mistertyre announces socar partnership and critical …€¦ · pre-series a funding of us$350,000...

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MISTERTYREANNOUNCESSOCARPARTNERSHIPANDCRITICALMILESTONES

Pre-SeriesAFunding–LaserTyreScan–ProductExpansion–AreaExpansion

KUALALUMPUR,WEDNESDAY,28thMAY2018–MisterTyreSdnBhd(“MisterTyre”),theworld’sonlyon-demandsmartphoneappforcomprehensivemobilecarcaredeliveredtotheconsumerathomeorwork,announcesthefollowing:

▪ SoCarFleetServicesPartnership–MisterTyre’sB2Bstrategyfocusesonassistingfleetownerssavemoney,internalresourcesandtimewithon-demandmobilecarcaresothattheircarscan operate safer, longer with significantly less downtime and with better resale value.MisterTyreispleasedtoannounceitsfirstfleetpartnershipwithSoCar(https://www.socar.kr)inMalaysia (https://socar.my) forover350cars inKualaLumpurstationedacross thecity.SoCar isAsia’s leadingcarsharingplatformthatallows itsuserstobookandusecarsviaasmartphoneapp.

▪ Pre-SeriesAFundingofUS$350,000 – The companyhas closeda funding round totallingUS$350,000.

▪ ServiceLineExpansions–PureCar,ananti-bacterialinteriorcartreatment,hasbeenaddedasanewservicelinetocomplimentstheexistingproductlinesoftyres,rotation/alignment,batteryandoilchange.PureCartreatmenteliminates99.99%ofbacterialandfungusincarinteriors and air conditioning systems; the treatment is popular with families with smallchildren and anyone spending significant time in their vehicles. MisterTyre pleased toannouncethatitwillsoonaddingrims,brakesandenginetune-upasnewservicelines.Theseproductextensionsare in response tooverwhelmingcustomeranddealer requests.Thesenew services further complement the mobile van delivery system delivered direct tocustomer,dealerorfleetownerattheirpreferredtimeandlocation.

▪ Ancillary Income Strategy – MisterTyre is expanding into ancillary consumable productswhichwillbesoldaspartofitscoreservicelines.Customerswillsoonbeabletopurchasefuelandengineoiladditives,air filters,windshieldwipersandcaraccessories fromtheworld’sleading brands as part of their core service purchases. All accessories and liquids will beprofessionallyfittedoraddedtothevehicle.

▪ Launch of Laser Tyre Scanner – All of MisterTyre’s customers receive, free of charge, apersonalizedtyrestatusreport.ThisrevolutionarylasertyrescannerwasdevelopedfortheperformanceracingindustryandisfreeofchargetoMisterTyrecustomers.Thedatafromthisscanneralertsthecustomerimmediatelytoanytyresafetyissues,recommendsimmediatereplacementiftyretreadisbelow2.5mm.Asof28thMay,MisterTyrehasscanned1,749tyresofwhich9.3%indicatearequirementforimmediatereplacementand33.0%forreplacementwithinsixmonths.ThisvaluableinformationiswelcomedbydriversandprovidesMisterTyrewithavaluabledatabaseonwhenthecustomerisexpectedtorequireatyrechange.

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▪ ProfitablePerVanEconomics–MisterTyreispleasedtoannouncethatithasachievedvanlevelprofitabilitywithatimeslotutilizationoflessthan29%forthemonthofApril,excludingacquisitioncostsofapproximatelyUS$5.65percustomer.Managementexpectsthistimeslotutilizationbreak-evenleveltofalltolessthan20%whentheadditionalproductextensionsandancillaryretailproductsareofferedtocustomersin2H2018.

▪ VanDesignPartnership–MisterTyre ispleased toexpand its vandesignpartnershipwithReadingPneumaticServicesLtd(RPS)inLondon,UnitedKingdom.RPSisaleaderinmobilevanoutfitinEuropeandtheGulf.TheMisterTyreteamhasworkedcloselywithRPStodevelopour second generations vans now operating in Malaysia. Management believes thatstandardizationofthemobileservicevaniscriticaltoensuringrapidexpansion,lowercostsandimprovedcustomerservice.RPSandMisterTyrearenowdevelopingathirdgenerationsvan,basedonFord’sHighTopExtendedLengthCargoVanfromtheUSAwhichwillprovideimprovedcustomerserviceandproductlinecapabilitiesandallowsforservicingof26”rims.OneMisterTyre van replaces the consumer’s requirement for multiple bricks andmortarstores(tyres,oilchange,garage,etc.)andprovidesmoreefficientserviceatthecustomers’preferredlocationandtime.

▪ PartnerExpansion–MisterTyreispleasedtoinitiatepartnerbasedareaexpansioninPenangand Johor Baharu. MisterTyre’s regional partners will benefit from superb technologyinfrastructureandlogisticsalreadydevelopedoverthelast18months;furthermore,ourfleetcustomerswill benefit from lower operating costs and improved servicewhenMisterTyreoperations launch inPenangand JohorBaharu.Managementbelieves that theMisterTyreoperatingmodelofproprietaryappandmobilevaniswellsuitedforinternationalexpansioninstartingin2019.

MisterTyre’s business model uniquely combines: (i) a proprietary, on-demand app interfacedramaticallysimplifyingthetyre,rim,oilchangeandbatterypurchaseprocess;(ii)multipleservicelines typically only provided individually in brick and mortar outlets spanning tyre shops,hypermarkets,gasstations,dealercentersandlubricantcenters;(iii)revolutionaryvanoutfitdesignwhich is able to deliver for the first time ever, directly to the consumer, the most importantaftermarketcarservices; (iv)datacaptureandpredictiveanalytics;and (v)ancillary incomemodelfocusedonhighmargincarconsumablesandlubricantstypicallysoldingasstationsandspecialtyautopartsstores.Alloftheseuniqueoperatingadvantagesarecombinedwiththeincredibleconvenienceofhomeorofficedeliverywithservicewindowsfrom8amto11pm.AntonWahlman,anAutomotiveAnalystwithSeekingAlpharemarkedthat“Threemajortrendsareconverging tomake this the right time for theMisterTyreproposition tobecomea success in themarket.First,theconsumerhaslesstimetodrivetoafixedlocation–companiesthatcanprovideimmediate, time saving and convenient service win consumer loyalty. Second, fixed real estate,particular mono-product line service platforms, are costly and inflexible when the majority ofautomotiveaftermarketrepairworkcanbedonefrommobileplatform.Whyshouldthecustomerdrivetomultiplebricksandmortarlocationsfordifferentserviceswhenallofthiscanbecombinedin

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a single mobile unit that drives to the consumer? Perhaps the biggest upside wild card to theMisterTyremodel comes from the new ‘automotive on demand’ fleetmodels, which could evenincludethewayinwhichtraditionalrentalcarcompaniesevolvetheirservicemodels.Today’sSoCarpartnershipwithMisterTyreisamodelIexpecttoseemoreofinthefuturewhichwillalsolikelytoinclude ride-sharing and ride-hailing service providers. This on-demand car-sharing rental fleet,necessitatesaflexiblerepairpartnerthatcanservicethevehicleswhereevertheyarelocatedandduringofforlow-peakusagetimes–preciselythevaluepropositionofMisterTyre.”Mr Leon Foong, Socar Malaysia’s CEO remarked that “We are very excited to enter into thiscollaborationwithMisterTyre.Operationalefficiencyandminimiseddown-timeiskeytoensuringthatSoCarmembers continue to enjoy their cars of choice at affordablehourly prices.MisterTyre is anaturalautomotiveserviceon-demandpartnerforSoCaraswebothsharethesameobsessionforsafety,efficiencyandwell-maintainedvehicles.”.CommentedMrMelka,MisterTyre’sPresident&Founder:“WeareexcitedtoworkwithandhavetheopportunitytoserviceSoCar’sMalaysianfleet.WearehonouredtobechosenbytheSoCarteamandentrustedwiththebusiness.MisterTyrewillmanagealltyre,alignment/rotation,batteryandengineoilforSoCar.Thepartnershipwillsignificantlyreducethedown-timefortheSoCarfleetasourmaintenanceisprovidedatthecustomer’slocationintimeslotsoftheirpreference.Mostjobsarecompletedon-sitewithin30minutestoonehourcomparedtotraditionalstoreswhichrequireseveralhoursoroftenandentiredayofdown-timeforthevehicle.Inadditiontoreduceddown-timeofthevehicle,SoCarwillreceivelasertyrescansindicatingwithprecisionthetireconditionofitsvehicles.TheMisterTyrebusinessmodelisasignificantdeparturefromandverydisruptivetothetraditionalstoremodelforautomotiveservices.Ourbusinessmodelremovesthe‘middleman’fromthesupplychaintherebyallowingMisterTyretoofferincredibledealswithnochargeformobileservicewhilstempoweringconsumerstomakeinformeddecisionsontheirautomotiverepairrequirements.”saidMelka.Operatingsince4Q2017,MisterTyreispleasedtoannouncethefollowingservicejobmix:

▪ 45%involveanewtyresalefromover20differentbrands;▪ 30%arefrontwheelalignment/rotation;▪ 20%areoilchange;and,▪ 5%arebatteryreplacement.

Managementnotesanincreasingtrendofmultipleordersperservicebookingandrepeatbookings;furthermore,MisterTyreistheonlycompanyintheworldofferingfrontwheelalignmentandrotationdeliveredtothecustomer’scarcompletelyeliminatingtheneedfortyreshopvisitsforfrontwheelalignment.MisterTyre’smulti-brandstrategyisabletoserviceallcustomerswithanybudget.Unlikemosttyreshopswhichoffercustomersalimitedselectionofbrandsofferingthebestmarginstotheshop,MisterTyrecarriesallbrandsatincrediblepricepoints.Incontrasttotheverticallyintegrated

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model common in tyre sales, where manufacturers own distribution and retail outlets (oftenpositionedas“independent”dealersunderdifferentbrandsfromtheparent),MisterTyreinatrustedandindependentmarketplacewhichoffersconsumersdozensofbrandstomatchtheirbudgetandrequirements. As new service lines such as rims, brakes and PureCar are launched,managementexpectsfurtherrepeatbookingsandcustomerloyalty.“Ourmodeloffersimmensetimeandmoneysavingsforconsumersandfleetowners.E-commerceinautomotivemaintenance is largelyuntappedgloballyasnoonewants four tiresdelivered to theirdoorstep,theywantthemfittedprofessionallyontheirvehiclesatatimeandlocationconvenientforthecustomer,notthetyreshop.MisterTyrecombinestheeasyofe-commerce“clickandbuy”withon-demand,deliver-to-me,do-it-for-meconveniencenowexpectedbythemillennialgeneration.Thetraditionaltyreandautomaintenancebricks&mortar infrastructure issorelyoutofstepwiththeconsumerandadvancedmobilitytransportrequirementsinthecomingyears”commentedMelka.On4thMay2018,an individualMisterTyrevanservicedarecord26vehicles (all thirdpartypayingcustomers) in a single day at a corporate office park consisting of 21 front wheel alignment androtations, one battery replacement, two oil changes and two vehicle new tyre replacements.Furthermore,on9thMay2018,aMisterTyrevanserviced18vehiclesacrossKlangValleyinasingleday.Thisincredibleproductivityisatestamenttothedemandforcomprehensivecarcaredeliveredviaaneasy-to-usemobileappcombinedwithmobilebuilt-to-purposefleet.___________________ABOUTMISTERTYRESDNBHD

MisterTyreSdnBhdlauncheditsinnovativebusinessmodelon13thSeptember2017.MisterTyreseekstotransformautomotiveaftermarketservicesgloballythroughlowpricesanddoorstepdeliveryofservices.FormoreinformationonMisterTyredownloadtheapp.TheCompanyisthefirstgloballytooffermobileautoservices,includingalignment,throughamobileapplication.CurrentlyoperatinginKlang Valley only, the company seek to expand to Penang and Johor Baharu in during 2018 andinternationallyin2019.ABOUTSOCARSoCarMalaysiaisacar-sharingstart-upthataimstochangethelandscapeofMalaysiantransportationbybringinginaneweraofmultiflexmobility.PriortolaunchinginMalaysia,SoCarKoreahasbroughtcar-sharingtomillionsofSouthKoreansandgrownitsfleettoalmost9000cars.SoCarMalaysiaisthecompany’sfirstoverseasexpansionandaimstogivepeopletheconvenienceofdrivingacarwithoutthecommitmentofowningone.Withitsmobileapplication,SoCarwillmakecar-sharingconvenientforeveryonebyallowingmemberstobookandunlockcarsonitsplatformwithjust a few taps. All cars on the SoCar platform are keyless and prices are inclusive of petrol andinsurance(comprehensiveandpersonalaccidentcoverage).Overthenext12months,thecompanyaimstogrowtheirfleettoover1,000carsandbringtheconvenienceandjoyofmultiflexcar-sharingtohundredsofthousandsofmembersacrossMalaysia.

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TheSOCARappisavailablefordownloadfromGooglePlayandtheAppleStore.www.socar.my

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Forfurtherinformation,pleasecontactSumanMathevanat+60129011147/suman@mistertyre.com