INVESTMENT PRESENTATION - SGS JSC

INVESTMENT
PRESENTATION

SCALABLE GLOBAL SOLUTIONS

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SGS is the first in the world DaaS [Department as a Solution] provider that enables the client to build his departments/vital corporate functions using WaaS [Workforce as a Solution] and SaaS [Software as a Service] as the complete solution.

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We Work You Grow

 

With our global presence and expertise, we influence how people and companies work now and how they will work in the future. We partner with our clients to drive real innovation – the kind that turns an idea into an industry – helping transform and grow their organization.

MISSION

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“We WORK & YOU GROW” –SGS optimizes the efficiency & effectiveness of our client’s value chain and business success.

VISION

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To become the global DaaS provider.
To change how future generations will work, live & play—introducing a new concept to clients that enable them to become more successful and competitive.

TARGET MARKET

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FOCUS KEY

 

SME – Small & Medium-Sized Enterprises

50-5.000 employees

96%

96% of the target market has enormous potential for SGS DaaS. Global market pressure forces these clients to optimize their operations and businesses.

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MARKET ANALYSIS (12/2018 – Pre-Corona)

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GROWTH IN THE NEXT 5 YEARS

 

DaaS

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Department as a Solution

SaaS

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Software as a Solution

WaaS

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Workforce as a Solution

CC

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Corporate Consulting

RPO

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Recruitment Process Optimization

IM

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Interim Management

MARKET POTENTIAL

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Pre-Corona

Market analysis – 5-year prediction – Q4 2018 

Total Addressable Market [TAM] Potential

TAM DaaS Global Potential € billion
LATAM 31
USA 78
ASIA 94
CENTRAL EUROPE & GCC 110
Total 313

TAM Global Potential

Total 313€ billion

  • CE & GCC 110€ billion
  • ASIA 94€ billion
  • USA 78€ billion
  • LATAM 31€ billion

SAM Europe Potential

Total 24.21€ billion

  • DE 7.00€ billion
  • AT 1.1€ billion
  • CH 1.27€ billion
  • UK 4.96€ billion
  • BENELUX 2.62€ billion
  • SCAND 2.38€ billion
  • FR 4.88€ billion

Servicable Available Market [SAM] Potential

SAM DaaS Europe € billion
DE 7.00
AT 1.10
CH 1.27
UK 4.96
BENELUX 2.62
SCAND 2.38
FR 4.88
Total 24.21

We believe the market potential, Post-Corona , will be 5x larger

SOURCES
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THE ISSUE

TARGET MARKET COMPANIES

FACE PROBLEM SUCH AS:

DRIVING EFFICIENCY

CLIENTS FRUSTRATION EFFICIENCY

  1. Not using state-of-the-art processes
  2. The value chain can be improved
  3. Too many things are done in-house
  4. No healthy paranoia in innovation
  5. Lack of alternative ideas

WINNING TOP TALENT

CLIENTS DESPERATION TALENT

  1. Getting the right people.
  2. Getting talent at all
  3. Where the talent is needed
  4. Is it needed in-house

BPO NOT IN PLACE

DRIVING EFFECTIVENESS

    1. Too many in-house processes
    2. Not doing more with less management
    3. The value chain is not efficient

MARKET FACTS by PWC Q4 2018

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Company Challenge – Execution & Operations capability & delivery location needs to change. Companies Workforce, Business, and Department processes are not set up efficiently.

If someone can do something better than yourself, that under no circumstances do it yourself.

John Chambers, 1998

EXECUTIVE LEVEL FEEDBACK

93%

We Understand

Recognize the need to make strategic changes in OPERATIONS, BACK OFFICE & HR with the focus to optimize the processes & reduce costs.

61%

We are Aware

Feel that departments are not prepared to capitalize on transformational changes.

32%

We ask someone who knows

They consider alternative strategies and started to look into BPO solutions. DaaS would be the perfect solution to their problem.

THE SOLUTION

SCOPE OF SERVICES & SOLUTIONS
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Daas 8 solutions sales

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We are the only DaaS provider in the world!

WHAT IS DaaS AND HOW IT WORKS?

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SGS fuses WaaS & SaaS into one tailor-made client solution – DaaS. SGS changes & reshapes the BPO industry while delivering a next-generation premium service to the market.

End-to-End department solutions

WHAT IS WaaS?

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WaaS

Workforce as a Solution

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We deliver you a tailor-made team

We do the recruitment and manage the process to implement your team.

We facilitate the office space & hardware.

The candidates are fully integrated as Employees in the client’s organization, like a WaaS {Workforce as a Solution}.

WaaS steps
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Step by Step plan for your custom-made SGS WaaS {Workforce as a Solution} team in Zagreb.

1.

Client Requirement Plan

Specify the type of team you need (Sales, Marketing, Operations)
How many people, what expertise they must have, which languages they should speak

2.

SGS Recruitment Process

We search & identify the perfect candidates

3.

Client selection

Client interviews, qualifies and selects his team members

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4.

SGS Integration

We hire the chosen candidates & manages payroll
We integrate the new team members
We provide secure access to work location
We provide office infrastructure, office management

5.

Client Integration

Client integrates new team members in his organization
Client provides secure access to software & systems
Client provides communication systems (telephone, video conferencing & email accounts)
Optionally, the client can choose our SGS ONE Software (ERP & CRM solution – to manage the team)
Client provides training

We are the only “WaaS provider that allows the client to build his customized & dedicated team for the specified departments.

DIFFERENCE: DaaS VS OUTSOURCING
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Functions & Features

DaaS

Outsourcing

Ability to build your own department filled with selected team members

Ability to change and replace team members

Ability to define the Work and Job profiles

Ability to interview the team members

Ability to select the staff

Business communication conflict

Low

High

Command over Intellectual property

Complete Control

Completely Independent

Confidentiality and Security Risk

Cost Reduction

Cultural Focus

Dedicated Office

Full Control about the Procedures

Full control about the process

Full control of the department

Full control of the people

Hidden Costs

Innovation Influence and adaptability

Loss of Control

Benefit & Quality comparison chart – DaaS vs Outsourcing

  • 6.5% - Outsourcing
  • 93.5% - DaaS
Managed Office Service

New Hire Potential Incubator

Personalizable facility

Poor Quality of Service

Potential for conflict

Quality Control

Quality of work

High

Low

Tailor-made Solution

Things Get Lost in Translation

Time Zone

Transparency

WHAT IS THE SGS ONE?

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SGS ONE

SGS ONE, in particular, adapts to the demands of the clients’ departments and numerous sub-services across our eight key solutions [Human Resources, Sales, Marketing, IT, Customer Care, Finance, Operations, and Back Office].

 

It is written in our OWN SOURCE-CODE and is ready for deployment in the clients’ company’s own subdomain.

 

 

SGS ONE – the new cloud solution to optimize your business.

 

FIRST TO MARKET

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BPO VENDORS

CRM VENDORS

RPO VENDORS

OFFICE VENDORS

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SERVICE

CRM Vendor

BPO Provider

RPO Provider

Office Provider

 –

Dedicated staff/ not outsourced

Resource selected by the client

Resourcefully integrated

Service fully managed by the client

Virtual Dedicated workforce

Exchange of staff by client

Reduction of Operational Cost

Dedicated Office space for client

 –

 –

 –

 –

Shared Office space for client 

 –

 –

 –

 –

 –

 –

 –

Office space for client

Fast implementation

Complex to negotiate

Complex to implement

CASE STUDY

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Example Business Case

SCALABLE GLOBAL SOLUTIONS

What unique factors give your company a competitive edge?

There is no company currently present in the target market that addresses the unique combination of BPO, Recruitment, Corporate & Consulting into one solution.

CLIENT

HR requests recruiting an additional 15 inside sales account managers based in Berlin, Hence ramping up the team from 10 existing employees to the final 25 employees. That means the customer will grow his operational expenditure from 1 Million € to 2.7 Million €.

Cost includes Salary, Bonuses, Health & Pension, and SGA (Sales General & Administrative Cost).

A recruitment company or recruiter will find, hire, and place the people. SGS’s The total cost for setting up a team for the client and yearly operational expenditure will significantly decrease to 1.7 Million € per year.

Cost to the company approximately 120.000 € in placement fees.

SGS APPROACH & SOLUTIONS

We suggested to HR to talk to the Head of Sales in this case to the GM.

We suggested placing the candidates and move the division to Zagreb.         

DaaS Sales

 

 

REDUCTION:

  • OF 2.700.000€ TO 1.000.000€ - 65%65%
  • EVERY YEAR ROI FOR THE CLIENT - 1.700.000€100%

RESULTS

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DaaS Sales

[Sales Optimization Solution]

 

How will you outmaneuver your competitors?

Big Players are not suppliers as the clients are too small for them. 

Hence no competition!

BENEFIT TO CLIENT

REDUCTION:

  • OF: 2.700.000 TO 1.000.000 €60%

COST OF RECRUITMENT

IN GERMANY:

  • 120.000 €100%

ROI FOR CLIENT

EVERY YEAR:

  • 1.700.000 € OR 62%62%

COST OF RECRUITMENT

IN CROATIA:

  • 75.000 €62%

TOTAL SAVINGS IN THE FIRST YEAR FOR CLIENT:

  • 1.745.000 €100%

Lesson Learned!

HR WOULD HAVE NEVER SUGGESTED THIS AS A SOLUTION, AND CONSULTING WOULD HAVE NEVER BEEN REQUESTED. RECRUITMENT AGENCY WOULD NEVER SUGGEST THIS AS THEIR BUSINESS IS PLACING CANDIDATES.

INVESTMENT PERIOD OPPORTUNITY

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FROM START TILL TODAY, WE HAVE ACQUIRED MORE THAN €1.650.000 FROM INVESTORS

PRE-MONEY VALUATION:………€10.845.000
NUMBER OF SHARES:……………………. 140.000
LEGAL FORM:…………….. Joint Stock Company

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LAUNCH:

START: 07/17 – 09/19

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ACHIEVED

€250K

2019

sgsPRE-SEED

1.9.2019. – 31.12.2020.

 

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ACHIEVED

€800K

2020

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SEED

1.1.2021. – 31.12.2022.

 

 

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TARGET

€2.9M

2021-2022

Ticket Size: €100,000

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SERIES A

1.1.2023. – 31.12.2024

 

 

 

 

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TARGET

€9M

2023-2024

runner 7

EXIT

EXIT 2029+

OPTIONS:

  • ACQUISITION
  • SALE
  • IPO
  • MERGER

 

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TARGET

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2029+

MARKET POTENTIAL (After Corona – Increase 25x)

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BPO WILL DRIVE

More significant outcomes for their clients and predictions are to evaluate at $110 billion by 2024. The global market for BPO Business Analytics Market anticipates growing 20-25% per 2019 – 2028.

GLOBAL PRO

The market expected to grow 25% per the year 2017 – 2025.

INTERIM MANAGEMENT

Interim Management expects to grow at growth rates between 25% per annum over the next decade.

DIGITAL CORPORATE CONSULTING

The services market expects to increase by 75% over the next five years. The global management consulting services market anticipates growing fastest in Europe, by 3-5% per year. It is likely to reach USD 343.52 billion value by 2025.

GLOBAL RECRUITMENT

The global recruitment market expected to be worth €318 billion by 2020, with a 25-35% growth predicted in the following 5 years after.

SGS MISSION

The goal is to exceed the growth rate of the market (i.e. gain share).

 

5 YEAR PROJECTION

The list of clients depends on our Sales team’s growth and achievements. SGS has the potential to win clients in:

EUROPE (focus on Germany, Austria & Switzerland) – DACH Region

GCC Region (Arab States of Gulf)

WORLDWIDE

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FUNDING GOALS – FROM PHASE 1 TO PHASE 3

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JULY 2019 – SEPTEMBER 2022  DEVELOPMENT GOALS

PRE-SEED

SALES DEVELOPMENT

  • 30%30%

HR

  • 15%15%

OPERATIONS

  • 15%15%

DaaS

  • 25%25%

MARKETING TEAM

  • 15%15%

R & D

  • 5%5%

SEED

SALES DEVELOPMENT

  • 20%20%

HR

  • 30%30%

OPERATIONS

  • 15%15%

DaaS

  • 15%15%

MARKETING TEAM

  • 10%10%

R & D

  • 10%10%

SERIES A

SALES DEVELOPMENT

  • 30%30%

HR

  • 20%20%

OPERATIONS

  • 15%15%

DaaS

  • 15%15%

MARKETING TEAM

  • 10%10%

R & D

  • 10%10%

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EXPECTED BREAK-EVEN

SGS company plans to reach the break-even point in Q4 2022. With new Clients, Investors, and Channel Partners, the SGS company can expand the team and business significantly by the end of the year.

We plan to reach the break-even point by the end of Q4 2022.

With the needed investment, we can expand our team, find new clients and associates that will help us propel the business forward.

By reaching the break-even point, since we will not be paying out dividends, all profit remains within the company and will get reinvested for further development.

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EXIT ROI

Exit strategy 7+ years. The first SGS Goal is to produce ROI‘s for Associates and Shareholders SGS future has different potential options to go forward:

  • Merger

  • Acquisition

  • IPO

  • SAAS & Cloud

SGS WORLD BUSINESS INVESTMENT

INVESTMENT ALLOCATION

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Development of the Channel Program

2021

2022

2023

2024

DACH EUROPE CEE GLOBAL
UK / IRELAND GCC AMERICAS
SCANDINAVIA CONSULTING NETWORK ASIA/PACIFIC
GLOBAL
Total Cost for the Development of the Channel Program 125.000 € 275.000 € 500.000 € 1.000.000 €

 

Sales Program

2021

2022

2023

2024

Account management
Inside Sales
Telemarketing
Email Marketing
Social Sales Marketing
Lead Generation
Total Cost for Sales 125.000 € 275.000 € 750.000 € 900.000 €

 

Marketing Program

2021

2022

2023

2024

Social media marketing
  • Blog
  • Video
Newsletter campaigns
Digital marketing campaigns
  • Display Marketing
  • PPC Marketing
Total Cost for Marketing Program 150.000 € 250.000 € 750.000 € 1.200.000 €

 

Channel Program

2021

2022

2023

2024

Resellers program
SGS Academy by Delivering
  • Solutions for Verticals
  • Training
  • Support
  • Tools like configurators
Channel conflict solutions
  • VAR Program by Service Expertise
VAR
Companies consulting
Marketing support
Total Cost for Channel Program 200.000 € 500.000 € 990.000 € 1.200.000 €

WHY CROATIA?
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Knowledgeable, well educated, affordable workforce (qualified and professional candidates and employees) 49% of the population speak English, 34% speak German, and 14% Italian. Language skills are a strong point for Croatians.

Croatians present a smart WaaS [Workforce as a Solution] – Croatians are innovative and inventive (Nikola Tesla, Penkala, Rimac, etc.).

Since labour force costs are substantially low, SGS uses the opportunity and decreases the cost of operations for clients up to 60% while delivering next-generation managed services to the industry.

ATTRACTIVE PLACE

TO WORK:

Croatia is financially attractive (low taxation system)
Part the Mediterranean sea
 Excellent logistic connections to all European cities
Very attractive for clients & employees
Excellent access to CEE resources

 

 

CEST TIME ZONE

STRATEGIC GEOGRAPHICAL LOCATION:

In the heart of Continental Europe & Middle East
Boat harbours, marinas, and airports serve as a gateway to the rest of Europe, GCC and CEE major cities

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EUROPEAN UNION

MEMBER BUT NOT EUROZONE MEMBER:

Legally fully integrated in European Union
The additional benefit: it is not part of the Eurozone (€) which allows us to deliver significant cost saving & benefits for our clients & employees

 

 

HOTSPOT – CROATIA

NEW STARTUP:

Croatia is affordable, has pro-business legislation
Favourable corporate tax rates (12-18%)
Populated by talented European citizens
The new place to be for investors

 

In this economic environment:

SGS is driving efficiency
Effectiveness
Added value by delivering true end-to-end premium professional services
WaaS & SaaS

 

CONTACT US FOR MORE INFORMATION,

LET'S WORK TOGETHER!



 


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    SCALABLE GLOBAL SOLUTIONS JSC


    Ulica grada Vukovara 284
    Zagreb, HR-10000, Croatia
    +385 1 353 5930
    +49 151 7262 4766
    business@sgs-daas.com

    OPEN: Monday – Friday: 8am – 5pm, CEST

    GET STARTED
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    FOR MORE INFORMATION

    PLEASE CONTACT US


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      By submitting this form, you agree that we may use this information in accordance with our Data protection policy.