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maneo ～Bringing Japanese Money to the World～

July 2016

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Copyright © maneo Inc. All rights Reserved.

Name maneo Inc.

Office Location NBF Hibiya Building 24F, 1-1-7 Uchisaiwai-cho, Chiyoda-ku, Tokyo, Japan

Establishment April 2007

Revenue & Operating Income (FY 2015-2016)

Revenue: ￥1.1B 【10.7M USD】 ※$1 = ￥105 Operating Income: ￥204M 【1.9M USD】

Employees 24 (Including Affiliated Companies)

Affiliated companies maneo Market (Parent Company), UBIfinance (Subsidiary of maneo Market)

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Company Information

Graduate of Keio University (Japan’s oldest private university) 1997 Enters 7-Eleven Japan 1999 Transfers to Air Link Inc. - Father’s company 2005 Enters UBI Inc. - Real estate investment/lending company - maneo’s former parent company 2013 Becomes CEO of maneo

CEO KENJI TAKIMOTO


Copyright © maneo Inc. All rights Reserved. 3

Earnings Growth & Company History

（Millions of USD） Brief History of maneo April 2007 Company established October 2008 maneo platform launched Consumer financing via Japan’s first-ever P2P platform April 2011 Kenji Takimoto acquires maneo Shift from consumer finance to asset-backed corporate lending. Large increase in loans funded. September 2013 Kenji Takimoto becomes CEO of maneo July 2015 maneo begins franchising its platform maneo employs a franchising scheme where companies from various fields can raise funds for projects via their own crowdfunding platform. February 2016 maneo partners with GMO Click Shares Company with the largest FX trading volume in the world (1120 trillion yen (10.7 trillion USD) in 2015)

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FY 2012-2013 FY 2013-2014 FY 2014-2015 FY 2015-2016

Revenue Operating Income

10.7M USD



Social Lending (Loan-based Crowdfunding) Business Model

Borrower Investors

maneo

maneo Market

① Depositing of Funds

④ Return of Funds

Silent Partnership Agreement

③ Repayment

② Loan

Type 2 Financial Instruments Licence

・Solicitation & Recruitment of Investors

・Creation of Loan Funds

Lending Licence

Parent Company



Profit Structure & Case Study

Borrower Investors maneo

Return 5～8% per year

Interest 10～15% per year

Value of Asset 10M USD

IRR: 7%

Bank Loan $6M USD

Interest

2% Per Year

Missing capital $1.5M USD

★Borrowers raise capital with the help of the crowd

which a bank loan and equity will not cover.

★Since this capital is more

expensive, maneo can charge more interest and provide

better returns to investors.

※maneo takes the spread between the interest paid by borrowers and the interest paid to investors

Case Study: Financing to

purchase real estate (commercial)

Equity $2.5M USD



Social Lending’s Appeal & Potential (Investors’ Perspective)

★No loss on principal since 2011 (when maneo shifted to asset-backed corporate lending). ★All loan funds are backed by collateral or a guarantee. ★LTV (Loan to Value) is typically below 70%. ★Can invest as little as 10,000 yen ($95) -> Easy to start investing. ★Very good returns in an extremely low interest rate environment.

Average Interest Rates at Japanese Financial Institutions (% per annum, as of June 29 2016)

Maturity 1M 3M 6M 1Y 2Y 3Y 4Y 5Y 7Y 10Y

<￥10M

(<$95,000)

0.016 0.016 0.016 0.016 0.019 0.020 0.020 0.022 0.029 0.036

￥3～10M

($29,000～$95,000)

0.016

0.015 0.015

0.016 0.017 0.018

0.018

0.019 0.023 0.031

>￥3M

($29,000)

0.016

0.015

0.015

0.016

0.017 0.018 0.017 0.018 0.019 0.027

maneo offers 5～10％ annual returns to investors on its loan funds



How Social Lending Can Be Used in the Real Estate Industry

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★Purchase an old property, renovate it and sell it to a buyer at a higher cost Use social lending to finance the purchase of the house & renovation costs

★Purchase undeveloped land and develop it Use social lending to finance the purchase of the land and development costs

★Purchase land and construct a building on it Use social lending to gather funds which a bank loan will not cover

★Construct a hotel, aged-care facility (old people’s home) etc. Use social lending to gather mezzanine debt or preferred equity



maneo’s Franchise System

・Solicitation & Registration of Investors ・Operation of Website of each Platform

TK Agreement

Type 2 Financial Instruments Licence

Investors

Loan

Borrower

TK Agreement

Commercial Real Estate

US Fix & Flips (Renovation of Houses)

TK Agreement

SMEs in Japan & Abroad

More platforms to be launched this financial

year

Borrower

Loan

Loan

Loan Operation & Capital Leasing

TK Agreement

Loan TK

Agreement

LA Fix & Flips

Investors at a major Japanese FX & Stock Brokerage Company

Loan Loan

★TK Agreement = Silent Partnership Agreement★

TK Agreement

maneo (Franchiser) Franchisees

TK Agreement

Loan



Introduction to a Partner Real Estate Platform in Japan

9

LC Lending

• Subsidiary of Logicom, listed company on JASDAQ (8938)

• Logicom purchases large commercial buildings (such as shopping centres) and leases them out to retail stores for 10-20 years.

• Logicom uses LC Lending to gather funds which a bank loan and equity will not cover.

(Eg: 70% debt from a bank, 15% equity, 15% via social lending) • 3.5 billion yen (131 million ringgit) raised since July 2015



American Funding • Platform for fix & flip projects in Los Angeles and other US cities • To be released today (20 July 2016)!

Introduction to our Real Estate Platforms

10

Gaia Funding

• Run by a Japanese and a Taiwanese (US Citizens) who are also directors at an investment management company.

• Use social lending to provide financing to developers who do “fix & flip” (renovation) projects in Silicon Valley, Washington, Hawaii etc.

• Raised over 115 million yen (4.3 million ringgit) each month since October 2015.



Solicitation & registration of

Investors

11

Information about Franchising

Basic Business Model

ABC Real Estate

(Malaysian Entity)

Japanese Investors

ABC Lending

(Japanese Entity)

Returns Loan

1% Fee on Assets Under Management

maneo Market

Fees Associated with Platform ・Initial cost: 100 million yen ($950,000) ・Royalty & Maintenance Fee 1% of Assets Under Management (AUM) -> Server maintenance & royalty. ・ Running costs in Tokyo (two staff, office) -> Estimated at 10 million yen ($95,000) per year Platform is recommended for those companies that can maintain 2 billion yen ($19 million yen) of deals/AUM

Type II Financial Instruments Licence

maneo Market’s Major Roles ・Operation of website on behalf of the franchisee ・ Creation of loan funds using its Type II Financial Instruments Licence ・Solicitation & registration of investors on behalf of the franchisee



Social lending’s Appeal & Potential (Franchisee’s perspective)

★Can gather funds for projects directly from Japanese investors.

★Due to the structure of the TK agreement, losses suffered by franchisees are borne by investors. -> Reputation risk exists.

★Franchisees determine their own cost of capital (how much to pay investors). -> Low interest rates in Japan have lead Japanese to have low expectations on return on investment.

★Funds raised in Japan can be used overseas.

★No need to acquire relevant financial licences in Japan -> can leverage maneo Market’s licence.

★Over $5 trillion USD is sitting in Japanese banks earning very, very low returns. -> Huge need amongst the crowd to find attractive fixed-income, safe investment products.

Amount of savings in Japan (end of March 2016, Bank of Japan figures)

Savings in Japan (total) ￥796 trillion ($7.6 trillion)

Savings in Japan (households) ￥543 trillion ($5.2 trillion)



Collaboration with Other Platforms in Japan

maneo’s loan funds will be available on the website of

GMO Click Shares from October 2016

*************************** GMO Click Shares: • Largest FX trader in the world

by volume • 450,000 registered users ***************************

↑↑↑Impression of maneo’s loan funds on GMO Click Shares’ website↑↑↑



Statistics (Loans Originated & User Numbers)

As of July 2016

Total loans originated to date

Registered users

￥50 Billion 【476 Million USD】【1.9 Billion Ringgit】

34,250

14

Funds Currently Lent Out 12.8 Billion Yen

【122 Million USD】【477 Million Ringgit】

Active Users

4,000



The Social Lending Market in Japan

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Platform Main business Platform Launch Loans Originated Notes

・Business loans October 2008 ￥50B 【$476M】

Japan’s first-ever social lending company

・Loans backed by commercial real estate ・Fix-and-flip loans backed by real estate in the USA ・Operational & capital leasing, factoring etc. ・Loans to SMEs in Japan and abroad

August 2015

October 2015

February 2016

April 2016

￥3.5B 【$33.3M】

￥1.1B

【$10.5M】

￥600M 【$5.7M】

￥370M 【$3.5M】

Operated by a listed company Using our platform in San Francisco, Seattle etc. Financing in industries such as hospitality. Also providing financing to a Hong Kong consumer finance company

・Loans to SBI shareholders backed by SBI shares ・Loans backed by real estate

March 2011 ￥11B 【$105M】

Social lending arm of a listed financial holding company

・Business loans (Japan & abroad) December 2013 ￥7.1B 【$68M】

Stock brokerage company involved in social lending

・Loans abroad July 2014 $850M 【$8.1M】

Financing to consumer finance companies etc.

・Loans backed by real estate May 2014 ￥5.2B 【$50M】

Loans to real estate developers

・Loans backed by real estate March 2012 ￥500M 【$4.8M】

Loans to real estate developers

Franchisees using our platform



４．Appendix （Investor Statistics）

52.2%

15.8%

8.5%

4.8%

3.3% 8.3%

4.6% 1.0% 1.0%

-￥1M ￥1-2M ￥2-3M

￥3-4M ￥4-5M ￥5-10M

￥10-20M ￥20-30M ￥30M+

5.3%

7.2%

7.0%

6.3%

5.1%

17.9% 20.5%

8.7%

22.0%

-￥1M ￥1-2M ￥2-3M

￥3-4M ￥4-5M ￥5-10M

￥10-20M ￥20-30M ￥30M+

Makeup of loans by investment amount

8.1%

37.6%

35.1%

13.9%

5.4%

20's 30's 40's 50's 60's

Amount invested per investor Makeup of investors by age


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