“Rise and Shine”: ReBoot, ReTool, Re-Entry (3R)By: John F. C. Cheong, Ph.D.

Feedback and comments to: john@twobit.co. Rev.2016.0908

The Big Picture: Slowing Growth (M&M + MVML)in Just the Last Few Years…

The Bad News: Shrinking Profits, Too…

Problem Area? Seeing FY16 Numbers in Perspective:

65% revenue growth…

… But widening losses!

The “Two-Wheeler” Loss Situation is Untenable:

… is rapidly consuming2x deployed capital

(per year!)

Widening losses continued…

Bicycle Maker’s Value Chain

My nose says this way…

Do the Math on 2-Wheeler Value Chain:Seek margins

you must.

Suspected problem areas that need fixing!

FYI, scooters & e-bikes don’t mix!

Example: e-Bikes Product Positioning at a Glance…

e-Bike Comparison

Model QiCycle GenZe e101 Electrified S

Launch Date June 2016 Feb 2015 April 2016

Weight 14.5 kg 20.9 kg 18.4 kg

Range (Pedal-Assist) 45 km 48~80 km 50~120 km

Battery 5,800 mAh 8,700 mAh 420Wh

Motor Power 250W 250W 250W

Top Speed 20 km/h 32 km/h 32 km/h

ASP of e-Bikes $450 (¥2,999) $1,499 $2,498

What Does thee-Bike Look Like?

Between a rock and a hard place!

Old

Heavy

Finding Balance (and Profits!) in “Two-Wheelers”?

…and then some, perhaps after going through a 3-step process of:ReBoot, ReTool & Re-Entry?

At the moment, ahem, these 2-wheelers give back far LESS than what you put in!

The “3R” Process: ReBoot + ReTool + Re-Entry

Re-Entry(Corp Dev)

ReTool(Studio)

ReBoot(Fund)

1

3

2

The “3R” Transformer Picture: BEFORE & AFTERBEFORE: “Loss” at Sea…

AFTER: Sky is the Limit.

BitCo

BiGCo

… and Lots of Dogfights!

How Capital and Labor Combine Together toCreate Value； and How That Value Can Be Captured.

ReBoot(Fund)

ReTool(Studio)

Re-Entry(Corp Dev)

1 32Venture Capital

Expertise Network

Deal Makers

Value Creation Value Capture

Capital Labor

Welcome (Again) to Silicon Valley...

This time, let’s Rise (and Shine) together.

Feedback and comments to: john@twobit.co.

“If you can make it there,you’ll make it anywhere;it’s up to you…”