Homefort | Overview

Dear Companists,

We are pleased to provide you with our pitch deck, which summarizes homefort‘s business model and strategy and illustrates our company’s potential.

As always, you can find all information on me, my team, and homefort in our company profile.

Oliver Kremers, homefort founder and CEO

Safety and security, particularly in your own home, is a basic need that should accessible to anyone - irrespective of income or technical knowledge. The only thing that counts is: Protection has to work when you need it most.

Almost two years ago, homefort founder Oliver Kremers encountered a burglar on his property. Everything went well but the uneasy feeling remained. The ensuing search for an alarm system was sobering. If you want to install an alarm system in your home, you need to traipse from one contact person to the next and more often than not, you will be presented with a large bill without ever having received appropriate services.

And the cheaper "do-it-yourself" alternative from the hardware store is also underwhelming. Purchasers are required to assemble and install the system on their own. In the case of an alarm, you only receive an email or text message. This is not what we expect from effective burglary protection.

Only around 2% of German homes are equipped with a reliable alarm system with alarm activation (i.e. an automatic connection to an emergency service) even though it is the most effective method of protection again burglars. The majority of burglars abort their attempted break-in if a home is guarded by technical burglary protection.

The inadequate range of solutions and the unexplored market led Oliver Kremers to develop homefort, a product that will significantly change the German security sector.

In spring 2016, he introduced homefort, a monthly fee-based smart home alarm system with alarm activation, installation, customer service and maintenance all from the same provider.

Safety and security are valuable commodities for you and your family, and should be available to everyone. For a long time, high-quality alarm systems and security services were only accessible to corporate customers or wealthy private individuals - but we want to change this:

On the one hand, homefort strives to make smart home security services available in all homes and, on the other hand, to develop a comprehensive, simple and above all affordable process covering all steps from the initial order via installation to use.

For a monthly fee of between € 39.90 and € 79.90, private and corporate customers can choose one of three security packages.

The monthly fee includes basic alarm system equipment as well as continuous maintenance and upkeep of all components, services and alarm activation that connects to emergency control centers.

The "basic" package for € 39.90 per month comes with an alarm system, installation, emergency plan, smartphone app, customer service and alarm activation to the Securitas control center.

The "smart protect" package for € 59.90 additionally includes a GSM module with SIM card that up to 160 compatible sensors can be added to. This enables customers to not only protect their homes but also to upgrade them to smart homes. The system remains in operation during power failures and Internet connection problems.

Finally, homefort also offers the "full protect" package - comprehensive security package for € 79.90 per month. "Full protect" customers benefit from a mobile security service. In addition, you can, upon request, deposit your spare key with our partner Securitas. In the case of an emergency, a Securitas employee will go to your home to unlock the door for e.g. the police, fire department or ambulance.

Furthermore, homefort also offers medical emergency warning devices for their customers' vulnerable family members. They look like, and are worn like wrist watches.

Additional security features can be added to the alarm system's basic configuration: smoke and water detectors, in- and outdoor video surveillance, panic buttons, medical emergency warning devices and much more. homefort will integrate all additional products in the individual emergency plans. These features enable customers to benefit from even more security.

In an emergency, the homefort system sends a signal to the emergency call center it is connected to. Specially trained employees in our emergency and service control center monitor all signals from the smart home alarm systems around the clock and 365 days per year, and implement the most suitable measures as agreed upon with the customer.

homefort earn money via sales of security products. The homefort range of products and services is aimed at single-family homes (B2C) as well as retailers and the self-employed (B2B).

The three security packages with a 24-month term form the basis of the business model. The contract is generally renewed in all comparable markets. For comparison: Average contract terms in the US are 9 years.

In addition, smart home accessories, upgrades and supplementary products constitute the second key component. We currently expect our customers to spend an additional € 500 - 2000.

The obvious advantage: Customers have access to all services from the same provider. At homefort, customers only need one contact person to handle the initial and free security consultation, quotation as well as installation. Complete service, a guarantee for the entire system, and continuous maintenance make our system 100% reliable and ensure that the customer always feels completely safe.

In addition, customers can reduce the initial investment for the smart home control center’s basic equipment and the integrated emergency service, which is already included in the monthly flatrate.

The advantage of alarm activation is that, if one of the sensors triggers the alarm, the customer will automatically be sent the information in real-time via email and push notification to their phones. The homefort alarm activation ensures that the signal, including all details, is sent to the Securitas emergency call center. Securitas then assess the situation and implement the necessary measures as agreed upon with the customer in the individual emergency plan.

We were able to win over Securitas, the largest German security company, as our partner. We are also currently negotiating partnerships with banks, insurance companies, and direct sales companies. We already count numerous agencies among our list of partners. Furthermore, the home owner's association Haus & Grund is also in our network of partners and is helping us achieve the "Trusted Brand" seal - to become a brand that is associated with trust and safety. More than 900,000 lessors, home owners as well as individuals interested in buying or building have placed their trust in the association.

We have currently successfully completed the market test phase. 30% of our customers were acquired through direct recommendations - even though we had not yet held out the prospect of financial incentives. This shows that our customers truly value our product.

The 20% conversion rate proves that a need for our project exists on the market. Our market test phase was launched in Saarbrücken on 15 March 2016. We conducted 200 consultations, issues 100 quotes and acquired 20 customers in the first 3 months. Despite the fact that our test market "Saarland" only constitutes 1% of the target market. If we now extend our sales pitch to the whole of Germany, inquiries and the number of customers will multiply accordingly.

As we initially expect 500 customers for 2016, we can take a more targeted approach to qualification of potential customers.

We have already optimized structures and processes for the upcoming scaling process. The interactive training material that we developed helps our installation partners and their 1,100 installation technicians prepare for the assignments with the shortest of periods. This means that we could automatically reach 95% of German single-family homes.

Milestones

Sales will be expanded to the whole of Germany. We plan to acquire more than 500 new customers by December 2016. We also strive to conclude cooperation agreements with at least two of the major financial service providers with whom we are currently negotiating by that time.

In July 2017, the number of existing customers will increase three-fold to 1500, and at the end of 2017, it will increase five-fold to 2500. As of July 2017, we will buy the hardware directly from the manufacturer with our own homefort software. At the moment, homefort is an integrated brand. Customer satisfaction will make homefort a "trusted brand" resulting in increased revenues due to upselling of existing customers. Upselling means that we can offer our customers additional accessories to increase their level of comfort and security.

We will primarily use the capital to increase awareness for our brand and develop the Germany-wide installation service. In addition, we will continue to invest in our core technology as well as the hard- and software platforms. Finally, we need to expand our customer service team to retain our high customer satisfaction rates even in times of rapid growth.

Investment level 1: €100,000.00 or more

If we achieve this level, we will switch to an own hard- and software platform. Development of the platform has already been initiated. In addition, we plan to acquire new customers throughout Germany and in particular in the most promising target markets: Saarland, Rhineland-Palatinate, North Rhine-Westphalia and Hesse. Our concrete plans are:

• Run local Google advertising campaigns

Investment level 2: €400,000.00 or more

If we reach this level, we will invest in online marketing and sales to acquire new clients throughout Germany. By expanding our sales department, we plan to attract new sales partners such as banks, insurance companies, and existing sales organizations that are already focusing on private households in order to acquire new clients. More specifically, we plan to

• Run nationwide Google advertising campaigns in Germany
• Focus on affiliate marketing
• Hire a new employee for our sales department
• We plan to add display ads as a second marketing channel. Moreover, we will hire a sales employee. Finally, we will expand our target market to all of Germany.

Investment level 3: €700,000.00 or more

If we reach this level, we plan to invest in marketing and product development to reach new potential clients and to acquire these clients more efficiently through an improved product. More specifically, we plan to

• Run nationwide Google advertising campaigns in Germany
• Focus on affiliate marketing
• Launch a TV campaign
• Development of the hard- and software platform and our range of services

1. Recommendations

Recommend us and help us raise awareness for our product and services. Almost everyone knows someone who has been the victim of a burglary or is afraid of being burgled. The homefort range is suited to a variety of needs.

2. Direct sales partners

We are also looking for independent homefort consultants and sales agents that are willing to present and offer our services to private and corporate customers. Contacts are welcome.

For more information, please visit http://www.homefort.de/starte-im-homefort-direktvertrieb/

3. Facebook, Twitter und co.

Like, share, comment... We are very active on Facebook, Twitter, and Instagram and are looking forward to your participation on these social media sites.

homefort is in the K-EINBRUCH network and plays a role in raising awareness for the initiative. The K-EINBRUCH publicity campaign is a joint initiative of the police and businesses to educate the public in regards to burglary prevention.

homefort GmbH
Heinrich-Barth-Str. 18
66115 Saarbrücken

Tel: +49 (0)681 – 96 590 345
Email: invest@homefort.de
Website: www.homefort.de

Facebook: facebook.com/homefort.alarmanlagen
Twitter: twitter.com/homefort_de
Xing: xing.com/companies/homefortgmbh