- Qannu aims to facilitate international e-commerce by allowing international consumers to easily purchase from US retailers and providing logistical solutions for cross-border transactions. - The global e-commerce market is large at $1.2 trillion annually and growing, with cross-border shopping expected to reach $300 billion by 2018. - Qannu's technology and services will simplify international shipping, returns, and customer service for both consumers and retailers to tap into this growing market.

1. Investor Presentation
March 2014

2. INTERNATIONAL ERETAIL
Qannu provides International consumers the
ability to purchase simply and easily from any US
e-Retailer.
Qannu provides the financial and logistical
solutions for both consumers and e-Retailers to
become cross border buyers and sellers

3.  International e-Commerce is estimated at $1.2 Trillion
industry, including digital downloads and growing at 23% pa
(source emarketer.com)
 By 2018 there will be 130 million cross border shoppers
purchasing $300 Billion per annum (source paypal.com)
• 79% state top reason to buy cross
border” is more variety than cannot
be found locally”
• Average cross-border consumer is 35-
54 years old
• Mobile technology increasing the
market faster globally
MARKET SIZE

4.  Australian online annual sales rose to $14.1 billion (30 June
2013). Expected to grow to $25 billion by 2015
 In the past 3 months 50.3% of Australians have shopped
online
 6.3 million cross-border shoppers up $6.5 billion in 2013
growing to 16.6 billion by 2018
 Av. Weekly spend online is A$285 per person (ABS)
 International Purchases up to $A 1000 are Duty and Tax free
AUSTRALIAN MARKET

5.  Cross Border consumers unaware of US e-Retailers
 US e-Retailers not accepting non-US Credit Cards
 US e-Retailers unaware of complexity of cross border shipping
 Tax & Duty
 Returns
 Packaging and labelling
 Adapting US model of customer service, free shipping and
returns to cross border consumers
 FEDEX, UPS and DHL cannot offer the same international
solutions that US e-Retailer have become reliant upon
domestically
MARKET CHALLANGES

6.  Qannu controls the International Logistics, including returns
and final mile delivery and a shipping lower cost than FEDEX,
UPS or DHL
 Qannu has local customer service in key markets
 Qannu technology allows consumers to manage and
consolidate orders from multiple e-Retailers
 An integrated retail site providing consumer’s a destination
for US shopping information, promotions and products
 Capturing valuable consumer-centric data around shopping
habits for US e-Retailers
WHY ?

7. WHAT IS ?
Technology
Custom built web application with unique algorithm designed to make the cross
border shipping experience simple and with a single cost
Marketing
Qannu is at its center a consumer marketing company and its value is obtaining
consumers and their buying habits across a multitude of markets
Logistics
A model that is similar to how Amazon.com services it international market – fast
service at the lowest cost.

8. TEAM
Andrew Scott
Founder & CEO – experienced global CEO having run 2 global
international logistics companies with sales over $400
million pa. Considered industry expert in international e-
Commerce Logistics
Bridget Speed
Founder & CMO – Innovative marketer with a background in
retail and consumer products roles within global
organizations. Passionate about a full-circle customer
experience.
Mike Juneau
Head Developer - head of LA based team and with broad b2b
and b2c cross platform development experience
Amanda Saddington
Head Designer – LA based Australian designer with a
background with European, US and Australia web
development.
Angus Gow
CTO – UK based CTO with past roles with leading UK
and European based technology companies
including Lastminute.com and
Iwantoneofthose.com

9. COMPETITION

10.  Building a Rich Consumer Database in each market
 Develop Reputation for Great Customer Service
 Simple Pricing for Consumers
 Vehicle to US e-Retailers to directly access international
consumers
 Positive Cashflow as consumers pay before shipping
THE MODEL

11.  Margins on shipping from 65-90%
 Affiliate income from web-traffic
 Affiliate income from direct e-Retailer relationships
REVENUE STREAMS
To date Qannu has
focused only on the
shipping margins

12. KEY RATIOS
E-com conversion rate 2.57%
Customer Acquisition Cost $ 101
Average Purchases Year 3.5
Average Invoice $ 128
Assumed Margin 65%
Retention Rate 80%
NPV customer (8% Discount) $ 381

13. PROJECTIONS
2013 2014 2015 2016 2017 2018
Actual Projected Projected Projected Projected Projected
Users 3,435 9,658 30,000 66,000 99,000 118,800
Customers 645 4,005 12,245 27,060 40,590 48,708
Sales
(average order $128) $ 245,502 $ 1,050,000 $ 3,528,413 $ 8,486,016 $ 12,729,024 $ 15,274,829
Margin (65%) $ 159,576 $ 682,500 $ 2,293,468 $ 5,515,910 $ 8,273,866 $ 9,928,639
Total Value of Goods
Shipped $ 705,261 $ 2,962,096 $ 10,136,177 $ 23,939,425 $ 36,567,051 $ 43,090,964
Affiliate Margin 2% 3% 4% 5% 5%
Affiliate Income $ 4,000 59,242 304,085 957,577 1,828,353 2,154,548
Net Income $ 163,576 $ 741,742 $ 2,597,553 $ 6,473,487 $ 10,102,218 $ 12,083,187
Costs ($330,000) ($521,000) ($1,284,000) ($2,568,000) ($4,108,800) ($4,930,560)
Projected EBITDA $ (166,424) $ 220,742 $ 1,313,553 $ 3,905,487 $ 5,993,418 $ 7,152,627

14.  Global deliver from the USA to major overseas markets
 Expand Export to Services from other Counties – UK, China,
Italy etc
 Working with US Retailers on developing consumers in
International markets with solutions tied specifically to the
local markets.
 Exit Strategy to company looking to acquire global consumer
database and relationships.
WHERE CAN GO?

15.  $300,000 funding to fund next 3-4 months of development
and trading.
 Establish dedicated US and Australian offices
 Complete Development of Shopping Guide site to drive Affiliate
Income
 Series A Funding in Q4 of 2014 of $3-5 Million to develop
relationship with e-Retailers and expand to other Global
Markets
REQUIRMENTS

16.  $300,00 funding to fund next 3-4 months of development and
trading.
 Establish dedicated US and Australian offices
 Complete Development of Shopping Guide site to drive Affiliate
Income
 Series A Funding in Q4 of 2014 of $3-5 Million to develop
relationship with e-Retailers and expand to other Global
Markets
REQUIRMENTS
For further information please contact
Andrew Scott
Andrew.scott@Qannu.com +1 (516) 790-6866