Circulation fullfillment of newsprint magazine and postal (3)

PROPOSAL – News Queensland.M.M.P.D Logistics and Distribution Model for Newsprint, Magazine and Postal Media within Regional Northern NSW /Far North QLD and Metro QUEENSLAND. Author: Simon Coulter – MD – MMPD.

Queensland / Northern NSW / Gold Coast / Brisbane Metro / Townsville / Cairns.

MMPD - Delivering innovative and FLATWRAP based tech to the print & subscription based networks, that ensure complete automation of the model and payment system, inc. both retail and home delivery account management systems specific to the growing demands of Publishers Distribution and Logistic requirements.

MISSION STATEMENT

FLATWRAP Distribution Services (FDS) was established to provide print sites and publishers a range of services and a comprehensive solution in regards to FLATWRAP/Distribution in Australia and New Zealand. It is our goal to become the specialist supplier of FLATWRAP technology in Australia and New Zealand to publishers, mailing houses, newsagents, distributors and contractors by the 1st July 2014. All Research and Development is trialled and implemented by our distribution arm – MMPD P/L.

• MMPD is an experienced newsprint distribution and logistics operation and currently operates a complete daily newsprint circulation fulfilment platform that has the ability to manage and process retail sales within SE QLD which includes full account management.

• FDS is currently trialling Aust made bolt on purpose built equipment that will deliver substantial revenues streams currently not available within QLD Newsprint distribution centres

• This additional advertising space and specialised targeted marketing will allow advertisers to target very specific demographics within SE QLD

MMPD PERSONELL

Managing Director: Simon Coulter

Owner: Michelle Coulter

Operations Manager: Katrina Roberts

Administration Manager: Tina Moore

Customer Services Manager: Courtney Hamson

Accounts Manager: Kestra Triasmono

Distribution Supervisor: John Northcott / Jacob Cordtz

Human Resources: Wanita Triasmono

The above mentioned personnel have developed and delivered a unique distribution model called P.D.D.

Publisher Direct Distribution, combined with a state of the art FLATWRAP distribution facility that specializes in the distribution of newsprint and magazine publications including subscription titles into residential, and commercial areas within SE QLD, Northern NSW, Sydney, Melbourne, Adelaide, Perth, Auckland and Wellington.

MARKET SUMMARY

MMPD was created due to the lack of solution providers within the local market. In accordance to this, with rising costs and the fact that the QLD Newsagent distribution model was plagued by numerous small delivery networks with limited resellers, the model was simply destined to fracture, due to its current state being unviable and outdated.

• The absence of a reliable professional newsprint contracting service in the QLD market enabled MMPD to establish a centralized distribution centre that specialises in accurate, reliable and timely delivery into the market

• In 2008 MMPD embarked on a 4 year R&D program embracing FLATWRAP (an innovative unproven technology that allowed for the development of highly profitable revenue streams which included the creation of a new advertising space on printed film)

• FLATWRAP significantly reduces labor costs and turn around time

• Savings are a minimum of:

• 50% when manually inserted

• Increased output (200%) when the PF12 hopper unit is in use

TODAY’S SITUATION

• Current Newsprint distribution networks in both QLD regional and metro areas are fractured and broken

• Strengthening the relationship between publisher and distributor, improving communications with regards to recognising the importance of each others role within the industry

• Remove Old World Technology and deliver publications in the manner in which they were designed to be delivered – FLAT to the market

Today is about recognising and taking the opportunities presented and developing a HD/reseller distribution network that is viable, highly profitable, KPI focused and rewards those entities that are prepared to do the work and invest the capital required.

CURRENT OPPORTUNITIES

The creation of specialist newsprint and magazine distribution centers' that have been specifically designed to deliver premium advertising revenue due to newly created advertising space.

• Offering the total solution including subscription and sub agency based revenue streams.

This type of central FLATWRAP facility & distribution centre allows the targeted demographic to be continuously engaged at a relatively low cost to the advertiser with the resources that are currently accessible by the publisher.

• Massive potential in QLD to grow the News Ltd brand and deliver a level of customer service not yet witnessed within the state.

The transformation from distribution centre into profit centre is due to the recent availability and integration of FLATWRAP technology and the review of timely distribution platforms, that assist with ensuring the brand is always being promoted and delivered when the client expects to receive the daily same time and position within the property line.

BUSINESS CONCEPT

The FLATWRAP model is based on the proven and well established Japanese technology that has been further enhanced by an Australian designed and manufactured Hopper fed conveyor system that increases the output from 1600units per hour to over 3100units per hour and the capability to generate a further (6) additional advertising revenue streams.

The placement of (7) such units at the NQN Print Facility and additional News Print site in Brisbane will deliver a minimum of 14K wrapped units per 75. MMPD will have the technology, resources and the expected WHS/OHS to provide News QLD support with regards to the newly created divisions/areas for newspaper distribution within the SE QLD region when the model is released to market.

• FDS has installed 2 units in Victoria @ Regional sites

CA (Commercialization Aust) believe that the MMPD model can be franchised and delivered to market in conjunction with News Ltd future distribution model, which would allow MMPD to retain the master license and sell the remaining licenses in NSW/Vic/TAS/SA/NT. This gives the publisher greater control over the type of personnel who are likely to embrace such a business whilst keeping a close check on the progress of each zone roll out.

Goal and ObjectiveThe objective is to negate current distribution costs to deliver ongoing highly profitable revenue streams within parts of the distribution model which were not attainable until now.

Specialised in targeting and marketing campaigns whereby specific demographics are engaged and saturated with the chosen brand, with elements being layered throughout the landscape in which the demographic works, learns, rests, plays & prays.

Printed Film – Create viable and innovative revenue streams that engage and excite advertisers which alternatively allows pricing to be charged at a premium rate.

• Subscriber based platforms for all News Ltd publications.

• FDS has the A4 Magazine and brochure tech to manage this task

BUSINESS CONCEPT

COMPETITION

Currently in QLD there is no other parties that have the scope, resources or technology to threaten MMPD’s position within the QLD Newsprint and magazine account subscription market, which includes both resellers and home/commercial clients.

MMPD’s has a number of competitive advantages which include:

• Industry Knowledge. Robust and Dynamic corporate structure

• Resources which Incl statewide substantial subcontractor base

• Innovative Tech – win8 tablet pc and FLATWRAP

• Diverse revenue streams

• Suppliers trust and confidence

• Ability to establish MMPD distribution networks in major QLD regionals and Northern NSW

PREFERRED OPTION – QLD/NSW (INCL REGIONAL)

FLATWRAP Distribution Centre's within Brisbane Metro at Rocklea to cover all HD clients/commercial and subsequent sub – retailer network. Vehicle number subject to information data being made available by John Fairfax Publications.

• Gold Coast: service from Logan River to Ballina

• Sunshine Coast: service from Caloundra to Gympie

• Townsville: service region including specialised commercial deliveries during the hours of 6:00-10:00am and complete all HD before 6am.

• Cairns: service City and Northern Beaches and complete all HD before 6:30am

The number of vehicles for the above territories are still yet to be determined. Once delivery data is provided MMPD will be able to provide accurate pricing.

FLATWRAP JOYNER X THE NEWSPRINT DISTRIBUTION EVOLUTIONThe FLATWRAP Joyner X currently has no competitor in the Aust/NZ market. It has replaced old world technology that is not only noisy, smelly, heavy, complicated in design but dangerous due to its violent action with numerous cams and spinning shafts.

The FLATWRAP Joyner X has been purchased by a number of Australia’s and New Zealand's major newsprint publishers/print sites. This will result in a range of bolt deliveries on units that will not only double the output but deliver additional revenue streams through new advertising features.

• Backed by a national service team peace of mind is guaranteed and fds techs fly anywhere in Australia to complete services on site

FLATWRAP technology enhances the workplace and improves work place health and safety due to a low risk assessment, basic design, uncomplicated insert procedure and an operating procedure that delivers impressive safety features and high productivity. This ensures that the operator is not working longer than 15mins per rotation. When compared to the old world tech, today’s operator will produce up to 1800units/hr with minimal exertion and a greatly reduced load on the body. Whereas the old world tech has a number of work place related problems (RONAI/ROTAK) & average output is 800/hr.

DESIGN AND SAFETY DELIVERS POSITIVE RESULTS.The FLATWRAP Joyner is a simple design which offers a number of favorable safety features, to alleviate and ensure safety of the operator and surrounding workplace at all times.

• From simple shut off to a housing that is complete whilst still allowing for ease of maintenance

To date 1st Nov 2012 there has been zero reported accidents, injuries or incidents involving this evolutional technology. There is currently 60 units operated daily and which results in a wrapped total units since 2007 of over 20 Million.

• The FLATWRAP Joyner is a totally enclosed unit that requires no oil or lubricant

• It is a basic (3) unit heater blade design that doesn’t allow the operator or staff member to injure or harm their person through accident, lack of concentration or fatigue

• Form of FLATWRAP does not produce any toxic or irritating odors/smells

INNOVATION and FUTURE DIRECTIONMMPD and FDS are committed to the continual development of FLATWRAP technologies and tech that assists with the processing and delivery of both newsprint and magazine publications to the intended market or niche channel. Now available Printed Film – Conveyor Fed Hopper – Newsprint Transporter - Heavier Gauge Film 12-14micron. These improvements have all been commercially proven and are delivering results beyond MMPD’s expectations.

• MMPD is currently trialing a Hopper Fed conveyor unit which can be used for magazine style publications as well as newsprint (i.e. Mailing House)

• Hopper will have the following features built in and simply bolted onto the current unit. Sticky Note Applicator – (4) Insert Lines

• Printed Film Improvements and targeted delivery to the exact demographic that our clients require on both a State and National Platform.

• PC Tablet tech that is GPS based designed as a point to point navigation system purpose built for Home and Commercial delivery of Newsprint. Number of specific features that have been developed to ensure real time reporting and transfer of required data and P.O.D at the push of a button.

Developing and implementing distribution models that deliver a total solution and a R.O.I within months – not years. (i.e Warehousing / Pick, Insertion & Wrap /Distribution / Account Management / Constant evaluation and improvement of business practices.

PC Tablet tech that allows for real time reporting and the transfer of data and information when the business requires reducing bottlenecks and ensuring there is less risk of this info or data being lost which is an issue currently with hardcopy. This tech will also allow for SMS communication / email and GPS. It has the same features and capabilities as the current windows based mid level laptop.

Incorporated within Print Facility this FLATWRAP station produces over 6.5K

units Half Folded in less than 90minutes.

Producing Home delivery newsprint in the format it was designed –

FLAT.

Leading Daily Newsprint Distribution in Aust.

FLATWRAP WORKSTATION

Newsprint Transporter.

Built to handle 50 S.B./750Kgs . Next model can be forked on or off transport.

.

Newsprint TransporterBuilt in Australia by OCD Fabrications

LATEST INNOVATION

LATEST INNOVATION

mmpd vehicles have a number of features that are specific when delivering newsprint and magazine products. (access from all sides – led spotlights – diesel – auto transmission – driving spotlights – mounted warning lights to improve vehicles visibility and warn other road users and soon to carry pc tablet tech. (elec manifests / p.o.d / GPS and many more features.

FLATWRAP STATION – PRODUCE 6K HALF FOLDED NEWSPRINT PUBLICATIONS WITHIN 60MINS.

LATEST INNOVATION

FLATWRAP Advertising FLATWRAP Product ready for distribution - 20K units wrapped in 3 hours

OPPORTUNITIES

• The creation of specialist newsprint and magazine distribution and logistic centers that have been specifically designed to deliver premium advertising revenue due to newly created advertising space.

• This type of central FLATWRAP facility &distribution center allows the targeted demographic to be continuously engaged at relatively low cost to the advertiser with the resources that are currently accessible by the publisher.

• The transformation from Distribution Centre into Profit Centre is due to the recent availability and integration of FLATWRAP technology.

• National Service Team and distribution resources available in QLD/NSW/VIC/SA and New Zealand.

• Printed Film.

• Australian Designed and Built Hopper Fed Conveyor Systems.

• Increased Productivity delivered with low capital investment.

• Significant Labour savings.

• R.O.I within months not years.

• * Market leader in print distribution in SE QLD - Northern NSW to Brisbane.

• * $5M turnover by July 1st 2014.

• * News Qld distribution solution in all QLD regional Centre's.

• Townsville

• Cairns

• Gold Coast

• * FLATWRAP preferred option in all home delivery markets in which MMPD operates.

• Objectives – over the next 5 years

• Market-share 33% of all paid newsprint distribution in QLD.

• Turn over in excess of 7 million by 1st July 2016.

• Profitability minimum 31%.

• Market leader innovative newsprint distribution solutions

2014 – 2017 FDS & MMPD GOALS AND OBJECTS

JOINT VENTURE OPPORTUNITY

MMPD and FDS are committed to delivering the FLATWRAP Joyner X tech as New Zealands preferred solution with regards to any newsprint or magazine distribution network requirement day or night. Purpose built newsprint DC’S in a number of cities around Australia will become the industry standard within 2-3 years, and this is the exact model that MMPD has in place and commenced operations in 2006.

• Seeking SALES & SERVICE specialized business and available 2yr agreement that can be discussed in a open and transparent forum.

MMPD is prepared to provide open book financials each quarter over the 1st year and then every 6months during the term of the agreement. This is to ensure that all parties are comfortable and aware of the costs and profits that this distribution model delivers.

• MMPD is seeking a min 30% return and is prepared to offer equity up to 25% share in either or both companies i.e./ MMPD and FDS