Download - ProjectOctagramEng
ExpansionofsalesoftheOctagram'sModularEngineeringPlatformA1
Projectexecutivesummary
NikolayTatarchenkotel.: +41215880098,+7(495)5070565
E-mail:[email protected]
OctagramS.A.Y-PARC,RueGalilée7,CH1400Yverdon-les-BainsSwitzerlandOctagram’sMEPusers:
Industry:Securityandautomation$3millioninvestments:-Production-SalesandMarketingIncome/EBITDA:2017:$1,2M2018:$11,6M2019:$28M/$5M2020:$43,5M/$13,3M2021:$64,3M/$24,7MProject’sexternalteam:NicolasRouillerOctagramMCEavocatsPartner,CHDaveButterfieldRenard-Systems,UKPhilippeMilletMILIMMO,FRElenaA.FlorovaADDFORCE,USJacquesPascheStrategicSet-Up,CHNilthonCandeiaRepresentive,BRCristinaBarbanoMoneta,ITDimitrisA.ArmaosARMAOS,GROlegFedorishin,Legos-PodolyeLLC,UAValerySabankulovSintezEngineering,KZNikolayTatarchenkoOctagramLLC,RU
Successfulexperienceofselling theproductoutsideofRussiaandagreements tostartsalesachievedwithcompaniesandprivatepersonsinSwitzerland,theUSA,France,GreatBritain,Italy,Greece,Brazil,UkraineandKazakhstanmadeitpossibletosubmittheProjecttoinvestorsconsideration.
History: Based on 20-years practice (1989-2010) innovative Modular Engineering Platform (MEP) forsecurityandautomationwasdeveloped.Platformcombinessimplicityanduniversality.MEPcopyrightisprotectedbypatentsRU85010U1andUS9,146,552B2.
Marketvolumeofthesecuritymanagementequipment(MEPsegment)is:inEurope—€2–3bln/year,intheUSA—$8–9bln/year,inRussia—$500mln/year,inneighboringcountries—$400mln/year,inBrazil— $ 600mln/year. Sales ismostlymade directly to consumers via distributors, and in separatecasestolocalsecurityandautomationmarketplayersasOEM-products.
Competition:MEP is innovativeand replacesexisting functionalanalogs.MEPconsistsof software,A1controller and micromodules. Other producers and manufacturers offer security and automationsystems,basedonspecialpanelsorprogrammablelogicalcontrollers.Forexample,Siemensusesmorethan100models,whereOctargamusessingleA1controller.
Uniqueness: In contrast toother solution, inMEP it isenough to just connect to theA1controller viaEthernet and write down another firmware. MEP is copy-protected (including 'personal' ~100Kbfirmwareineverycontroller.
Competitivestrengths:
§ LicensingmodelreducesthetaxburdenoftheProject.
§ Productionandlogisticsofoneproductishighlyeffective.Producthaslow primecostandcombinesminimumwarehousestocksandshortdeliverytimes.
§ Salesmodelmakesitpossibletoclosesaleschannelsofcompetitiveproductsbyprovidingdiscountsforfirmwaresforcontrollerskeptinawarehouse.
§ Theproductisexceptionallyflexibleandeasy-to-use—sellersandinstallerscanchangeittomeettheclientrequirements.
TheProjectprovidesforsaleof24%sharesoftheOctagramSAcompany(Swiss),whichhavefullcontrolovertheProjectactivitytroughlicenseagreements.
MilestonesoftheProject.ThehighestefficiencytheProjectwillachieveinRussia,wherearemorethan5000 clients now.Due to the limited resources, activework is currently underwaywith less than 500clients,without participationinexhibitionsandwithminimaladvertisementbudget.Switzerlandbecamefirstforeignmarket.FirstbatchoftheA1MEPwasreleasedthereandinstalledinthecityofLausanne.
Within1yearafter receiving funds forMEPpromotion,sales throughanetworkofabout10offices inRussiaandex-USSRcountrieswillbedoubled.Certification,anadvertisingcampaignandsalesofMEPinEurope,theUSAandBrazilwillbeheldinthesameperiod.
Project risks. Conservative sector of commercial properties, banks, enterprise, transport and socialinfrastructure is the most profitable. It will require from 1 to 3 years of preparation and projectdevelopmenttoenterthissector.Gettingacquisitionforgovernmentfacilitieswilltakeadditionalefforts.
Toreducetheinvestmentrisk,thebusinessplanoftheProjectprovidesastepfunding:1ststep—afterinvestmentagreementundertaking,2ndstep—afterthe1styearlysettlement.
TheProjectbreak-evenisplannedattheendofthe2ndyearaftertheinvestment.
Entry strategy.By theendof the3rd year saleswill increasemore than twentyfold. Project's profit isgrowingfasterthanturnover.Fromthe4thyeartheProjectwillbehighlyprofitableandcanbesold.LAVALAISANNEHOLDINGSAisinterestedinbuyingtheProjectafteritreachesthetargetvalues,specifiedontheleft.OncetheMEPcatchsightofindustrygiants(Siemens,Honeywell,Bosch,ABB,etc.),theywillalsobeinterestedinbuyingtheProjectfora«funeral»orfuturedevelopment.