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Global Multimedia Systems, GMS


  E-Flyers Advertising Method &
      E-Flyers Search Method
    for Any Mobile Phone Users
        W/O Internet & GPS
         (Fast, Easy, Free)


        Global contact: Toshio Hayakawa
         E-mail: thayakawa@gdm2.com
              USA: 310-916-8198
          China contact: Charles Xiang
           E-mail: cxiang@gdm2.com
              China: 13710770578          1
Mobile Ad Methods & Issues
Smart phone:
   Ads are “online stores” only
Feature phone (2G to 3G):
   Text messages & images Ad are pushed


Issues for both phones:
   Unable to search “daily/weekly promotional” info
   Unable to search “offline stores” info
   Too much unwanted info on small screens
   Not real time
   Security concern



                                     2
Methods of “Daily/Weekly” Promotional Advertising

 Old fashion way:
    Fryers
    Banners
    TV, radio, news papers & magazines
 New digital way:
   Web portal
   Online & Social media
   Online stores

 Facts & results:
    Old: Expensive, don’t produce good results, &
    not cost effective
    New: Expensive, not real time, too much
    unwanted info & not cost effective
                                       3
GMS Provides Two Major Functions
 Advertising methods for offline & online stores:
    Can advertise daily/weekly items immediately
    Can upload promotional Ad & edit by themselves
    using any cell phones
    Free advertisements
    Connect with local phone shoppers directory
    Works for all phone types (2G to LTE)

 Search capability method for consumers:
    Can search daily/weekly items info immediately
    Can search using “multiple search words”:
        Product descriptions, price or price ranges, & area
    Shows exact info
    Can search local info such as real estate open house
    on weekends, etc
    Works for all phone types (2G to LTE)

                                              4
Market Size
 Market sizes:
   Guangzhou & Shenzhen:US $20M>
   Japan:          US $41B>
   USA:                 US $102B>
   World:          US $2.3T>

 Other markets & revenues:
   Advertising
   Coupons
   Licensing: I-Freek, Alibaba, Twitter, Weibo, etc.
   Secondary data usage: Smart community
                       (Hangzhou City)



                                       5
Revenue
 Location & facts (Japan):
   Tenjin underground mall:
      Ave., visitors/day: 400K
      No of Stores: 153
      Annual Sales:        $250M
      Ave., sale price:    $40

 Revenue:
   Stores pay 10% of each transaction
   Ex: $40x0.1=$4/transaction

 Tenjin mall project forecast:
                                  1 % Average
                                   0
           Average   30% of Total   Service
Location                                          Sales/day   Gross/Year
           Shopper   Shopper/day Fee/person/tra
                                  nsaction/day
 Tenjin    400,000      120,000       $4           $480K       $175M


                                                       6
Financial Projections
 Projected sales in Japan:

               Profit and Loss Statement (thousand)
Year                                2013      2014      2015      2016
C a s h (M)                            $50     $1,073   $15,322   $54,643
Sales
         Transaction                 $1,000   $35,000 $100,000 $200,000
         License                     $1,000    $1,000   $1,000   $1,000
Total (R)                            $2,000   $36,000 $101,000 $201,000

Cost (c)
       60% o f Tra n s a c t io n     $600    $21,000   $60,000 $120,000

Expense Total (ET)                    $377      $751     $1,679    $3,455

Profit Before Tax (M+R-C-ET)         $1,073   $15,322   $54,643 $132,188




                                                         7
Values for Stores & Shoppers
 Values for stores:
    Pay only when sold
    Eliminate initial ad money
    No new expenses for stores
    Ads are uploaded & modified by using any cell
   phones
    No web sites
    Electronic coupons
    Scan bar codes for Electronic-receipts
 Values for shoppers:
    1% of 10% is credited to shoppers
    Can search precise promotional info
    Don’t need to print coupons
    Electronic-receipts
    Can get local information           8
Beta Test, Expansion & Market Strategy
 Beta test:
    Japan:         Tenjin Underground Mall, I-Freek Corp.
    China:         Guangzhou & Shenzhen, Hangzhou City
    Taiwan:        Wine industry, ORiAND Inc.
 Expansion:
    Japan:                  Run test in Q2 & Q3, 2013
    China:                  Run test in Q3, 2013
    China Japan, & Taiwan: Launch full operation in 2014
 Market strategy:
    Visa & Master Cards Companies
    Local publication companies; Jobs, real estate, apartment
     guide, etc
    Online portal companies: Yahoo, Baidu, etc
    Promote incentives: Stores & shoppers



                                              9
Partners/Competitors
  Partners*:
      Yahoo Japan, Baidu, Metasphere
      Hitachi Corporation
      China Telecom, Softbank


  Competitors:
     Groupon & local coupon companies
     Wechat ( 微信 ) & Velo



*Some of them above are in negotiating.



                                          10
Mile Stone Achieved
    1. August 2011:   Metasphere in Shanghai signed NDA
    2. November 2011: I-Freek (publicly traded company,
                      JASDAQ) in Japan signed NDA
    3. December 2011: US patent applied
    4. December 2011: International (PCT) patent applied
    5. August 2012:   Management organized
    6. December 2012: China office opened
    7. January 2013:  ORiAND Inc. signed NDA
    8. February 2013: Demo completed for I-Freek
    9. April 2013:    I-Freek, test begins in Japan
    10. 2016 - 2017:  IPO
             1 2   3&4    5   6 7 8   9                     10=IPO



Project
Milestone


                   2012       2013    2014   2015    2016    2017
                                                    11
            2011
Management Team
Management:
   CEO/CTO:                Toshio Hayakawa (Global)
   VP of Operation:        Charles Xiang (China & Taiwan)
   VP of Marketing:        Jenny Tsai (China, Taiwan & USA)
   Product engineer:       YaJing Wu (China, Taiwan & USA)
   Secretary:              Lily Wong (China & USA)
   Financial consultant:   James Yang (China)
   Strategic consultant:   Stephen Liu (China & USA)

IT Department:             Yong Fu (Shanghai, Shenzhen)
    Operation center:      Shenzhen & Shanghai




                                              12
Thank You!

Global Multimedia Systems INC.
             (GMS)


    Global contact: Toshio Hayakawa
         USA:1-310-916-8198
     E-mail: thayakawa@gdm2.com
      China contact: Charles Xiang
       E-mail: cxiang@gdm2.com
          China: 13710770578


                                  13

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Mobile phone E-commerce w/o use of the Internet

  • 1. Global Multimedia Systems, GMS E-Flyers Advertising Method & E-Flyers Search Method for Any Mobile Phone Users W/O Internet & GPS (Fast, Easy, Free) Global contact: Toshio Hayakawa E-mail: thayakawa@gdm2.com USA: 310-916-8198 China contact: Charles Xiang E-mail: cxiang@gdm2.com China: 13710770578 1
  • 2. Mobile Ad Methods & Issues Smart phone: Ads are “online stores” only Feature phone (2G to 3G): Text messages & images Ad are pushed Issues for both phones: Unable to search “daily/weekly promotional” info Unable to search “offline stores” info Too much unwanted info on small screens Not real time Security concern 2
  • 3. Methods of “Daily/Weekly” Promotional Advertising Old fashion way: Fryers Banners TV, radio, news papers & magazines New digital way: Web portal Online & Social media Online stores Facts & results: Old: Expensive, don’t produce good results, & not cost effective New: Expensive, not real time, too much unwanted info & not cost effective 3
  • 4. GMS Provides Two Major Functions Advertising methods for offline & online stores: Can advertise daily/weekly items immediately Can upload promotional Ad & edit by themselves using any cell phones Free advertisements Connect with local phone shoppers directory Works for all phone types (2G to LTE) Search capability method for consumers: Can search daily/weekly items info immediately Can search using “multiple search words”: Product descriptions, price or price ranges, & area Shows exact info Can search local info such as real estate open house on weekends, etc Works for all phone types (2G to LTE) 4
  • 5. Market Size  Market sizes: Guangzhou & Shenzhen:US $20M> Japan: US $41B> USA: US $102B> World: US $2.3T>  Other markets & revenues: Advertising Coupons Licensing: I-Freek, Alibaba, Twitter, Weibo, etc. Secondary data usage: Smart community (Hangzhou City) 5
  • 6. Revenue  Location & facts (Japan): Tenjin underground mall: Ave., visitors/day: 400K No of Stores: 153 Annual Sales: $250M Ave., sale price: $40  Revenue: Stores pay 10% of each transaction Ex: $40x0.1=$4/transaction  Tenjin mall project forecast: 1 % Average 0 Average 30% of Total Service Location Sales/day Gross/Year Shopper Shopper/day Fee/person/tra nsaction/day Tenjin 400,000 120,000 $4 $480K $175M 6
  • 7. Financial Projections  Projected sales in Japan: Profit and Loss Statement (thousand) Year 2013 2014 2015 2016 C a s h (M) $50 $1,073 $15,322 $54,643 Sales Transaction $1,000 $35,000 $100,000 $200,000 License $1,000 $1,000 $1,000 $1,000 Total (R) $2,000 $36,000 $101,000 $201,000 Cost (c) 60% o f Tra n s a c t io n $600 $21,000 $60,000 $120,000 Expense Total (ET) $377 $751 $1,679 $3,455 Profit Before Tax (M+R-C-ET) $1,073 $15,322 $54,643 $132,188 7
  • 8. Values for Stores & Shoppers  Values for stores:  Pay only when sold  Eliminate initial ad money  No new expenses for stores  Ads are uploaded & modified by using any cell phones  No web sites  Electronic coupons  Scan bar codes for Electronic-receipts  Values for shoppers:  1% of 10% is credited to shoppers  Can search precise promotional info  Don’t need to print coupons  Electronic-receipts  Can get local information 8
  • 9. Beta Test, Expansion & Market Strategy  Beta test:  Japan: Tenjin Underground Mall, I-Freek Corp.  China: Guangzhou & Shenzhen, Hangzhou City  Taiwan: Wine industry, ORiAND Inc.  Expansion:  Japan: Run test in Q2 & Q3, 2013  China: Run test in Q3, 2013  China Japan, & Taiwan: Launch full operation in 2014  Market strategy:  Visa & Master Cards Companies  Local publication companies; Jobs, real estate, apartment guide, etc  Online portal companies: Yahoo, Baidu, etc  Promote incentives: Stores & shoppers 9
  • 10. Partners/Competitors Partners*: Yahoo Japan, Baidu, Metasphere Hitachi Corporation China Telecom, Softbank Competitors: Groupon & local coupon companies Wechat ( 微信 ) & Velo *Some of them above are in negotiating. 10
  • 11. Mile Stone Achieved 1. August 2011: Metasphere in Shanghai signed NDA 2. November 2011: I-Freek (publicly traded company, JASDAQ) in Japan signed NDA 3. December 2011: US patent applied 4. December 2011: International (PCT) patent applied 5. August 2012: Management organized 6. December 2012: China office opened 7. January 2013: ORiAND Inc. signed NDA 8. February 2013: Demo completed for I-Freek 9. April 2013: I-Freek, test begins in Japan 10. 2016 - 2017: IPO 1 2 3&4 5 6 7 8 9 10=IPO Project Milestone 2012 2013 2014 2015 2016 2017 11 2011
  • 12. Management Team Management: CEO/CTO: Toshio Hayakawa (Global) VP of Operation: Charles Xiang (China & Taiwan) VP of Marketing: Jenny Tsai (China, Taiwan & USA) Product engineer: YaJing Wu (China, Taiwan & USA) Secretary: Lily Wong (China & USA) Financial consultant: James Yang (China) Strategic consultant: Stephen Liu (China & USA) IT Department: Yong Fu (Shanghai, Shenzhen) Operation center: Shenzhen & Shanghai 12
  • 13. Thank You! Global Multimedia Systems INC. (GMS) Global contact: Toshio Hayakawa USA:1-310-916-8198 E-mail: thayakawa@gdm2.com China contact: Charles Xiang E-mail: cxiang@gdm2.com China: 13710770578 13