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