Standard Mobile

Provided by Freeon MVNaaS

Draft 0.29 dated 28/10/16

Non-Disclosure Agreement & Safe Harbor

Non-disclosure: This Presentation has been prepared by The Directors of Freeon Ltd (the Directors)and remains the property of the Directors.
This document is produced for the purpose of obtaining customers and resources including funds and partners by introducing Freeon as a potential business
opportunity. As such this document is distributed only to a number of identified persons who have expressed an interest in such business opportunities and is
distributed on the understanding that it must not be further distributed to any person without the express written permission of the Directors.

The Presentation is made available and is received, specifically on the implied understanding that the recipient will hold the information contained therein confidential
and will not copy, reproduce, distribute or disclose the information nor any part of it to any other person, other than any investment advisor acting for the recipient in
connection with a possible contract, loan or investment in Freeon Ltd. The recipient agrees, on request, to return promptly, or destroy, all information received from
the Directors without retaining any copies
Forward-Looking Statements: This presentation contains "forward-looking statements, Forward-looking statements are subject to inherent risks and uncertainties.
While the information contained in this document is believed to be accurate in all material respects, neither the Directors nor their advisors give any warranty,
expressed or implied, as to the completeness or accuracy of the information contained herein. The actions, plans, revenues, and profits outlined in this document may
never occur, and any investments made in this opportunity may be lost in full
There has been no independent verification of the information and all interested parties are advised to conduct their own investigations and to take such independent
investment advice as they see fit.
This document does not form part of a contract or an offer for sale. It does not constitute an offer capable of acceptance, nor an invitation for the sale or purchase of
any securities.

Freeon will help the Evening Standard expand its highly successful
Free Newspaper and online approach to the mobile users of London
Evening Standard provides access to 640,000 readers aged 15-34
- including 340,000 from ethnic backgrounds

These Digital Natives are used to and prefer Fremium models

- and expect them in the digital content world

We polled 1000 people and found nearly half would use the service
Price is the element most likely to
make people change their
provider with free being best

Half are likely to install a SIM from

a newspaper that comes with free
minutes, text & data
1000

Very likely

Fairly likely

Dont know

Not likely

Most people would expect to

pay for one of our larger
bundles

No

Price

Service Quality

Coverage

Handset

Customer Support

1/3 are interested in watching

Films, TV, Sport on a mobile

400
200
0
Free

9.99

15.99

Interested

Maybe

Not

We will help the Evening Standard expand its brand to the Mobile space,
and increase readership and advertising

Targeted digital natives look at their phone 85 times per day; for an average of five
hours per day

Standard Mobile can lock in 200k+ future readers of the newspaper, the website

and the mobile news streams

Opportunity to support many related services; mobile advertising, property, fashion

Branded; to look and feel like Evening Standards own service

Freeon will share revenues with the Evening Standard, raising to 1.7m by 2020

Analytics provided allows for targeted advertising

Evening Standard focused sections in our community will help grow

customer base

Based on the above research we have identified our target customers

Likely or very likely to install and

18-34 year old digital native

activate a SIM that came with

free minutes, texts & data

47% likely

53% very
likely

Commuters, full time parents, students and entrepreneurs

Would like to watch TV & Films on their

mobile phone

19% No

43% maybe

39% yes

The Evening Standard is an ideal Brand for this offer

The relationship between our "target customer group" and "the likelihood that interviewees would install and
activate a free SIM card that came within a newspaper" is statistically significant.
Q11: How
likely are
you to use a
free mobile
plan that
limits to 200
minutes,
200 texts
and 200 MB
of data
every
month for
free?

Q11

Very
likely+
fair likely

Not very likely

+
Not at all likely

Spin off 23.4% dont know interviewees

2.6%

61.7%

6.0%

6.4%

Not very likely

+
Not at all likely

Very
likely+
fair likely

Q20

Q20: How likely would you be to install and

activate a free SIM card that came within a
newspaper, if it gave you free voice
minutes, texts

We aim to build a strong Evening Standard Community for customer

satisfaction, stickiness, reduced cost to serve, and new subscribers

Content zone
Find loads of information on
the latest TV & Movies, and
discuss with the community

We will provide freemium Films, TV, Sports UK, US and International

FreedomPopour nearest competitor has proven the freemium model

Founded 2011, valued between $250 million and $450 million

by 2014 according to USA Today

Gains subscribers through promising free services

Upgrades 50% to paid services

Also charges for Value Added Services like, data rollover

(1.49/mo), visual voicemail (0.99/mo), usage
alert(0.99/mo), premium voice(1.99/mo)

Claims to have an ARPU of 10/m

Rapid global expansion,

2012, launch 4G hotspots service in USA

24 Sep 2015, launch mobile service in the UK

20 April 2016, launch mobile service in Spain

Freeon will beat FreedomPop to scale in the UK by selling through

famous brands like the Evening Standard and providing valued
content

We will initially acquire our subscribers through the Evening Standard,

Community recommendations, Social Media and Comparison sites

Our primary source of customer awareness will be through the Evening Standard newspaper

We will also use Community recommendations, social media and comparison sites

The initial purchases will be through our own Evening Standard branded websites

Later purchases will also be through the branded App

Later we may work with the Independent for cities outside London

We will work with the Evening Standard to grow social media presence
FreeOn Website

Corporate website

Facebook page

WeChat account

FreeOn Twitter

LinkedIn page

We have a great set of Partners and Suppliers on board

Freeon revenue model

People exceeding the initial free plan used to attract subscribers
People choosing larger plans
VAS Usage Alert, Data Roll-over, Data Sharing, Security, Premium Voice, Tethering
30% of the revenues from the video content (see next slide)
3-15% of the price of the phones and accessories sold
Commission on mobile broadband, phone loans and insurance
Later IoT services Parking availability, Boris Bikes, Pollution alerts etc

The Management Team and Advisory Board are a mix of deep telco
experts and serial entrepreneurs
- and have provided the initial 160k funding

Management Team
CEO - David Percival

CMO Claria Guo

Ex Global head of innovation

PwC Telco and Digital
Practice

Advisory Board
Justin Byam Shaw

Evening Standard and serial entrepreneur

Andy Heath

Serial entrepreneur and sales &

marketing expert

Mal Minhas

Software guru - Vertu, Adobe,

Symsource, Apple, Intuwave, Symbian
and Psion

Martin Pedersen

RequirementOne Founder & CEO,

Royal Danish Court, ERSI

Lars-Olof Sundell

5G Project Leader for Ericsson

Ex Ericsson, UTStarcom,
Huawei

COO - Lorraine Moody

Satellite Application catapult,

PwC, PRTM

Service Rob Charlton

Ex Vertu, Cogiter, Savage

Minds, Erlang Solutions,
Fig Labs, Visto, Intuwave,
Symbian and Psion

The MVNO market is worth billions and growing

The UK has a strong MVNO base, with revenues of around 1.98bn/y, and is
expected to grow over the next six years.

Europe was estimated to be the largest regional market in 2013, and

accounted for over 40% of the global MVNO market.

The global MVNO market is expected to reach USD 73.20 billion by 2020.
Increasing global mobile subscribers and demand for data services is expected

to favor market growth over the next six years.

Global MVNO subscribers are expected to exceed 300 million by 2020, at a

CAGR of 10.7% from 2014 to 2020.

Freeon target market:

Migrant + Discount + Retail + Roaming

We expect to break even in 2018

Cash flow positive by 2019
20x returns for S/EIS investors
Years
Upside

2017 2018

2019

2020

2021

28

125

292

498

771

18

85

203

365

562

Downside
Upside

16
3

69
15

133
30

205
48

283
73

Revenues M

20

34

52

14,000

30,000

1
-1

6
2.9

13
5

19
9

25
14

12,000

-1

25,000

-1
0.1

-0.1
0.5

2
1

3
2

4
4

0.1

0.3

0.7

1.7

3.2

Subscribers K

Downside
Upside

EBITDA M
Downside
Upside

Payments to
Brands M
Downside
Upside

Cumulative
Cashflow M
Downside
Upside

20,000

8,000

0.1
-1.0

0.2
-1.4

0.3
5.2

0.6
11

1.1
22

4,000

-0.9

-1.4

1.4

6.1

14.2

2,000

15,000

KGBP

10,000
5,000
-

-1.3
0.7

1.8

0.9

Downside
Upside

1.8
12

0.8
35

67

111

169

Valuation M

13

39

73

115

28

42

56

Downside

10,000

6,000

-0.9
2.0

Investments
needed M

Cashflow development

0.4

2.5

5.5

-2,000

2016

2017

2018

2019

2020

2021

Year
Net Cashflow

Cumulative Net Cashflow

2022

-5,000

Key milestones
2016

2017 - 2018

2019-2022

Freeon incorporated September 2016

Gain 1.6m EIS Funding

Breakeven

Founders invested initial 160,000

Q1 Launch Evening Standard service

Gain initial 150,000 SEIS Funding 4Q 2016

Work with MVNA to set up network, OSS,
BSS

Ramp up Marketing through evening

Standard, Community, Social Media,
Comparison sites

Launch first country with Metro

International in 2019, potentially
Germany

Build Freeon App

Average 20,000 subscribers 2017

Finalise Web site including SIM ordering &

activation, Phones, Content

Launch with Metro UK in 2018 in to

Birmingham, Brighton, Bristol, Cardiff,
Derby, Edinburgh, Glasgow, Leeds,
Leicester, Liverpool, Manchester,
Nottingham, Newcastle, and Sheffield

Work with the Evening Standard to build

into their systems
Work with providers for content, loans,
insurance, phones

Form Communities for support, sales

Run initial consumer trials

Gain 0.9m Series A funding or debt

Average 60,000 subscribers 2018

Launch one country per year

thereafter, potentially starting with
the USA
Average 500,000 subscribers by 2022

Timeline to launch
2016
Aug

Sep

Marketing
research

Confirm Model

LOI from ES

Update XLS model

F&F investment
(160k)

SEIS investment
(150k)

APP Requirement
System
Requirement

Oct

2017
Nov

Dec

Jan

Feb

Mar

Apr

EIS investment
(1.6m)
Agile OTT trials

APP customisation
X-Mobility contract

SIM set up

SIM tests
X-Mobility set up, reviews, tests

Final review and

user acceptance test

Film On approval
Film On website

Requirements for
web shop

Incorporation of web shop

Service
launch

X-Mobility ADMIN & self

care
Web shop content

Social media-Evening Standard Community

Marketing
Finance
Operation
ADMIN

Analytics, churn, activations on site

Advisory board
established

Set up company

HR, NI, Pensions, Visas, legal, contracts

Set up Bank

VAT registration, Tax, Accounts systems

Launch point