004.
 A successful legal settlement at beginning of fiscal 2006 allowed LTI to
resume originations and growth.
 LTI presently is pursuing a growth strategy consisting of originating
transactions for its own account and managing structured lease funds
sponsored by a major NYC investment advisory firm.
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5. LTI Background: Management
 Jerry Sprole, President: has 35 years in equipment financing, venture
lending and banking. Formerly CFO at Intech Capital Corp. and VP at
Bank of Boston. Past Board member of EAEL association.
 George Parker, EVP & CFO: over 30 years in equipment financing,
venture lending and banking. Formerly VP-Treasurer at DPF Computer
Leasing, Inc. and Second VP at Continental Illinois Bank. Present
Treasurer and Board member of NEFA assoc.
 Arnie Hoegler, EVP & COO: over 30 years in equipment financing,
venture lending and accounting. CPA and formerly Sr. Audit Manager
at KPMG. Past President and Board member of EAEL.
 Hugh Baum, Corporate Counsel: over 35 years in equipment
financing, venture lending and legal work. Formerly Counsel for
Randolph Computer Leasing and Partner in private practice.
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6. LTI Background: Value Proposition
 LTI’s financial services assist young growth
companies in conserving equity capital,
building enterprise value between equity
rounds, and minimizing ownership dilution.
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7. LTI Background: Market Positioning
 LTI is positioned as a national provider of equipment financing to
emerging growth companies and venture-backed startups in the U.S.
LTI targets growth companies, primarily in technology markets, that
have already received their A - round of venture capital financing, that
have begun marketing their products or service, and that are typically
ineligible to receive traditional bank financing.
 LTI offers its customers flexibility and efficiency in the form of well-
structured financing solutions, enabling them to conserve equity
capital, to fund equipment purchases as needed, and to avoid
ownership dilution and loss of management control. Flexible
transaction sizes of $250,000 to $2.5 million, lease and loan terms that
range from 18 - 48 months, and funding availability for up to one year,
allow these companies to satisfy most of their equipment needs.
 Unlike many of its competitors, LTI offers customers flexible equipment
financing without the requirement of warrants or board participation.
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8. LTI Background: Markets Served
 Venture-backed growth companies
 Emerging growth companies with positive
operating trends
 Structured FMV transactions for major
companies
 Vendor lease programs requiring FMV leases
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9. Market Overview: Venture Leasing
 VCs invested $28.3B during 2008 compared to
$105B during the 2000 peak and $8B annually
during the mid-1990s
 Venture Leasing/Equipment Lending has historically
totaled 5% – 10% of aggregate VC investments
 Market Drivers: economic growth, innovation,
financial liquidity, and available exit channels
 Competition: a few banks, several specialty
leasing/finance cos., and a few dedicated lease
funds
 Lessee prospects: 2,500 to 3,000 VC-backed
companies per year that raise new equity rounds.
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10. Marketing: Channels
 Direct Sales professionals
 Third-party originations
 Referrals from banks, past & present
customers, and other contacts
 Vendors
 In-house direct marketing
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11. Operations: Key Functional Areas
 Marketing – strategy, advertising, promotions, transaction
originations, PR
 Lease Administration – lease documentation & review,
processing, reporting
 Legal – corporate and transactional legal services
 Credit – credit reviews, due diligence, monitoring, collections,
work-outs, credit policies
 Accounting – bookkeeping, financial reporting, taxes, financial
controls, billing, payables, audits
 Treasury – funding, cash management, banking relations,
investor relations, compliance
 Remarketing – equipment assessments, renewals, equipment
remarketing
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12. Credit Process: Key Credit Criteria
 The caliber and amount of Venture Capital
Sponsorship
 An experienced and talented management team
 Compelling business model and prospects
 Adequate operating track-record relative to
milestones
 Sufficient cash and liquidity
 Equipment: mission-critical and readily re-marketable
 Adequate credit enhancements and security
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13. Summary and Outlook For LTI
 Although the economy has slowed significantly with a resulting softness in
capital goods acquisitions, demand for equipment leasing within the emerging
growth and venture-backed segments has not slowed as dramatically as many
other leasing segments.
 Many VC-backed companies receiving new equity rounds today have survived
the triage process of their VCs. They represent the most compelling situations,
many having met or exceeded significant milestones.
 The credit squeeze has caused several of competitors to either abandon the
market or to significantly reduce their activities, creating a unique opportunity to
gain market share and to acquire transactions with excellent returns and
structures.
 LTI has already benefited from these market conditions and its disciplined
marketing efforts. We anticipate being able to further exploit these market
dynamics over the next year.
 LTI has secured sufficient lease commitments to fill the first Fund ($20MM), and
secured additional commitments to jumpstart the next fund. We plan to pursue
a dual strategy of developing our internal portfolio utilizing bank financing while
continuing to expand via our Fund partnerships.
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