![Investment Needs
Needs of Resources
Total
SETUP FEE (Credential Model ) 125.000
Integration + Design + Implementation + ATP 200.000
Operation (Salaries/Payroll) 420.000
Lauching & Marketing 75.000
SubTotal 820.000
Taxes 34% 278.800
SubTotal 1.098.800
FLOWS OF EXPENSES - Accumulated With Taxes Whitout Taxes
6 initial months - PreOperative 328.300 245.000
Next 7 to 12 months 288.100 215.000
SubTotal first year 616.400 460.000
Next 13 to 24 month 482.400 360.000
SubTotal second year 482.400 360.000
SUBTOTAL 1.098.800 820.000
Tax [10%] 10% 109.880 82.000
TOTAL INVESTMENT 1.208.680 902.000
This document has been prepared by MSI and Veranno for the exclusive use of MSI and Veranno. It should not be considered complete without the support of the underlying analysis and the
associated oral presentation. It must not be made available to third parties without first having explicit consent from their owners.
MSI and Veranno will
make an investment.
Because of the size of
the project, external
investor support and
financial security are
needed for a while.](https://image.slidesharecdn.com/presentationmvnomsiveranoforinvestorv3-191128222641/85/Presentation-mvno-MSI-Verano-7-320.jpg)
![Cash Flow
This document has been prepared by MSI and Veranno for the exclusive use of MSI and Veranno. It should not be considered complete without the support of the underlying analysis and the
associated oral presentation. It must not be made available to third parties without first having explicit consent from their owners.
BUSINESS FLOW [´000 USD] Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
Sales 38.008 146.185 324.531 557.843 557.843 557.843 557.843 557.843 569.000
(-) Costs of Sales 29.622 113.930 252.926 434.759 434.759 434.759 434.759 434.759 443.454
(-) Admin Expenses 546 906 1.498 2.216 2.216 2.216 2.216 2.216 2.260
(-) Sales Expenses
Depreciation - - 174 180 188 195 203 260
Earnings before taxes 7.841 31.349 70.108 120.695 120.688 120.681 120.673 120.665 123.026
(-) Taxes 2.744 10.972 24.538 42.243 42.241 42.238 42.236 42.233 43.059
Operational Flow 5.096 20.377 45.570 78.452 78.447 78.442 78.438 78.433 79.967
FINANCINGFLOW
Loan -1.200
(-) Amortization of Loan 174 180 188 195 203 260
(-) Interests of Loan 260 222 183 143 100 56
Total Financial Flow -1.200 0 0 434 403 371 338 303 316
TOTAL NET CASH FLOW 3.896 20.377 45.570 78.885 78.850 78.813 78.775 78.736 80.283](https://image.slidesharecdn.com/presentationmvnomsiveranoforinvestorv3-191128222641/85/Presentation-mvno-MSI-Verano-10-320.jpg)
Presentation mvno MSI & Verano
- 1. Mobile Virtual Network Operator MVNO Business Case Opportunity 2019
- 2. ¿What is a MVNO? Market and Opportunities Business Model and Revenue Streams Cross Selling Investment Needs Market Approach & Growth Strategy Profit & Losses / Cash Flow Competitors Team & Advisors Agenda This document has been prepared by MSI and Veranno for the exclusive use of MSI and Veranno. It should not be considered complete without the support of the underlying analysis and the associated oral presentation. It must not be made available to third parties without first having explicit consent from their owners.
- 3. ¿What is a MVNO..? Key Aspect: It is an attractive business to cover communication needs to specific niches to which they can be given added value and obtain an interesting economic benefit. The success is in complementing a Telecom product with a No Telecom product (ie: insurance, fintech, others services). Momentum: The moment in Brazil and Latin America in general is ideal after many years, the wholesale rates have fallen, the regulation is more mature and many niches with potential clients have been identified to make a successful business. Concept: MVNO– Mobile Virtual Network Operator: It is the provider of Telecommunications Networks and Services that does not have permission for the use of radio spectrum, which is why it provides mobile communications services to the public through the network infrastructure of one or more Providers of Telecommunications Networks and Services. This document has been prepared by MSI and Veranno for the exclusive use of MSI and Veranno. It should not be considered complete without the support of the underlying analysis and the associated oral presentation. It must not be made available to third parties without first having explicit consent from their owners.
- 4. Market and Opportunities País BRASIL MÉXICO ARGENTINA COLOMBIA ECUADOR PERÚ BOLIVIA CHILE Universities 5.000.000 1.000.000 500.000 1.000.000 500.000 300.000 100.000 500.000 Associates 5.000 2.000 2.000 1.000 1.000 1.000 500 1.000 Proffessional Groups (Eng, Arch, Lawyers) 5.000 2.000 2.000 1.000 1.000 1.000 500 1.000 Retailers 2.000.000 1.000.000 500.000 500.000 200.000 200.000 50.000 200.000 Religious communities 5.000 2.000 1.000 2.000 1.000 1.000 500 2.000 Total 7.010.000 2.004.000 1.004.000 1.502.000 702.000 502.000 151.000 702.000 The Problem: There is a monopoly in the mobile operator sector. In the case of Brazil, telephone service is very expensive, there is poor customer service and abuse towards the client. The MVNO offers more open telephony, more economical, flexible and with the possibility of selling cross products. The Solution: Our main asset is the knowledge, business understanding and wide experience to build and operate a MVNx. In addition, we have an excellent OSS/BSS platform solution to host the potential customers and provide a competitive product. This document has been prepared by MSI and Veranno for the exclusive use of MSI and Veranno. It should not be considered complete without the support of the underlying analysis and the associated oral presentation. It must not be made available to third parties without first having explicit consent from their owners.
- 5. Business Model and Revenue Streams Need of Investment US 1.200.000 • MVNA = Mobile Virtual Network Agregator • MVNE= Mobile Virtual Network Enabler • MVNx = Mobile Virtual Network “…….” Mobile Operator MVNA MVNO 1 (Commerce) MVNO 2 (Commerce) MVNO N (Commerce) MVNE Network Infrastructure OSS / BSS Veranno (CRM, Billing, BI, etc.) Add Value Services ( Insurance, Fintech, others) Revenue Forecast : USD 1500MD(4 Years) GM=30% Estimated Value of Portfolio USD 7500MD
- 6. Product 1 Product 2 Product N MVNO MVNO + ecommerce Profit Time Opportunity for Cross Selling Cross Selling
- 7. Investment Needs Needs of Resources Total SETUP FEE (Credential Model ) 125.000 Integration + Design + Implementation + ATP 200.000 Operation (Salaries/Payroll) 420.000 Lauching & Marketing 75.000 SubTotal 820.000 Taxes 34% 278.800 SubTotal 1.098.800 FLOWS OF EXPENSES - Accumulated With Taxes Whitout Taxes 6 initial months - PreOperative 328.300 245.000 Next 7 to 12 months 288.100 215.000 SubTotal first year 616.400 460.000 Next 13 to 24 month 482.400 360.000 SubTotal second year 482.400 360.000 SUBTOTAL 1.098.800 820.000 Tax [10%] 10% 109.880 82.000 TOTAL INVESTMENT 1.208.680 902.000 This document has been prepared by MSI and Veranno for the exclusive use of MSI and Veranno. It should not be considered complete without the support of the underlying analysis and the associated oral presentation. It must not be made available to third parties without first having explicit consent from their owners. MSI and Veranno will make an investment. Because of the size of the project, external investor support and financial security are needed for a while.
- 8. Market Approach & Growth Strategy Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10 Market Increase 5% 10% 15% 18% 20% 22% 25% 27% 29% 30% Target 678.850 1.357.700 2.036.550 2.443.860 2.715.400 2.986.940 3.394.250 3.665.790 3.937.330 4.073.100 Brasil 350.500 701.000 1.051.500 1.261.800 1.402.000 1.542.200 1.752.500 1.892.700 2.032.900 2.103.000 México 100.200 200.400 300.600 360.720 400.800 440.880 501.000 541.080 581.160 601.200 Argentina 50.200 100.400 150.600 180.720 200.800 220.880 251.000 271.080 291.160 301.200 Colombia 75.100 270.360 225.300 270.360 300.400 330.440 375.500 405.540 435.580 450.600 Ecuador 35.100 70.200 105.300 126.360 140.400 154.440 175.500 189.540 203.580 210.600 Perú 25.100 50.200 75.300 90.360 100.400 110.440 125.500 135.540 145.580 150.600 Bolivia 7.550 15.100 22.650 27.180 30.200 33.220 37.750 40.770 43.790 45.300 Chile 35.100 70.200 105.300 126.360 140.400 154.440 175.500 189.540 203.580 210.600 Total 678.850 1.477.860 2.036.550 2.443.860 2.715.400 2.986.940 3.394.250 3.665.790 3.937.330 4.073.100 Focus Initially: Brazil first year Next: México& Colombia This document has been prepared by MSI and Veranno for the exclusive use of MSI and Veranno. It should not be considered complete without the support of the underlying analysis and the associated oral presentation. It must not be made available to third parties without first having explicit consent from their owners.
- 9. Profit & Losses This document has been prepared by MSI and Veranno for the exclusive use of MSI and Veranno. It should not be considered complete without the support of the underlying analysis and the associated oral presentation. It must not be made available to third parties without first having explicit consent from their owners. MOBILE SERVICES INTERNATIONAL GROUP Expressed in miles of American Dólar Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Sales 38.008 146.185 324.531 557.843 557.843 557.843 557.843 557.843 Cost of Sales 29.622 113.930 252.926 434.759 434.759 434.759 434.759 434.759 Net Sales 8.386 32.255 71.605 123.084 123.084 123.084 123.084 123.084 Total Operating Expenses 546 906 1.498 2.216 2.216 2.216 2.216 2.216 Depreciation and amortization 174 180 188 195 203 260 Operating Income 7.000 29.691 67.599 117.860 117.860 117.860 117.860 117.860 Other Expenses EBITDA 7.000 29.691 67.773 118.041 118.048 118.055 118.063 118.120 Depreciation and amortization 174 180 188 195 203 260 Interest 48.000 41.058 33.838 26.330 18.521 10.399 Income / (Lost) before Taxes 7.000 29.691 19.599 76.802 84.022 91.531 99.340 107.461 OPERATING MARGINS Cost of Sales 78% 78% 78% 78% 78% 78% 78% 78% Gross Margin 22% 22% 22% 22% 22% 22% 22% 22% Operating Cost 1,4% 0,6% 0,5% 0,4% 0,4% 0,4% 0,4% 0,4% Operating Income 18% 20% 21% 21% 21% 21% 21% 21% EBITDA 18% 20% 21% 21% 21% 21% 21% 21% Income before Taxes 18% 20% 6% 14% 15% 16% 18% 19%
- 10. Cash Flow This document has been prepared by MSI and Veranno for the exclusive use of MSI and Veranno. It should not be considered complete without the support of the underlying analysis and the associated oral presentation. It must not be made available to third parties without first having explicit consent from their owners. BUSINESS FLOW [´000 USD] Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Sales 38.008 146.185 324.531 557.843 557.843 557.843 557.843 557.843 569.000 (-) Costs of Sales 29.622 113.930 252.926 434.759 434.759 434.759 434.759 434.759 443.454 (-) Admin Expenses 546 906 1.498 2.216 2.216 2.216 2.216 2.216 2.260 (-) Sales Expenses Depreciation - - 174 180 188 195 203 260 Earnings before taxes 7.841 31.349 70.108 120.695 120.688 120.681 120.673 120.665 123.026 (-) Taxes 2.744 10.972 24.538 42.243 42.241 42.238 42.236 42.233 43.059 Operational Flow 5.096 20.377 45.570 78.452 78.447 78.442 78.438 78.433 79.967 FINANCINGFLOW Loan -1.200 (-) Amortization of Loan 174 180 188 195 203 260 (-) Interests of Loan 260 222 183 143 100 56 Total Financial Flow -1.200 0 0 434 403 371 338 303 316 TOTAL NET CASH FLOW 3.896 20.377 45.570 78.885 78.850 78.813 78.775 78.736 80.283
- 11. Current MVNOs Latam - Competitors This document has been prepared by MSI and Veranno for the exclusive use of MSI and Veranno. It should not be considered complete without the support of the underlying analysis and the associated oral presentation. It must not be made available to third parties without first having explicit consent from their owners.
- 12. Team & Advisors Co-Founder partner of Veranno. Business administrator with MBA from IESE Business School. He has worked as Director of Operations, Negotiations and Purchases, Financial Controller and CEO of several Spanish companies in the telecommunications and technology sector. Co-Founder partner of Veranno. Engineer with more than 25 years of experience in implementation and management of CRM, ERP, Middleware, Rating & Billing, OSS / BSS systems. Co-Founder and Managing Director of Veranno. Lawyer specialized in Corporate Law, with focus on business contracts, postgraduate in Tax Planning, Studied at the Austrian School of Economics. Founder and CEO of MSI LLC. Electronic and PhD Engineer with more than 30 years working in the telecommunications sector. He has held positions of high responsibility in several companies in Latin America, Europe and USA. Director of Service Delivery at MSI LLC. Electronic and Telecommunication Engineer, Specialized in Telecom Management, Financial Management and MBA, with more than 15 years working in the telecommunications sector. He has held positions of high responsibility in several companies in Latin America, including as MVNO Manager at Mobile Operator in Colombia.
- 13. Thank you