Investing in an Online Travel Digital Media Company Servicing International Visitors to Cuba. December 2015

Transcription

1 & Investing in an Online Travel Digital Media Company Servicing International Visitors to Cuba December 2015

2 FORWARD LOOKING STATEMENTS Some of the statements in this document may be deemed to be "forward-looking statements". All statements on in this document, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at for further information. 2

3 MPH VENTURES MARKET HIGHLIGHTS TSX Venture Stock Exchange: US OTC Grey: Frankfurt Stock Exchange: Shares Outstanding: Fully Diluted: Market Cap.: MPS MPSFF IJA million 57.7 million $2.5 million 3

4 TRAVELUCION MANAGEMENT Steve Marshall Owner of Travelucion & Cuban Web Domain/Asset Portfolio Trilingual entrepreneur specializing in international marketing and deal brokering Successfully adapted to varied world markets throughout his career directing marketing campaigns in Spain, France, Russia, Moldova, Ukraine and Cuba including a multinational timeshare company and a multilevel digital marketing corporation Mr. Marshall spent 11 years in Cuba specializing in Cuban joint ventures and successfully founded a number of companies including: Primeras Inversiones - Havana Free Zone First State approved Real Estate joint venture CIMEX Dimension W-Tech Start-Up Joint Venture with the Ministry of Communications 4

5 continued... First Cuba-Centric Online marketing company handling over 30 million annual internet visitors with the Ministry of Tourism Steve s past Cuban ventures have received coverage in the Financial Times, BBC News, CNN, Time Magazine, Washington Post, Chicago Tribune, and The Wall Street Journal Steve was a special advisor to a number of Cuban corporations spearheading their entrance into the new economy and providing support and investment in a range of commercial sectors He is knowledgeable concerning the idiosyncrasies of dealing with the Cuban Government and Cuba's foreign investment laws

6 TRAVELUCION MANAGEMENT Gavin McMillan MPH Cuban Investment Advisory Board Gavin has over 20 years of experience developing innovative information and infrastructure solutions, developing brand management, negotiating licenses, rights and permits and developing the sales and marketing structure for companies Within the last 15 years, Mr. McMillan has been involved in a number of market sectors but has focused on the tech sector Previous experience in Cuba having worked to identify and negotiate the rights to develop a Cuban based wireless communications company Mr. McMillan has led the development of several patents within the technology and telecommunications industry Specializing in international business development, Gavin has maintained offices and operations for ventures based in North and Latin America, Cuba, Russia, Ukraine, and Europe 6

7 TOURISM INVESTMENT OPPORTUNITY The United States is normalizing diplomatic relations with Cuba This will potentially inject billions of dollars into the Cuban economy Expected changes to effect Cuban tourism: 1. Relaxation of travel restrictions for U.S. citizens 2. U.S. citizens allowed to import $400 of Cuban goods 3. Direct banking & U.S. debit and credit cards permitted 4. U.S. telecommunications allowed to export and offer services and infrastructure Cuba's $2.6 billion-plus tourism industry ripe for significant growth American visits to Cuba already up by 36% with American tourism travel to Cuba still restricted U. S. Corporations will seek media opportunities to promote commercial sectors related to Cuba United States has few home-grown Cuba centric media distribution opportunities like Travelucion 7

8 MPH VENTURES INVESTING IN MPH Ventures has acquired a 20% equity interest in Travelucion for the issuance of 4,000,000 MPH Venture shares and $100,000 in cash MPH Ventures has a further option to acquire the remaining 80% interest in Travelucion (for a total of 100% interest) for the issuance of a further 16,000,000 MPH Venture shares, subject to TSX Venture Exchange approval 8

9 TRAVELUCION INVESTMENT HIGHLIGHTS Travelucion is a cash-flow positive online travel digital media and services company specializing in travel marketing, electronic reservation and online booking solutions for international visitors to Cuba Owns one of the world s most significant portfolios of Cuba focused web properties and domains. Travelucion owns 432 Cuban related web assets popularizing Cuban Culture, Music, Celebrities, +80 major travel destinations, Golf, Banking and Commerce Web assets collectively generate approximately 30 million page-views per year and direct traffic to the main Travelucion booking site. An excellent opportunity to development cultural and compassion tours to Cuba for US citizens Through legacy agreements with Cuba's largest travel companies, Travelucion's emblematic e- commerce brands like Havanatur.com, Cuba VIP and GoCuba provide company with access to a broader and diverse portfolio of Cuban travel and tourism packages than any other travel provider 9

10 continued... Travelucion is uniquely established to handle the travel requirements of qualified US travelers to Cuba Travelucion allows permitted US travelers and non-us travelers the ability to indulge in high end hotel and spa accommodations or create uniquely Cuban travel packages with exclusive private home rentals, exotic/antique car services and access to a multitude of guided or self-discovery tours across Cuba Travelucion is future-ready, controlling latent internet traffic for Cuba in numerous currently unexploited sectors: Health, Cruises, Music, Banking, Free Zones, Commerce, Learning & Education, Photography, Cinema, Media & Advertising, Sports, Modeling, Casting, Sailing, and more Travelucion has also developed a strong social media platform consisting of passionate Cuba social media followers across Facebook, Twitter, Pinterest and Instagram 10

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14 TRAVELUCION S VALUATION METRICS Revenue Multiples Travelucion s revenue for the last twelve months and forecast 2015 revenue as well as revenue multiples: Revenue (in CDN $) 3x Multiple 5x Multiple TTM from June 2015 $1,319,874 $3,959,622 $6,599, Forecast $1,900,000 $5,700,000 $9,500,000 Table for industry comparable revenue multiples: Valuation (in USD $) EV/Revenue (TTM) EV/EBITDA (TTM) * TTM = Trailing Twelve Months * All Values in CDN at 1.4 EUR/CDN exchange rate * Based on unaudited financials Enterprise Value As of Mar. 31, 2015 As of Mar. 31, 2015 Priceline Group Inc. 62,740,000, TripAdvisor Inc. 11,230,000, Expedia Inc. 13,210,000, Ctrip.com International 10,250,000, N/A MakeMyTrip Ltd. 676,000, N/A Homeaway Inc. 2,310,000, Group Average: 16,736,000, * TTM = Trailing Twelve Months * Values taken from Yahoo Finance on July 30,

15 TRAVELUCION S MONTH ON MONTH SALES COMPARISON 15

16 TRAVELUCION S VALUATION METRICS Private Residences Travelucion is comprised of several business units that have individual valuations and market comparables; those units include: private home rentals (Casa Particulars), taxi/private car services, hotel bookings, and incountry tour sales Based on the private home rentals using Airbnb and HomesAway as comparables the potential valuation of Travelucion s private home rentals business alone could be between CDN $2.6 million to CDN $5.655 million with significant growth potential: Airbnb Listings Worldwide 1,500,000 HomesAway Listings Worldwide 100,000 Last Valuation USD $20,000,000,000 Last Valuation USD $2,900,000,000 Value-per-listing USD $13,333 Value-per-listing USD $29,000 Travelucion Listings (Cuba) 150 Travelucion Listings (Cuba) 150 Valuation USD $2,000,000 Valuation USD $4,350,000 Valuation CDN $2,600,000 Valuation CDN $5,655,000 * USD to CDN exchange rate of

17 TRAVELUCION S VALUATION METRICS Online Asset Base Another component of Travelucion is its online asset base which is comprised of 432 websites as well as various social media platforms which can be valued at fair market value; the fair market asset based valuation of this component of Travelucion can potentially be estimated at approx. $5.88 million Potential Website/Domain Value $ 4,561, Potential of Social Media Value $ 1,318, Potential Asset Based Valuation $ 5,880, The value of domains can vary dramatically but to determine a fair market value for the 432 Travelucion websites/domains, 240 comparable sites from domain auctions Flippa.com and SnapNames were selected based on having the term CUBA in the title and this sample was then grouped by cost (Low Value: $99 to $9999, Medium Value: $10,000 to $59,000, and High Value: $60,000 to $120,000); Travelucion s estimated domain portfolio valuation based on the above findings and a USD to CDN rate of : Estimated Cost of Acquiring Similar Portfolio of Travelucion Websites/Domains No. Domains Approx. % Per Domain Valuation (USD) Valuation (CDN) High Value % $101, $508, $670, Medium Value % $19, $1,855, $2,447, Low Value % $3, $1,094, $1,443, Est. Total Value % $4,561,

18 continued... 42% of all Facebook posts and 30% of all Twitter posts are travel centric and commonly accepted valuations can be ascertained for both these social media platforms (Imbrue Marketing in 2012): Potential Valuation of Page-Views, Social Media Likes and Followers Volume Value Per (USD) Valuation (USD) Valuation (CDN) Page-Views 30,000,000 $0.03 $900, $1,186, Facebook 42,000 $1.07 $44, $59, Twitter 22,000 $2.50 $55, $72, Total Est. Value $1,318,

19 TECHNOLOGY APPLICATIONS FOR TRAVELUCION Mobile and web-based interfaces will permit all visitors to preview and book private homes directly from their phones, order classic car tours on demand, reserve private restaurants, tours and adventures in real time, yet with a uniquely Cuban style The company is also preparing its 432 multi-language Cuba web properties for Global Distribution System (GDS) integration in preparation for GDS real-time bookings through Amadeus, Abacus and, when authorized, American GDS companies Travelport and Sabre (near term catalyst) MPH Ventures and Travelucion will continue to expand the existing travel and Cuba focused marketing initiatives in numerous sectors with a specific spotlight on the emerging US-Cuba travel market, while launching the development of mobile and web-based interfaces that will allow the company to offer realtime reservations 19

20 GROWTH POTENTIAL AND CATALYSTS U.S. change in policy toward Cuba and dissipating travel restrictions eventually allowing the average American to travel to Cuba Americans represent 34% of visitors to Travelucion s websites yet they account for less than 3% of the company s revenue; if travel restrictions are lifted and assuming a more consistent conversion rate as seen with visitors from other nations, Travelucion could see a significant increase in sales very shortly after the restrictions are lifted Enhance the corporate profile of the company though marketing Focus marketing in North America to cater to Canadian and American travelers Establish relationships/partnerships with large North American travel and cruise line companies Build upon Cuban Entrepreneur rules GDS incorporation for central booking Increase marketing budget through additional online advertising (online spending on content and/or pay-perclick) as well as sales team Overhaul/modernize the websites that currently generate over 30 million page views a year; leverage this to drive volume to the booking platform to monetize this traffic Continue to build on current 150 private home (Casa Particulars) rental listings using a model similar to that of Airbnb and HomesAway, as well as taxi/historic private car service 20

21 MPH Venture shareholders could benefit from the spin-out of mineral assets held by the Company into a new public company 21

22 PIDGEON MOLYBDENUM PROJECT, ONTARIO MPH Ventures owns 100% of Pidgeon Molybdenum Mining Ltd (PMML) and PMML owns 100% of the Pidgeon Molybdenum Deposit. The project has excellent potential with strengthening moly prices. The 3,420 acre Pidgeon Molybdenum Deposit was initially developed by Rio Algom (now BHP Billiton). MPH has completed National Instrument resource estimate (July 2012 Riverbend Geological Services Inc.) showing Indicated resource of 2.7 million tonnes of 0.117% Mo using a cutoff grade of 0.04% Mo and an inferred resource of 12.4 million tonnes of 0.083% Mo with a cutoff grade of 0.04% Mo. 22

23 RANEY GOLD PROJECT, TIMMINS, ONTARIO Located 110 km SW of Timmins; 100% owned and covering over 3500 acres Easily accessible by highway and all season logging roads 14 drill holes completed on property 5 by past operators and 9 by MPH Intersections include 3.9 g/t Au over 17.2m including 7.7 g/t Au over 6.8m in hole R-08-04, 6.5 g/t Au over 8.0m in hole R-09-08, and 3.5 g/t Au over 6.8m in hole In November 2009, MPH Ventures drilled 4 holes below the limits of past drilling for a total of 800 metres of drilling Results from the small number of drill holes to date indicate a robust zone of gold mineralization is present at the property 23

24 CONTACT INFORMATION Jim Pettit, President and CEO Don Myers, Director Jordan Trimble, B.Sc., CFA, Corporate Development MPH Ventures Corp. Suite 1610, 777 Dunsmuir Street Vancouver, BC, V7Y 1K4, CANADA Tel: (604) Fax: (604) Toll Free: