Oapdd brief investment plan rev1 - software company

DDD Interactive Kiosk Development Ltd.

DDD Business Plan Rev1 Page 1 of 8

Ontario Auto Parts Distribution Development Ltd.

Investment Plan (Software Company)

Date: January 4th

, 2013



1 Executive Summary

OAPDD intends to develop, construct and manage auto parts distribution centre and OAPDD will set up the parts distribution center in the Waterloo Region to help the local parts suppliers and auto service shops in the aftermarket industry. Through our innovative distribution platform, the auto parts manufactured by ON 300 plus local parts manufactures will be demonstrated and delivered to the end consumers or auto service shops timely, efficiently and effectively, which will result in more business and add competition/sales powers to the parts manufactures.

2 OAPDD Structure and Investments

The materials provided in the following sections are in an intention to set out the basic investment structure required to establish and fund the OAPDD Project. The preliminary proposed structure and investments currently contemplate the following: (a) Three (3) interested Chinese investors will invest approximately $3 to $4 million into a Canadian incorporated software company (the "Software Company"). The software company will be involved in the purchase/licensing, development and integration of the technologies referred to under the heading Advanced Technologies Arrangements below; Funding into the Software Company is expected to be invested from the Chinese Investment through Canadian companies (in which Chinese investors will be shareholders) to the Software Companies, as applicable. As the OAPDD business plan is executed upon, it is expected that OAPDD will own approximately 15% of the Software Company, and the investors will own the balance of the shares. The management of the Software Company shall be provided by OAPDD and its management team and advisors shall consist of software development experts, engineers, accountants, lawyers, and other professionals. The team has extensive Canadian commercial real estate experience, software development experience, auto parts distribution experience and also property management experience, with a strong and well established history in the strategic planning, management of Property Management and private placement financing. As consideration for the organization and development of the Corporation and the Projects,

3 Our Objectives;

1. Set up the largest auto parts distributing center in Canada and the largest research and design center for auto parts manufacturers. 2. Demonstrate and sell auto parts from many manufacturers in one location to provide consumers with maximum service in a minimum area by using advanced technologies as follows,

3D display sales terminals developed and maintained by DDD.

cloud computing



Radio-frequency identification (RFID) smart warehouse management developed and maintained by DDD.

cell phone scan for order tracking and genuine part verification

4 Return on Software Company, and expansion plan

Estimated to start from less than 5% for the first year and reach 8% after the first year. There are other phases to be expanded upon the successful development and operation on these first two companies.

5 Market Analysis Summary

OAPDD will be participating in an exciting, growing market. Auto aftermarket service has seen explosive growth in the Canada in the last decade.

Highlights are as follows:

The aftermarket is now estimated to be worth $19.4 billion and employs 420,000 Canadians representing 50% of all employment in the automotive industry.

54% of all vehicles registered in Canada are now over the age of 8 years with the average age of a vehicle on Canadian roads now standing at 8.54 years.

There were 22.2 million vehicles registered in 2011 with total annual vehicle kilometers driven measured at 469.8 billion kilometers or an average of 21,995 kilometers per vehicle.

Used vehicle sales represented 65.6% of all vehicles sold in Canada in 2011. The average mileage recorded on a retired vehicle is now estimated at 320,000

kilometers.

Ontario is home to five of the world's top automakers, as well as 300+ innovative parts manufacturers. Our industry employs 88,000 highly skilled workers who produced 2.1+ million vehicles in 2011 – more than any other North American sub-national jurisdiction.

Canada has been losing market share globally due to having virtually no export markets beyond the US. According to a report from Scotia Economics, in recent years, Canadian auto part makers have failed to diversify their business which has caused them to fall out of the list of the top 10 global exporters in the sector. Since there is less demand for auto parts for local and North American market, the price for the auto parts also goes down. Being able to demonstrate or sell the ON made auto parts locally and also to other territories are essential to sustain the ON auto parts manufacturing business.

6 Distribution Patterns/ System Overview

Smart warehousing technology-high efficiency, accurate

3D sale terminal

http://en.wikipedia.org/wiki/Radio-frequency_identification



By 8 AM Delivery and worldwide

With our shipping alliance-Ebox, a by 8 AM system will deliver huge customer benefits of Unattended Nighttime Delivery.

Inventory visibility

Smart phone trace

7 Conclusion

We are confident that the arrangement mentioned above will establish the Auto Parts Distribution Centre in a timely no-risk manner. This will enable us to swiftly move through the various stages in tandem and should demonstrate the desired results in an effective and efficient manner to help the ON auto parts manufacturers, auto service shops in the aftermarket industry and the end users as well. Steve Xing, VP of Business Development Ontario Auto Parts Distribution Development Ltd. Address: 23 Chase Crescent Cambridge ON, Canada, N3C 0C5 Tel: 01-519-496-3078 Fax: 01-519-658-2179



Appendix A Software Development Major Milestone

Projected

Cost$

0-2 MonthSet up Toronto designning lab, with a team

of 8-12 people

- Office administration

- Recruitment

- Product planning (functionalities & lay out)

3-6 Month Develop prototype

- Detail designing

- HW configuration

- SW develop

- Prototyping & testing

- Content making

7-9 Month Develop production process

- Optimize the prototype

- Packaging

- Pilot production

- develop quality system

- content

10-12 Month Production ramp up

- Qualification

- Process tuning

-Selling tested software and engage pilot

project to start from virtual operation

-

Capital $/year $1,033,300

Total capital required $ for three years $3,099,900

Software Development Major Milestone

$293,950

$185,500

$280,850

$273,000



Appendix B Software Development 1st 12 Months Operation Cost

Description Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Salaries $35,000 $35,000 $41,000 $41,000 $47,000 $47,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000

Office Rent+Utilities $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500

Recruiting $6,000 $0 $1,000 $0 $1,000 $0 $4,000 $0 $0 $0 $0 $0

Professional Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Telephone $150 $150 $150 $200 $200 $200 $350 $350 $350 $400 $400 $400

Equipement (Fixed Asset) $17,800 $11,800 $3,100 $2,100 $3,400 $2,400 $7,600 $3,600 $3,600 $3,600 $3,600 $3,600

Supplies $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Travel $5,000 $5,000 $5,000 $5,000 $5,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

Equipment (R&D) $106,800

Auto

Meals & Entertainment $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Postage & Delivery

Dues & Subscriptions

Printing $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Documentation $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Allocated Expense

Sum $70,950 $58,950 $164,050 $55,300 $63,600 $66,600 $98,950 $90,950 $90,950 $91,000 $91,000 $91,000

Headcount

Employees Manager/PM 1 1 1 1 1 1 2 2 2 2 2 2

Employees Sales 0 0 0 0 1 1 2 2 2 2 2 2

Employees Assistant 1 1 1 1 1 1 2 2 2 2 2 2

Employees SW developer 2 2 2 2 2 2 2 2 2 2 2 2

Employees Content Maker 0 0 1 1 1 1 2 2 2 2 2 2

Employees HW developer 2 2 2 2 2 2 2 2 2 2 2 2

6 6 7 7 8 8 12 12 12 12 12 12

0 0 0 0 1 1 2 2 2 2 2 2

Operations 2 2 2 2 2 2 4 4 4 4 4 4

R&D 4 4 5 5 5 5 6 6 6 6 6 6

6 6 7 7 8 8 12 12 12 12 12 12

Employees

Manager Sal=$ 8000 per month $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000

Sales Sal=$ 6000 per month $0 $0 $0 $0 $6,000 $6,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000

Assistant Sal=$ 3000 per month $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

Developer Sal=$ 6000 per month $24,000 $24,000 $30,000 $30,000 $30,000 $30,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000

$35,000 $35,000 $41,000 $41,000 $47,000 $47,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000

Software Development 1st 12 Months Operation Cost

Headcount by Department

Sales/Marketing



Appendix C R&D Equipment & Materials

R&D Equipment & Materials

Items Unit Cost Unit Sum

Graphic High-Performance WorkStations $4,000 4 $16,000

60" touch screens pad $800 6 $4,800

AutoDesk SW $20,000 3 $60,000

Modeling SW $10,000 2 $20,000

Unity 3D $2,000 3 $6,000

Sum $106,800

Ontario Auto Parts Distribution Development Ltd.

OAPDD Investment Plan-Software Company Rev0 Page 8 of 8

Appendix D Pro-Forma Income Statement

Inflation rate 3%

Sales revenue annual

increase rate 10%

REVENUE 1st Year 2nd Year 3rd Year 4th Year 5th Year

Selling developed software $1,650,000 $1,815,000 $1,996,500 $2,196,150 $2,415,765

Cost/sales commission $495,000 $509,850 $525,146 $540,900 $557,127

Gross Revenue $1,155,000 $1,305,150 $1,471,355 $1,655,250 $1,858,638

OPERATING EXPENSES

Others as listed in Software Development 1st

12 Months Operation Cost $1,033,300 $1,064,299 $1,096,228 $1,129,115 $1,162,988

Total Operating Expenses $1,033,300 $1,064,299 $1,096,228 $1,129,115 $1,162,988

EBITA $121,700 $240,851 $375,127 $526,135 $695,650

Investment $3,099,900

ROI 3.93% 7.77% 12.10% 16.97% 22.44%

After 20 months Development

Pro-Forma Income Statement

Software DevelopmentFor 2013 through 2017

Documents

Oapdd brief investment plan rev1 - software company