Artificial Intelligence that save lives

José Rafael Campino

Road accidents are
the
8° cause of death in the world
 Road accidents are also
the main cause of deaths at work
Human fatigue is the main cause of severe accidents,
especially in 24/7 operations
It is present up to 47% of the commercial
heavy vehicles accidents
Contributed with 1,200 deaths and 76,000 injuries
each year to the US transportation industry

Generating an estimated cost of $ 13 billion per

year
In mining up to 70% of haulage truck accidents
are fatigue-related (CATERPILLAR)
What we will do about it?
Vehicles generate millions of data through sensors
connected to the Internet that are not used
Gauss Control transform these millions of data points into
actionable insights through Artificial Intelligence
 IoT platform: We connect to the existing telematic provider
transforming data into predictive and actionable information

Data consolidation Analytics and prediction Insights Risk Management

 OUR PREDICTIVE MODELS

Human Fatigue
Driver behavior Risk Managment

Speeding
Hard accelerations

Hard braking
RPM

Distraction
FATIGUE RISK MANAGMENT
MODULE
Through Artificial Intelligence we can
identify and manage risky workers

IMPLEMENT A COMPREHENSIVE FATIGUE RISK MANAGEMENT SYSTEM (FRMS)

1 Biocompatible shifts
1

2 Fatigue knowledge

3 Fatigue and alertness

monitoring
 PARTNERSHIP WITH THE WORLD LEADING
CONSULTANT COMPANY IN HUMAN FATIGUE

Martin Moore-Ede (PhD)

Former leader physiology area
Harvard University
Software as a Service platform
Consolidate data

Risk prediction

Insights and tasks

Market: heavy vehicle fleets

Clients Monthly fee (US$ 10 to 35)

per driver/month
Trucks Buses
Specific market:

● MINING
● HAZMAT

CURRENT CLOSING RATE

60%
 OUR CLIENTS

More than 5.000 drivers monitored every day

In more than 30 operations across Chile

 VALUE PROPOSAL HAS BEEN VALID

ACCIDENTABILITY REDUCTION

SEVERE ACCIDENTS SEVERE ACCIDENTS

48% 68%
 COPEC is
US$ 420.000
financing our R &
D
MARKET SIZE US$ 3 BILLIONS
 EXPANDING MARKET SIZE

Leveraging our knowledge in human fatigue risk management systems we will

adapt the solution to all 24/7 industries (20% of the workforce worldwide)
 EXPANDING MARKET SIZE
Fatigued workforce is a trillion dolar problem worldwide
 EXPANDING MARKET SIZE

Gauss Control: Fatigue Risk Management as a Service Accidents 4%

Errors
Productivity
Complaince
Estimated size market worldwide: US$ 50 billions/year violations

Absenteeism
We charge 10% of the generated value = 10% x 30% cost reduction (generated value) x US $ 1,7 trillion Turnover
(fatigue costs)

Logistics| Machinery| Mining| Energy| Aviation| Healthcare| Manufacturing| Construction

 WHY ARE WE UNIQUE?

Our AI algorithms allow us to objectively estimate the risk of accidents.

Customers can understand "why" accidents happen.
 ENTRY BARRIERS

Our models are unique.

More customers, more data, better models.
GAUSS CONTROL PREDICT ACCIDENTS BEFORE THEY HAPPEN
 COMPETITORS

Fatigue “reactive” sensors: Telematics companies:

It does not prevent the drowsiness event from Simple reporting, without scientific or analytical
happening, but it awakens the driver. basis. Not experts in human fatigue, just tech.

Wearables:
Invade workers’ privacy. Not a comprehensive
FRMS solution by itself, slow and difficult
implementation.
 DIFFERENTIATION

Complementary Effective Affordable

IoT platform integrated to the Experts team in safety and human Initially can work only with
main data sources that allow fatigue. existing telematic / ELD data.
us to predict risk: HoS (ELD), Our predictions and insights have Up to 7x cheaper than
fatigue sensors, sleep demonstrated to reduce severe microsleep sensors (just
wearables, GPS & telematic accidents by 30%. software).
data.
 PARTNERSHIP

with

Leading provider of GPS & telematics in Chile

• From 2019 all the solutions of human fatigue that GPS Chile
commercializes will be "by Gauss Control", positioned as experts
in this science.
• It will allow entering the mass market of trucks and buses.
 SALES AND EXPENSES
Sales and in Chile 2016-2018
$1.20
$1.11
$1.10
$1.00
Cash flow positive:
$0.80 Sept-18
$0.66 118%
$0.60
$0.50
MRR at the end of 2018 :
$0.40 US$ 105,000
$0.33
$0.20 $0.19
172%
$-
2016 2017 2018
Sales Expenses

Sales and Expenses 2016 (USD $MM) Sales and Expenses 2017 (USD $MM) Sales and Expenses 2018 (USD $MM)
$0.33 0.4 $0.66 0.8 $1.10 $1.11 1.5

$0.19 $0.05 0.3

$0.50 $0.01 0.6
$0.08 $0.03 1
$0.15
$0.14 0.2 $0.29 0.4 $0.45
0.5
$0.06 0.1 $0.12 0.2 $0.21
$0.08 $0.15 $0.28
0 0 0
Sales Expenses Sales Expenses Sales Expenses

Sales Sales expenses Sales and Marketing Sales Sales expenses Sales and Marketing Sales Sales expenses Sales and Marketing
R&D Administration Others R&D Administration Others R&D Administration Others
Expenses Expenses Expenses

(*) exchange rate: US$ 1 = clp$630 (average 2018).

 SAAS METRICS

Gauss Control has good performance metrics compared to the SaaS industry
Metric description Gauss Control Benchmark
Monthly Recurring Revenue (MRR) $ 105.117 -
Direct margin 74% 60% to 80%
Average Revenue per Account $ 9.556 -
Dolar churn -39% 6% to 10%
Cost to adquire a Customer (CAC) $ 34.311 -
Lifetime value (LTV) $ 369.406 -
Months to recover CAC 4,8 6 to 12
LTV / CAC ratio 11 3 to 8

* These metrics are used in the SaaS industry and recurring revenue businesses (subscription). In many cases successful
SaaS startups present negative cash flows due to growth (cost to adquiere customers), where the value is really in the cash
that each client will leave during their lifetime (years).
 PRODUCT
MARKET-FIT
> 2019
SCALE UP
 SCALE UP PLAN

Escenario A: To achieve this sales goals Probably the final result Escenario B: Considers growth
(2020 and 2023) it will be necessary to enter is between both in Chile and LATAM market,
a huge market (USA, or Mexico) and raise scenarios. without the need of more
capital: funding round.
• Serie B (2020) ~ US$ 5 MM
• Serie C (2022) ~ US$ 9 MM

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Sales $ 1,8 $ 3,6 $ 9,0 $ 18,0 $ 32,4 Sales $ 1,8 $ 3,0 $ 4,3 $ 6,0 $ 7,9
Growth 84% 96% 150% 100% 80% Growth 84% 63% 44% 40% 30%

Direct costs $ 0,5 $ 1,1 $ 2,5 $ 4,8 $ 8,2 Direct costs $ 0,5 $ 0,9 $ 1,2 $ 1,6 $ 2,0
S&M expenses $ 0,5 $ 1,9 $ 5,4 $ 7,0 $ 14,2 S&M expenses $ 0,5 $ 0,6 $ 1,4 $ 1,7 $ 3,3
R&D expenses $ 0,6 $ 1,2 $ 2,8 $ 5,1 $ 8,4 R&D expenses $ 0,6 $ 1,0 $ 1,3 $ 1,7 $ 2,0
Administration $ 0,2 $ 0,4 $ 0,9 $ 1,7 $ 3,0 Administration $ 0,2 $ 0,3 $ 0,4 $ 0,6 $ 0,7

During 2019 we will begin to expand the market size:

• Internationalization: Peru, México and prospecting the US.
• Reduce CAC & expand to massive truck/bus market through distributors.
• Adapt product to other 24/7 industries.
 INVESTMENT

To implement the Scale Up Plan we are looking for:

US $ 1 MM  14.3% of the company.

Pre-money valuation: US$ 6 MM
*with the right to choose 1 board director (total of 3)

Previous funding round (2017):

US$ 350,000  13.5% of the company

Pre-money valuation: US$ 2.5 MM.
 INVESTMENT

How are we going to spend the capital?

12 months milestones
• Validate internationalization:
Activity Capital usage • MRR in Peru/Mexico must exceed
International expansion 40%
US $ 20 each.
• Archive product market fit US
Perú (Country Manager & Travels) 10%
México (Country Manager & Travels) 12%
Market.
Prospect USA 18%
• Close distribution agreements with
Adquire clients: Reduce CAC 32%
leading telematics & GPS providers in
Integration with more telematic providers 11% Latin America.
Pilot proyect 13%
• Reduce CAC/ARPA by 50%
Development of a channel strategy 8%

Adap product to other 24/7 industries 28% • At least 3 new clients of a new 24/7
industries (i.e. machinery).
 MANAGEMENT TEAM

Rafael Campino
CEO
- - Industrial and Hidralic Engineer at PUC, maximum distinction
- - Best student award Hydraulic Engineering PUC
- - Creator of "Another Day in Paradise" and Load Sports
- - Former Associate in Endurance Invesments

Tomás Gatica Roberto Fleischmann Darío Muñoz

VP of Sales COO CTO
- - BA in Business Universidad Adolfo Ibañez - - Mathematical Engineer PUC, maximum distinction (5% higher) - - 20 years of experience in software
- - Former Customer Manager SITRANS and - - Former Software Developer at SHIFT UC. development and arquitecture with
Project Engineer ULTRAMAR Microsoft and Java technologies.
 BOARD OF DIRECTORS

Roberto Loehnert Enrique Valdivieso Fernando Ovalle

- - MBA at Stanford University - - Civil Engineer PUC - - Owner LOGINSA (Logistic company,
- - Endurance Investments Partner - - Former CEO ENAMI and Former Director Chile and Colombia).
- - Former CEO EFT and Former Sernageomín - - Former President of the Logistics
- - Former CEO Elecmetal and CEO Siemens Association of Chile.
consultant Mckinsey & Co.
LATAM.
WE WORK TO SAVE
LIVES
#NOMOREROADACCIDENTS
 José Rafael Campino
CEO Gauss Control
[email protected]
+56 9 95799172

www.gausscontrol.com