General Overview

Putter King is the next generation of miniature golf – Japan.s .rst indoor adventure golf franchise featuring 18 themed holes and electronic scoring.

Trade Name: パターキング合同会社(Putter King LLC)
Incorporation Date: December 1st, 2010
Initial Paid-In Capital: ¥4,000,000
Executive and Representative Partner: Kevin Dias
Trademark Registration Number (Japan Patent Of.ce): 5368458
Trademark Registration Date: November 12th, 2010
Headquarter Location: Tokyo, Japan

Market and opportunity

Putter King will be Japan.s .rst indoor adventure golf franchise
– There are currently no adventure golf courses in Japan

The first planned location positions Putter King in a huge potential market
– Over 600,000 people within 30 minutes of the planned location, and over 20 million people within 2 hours
– Within 100 km of Tokyo
– Tochigi has the sixth highest per-capita income in the nation
– Tochigi is known as “Car Kingdom” in Japan; 67.3% commute to work by car; 95.1% car ownership rate allowing consumers easy access to our location
– The first planned location is within 200 meters of a large, beautiful and busy park and children’s playground

Why Putter King can generate superior, sustainable returns

Adventure golf is a proven business model that has been successful for almost 100 years in North America and Europe
– Lean fixed cost structure
– Scalable business
– High gross margin business
– Future growth potential -Franchising model improves equity investor economics and avoids leveragingthe company

Management
Kevin Dias, will be the Executive Member and Executive Manager of the G.K. (GodoGaisha) corporation and will be responsible for all aspects of managing the business including, but not limited to:

Day-to-day operations
Marketing strategy and implementation
Investor relations
Accounting and tax
Future domestic expansion and franchising

Highly motivated and capable management
– Dean.s List graduate of Wake Forest Calloway School of Business and Accountancy
– 3+ years experience in Japan (1 year at Kansai Gaidai University; 2 years at
AEON Corporation
-Strong financial background (2 years investment banking experience at PNC
Capital Markets)

Year 1 Year 2 Year 3 Year 4 Year 5
Store Revenue ¥20,000,000 ¥20,000,000 ¥30,000,000 ¥30,000,000 ¥30,000,000
Franchising Revenue ¥0 ¥0 ¥4,750,000 ¥15,000,000 ¥17,250,000
Merchandise Revenue ¥100,000 ¥100,000 ¥100,000 ¥100,000 ¥100,000
Advertising Revenue ¥750,000 ¥750,000 ¥750,000 ¥750,000 ¥750,000
Total Revenue ¥20,850,000 ¥20,850,000 ¥35,600,000 ¥45,850,000 ¥48,100,000

Net Income -¥1,087,126 -¥1,087,126 ¥8,793,426 ¥21,094,474 ¥22,542,574

Exit Strategy

1) Dividends of Net Income Earnings

As Putter King will be franchising, and doesn’t have any plans to expandorganically, the majority of any capital expenditures will be to upgrade or refurnish the existing physical assets, equipment, and property. After accounting for any necessary working capital needs, Putter King plans to dividend the remaining net income earnings to investors.

An investment in Putter King is thus a unique opportunity, as an investor is able to begin to recoup the initial principal investment over the first few years while still maintaining the upside of a future acquisition or sale.

2) Acquisition or Sale

If Putter King’s franchising model is successful, it is anticipated that Putter King’s business will start to hurt the major competitors (such as Round One). As Round One has no space to expand into adventure golf and compete with Putter King, their bestoption would be to consider acquiring Putter King.

Investment Risks and Mitigating Factors

Risk: Miniature golf is a fad – As we have seen in the history of miniature golf in the United States, there have been ups and downs in the popularity of miniature golf. However, to call something that has managed to stay around for almost a century a fad is a mischaracterization.

Given the scenario that continued year after year growth in same store sales for Putter King is unlikely (if not impossible due to the clear customer traffic constraints of aminiature golf course), Putter King plans to mitigate the risk of a sudden decrease inpopularity by:

(a) Franchising

By favoring franchising over organic store growth, Putter King is able to outsource the risk of a sudden drop in popularity to the franchisee

(b) Continuing to innovate

New hole designs and the utilization of the latest technology will help keep thebusiness fresh and keep customers coming in the door

Risk: Initial success for Putter King brings many copycat competitors

If Putter King is able to achieve success in Japan, it is inevitable that some competitors will try to enter the industry. Generally speaking, the barriers to entry for starting a miniature golf course are relatively low compared to many other businesses. However, Putter King’s strategy is to find as many ways as possible to increase the barriers to entry for other companies and to build a moat around the Putter King business model. These include:

Comprehensive and well-built database systems for POS, customer tracking,scoring, etc.
Use of technology in regards to electronic scoring
Innovative, creative and fun hole designs
Hole design technology
Strong, clear brand image forged through:
– Being first to market
– Clear, focused marketing campaign
– Excellent customer service

enquiry@capital.com.my