Facebook, Inc. v. Studivz, Ltd et al

Filing 72

DECLARATION of Julio C. Avalos in Opposition to 71 Memorandum in Opposition, to Defendants' Motions to Dismiss for Lack of Personal Jurisdiction et al. filed byFacebook, Inc.. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11)(Related document(s) 71 ) (Gray, Thomas) (Filed on 1/16/2009)

EXHIBIT 11

Your Investor Pitch
November 20, 2008

- strictly confidential -

Agenda

1. 2. 3. 4. 5. 6. 7.

Overview Team & Advisory Board Product Numbers & Operations Markets & Competition How to Earn Money & Financials Conclusion

2

O v e rv ie w

· · · · ·

Fastest growing Social Networking Site in the German speaking area Free of charge with focus on students High usage ratios Team with experienced advisers In the future advertising will generate revenues

3

Team
A Complementary Combination of Abilities

Ehssan Dariani - CEO
Born in Tehran, 15.07.1980 A-Levels: Naturwiss. ASS Kassel, 1999 Bachelor of Arts in Economics in St. Gallen, Studies in Physics and Mathematics in Göttingen, Internships Spreadshirt, Pittsburgh & Leipzig Department of Mathematics, Assistant of Prof. Müller, St. Gallen (Switzerland) Marketing Auditorium St. Gallen FORUMHSG Recruiting Projects & Work experience Spreadshirt: Online Marketing, Pittsburgh (USA) Startup concept in distribution of grooming products ,,Jugend forscht" Arbeitswelt und Technik, 1995 Languages German ­ mother tongue Persian ­ mother tongue English ­ Fluent French - Advanced

Dennis Bemmann - CTO
Born in Gifhorn, 28.07.1978 A-Levels: Gymnasium am Fredenberg, Salzgitter, 1998 ,,Jugend forscht" 5th position in mathematics / informatics 1997 Studies in Computer Science, Humboldt University Berlin, Germany Scholarship of the Studienstiftung des Detuschen Volkes (= German National Merit Foundation) Projects & Work experience Chief Organizer of 3rd German Youth Science Congress 2002 Xilinx Research Labs, developer, Silicon Valley (USA) Various free and commercial software projects (conference scheduling, simulation etc.) Languages German ­ mother tongue English ­ fluent Esperanto - fluent French - advanced Arabic ­ advanced Spanish ­ advanced

Michael Brehm ­ COO
Born in Munich, 22.01.1980 A-Levels: Humanistisches Wilhelmsgymnasium München, 2000 Studies in Business Administration at WHU (Germany); Tec de Monterrey (Mexico) and CEIBS (China) IHK Price 2005 for the best diploma thesis Internships Hyundai, Controlling, Santiago (Chile) Aventis Pharma, Controlling, Shanghai, (China) Mundwerk, Sales, Berlin (Germany) Ermgassen, M&A Division, London, Great Britain Work experience Merrill Lynch, M&A Division, Frankfurt (Germany) Languages German - mother tongue English - fluent Spanish - fluent Chinese - Basic

4

Advisory Board
Strong Support from experienced Entrepreneurs

Operations Oliver Samwer,
Ex-CEO Jamba! & E-Bay Europe

Financial Planning Christophe Maire,
CFO Gate5

Venture Capital Martin Weber,
General Partner Holtzbrinck V e n tu r e s Non-Executive Director S tu d iV Z

Christian Vollmann, Lukasz Gadowski,
CEO Spreadshirt Non-Executive Director StudiVZ Ex-CEO I-love Non-Executive Director S tu d iV Z

Kolja Hebenstreit,
Head Online Marketing S p r e a d s h ir t

IT & Software Matthias Spiess,
CTO Spreadshirt

Oliver Jung,
CEO Exxeta 5

P ro d u c t
Personal Page

· Personal profiles reveal an individually adjusted amount of information

6

N u m b e rs
User Development

· Clear proof of concept
User

450000 400000 350000 300000 250000 200000 150000 100000 50000 0 1. Jan 1. Feb 1. Mrz 1. Apr 1. Mai

New server structure

· Viral growth started · After introduction of a fast and scalable server structure rapid growth continues

1. Jun

1. Jul

1. Aug

1. Sep

Da te

7

N u m b e rs
New Members per Day

· During the week new sign-ups are high · Reached phase with about 7.000 new users per day · Further growth acceleration due to new features is expected

9000 8000

New server structure
7000 6000 5000 4000 3000 2000 1000 0 Ti m e

New Members

8

N u m b e rs
Log-in-Ratios of Members at Most Important Universities

Last 24 hours
· Log-in-ratios are important for monetization
University
Uni Münster Uni Köln Uni Mainz RW TH Aachen Uni Bonn Uni Gießen Uni Bochum Uni Marburg Uni Göttingen

Percentage
62,3% 60,6% 58,3% 61,0% 61,7% 60,1% 60,1% 61,1% 60,5%

9

O p e r a tio n s
Roadm ap Next three months
IM Online Marketing Event planer Facts & Figures

First speed ... ... than features

Server infrastructure

First Friend

Gimmics

Stats for Users

The following twelve months
New Server Internationalization

Alumni

Innovations and improvements.

Pupils

10

M a r k e ts
Geographical Expansion Potential European Expansion
Students per Country
2.500.000 2.000.000

Country Poland Germany Italy United Kingdom France Spain Netherlands Hungary Sweden Greece Finland Czech Republic Austria Denmark Belgium Slov akia Lithunia Ireland Switzerland Latv ia Slov enia

1.500.000 1.000.000 500.000 0 PL DE IT UK FR ES NL HU SE GR FI CZ A T DK BE SK

Tier I Tier II Tier III

Country

Source: Eurostat

# of Purchasing Competition Virality students Power 1.989.889 + 1.981.373 ++ o 1.926.956 + ++ ++ 1.645.232 ++ -o 1.543.761 ++ ++ + 1.507.520 + ++ ++ 536.342 ++ o 394.021 + -390.371 ++ + o 374.591 o ++ + 278.522 ++ + o 262.530 + -197.627 + + 184.227 ++ + o 179.017 + o 150.037 -+ o 127.914 -+ -120.782 + -o 111.100 ++ -111.040 -+ -52.534 + --

7 m Students by End of 2007

# of students

11

M a r k e ts
Target Group Expansion P u p ils
Stude nts and Pupils in the EU by age (in million)
3,99
10.000.000 9.000.000 8.000.000

Pupils in the age of 10-19 years by country

11,31

# of pupils

7.000.000 6.000.000 5.000.000 4.000.000 3.000.000 2.000.000 1.000.000 0 Ger many Fr anc e United Kingdom Poland Italy Spain Nether lands

26,91

10-14 years 15-19 years 20-24 years 25-29 years

Tier I Tier II Tier III

23,90

Country

Source: Eurostat

Source: Eurostat

Potential Expansion of Target Group to Pupils

A lu m n i
Keep users after university time Implementation of a special Alumni-Section within the next 24 months

12

B e n c h m a rk in g
StudiVZ vs. Unister

· Over 20 social network communities with focus on students in Germany · Social Networking is a monopoly game that allows no room for a second player in the relevant market

13

How to Earn Money
Business Models A d v e rtisin g
Implementation of Banners, Text links, deep links from profile declarations to affiliates, Sponsored Groups and eFlyers in different sections of the page Due to the attractive target group price premia can be realized Online advertising will grow dramatically over the next years

· Advertising most important · Premium Services difficult due to student target group
Paid Applications
Implementation of a paid access system for certain individual applications Possible areas would be "Mobile Services" (Short Messaging) or "Shop"

Premium Services
Conservation of an Open Source Portal while adding a paid access system to some special services Establishment of an unpaid account, providing only basic functions, and a premium account, paying a membership fee to obtain advanced functions (e.g. more detailed search functions, unlimited amount of pictures & videos to be stored, etc.) 14

F in a n c ia ls
Basic Projections for 2007

·

Estimated revenue potential of StudiVZ 3 to 10 per member / per year MySpace (120m members) US$ 3 per member / per year, break even Facebook (8m members) US$ 10 per member / per year, highly profitable

·

StudiVZ Members: · Beginning of 2007: 2m · End of 2007: Between 2m and 7,5m

Revenue potential between 6m and 45m for 2007, with a cost basis of 4m

15

F in a n c ia ls
P&L (Germany and France only & Google AdSense only)
Profit & Loss
(in !) Income Employees
% of Total Costs

Jun.11 18.000
46,9%

Jul.11 19.000
44,4%

Aug.11 20.000
41,0%

Sep.11 25.000
41,7%

Okt.11 -

Nov.11 119.419 26.000
32,0%

Dez.11 147.174 27.000
30,2%

24.000

Server Computer Software Rent Insurance Office Equipment Telecommunication Lawyer Accountant Marketing Travel Costs Other Total Costs Gross Profit
Margin (%)

2.341 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 8.000 1.000 1.000

5.774 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 8.000 1.000 1.000

10.760 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 8.000 1.000 1.000

S [
n/m

M A
42.774 42.774
n/m

L P
16.916 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 8.000 1.000 1.000 - 59.916 - 59.916
n/m

26.682 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 8.000 1.000 1.000 - 68.682 - 68.682
n/m

] E
34,9%

37.153 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 8.000 1.000 1.000

44.310 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 8.000 1.000 1.000 - 89.310 57.863
n/m

38.341 38.341

- 48.760 - 48.760
n/m

- 81.153 38.266
n/m

Depreciation Loss Carryforward Tax (35%) Net Profit / Loss
Margin (%)

-38.341 38.341
n/m

-81.115 42.774
n/m

-129.875 - 48.760
n/m

-189.790 - 59.916
n/m

-258.473 - 68.682
n/m

-220.206 38.266
n/m

-162.343 57.863
n/m

Accumulated Profit / Loss

38.341

81.115

- 129.875

- 189.790

- 258.473

- 220.206

- 162.343

16

C o n c lu s io n s

· · · ·

Outstanding growth during the last 3 months Extension of market-domination Team around the founders is established Focus on product development and monetization

Main aim is to become one of the most profitable websites in Germany

17