Strategy-on-Carpet by Toytemic

www.toytemic.comTOYTEMIC Inventions, LLC facebook.com/Toytemic

STRATEGY-ON- CARPET…

extending video-games into reality

The winner of «Skolkovo Innovation Award» supported by CISCO I-PRIZE(May, 2011)

NextGen Toys for NextGen Kids

Slide 1. Title:Slide 1. Title:

STRATEGY-ON-CARPETSTRATEGY-ON-CARPET



Slide 2.Slide 2. SummarySummary::

PROJECT SUMMARYPROJECT SUMMARY

Technological platform designed to support wireless ad hoc networks of mobile and self-propelled devices in personal area (up to 10 m radius). TechnologyTechnology

Electronic sets for game systems of toys, interacting with each other, able for adaptive behavior, able to form teams and act in concert ProductProduct

Global sales of interactive electronics-containing toys > 185 M pcs (2010) Forecast for 2015 > 310 M pcs ($9,4 per year) MarketMarket

Global Toy, Game and Robotic companiesEnd User – kids (2-12) together with their parentsClientClient

В2В: licensing, reference design, OEM supplies, customization. $ 1,5 – 3 per copy. Revenue on 5th year - $60M

Business Business ModelModel



SlideSlide 3. Problem3. Problem::

DEREALIZATIONDEREALIZATION

• excessive virtualization of games and

entertainments of kids and teenagers

• colorful violence

• loss of reality

• inadequate behaviors

Games should be brought from

behind the screen back into the

tangible world of real toys

HAS THE TIME COME?



SlideSlide 4. Solution4. Solution::

ESTABLISH THE MISSING LINKESTABLISH THE MISSING LINK

Electro-mechanics and electronics used in modern interactive toys are perfect enough for turning these toys into game units.

THE MISSING LINK IS POSITIONING SYSTEM

• units (toys) form ad hoc networks

• mobile and self-propelled nodes

• every unit positions any other unit

accurate within 2-3cm/30degrees

Toytemic positioning system:

AreaAt first stage - up to 1,5m radiusAt second stage - up to 10 m radius

No beacons, no external detectorsNo beacons, no external detectors



SlideSlide 4. Technology4. Technology::

TOYTEMIC PLATFORMTOYTEMIC PLATFORM

Breakthrough technology under development

for controlling an arbitrary number of self-propelled units

with a single pointer-like remote controller

System-on-Crystal

Compact built-innavigation module

$2 in mass production

Toy units may be grouped and act in concert as a unitary team



End Users – kids (2-12) and their parents

B2B Customers – Large and medium companies in:

- Toys new tech platform for interactive toys

- Video-Games new game applications

- Service Robotics advanced navigation

- Entertainment new features for public entertainment

Invent => Prototype Invent => Prototype =>=> Patent Patent =>=> License License =>=> Customize Customize =>=> Support Support

$1,5 – 3,$1,5 – 3,00 per copy per copy

Slide 6.Slide 6. Business-modelBusiness-model::

LICENSING & CUSTOMIZATIONLICENSING & CUSTOMIZATION

Royalty Rate 10% from Wholesale price.

50% margin for customized electronics sets supply



Slide 7. MarketSlide 7. Market::

MARKET ESTIMATION, SALES FORECASTMARKET ESTIMATION, SALES FORECAST

9%

10%

9%

13%

3%10%

8%

6%

12%

5%

15%

Action Figures & Action Role Play Arts & Crafts

Games/Puzzles Infant/Preschool Toys

Youth Electronics (incl. Robotic Kits) Vehicles (incl. RC Toys)

Other Toys (incl. Electronic Edutainment) Plush

Dolls Building Sets

Outdoor & Sports Toys

Target segments

Global Toys&Games Market >$125B CAGR 4%.

In the world - 2B children In “Golden B” - 200M children: $250-330/child/year China growth - CAGR 40%

Market inMarket in 2015 г. 2015 г. > >3300M units00M units

We want to take 10% or moreWe want to take 10% or more

UNITS SOLD PER YEAR (forecast)

RC Toys/vehicles (2011) 100M

Electronic Edutainment (2012) 140M

Interactive Dolls & Plush (2011) >50M

Toy Robotic Kits (2009 – 2014) ~35M

MOST GROWING SECTORS

ITP (infant, toddler, preschooler) 15 - 20% a yearHiTech toys 10 – 20% a yearToy Robotic Kits 50 times in 6 years



СлайдСлайд 8. 8. CompetitionCompetition::

COMPETITIVE LANDSCAPECOMPETITIVE LANDSCAPE

Companies We Can Do, They Can’t We Can’t Do, They Can

Freescale and other microelectronics suppliers for toy industry

Develop integrated toy-specific technologies

Reuse and/or quickly modify their own old techs for toy applications

Leapfrog, WowWee, WowStaff and other interactive toys’ companies

Make a real breakthrough in toy robotics

Sell toy products

Provide wide distribution

Mattel, Hasbro, Nintendo and other toy giants

Create NextGen toys Buy NextGen technologies/companies

LG, Samsung and other home robotic producers

Make perfect robot navigation and mapping

Make home robots and bring them to the market.

Time Domain and other UWB-tech leaders

Create strategy-on-the carpet and other UWB-toy applications

Sue us for real or fantastic infringing on their IP.

Pay litigation expenses



Slide 9.Slide 9. TeamTeam::

TEAM’S COMPETENCETEAM’S COMPETENCE

Management TeamManagement Team

Evgeny Smetanin, CEOProducer and developer in digital edutainment, computer games, interactive toys and gadgets. Licensor to global game publisher.

Alexey Chechendaev, CTOengineer, designer, director of projects in microelectronics andRF engineering; sensor networks, interactive educational products

Andrey Gabelko, COO/Biz-devPh.D. in Physics, 20-year as business driver in software designing, UWB, Mesh networks, telecom and laser; launched 3 start-ups (incl. abroad)

• Interdisciplinary engineeringInterdisciplinary engineeringteam (robotics, adaptive team (robotics, adaptive behavior, chip-design)behavior, chip-design)

• Board of advisors with Board of advisors with strongest track record in UWB,strongest track record in UWB,robotics, toys (including robotics, toys (including Western experts)Western experts)

Worked together in a number of projects – developing and launching products in:

• radio electronics

• bio-implants

• computer games

• interactive toys



SlideSlide 10.10. Key MetricsKey Metrics::

5 YEAR FORECAST5 YEAR FORECAST

Expected indices till the end of 2015

Quantities of products used Toytemic technology >30M units

Income per unit sold $1,5-3

Number of patents >20

Revenue forecast

$- $300K $4 620K

$61 440K

$25 440K

$-

$10 000

$20 000

$30 000

$40 000

$50 000

$60 000

$70 000

FY1 FY2 FY3 FY4 FY5

$ K

Road Map

Prototypes for niche pilots - Q2 / 2012

Niche pilots on the market - Q4 / 2012

Integrated platform prototype - Q2 / 2013

SoC for mass production - Q4 / 2013

Mass global sales - Q4 / 2014

5th year revenue5th year revenue - $60M - $60M

Investment required - $ 1MInvestment required - $ 1M(1st stage)(1st stage)

- $ 5M- $ 5M(2nd stage)(2nd stage)

Break-even point - Q11Break-even point - Q11

IRR (IRR (Internal Rate of ReturnInternal Rate of Return) - 104 %) - 104 %



SlideSlide 11.11. Current StatusCurrent Status::

PLACE D’ARMES PROTOTYPESPLACE D’ARMES PROTOTYPES

Immediate goal is Immediate goal is

to occupy a place d’armes to occupy a place d’armes

on the target marketon the target market

with niche products with niche products

Interface PuppetInterface Puppet Bunnies’ FlockBunnies’ Flock Brain TrainBrain Train

Current StatusCurrent Status: : FUNCTIONAL PROTOTYPESFUNCTIONAL PROTOTYPES

TOYTEMIC in 2011March 2011 - first place winner of “Innovative Toy”

contest at “Toy Russia’2011 ExpoMay 2011 - first place winner at “Skolkovo

Innovation Award” (Cisco I-PRIZE)July 2011 - prototype demo and negotiations in

two of Top-5 global Toy companies

5 patent applications through PCT



SlideSlide 12. 12. ReminiscenceReminiscence::

NEW LIFE OF THE OLD GOOD GAMENEW LIFE OF THE OLD GOOD GAME

The most famous science fiction novelist Herbert Wells playing toy soldiers according to the rules he described in his book. That was the first modern table top strategy game.

Strategy-on-Carpet by Toytemic

Entertainment & Humor

units toys

nextgen kidsslide

nextgen technologies

interactive toys video

modern interactive toys

game systems of toys

rc toysother toys

bioimplantsinteractive