Monica Gonzales

PROFILE Combining the most durable assets with the best technology. Presentation for Mirko Schmidt (7 November 2017) 2 PROBLEM Precious metals have been a reliable store of value throughout history, and the best insurance policy against black swan events. Here is the “BUT”: In paper form, precious metals are an insurance policy full of leaks. In physical form, they can be a costly hassle. 3 S O LU T I O N AlpineVault combines the best of two worlds, offering: Liquid market with attractive bid-ask spreads Real-time electronic trading Settlement backed Full legal ownership by blockchain of unique precious metal bars High-security technology storage in the world’s most stable jurisdiction Physical Form Paper Form 4 WHY NOW? The advent of Blockchain technology has introduced game-changing possibilities: 1 Secure & fast electronic ownership transfer 2 3 “Liquefication” of Availability of illiquid assets cryptocurrencies Ubiquity of physical metals ownership Free choice of jurisdiction 5 MARKET SIZE We estimate the size of the target market at USD 5.7 bn: Total Financial Assets 4 Total Addressable Assets 2 Servable Addressable Market 3 Target Market 3 (USD bn) (USD bn) (USD bn) 1’050 21’000 45’300 18 356 770 0.9 17.8 38.5 0.1 1.8 3.8 Switzerland Europe ex CH MEA, APAC & India 1) Credit Suisse Global Wealth Report 2016; | 2) Precious metal bars & ETFs held for investment purposes (World Gold Council and AlpineVault estimates); | 3) AlpineVault estimates 6 M A R K E T F LO W S The Total Addressable Market is expected to grow by USD ~85 bn p.a.1: Annual investment demand (USD bn) 1 - 31.2 42.5 41.7 13.1 18.0 annual avg: 11.6 13.9 18.2 65.8 59.4 39.8 14.1 67.0 34.0 31.4 -45.5 -8.2 -5.3 2013 2014 2015 31.0 ~ 31 23.6 ~13 34.0 ~40 0 -20 -40 -60 2010 2011 2012 Physical gold bars Gold ETFs 2016 Other precious metals 1) World Gold Council and AplineVault estimates 7 BUSINESS MODEL • AlpineVault’s will generate fees from transaction and storage • Storage fees are “minimum fees” and netted against transactions • A market maker (e.g. Lykke Corp.) will act as counterparty for all transactions Transaction Fees Bid-Ask Spread Non-APV Client Market Maker Transaction Fees Storage Fees Bid-Ask Spread Non-APV Client 8 COMPETITION AlpineVault offers a unique combination of security and convenience: Value Proposition AlpineVault Bank Vault Bank Metal Account Futures Generic ETF Blockchain offering 1 Physical bars, not paper Direct legal ownership Secure storage outside banks Hassle free 24/5 trading with deep liquidity Low cost 1) Existing offerings, such as Vaultoro, Anthem Gold 9 PRODUCT Clean and simple user interface: Monitor your positions Buy and sell easily Manage your metal holdings 10 CHANNELS AlpineVault will pursue a multi-channel distribution approach: Initially “William” Later “Mike” “William” “Mike” “Mike” • Investor • Trader • Investor • Trader • Trader • Wealthy • Affluent • Wealthy • Affluent • Affluent • Security • Technology • Security • Technology • Technology White Labelling Institutions Own platform Lykke IFAs 11 GROWTH AMBITIONS We plan to expand from the Swiss MVP, first addressing new regions, followed by new client segments: World White Label 1g coins Global Reach MEA & APAC Europe Local Reach IFAs Switzerland Private Clients Institutional Clients 12 FINANCIALS On a “Swiss-Only” offering, we expect to be profitable in year 3: Economic Forecast 2018 E 2019 E 2020 E 2021 E 2022 E 32,381,087 84,995,384 145,214,419 225,823,837 306,631,017 81,724 161,555 266,460 400,104 514,917 Net Revenues - 60,577 - 67,753 781,131 1,630,796 2,864,819 Revenues 688,068 1,580,860 2,689,363 4,107,498 5,327,153 COGS 748,645 1,648,614 1,908,232 2,476,702 2,462,334 Operating Expenses 312,631 468,120 847,295 895,152 931,087 Personnel 175,000 287,500 625,000 625,000 625,000 SG&A 137,631 180,620 222,295 270,152 306,087 - 373,208 - 535,874 - 66,164 735,643 1,933,732 Value of stores precious materials No. of transaction (‘000) EBITDA Expansion into additional geographies and client groups could unlock a 50x larger target market 13 TEAM Stefan Jaecklin Co-Founder & Chairman Marc Deuster Co-Founder & CEO Igor Samokhin CTO (to be confirmed) • Previously Partner & Global Practice Head of Oliver Wyman • Various roles in financial services (Strategy, Asset Mgmt, Brokerage) • Project Manager at Fintech company • Board member of 7 financial organisations • Project Manager at Oliver Wyman • Previous Project Manager and key developer at Prognoz • PhD in International Economics • Master’s degree in Finance • Master’s degree of Applied Computer Science • Swiss Citizen • German and Swiss Citizen • Russian Citizen 14 S U M M A RY 15 AlpineVault AG Spielhof 14a CH – 8540 Glarus www.alpinevault.com Stefan Jaecklin Marc Deuster Co-Founder & Chairman Co-Founder & CEO - - --