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Syncrotec Compendium Series / Customer Offering

The Syncrotec Offering Faster, better and smarter systems for charity auctions campaigns.

Introducing the worlds most advanced auction system. Syncrotec is offering a charity auction system for global reach and high ROI.

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What is your charity? Let us make a difference together!

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Humanity is still in desperate need of charity and discovering new ways of reaching out… •  At least 80% of humanity lives on less than $10 a day. •  According to UNICEF, 22,000 children die each day due to poverty. •  For every $1 in aid a developing country receives, over $25 is spent on debt repayment. •  10.6 million died before they reached the age of 5 •  15 million children orphaned due to HIV/ADIS •  More than 660 million people without sanitation lives on less $2 a day

Explore the novel and powerful auction solution by Syncrotec…

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Summary

Introduction

Auction fundamentals

Digital solution

ROI

Further reading

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Business Prospect

Executive Summary

Most charity organizations today have been forced to cut back on their services due to the general economic deficit. In the USA as an example the federal state governments are pulling back on their support of the social sector. This trend we also see in other countries world wide, and has dramatically changed the business model for many nonprofit organizations. Syncrotec’ goal is therefore to use its unique state of the art Tournament Auction System (TAS) to support that monetary need and support different specific charity projects focusing children’s needs.  

An unmatched market offer:

The Unique Selling Point (USP) of the TAS concept is the exciting winning chances of real-time interactive AllPay-Auctions deploying thousands of bidders for one common goal; to win auctions. TAS is perfectly fit for collecting scads of aid supporting charity projects. The TAS concept does not appear to have any competitors in this segment at present time.

Tournament Auction System, unmatched in the market benefitting charities

Using sponsors to create valuable auctions: Syncrotec’ first production case is licensee and beneficiary cooperation with ATIA CARE, a charity organization started in 2011 in Norway. According to Service level Agreement “hereafter SLA” Syncrotec will build up a sponsor pool in name of ATIA CARE of willing contributors of premium auction objects. Syncrotec will establish affiliate programs encouraging multiple sale efforts through endorsement by recruiting new participants and loyalty reward programs are crucial vehicles to build a large base of customers. Syncrotec plans to support new charity communities as effective tools to raise public interest on Facebook, Twitter a. o.

Let the numbers speak: The capital raised by Norwegian nonprofit was 4,3 billion EUR in 2007, which is 1,5 % of the total BNP. Impressive 70 000 persons voluntarily contribute in this sector (SSB). Norway is however in the lower end with its 1,5 % of BNP in comparison to UN NPI average of 5 %. A study by First Research, Inc. found in 2010 that the US nonprofit institutions industry includes more than 1.4 million organizations with combined annual revenue of more than 7.000 billion EUR.  


Summary

Introduction

Auction fundamentals

Digital solution

ROI

Further reading

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Business Prospect

Executive Summary, page 2 Powered by novel technology: The TAS concept is a Java program running on Tomcat Servers. TAS is based on a low-maintenance game engine, which the company developed together with Norwegian Computer Centre. The Massive Multiplayer Online Games (MMO) server technology used by Funcom AS today is based on this technology. It was initially developed by Syncrotec in “GISA” project and funded by The Research Council of Norway. TAS has capacity to run thousands of auctions live, communicating with player and bidders, transmit payments etc. Commercialization of TAS is first step in an ongoing enhancement of ROI going hand in hand with new products development for the next months and years to come.  

Our partners:

Syncrotec is cooperating with highly qualified partners, like Favourite Systems AS, Gateway Innovation Inc., Widjet GmbH, MobileAxept AS, 2020 Media Ltd. and 8020 Office AS.

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Tournament Auction System, unmatched in the market benefitting charities

Syncrotec revenue sharing model: Syncrotec revenue sharing model is three-fold and eliminates typical financial risks: 1.  Fixed fee from nonprofit auctions; 20 – 30% depending on SLA achieved. 2.  Other media projects, ATIA TV-SHOW, and product modules etc. implemented as we go 3.  Commission from all commercial auctions Setting up a campaign should give immediate cash flow and return of investment, hereafter ROI for Syncrotec, ATIA CARE and other customers.  

Financial outset:

Syncrotec will generate its first revenue in 2011 and is expecting to be cash positive during 2012. Syncrotec is expecting to achieve break-even on a cumulative basis in 2012 and operating margins of 35% or more are expected from 2013. The company is predicting a turnover of 1 million EUR next year and expect a net profit of 1,6 million EUR in 2013. Sales of TAS Concept to other Nonprofits is targeted to reach EUR 1 million in Q1 - 2012   Syncrotec will run a stock auction sale in combination with an ordinary stock issue that could raise minimum 125 000 EUR - maximum 1,25 million EUR.


Summary

Introduction

Auction fundamentals

Digital solution

ROI

Further reading

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Business Prospect

Auction logic; Using gaming dynamics as a key driver for mobile auctions •  Multiple rounds of competing, yet only one final winner •  Creating winners in each round •  Reaching a big audience •  Using digital technology to automate information sharing and infrastructure •  Giving a more rich user experience •  Giving new ways/formats to attract users less $2 a day

Left picture: Users will first be using our mobile charity application but may later also be taking advantage of a version accessible on other digital formats. Bottom picture: the winner chances and sense of bargain and fair play will incentive users to play several times.


Summary

Introduction

Auction fundamentals

Digital solution

ROI

Further reading

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Business Prospect

Auction goals: Creating outstanding and effective charity auctions We aim to give our clients an innovative charity campaign tool to: - Create word of mouth charity auction - Expand variation of charity auction - Do more effective charity auctions - Generate higher revenue through charity auction - Support with strong learning tool

We give customers a, new to the world, web and app based tool making charity auctions a very effective campaign tool, to optimize ROI. We ignite your charity!


Summary

Introduction

Auction fundamentals

Digital solution

ROI

Further reading

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The Auction Concept That Makes All Participants to Winners!

Exciting Best Winning Odds – TAS The unbeatable advantage of the tournament system is the mathematical probability, which allows one user to win for example a 1.200 opponent-auction by “fighting” only 29! Level 1: On the first and second level the auction is split in groups of 10 bidders. 1.200 bidders = 120 simultaneous auction groups. Each bidder is then only fighting 9 opponents. (1:10 = 9)   Level 2: 120 survivors go on to the next level. 120 bidders = 12 simultaneous auction groups. Each bidder is only fighting 9 opponents. (1:10 = 9) Level 3: 12 survivors go on to the final. There is only one to have the last and highest bid to be the winner of the final auction. (1:12 =11)  

1.200 participants, only 29 REAL opponents to beat - and still all are winners!

The SLA with ATIA Care will serve as contract template towards other potential Nonprofit customers. The Syncrotec name, logos and domain registrations (www.syncrotec.no, www.bidsteps.com, www.bid4aid.com) have been secured. More than 20 other relevant domain names have also been claimed.

This is the best mathematical probability you can get. (9 + 9 + 11 = 29) Syncrotec has close cooperation with some of the best vendors in the market to develop the system. This includes Favorite Systems and Norwegian Computing Center (NR).   “The young people represent the future in all societies worldwide”, says Eirik Kjølner, founder of Syncrotec.

Contractual and legal rights

Syncrotec is therefore able to choose to brand new portals and register their domain as well as protect other trademarks.


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Auction fundamentals

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ROI

Further reading

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Business Prospect

Syncrotec Technology Solutions

Description of technology The developed technology focuses on three main aspects:

1. A scalable architecture which can easily be increased to accept many thousand additional users runtime by just adding more hardware, with no changes to the server architecture or code. 2. Synchronization of clocks to achieve a shared time dependent, state for many users on a broad variety of platforms, using TCP-IP.

Technology language, platform 1.  TAS is implemented using an ordinary JAVA applet connected by TCP to a central server also running JAVA. Thus any client platform with web access and a JAVA VM supporting TCP sockets can download the code.

3. Adaptation of transmissions to individual clients’ bandwidth the user experience will vary with connection quality. However the use of a graceful degradation scheme allows everyone to participate with the same winning chances.

2.  Gaming-applications: Syncrotec focus is the use of this technology to run TAS in All-Pay-Auction setup presented in this business plan. Development of Spade is a future step in company launch of MMO Game Server Technology.

The “Funcom connection”

3.  Syncrotec TAS platform is scalable and robust architecture for “All Pay Auction” allowing numerous auctions and participants simultaneously to attend.

Since 2008 Funcom AS games run on technology initially made by Syncrotec AS; the challenges of MMOG networking was issued together with the Norwegian Computing Center (NR), as part of the GISA synchronizing/fairness project partly funded by The Research Council of Norway.

4.  Mobile apps: The technology can be used as platform to develop mobile apps where large groups can communicate and interact in real time.

time.


Summary

Introduction

Auction fundamentals

Digital solution

ROI

Further reading

Business Prospect

1. Digital mobile platform: Runs on Apple iPhone, Android and other smart phones The mobile Auction solution will be available on multiple platforms thus reaching a bigger audience. Also available will be information about different types of campaigns and background information on Syncrotec.

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Summary

Introduction

Auction fundamentals

Digital solution

ROI

Further reading

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Business Prospect

2. Digital Online Auctions Comparative advantages Our auction system is more advanced, more flexible and more target for charity applications. •  Great flexibility in types of auctions •  Ease of use •  Good tracking of user data •  Secure payment solution •  Serious profile


Summary

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Digital solution

ROI

Further reading

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Business Prospect

3. Digital Auction Application Attractive user outcomes The most important effect is of course the financial and measurable ROI effects: •  Higher financial return because of minimal administration •  Higher number of auctions that can be run

Symbol of world capital –

The Wall Street famous bull in a more artistic version

•  Smart and fast money collection •  Advanced reporting to analyze financial patterns •  Flexible reach of new/different target groups


Summary

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Auction fundamentals

Digital solution

ROI

Further reading

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Business Prospect

4. Digital solution: Easy mobile payment! Pay using your phone - new users do not need pre-registration in other environments with direct transfer to the receiver via the existing banking or credit card infrastructure.

Transfers directly from your debit / credit card account to, and the user can act on impulse and conduct payments with the mobile phone on the spot, e.g. responding to TV ads from the sofa.

About our choice of secure payment solution

Mobile payment solution for donations

1.  Payment with mobile phone through mobile internet, by calling or sending a SMS to specified number

1.  A new effective way of receiving donations and offerings to churches and others

2.  mobileAxept provides an effective mobile phone payment system which directly charges an existing credit card or a bank account 3.  mobileAxept s solution is based on a patented gateway 4.  Payment will be processed on the end user s credit or debit card rather than phone bill

2.  Money goes directly from user to merchant like an ordinary credit card transaction 3.  Members can register to donate fixed sums each month, but also give spontaneous donations 4.  Will help organizations get the most out of marketing campaigns, public relations stunts and network marketing events 5.  Organizations are left with more of the donations due to reduced commissions and fees.


Summary

Introduction

Auction fundamentals

Digital solution

ROI

Further reading

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Business Prospect

1st month offerings for instant ROI Our Fact Sheets Series cover the most popular campaign types that can be delivered in a month’s time. This gives a test of ROI and potential for long-term collaboration. See also our Compendiums.

The Fact Sheet Series is meant to give our partners a predefined offer that allows to make it easy to get started.

Most popular The Fact Sheet Series will follow a consistent structure focusing on typical goals, examples, typical uses, what to expect and process before, during and after a campaign.

1. 

Product auctions

2. 

Services related to auctions

3. 

Event auctions

4. 

Direct marketing auctions

5. 

Movie & digital campaigns

Special offer campaigns 1. 

Directory white label setups /campaigns

2. 

B2B campaigns

3. 

Editorial / content sharing campaign

4. 

Innovative formats


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ROI

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Collaboration ROI: Which value contribution is most important? It it is the entire support system we provide to partners that is important for us to present and customize to collaborating partners. Essential part of this is to target key ROIs that optimize the the collaboration. We provide new tools for campaigns (far left), and then also different types of support offerings (right). Campaigns

Syncrotec back up online/offline support

Syncrotec target many effects and campaign outcomes for partners, the questions, in which order would you prioritize the importance of:

Syncrotec is developing an infrastructure so we both have a campaign tool but also supporting services. Which of the following would be important in your client cases:

____ Better auction results

____ Access auction statistical details

____ Competitor differentiation

____ Profiling of partners

____ New types of auctions

____ Workshops/knowledge transfer

____ Easier auction sales

____ Access to web services

____ Easier auction development

____ Help desk

____ More auctions from same client

____ Real time reports

____ Social media orientation

____ Other online support

Â

Please circle the 5 categories that will be most important in producing ongoing value from our collaboration?

We support VISA, Master Card, AMEX and other popular cards.


Part x – Financial – Creating a new market


Introduction

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Business Prospect

Introduction to competitive edge Vision and competitive edge   Syncrotec has developed a unique Tournament Auction System (TAS) in form of live “All-Pay-Auctions” for Internet and any Mobile Platform. TAS is dynamic and able to handle thousands of participants in thousands of parallel auctions.   TAS has an unbeatable advantage. As best-case scenario one participant could win a 1.200 opponent-auction by only “beating” 29 participants. It is the Unique Selling Point (USP) of the tournament system. Participating in TAS could be an adventure and exciting experience.   TAS is especially designed to collect aid for charity in most effective way. Syncrotec cooperates with new charity organization ATIA CARE, which goal is to support disadvantaged children for better education and future.   TAS concept does not have any direct competitors in this segment at present time.

Technology   Superior and scalable technology platform for versatile auction – game – gaming environments.   Technology platform renewed and proven over an period of more than 3 years of successful testing.   Technology has potential to run Massive Multiplayer Online Games.

Financials ①  Sales target for 2011 and 2012: 10 Nonprofit contracts, 50 Contributor contracts, 1 million participants, EBITA of 12%. ①  Syncrotec estimated cash flow the nest 5 years is 10 Millions EURO based on SLA signed with ATIA CARE.

Conclusion The worldwide need for charity support has hardly any limits and is urgent to find new and better ways of collecting aid to meet the steady increasing demand. The Four Advantages: limitless auction participation, unique winning chances, versatile technology and no direct competition are the four pillars, on which Syncrotec business is based.


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Company structure Syncrotec AS

The company will be responsible for the continued product development and activities in Norway and will manage the rollout of product in other markets.

International expansion plans

Resources I - Management Founder Eirik Kjølner had the original idea for the Syncrotec product and initiated the formation of the company January 31st 2001.

Board of Directors The chairman is Eirik Kjølner. Members are Odd Moe, Chim Andreas Kjølner, Kolbjørn Holmen and Lars Sigve Bilstad.

Syncrotec will start testing of auction concepts and business models in the Norwegian market and will then expand into rest of the Nordic area, thereafter UK, Mid-Europe, US, Middle-East, Brazil and Far East.

Key personnel Syncrotec is carefully building the organization according to demand. This requires that all employees work across functions. The next step is to employ salespeople and to set up a support organization.

Executive team Odd Moe, CEO: He is an entrepreneur by heart and currently Partner at Gateway Innovation, President at Norwegian Entrepreneurs Forum and

Chairman at Startup Weekend Norway. He has international experience as CEO of Global Direct Europe and VP Marketing & Strategy at Seed Forum International. Has a degree in Business Economics from NTDH. For more profile info, go to http://www.linkedin.com/in/oddmoe.

Eirik Kjølner, Founder of Syncrotec AS and Syncrotec Group, 30 years of diversified management experience. Living outside Norway for many

Ownership structure As of Mai 1, 2011 the ownership structure is as follows:

years. System analyst – “Norwegian school of economics – NHH”, studied Law and Psychology on UiO. Buyer and producer of men´s wear in one of Norway largest family owned clothing company. Has established Gustav Käser in Norway. Management consultant, written 3 books on human behavior as part of own developed and very successful manager training program: “Stress – Anxiety – Conflicts for effective leadership!” Exiting CPS training for Norwegian Hydro, personal coach for top athletes. Certified Hypnotherapist and NLP trainer.

Chim Andreas Kjølner, CFO: Partner/Managing Director Tig Welding Contracting, Managing Director ERS Welding, More than 10 years of board experience, Organizational Consultants, Economic education in Business Administration, BI - Norwegian School of Management.

Lars Sigve Bilstad, CTO: Extensive and successful experience sale large-scale database systems

Sales manager - Business Intelligence and Dataware housing - ORACLE, Norway, Engaged in NCR Norway as a business consultant, involved in several successful start-ups as founder and investor, Computer Science and Marketing Management, BI - Norwegian School of Management.

Kolbjørn Holmen, CMO: 11 years of diversified experience within sales, marketing, management and coaching, a broad variety of different

courses within sales, marketing and leadership, in-depth proficiency of the gaming community, Both online and live. Has worked in detail with that business for several years.

We have focused on creating a well-balanced team with respect to business, financing, technology and operational experience. We will continue to strengthen with legal and sales staff.


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Syncrotec chooses partners with strong track record and that can be part of building a stronger network to power our digital solutions

Resources II - Technology & Marketing Partners Favourite Systems AS is a team of talented professionals who are passionate about creating mobile products on all current mobile platforms. After many years in the industry, they have a deep understanding of what is happening with the major mobile phone manufacturers, carriers, mobile platforms and apps. Gateway Innovation Inc. has developed multiple sources of video, film, animation and other multimedia productions through partner networks. With access to several Hollywood studios and Sølvsuper, it offers a versatile product range. GATEWAY has supported Syncrotec with a very genuine and competitive sales tool also in terms of value vs. cost.   MobileAxept AS has developed a patented mobile payment service. Confirmed orders are charged to the customers debit or credit card, rather than added to the phone bill. Recipients can pay these invoices through the mobile phone, by using their Visa or Mastercard for example.   PAYPAL and other relevant payments systems will be implemented according to need of building confidence in the market.

2020 Media Ltd is a UK company focused on delivering excellent Web Hosting,

Broadband and related services. Formed in 1999, and are an established company, with thousands of satisfied customers. Past and present clients include Barratt Homes PLC, Age Concern, County Councils and Government Departments - along with many, many small and medium size businesses. 8020Offince AS (to be registered in Norway) has developed 8020Office as a suite of applications, which empowers organizations with the right tools to conduct daily business activities. The applications are delivered over the Internet, requiring nothing but a browser. This means organizations can focus on their business and they can rely on 8020Office to maintain the servers and keep their data safe. 8020Office offering is scalable, secure, and flexible to support constantly evolving organization needs. ATIA CARE portal is powered by 8020's Content Management Module.   Widjet GmbH Agency for interaction design and founded in 2008. The agency's focus is conceptual design of communications and interactions in new media like social web and mobile Internet.  


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Market and Strategy I

Competitive positioning

The market, customer needs and business opportunities In a global context of rising demand, escalating costs and budgetary constraints, the need to target humanitarian aid effectively and equitably is even more compelling and the private willingness to donate varies with the tragedies and seriousness in occurring crisis. (GHA Report 2011) Nonprofit organizations always look for new revenue sources and need solutions to help them manage their advocacy, outreach, fundraising, and giving. Until recently, comprehensive and professional software solutions to address these needs have only been accessible to the largest of nonprofits. The vast majority of nonprofits have been forced to rely upon low-end applications and tools to piecemeal a solution especially regarding fundraising. These facts open up for new business models for collecting aid. Syncrotec business model is a unique concept without any direct competition at present time. which gives ample opportunities to offer Syncrotec TAS concept to new groups of nonprofits.

The Needs The charity market is a significant part of the NPI industry. Dedicated support for disadvantaged children's care , better environment and education is part of the charity focus and the need is substantial.

Market sector values Most private charity organizations (nonprofits or NPI) today have been forced to cut back on their services due to the general economic deficit. Burdening official state debt in OECD COD countries force the governments to limit and even reduce their support to the charity sector. This fact makes private donations and contribution more important. However increasing unemployment rate, job instability, social insecurity and pessimistic view for a better future limit the general public readiness to donate. This text is from our Executive Summary which is available as separate presentation

The value creation for Norwegian nonprofit was 4,3 billion EUR in 2007, which is 1,5 % of the total BNP with as many as 70Â 000 persons voluntarily contributing in this sector (SSB). Norway is however in the lower end with its 1,5 % of BNP in comparison to UN NPI average of 5 %. A study by First Research, Inc. found in 2010 that the US nonprofit institutions industry includes more than 1.4 million organizations with combined annual revenue of more than 700 billion EUR.


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Business Prospect

Market and Strategy II Charity Customers – the target group Primary customer is charity organization ATIA CARE. In 2012 and outside Norway Syncrotec starts to sign contracts with other charity organizations and foundations with same focus on helping children to a better future.

Market penetration Syncrotec is by Service Level Agreement (SLA) in close cooperation with ATIA CARE, which implement TAS technology as their main source of revenue. This strategy simplifies the process to support also other nonprofits as well as simplifies the control of use of aid. The tasks of monitoring the total operation from collecting items for auctions, deploying and running auctions also helps the process to select preferable projects to support. An API link from a cooperation nonprofit customer to ATIA CARE Web Auction site is the perfect tool to channel aid directly for example to Red Cross, Care or any other nonprofit.  

Public relations and advertising For successful marketing of TAS in cooperation with ATIA CARE it will be crucial to use all kinds of social networks, to achieve the goals planned and budgeted for. ATIA CARE has produced a short film emphasizing the auction concept as a new vehicle in the nonprofit aid supporting market.

Social networks as medial platforms For a successful marketing of TAS in cooperation with ATIA CARE it will be crucial to use all kinds of social networks to achieve the goals planned and budgeted for. ATIA CARE has made a film to be presented through all different social Internet networks. The film expresses the discrepancy between the need and monetarily help at hand, and therefore, the necessity to use new methods to fill the gap supporting children’s need for secure environment and education.

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Pricing to meet the competitive landscape Pricing model for Charity Auctions Auction participation is always prepaid. The participant fills up his personal account to pay for the bids to be used in a specific auction tournament and is able to manage his account at any time. To Participate in TAS is a winner event. Each auction produces at least one winner with option to qualify for next tournament level. Every participant reaching a certain level will receive a buyers discount not smaller than the cost of his participation in that particular auction. In short, for the participant TAS is a dedicated discount system. The winner takes it all and the others get discount bigger than their input into the auction tournament contest. The contributor get valuable marketing and increases his sale with more dedicated customers at the same time as ATIA CARE get more aid for its purpose. All parties involved are winners.

The competitive landscape •  Syncrotec primary competitors are other auction providers. •  However the TAS concept seems to be without any direct competition. Still the challenge to stay ahead of competition is immense and imperative. •  The challenges are substantial; the reward and monetarily paybacks are however exponential.

Competitive matrix Most important competitors from Syncrotec´ perspective are:

Income stream and types of auctions Syncrotec´ revenue sources are three-fold: 1.  Fee from nonprofit auctions 2.  Commission from all commercial auctions 3. Other revenues: BID4AID TV-SHOW, other media projects, product modules etc. that will be implemented as we go Syncrotec deliver these types of auctions as part of TAS concept: 1.  BigWin Auctions (large winning tournament) 2.  Charity Auctions (object winning tournaments) 3.  Live Auctions (smaller prizes and immediate starts) 4.  Free Auctions (winning bids for other auctions – used for recruitment)

Syncrotec has a couple of key target competitor however their type of auction and geographical reach are still match able because Syncrotec offers additional functionality such as….

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Sales targets for 2011 and 2012

  Norway and European countries will have first priority in the coming years. More detailed budgets and information is available.

Nonprofits outside  Norway   To optimize aid support three criteria have been chosen as vital for the process: 1. Efficiency in allocation of aid (1 – 10 ascending) 2. Size of accessible supporter groups in figures 3. Public confidence and reputation (Good – Better – Best)

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Timescale Tentative plan in graphics

Future Games to come The basic technology of TAS enables a broad variety of new games to be developed without substantial additional investments in computing of time and money. Development of Syncrotec Platform and Development Environment (Spade) is a future step in company launch of MMOG Server Technology. Within the next 18 months Syncrotec plans to launch five new games with potentially high profit margins. Quiz4Aid – Multiple choice Tournament Last Man Standing – Skill Tournament Survival 100 – Mobile Strategy Tournament Octavian Quest – Tournament Trade Game BestBid – TV entertainment Auction Show


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Key steps, Timescale Early identification of exit routes are key to Syncrotec

T3 2011: Testing rounds of TAS TAS will be installed at ATIA CARE web, tested for technological stability and capacity as well as tuned of business concepts for the market.

T3 2011- T1 2012: Start closing client contracts

Signing 2 new SLA contracts with major international nonprofit organizations.

T1 2012: Full operating running business relations

Signing first contract with commercial organization to bring TAS to the commercial market.

Exit routes Rapid organic growth through deals with several larger European charity organizations will lead to a considerable increase in value. It might also be of interest to find a strategic alliance partner or purchase candidate to grow market share more quickly. It is not unlikely that some US nonprofit organizations also would be interested in TAS as new vehicle to collect aid, and would be willing to purchase an exclusive license for the Americas. The most likely exit will be listing at one of the stock exchanges in Europe (3 – 5 year) or trade sale to a larger gambling player.

T2 2012: Expanding in and beyond Europe

Plan and initiate the “BIF4AID” TV Show concept in cooperation with ATIA CARE or other nonprofits to bing it into the market. Sign the first contract with commercial organization to start introducing TAS in the gaming market. Testing out new TAS gaming concepts. SLA contracts with nonprofit organizations will be installed and operated.

T3 2012 – T3 2013: Expanding corporate companies & partnerships

Further penetrating the nonprofit market outside EUROPE. Through new daughter company Spade technology will be actualized to “State of the Art”. This server platform technology will be commercialized and operated. Sell and run “BID4AID” TV Show together with media partner.

T1 2012 – T3 2014: Expanding corporate

By establishing new companies or through alliance partners Syncrotec will expand new TAS concepts for the commercial market worldwide as well as run its Spade concept on a profit basis.

Risk Factors, possible failures; 1.  - ensuring sufficiently high participating rates by Nordic launch strategy 2.  - quickly establishing a large steady base of customers 3.  - ensuring financial backing until breakeven 4.  - building an organization capable of achieving goals set 5.  - communicating the user friendliness of system 6.  - bid engine halts scalability for rapid growth


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Business Prospect

The first private placement of 825 000 EUR was done in 1998. In 1999 there were negotiations with Modern Times Group of Sweden to launch the concept as a TV entertainment program. Due to the death of Jan Stenbeck the contact was broken. Then Price Waterhouse Coopers was engaged to commercialize the technology at that time. The next private placement of 1,25 million EUR took place in February 2001, shortly after converting debt of 837 000 EUR into equity. With PWC on board the monthly monetarily burning rate was substantial. However, the public interest for our project was so immense that the virtual value of the company went up to 375 million EUR with a total of 387 shareholders. The Internet bubble burst and made it impossible to rise additional funding. In 2005 Syncroport AS was established to be the sole owner of Syncrotec AS and the number of shareholders was reduced to 256 in Syncroport AS.

Funding to date and brief history 1.  The idea to develop a game engine deploying many simultaneously users started in 1995. Professors Klement and Dr. Takacs at Johannes Kepler University of Linz, Austria were engaged to develop the first game, though this was in the absolute infancy of the Internet. Thereafter NR - Norwegian Computer Center was engaged to develop the first computer technical solution with 3000 simultaneously players. 2.  Hacker protection programs made a complete new technology necessary as well as making the Internet parallel instead of sequentially. This challenge was solved and we started the GISA project where one important challenge was “Death Reckoning” and to organize “Area of Interest Management – AoIM”, how to support very many players with same information instant and simultaneously. AoIM is a crucial topic to construct real MMO games. 3.  Collaboration with Funcom. Due to lack of financial power – a loss of 625 000 EUR caused by two customers bankruptcy without sufficient funding the Norwegian company Funcom AS was invited to take over and finalize the project. Since spring 2008 Funcom runs its MMOG in this technical server platform. Since 2005 the main shareholder has constructed a couple of new games based on the original game engine technology, GAGE.

Debt converted into equity in 2009: TAS was made on behalf of and in cooperation with Conzeco Marketing Ltd of Ireland, a company that never materialized. In 2009 and 2010 the company debts were converted into equity.   In 2009 it was possible to buy out all debt in company at a reasonable price, which opened up for new fresh capital in 2010 as well as reducing number of shareholders to a reasonable level. The technology is completely renewed to run parallel TAS on any mobile network. 01.01.2011 the company share capital is 1,05 million EUR with a debt of 37 500 EUR and a loss of 4,37 million EUR carried forward


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Business Prospect

Syncrotec comprehensive  approach  to  scaling  our   offering  interna5onally   Recruit other non-profits with many supporters/members: ATIA CARE lists 20 projects on web – individually public decides which to support - Syncrotec charges 30% fee when no marketing on project own web - Syncrotec charges 20% fee by API (10% less marketing cost) Non-profits with separate and total customized operation

Launching social medias activities (Twitter – YouTube – Facebook):

Blogger groups Word of mouth campaigns Producing challenging topics and questions for better bidder interest

Engaging press and media, campaign focuses:

ATIA CARE –

Our main goal is to developing sufficient number of participants for auctions!

Establishing rewarding recruitment programs, different initiatives:

Our three target groups: - Charity Organizations (non-profits) - Private industry contributing with auction objects (contributor) - Different consumer groups as auction participations groups

Products offered: - Tournament Auction System – (TAS) to create larger charity funds - TAS to create specific public interest for auction products – effective marketing - Exciting auctions with large winning chances – discount system for participants

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Using the press for free through charity news Using the press to highlight unique auction results Make public competitions

Friends recruit friends and earn free bids Friends recruit friends on highest level and earn free access to VIP auctions Friends run private auctions

Developing surplus of attractive auction objects from supporters: Offer marketing space and API for object contributor Object supporter get tax deduction for investment in charity projects Contributor gives all auction attending bidders discount if purchasing directly Contributor name is associated with ATIA CARE and specific project Values of objects are of crucial importance

Organizing participants in loyalty reward programs Earning credits according to participation pattern VIP – exclusive auctions Special discount schemes in company


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Business Prospect

Funds required – Why buy a Norwegian Auction concept? TAS concepts are unique and without direct competition. TAS is building on a versatile technology, reaching from simple auctions concepts to gambling and Massive Multiplayer Online Games (MMOG) platform and all with substantial ROI potentials. TAS is ready to be launched. Syncrotec plan to build several strong charity cases in Europe to develop a structure, brand recognition and credibility to work with the biggest players.

Rationale for investing: a) Syncrotec has a unique MMOG platform technology that can be used to develop new and existing mobile apps and other applications. b) Syncrotec has 4,37 million EUR in carried forward losses that give large tax benefits. c) Estimated CAPEX/OPEX within 2014 equals 5,0 million EUR. Target in 2012: A 15 million EUR company generating 9% EBITDA margin in sold SLA contracts and auctions. d) Syncrotec believe that the soft charity launch and then followed up with a more aggressive gaming strategy abroad can be very successful. e) Syncrotec have a very experience team that has done international rollouts and exits with great success before. f) To finance further development we will use the Innovation Norway IFU program and also seek financing from various EU funds.

“The system creates winners and yet efficiently allocate funding to charities. Through combination of Syncrotec and ATIA CARE we create win-win-win, between charity organizations, their participants and contributors - a driving principle behind our launch and why we expect significant company growth.“ Eirik Kjølner, founder.


Part x – Additional perspectives


Introduction

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Business Prospect

Business case  example:  American  Auc5on  as  a  TV  game  show     One of the Syncrotec concepts with significant commercial value is for TV-companies being responsible for broadcasting game status (provided by SyncroTec software) to the player. While the TV-companies are responsible for enabling broadcasting of different messages (provided by SuncroTec software) over different broadcasting links this create a very interesting player dynamics and involvement of telecom providers. The commercial opportunities are substantial! Player

Telecom service provider

TV company

Syncrotec Software

Syncrotec stores and processes information provided from the player through the telecom service provider:

Registrationservice

1. registration of new players in auctions 2. Bids

Management client

Telephone

Bidding

The Syncrotec involvement

Telecom.client

TV

Auction engine

Broadcast client

TV Broadcasting system

Syncrotec is responsible to provide verification on player’s interactions, some examples: 1. no more bids left 2. no more participants allowed in this auction 3. auction is over, no more bids are allowed Syncrotec is responsible to provide game-status to the TVbroadcasting system

Broadcasting link - Satellite - Cable - Terrestrial

high-­‐level system  architecture  

Syncrotec can develop functionality for transmitting different messages with time-delays to the broadcasting system, enabling synchronized TV-signals independent of different broadcasting links (e.g. satellite, cable and terrestrial)

The player dynamics

The Telecom service provider

The player uses two devices to participate in the game 1. Telephone 2. TV

The telecom service provider sets up: 1. Subscription service: Functionality for registration of players to the auction 2. Broadcast call service: Functionality for placing bids

The player must dial a number to register as a participant in an auction 1. This phone call is charged with e.g. 30 NOK 2. The player receives a new phone number to participate in the auction 3. The player receives a pin-code to use as authentication to enter the auction 4. The player receives a tone to verify registration OK/ not OK

The telecom service provider administers the billing process.

The player notice when the auction starts on the TV 1. The player joins the auction by dialing the number received and entering the pincode. The player receives a tone to verify OK/ not OK 2. The player presses a number to place a bid, and receives a tone to verify OK/Not OK

The telecom service provider is responsible to transmit messages over TCPprotocol to Syncrotec software. It’s two types of messages: 1. registration of new players in auctions 2. Bids The telecom service provider is responsible to provide verification on player’s interactions, based on information provided by SyncroTec software


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Academic case  example:     “An  analysis  of  the  of  A@en5on…”   In the software solution, structure, scaling of software features we are also basing our plans and development on academic findings to optimize results and to gain a competitive edge.

Growth

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Introduction

Introduction

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Additional Compendiums;

Completing the Syncrotec Auction Program

Investor prospect

-

Digital front/backend

-

Auction Campaign tool kit

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Introduction

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Pricing & sales

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Business Prospect

Additional material;

Also see our film defining the market opportunity and need

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Har vi  ikke  denne?  

Future Games to come The basic technology of TAS enables a broad variety of new games to be developed without substantial additional investments in computing of time and money. Development of Syncrotec Platform and Development Environment (Spade) is a future step in company launch of MMOG Server Technology. Within the next 18 months Syncrotec plans to launch five new games with potentially high profit margins.

Brief history and future games The idea to develop a game engine deploying many simultaneous users in real time started in late nineties at Johannes Kepler University in Linz under supervision of professor Klement and Dr. Takacs. A planned TV program of the concept together with Modern Times Group (MTG) of Sweden was cancelled in 1999 due to the sudden death of late Jan Stenbeck, the owner of MTG. Price Waterhouse Coopers was engaged to commercialize an Internet version of concept.   The public interest for Syncrotec project was immense and the virtual value of the company went up to 250 million EUR with a total of 387 shareholders. When the Internet bubble burst the funding market disappeared instantly. Together with high monthly burning rate and two customers bankruptcy the balance sheets went deep into red figures with heavy deficit.   A complete turnaround of company in 2009 converted debt into new share capital and number of shareholders were reduced to less than 20 individuals. In 2011 the technology is completely renewed into state of the art where TAS runs parallel on any mobile network and Internet.    


Syncrotec Compendium Series / Customer Offering

Syncrotec Prospect Faster, better and smarter systems for charity auctions campaigns.

Alterna5v forside   Introducing the worlds most advanced auction system. Syncrotec is offering a charity auction system for global reach and high ROI.

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Syncrotec Business prospect  

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