wize mobiletv malaysia business plan & investment proposal

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WiZE Mobile Sdn Bhd Malaysia Business Plan & Investment Proposal WiZE Mobile Sdn Bhd Lot 2U-4B, Pusat Daerah Seksyen 6, Jalan Nuri 6/1,, Shah Alam, Selangor. 40000 [email protected]

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WiZE Mobile, Independent Mobile Broadcasting StationBusiness Plan and Investment Proposal

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Page 1: WiZE MobileTv Malaysia Business Plan & Investment Proposal

WiZE Mobile Sdn Bhd

Malaysia Business Plan &

Investment Proposal

WiZE Mobile Sdn Bhd

Lot 2U-4B, Pusat Daerah Seksyen 6,

Jalan Nuri 6/1,, Shah Alam, Selangor. 40000

[email protected]

Page 2: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Table of Contents

1. Executive Summary ..................................................................................................... 3

1.1. Objectives ............................................................................................................. 4

1.2. Mission ................................................................................................................. 6

1.3. Keys to Success .................................................................................................... 7

2. Company Summary ..................................................................................................... 9

2.1. Company Ownership ............................................................................................ 9

2.2. Company History ............................................................................................... 10

3. Services ...................................................................................................................... 12

4. Market Analysis Summary ........................................................................................ 14

4.1. Market Segmentation ......................................................................................... 15

4.2. Target Market Segment Strategy........................................................................ 17

4.3. Service Business Analysis .................................................................................. 20

4.3.1. Competition and Buying Patterns ............................................................... 22

5. Strategy and Implementation Summary .................................................................... 23

5.1. Competitive Edge ............................................................................................... 25

5.2. Marketing Strategy ............................................................................................. 27

5.3. Sales Strategy ..................................................................................................... 28

5.3.1. Sales Forecast.............................................................................................. 29

5.4. Milestones .......................................................................................................... 34

6. Management Summary ............................................................................................. 36

6.1. Personnel Plan .................................................................................................... 38

7. Financial Plan............................................................................................................ 39

7.1. Important Assumptions ...................................................................................... 39

7.2. Break-even Analysis .......................................................................................... 42

7.3. Projected Profit and Loss ................................................................................... 43

7.4. Projected Cash Flow........................................................................................... 47

7.5. Projected Balance Sheet ..................................................................................... 50

7.6. Business Ratios .................................................................................................. 51

Page 3: WiZE MobileTv Malaysia Business Plan & Investment Proposal

1. Executive Summary

WiZE mobyleTv is more personal. It's also easy for end users to find the

content that they want to watch. Consumers can choose their content,

whether through a tailored package of TV channels or through video

streaming and downloads. It also offers a new level of direct interactivity

back through the mobile network. Viewers are drawn into the action,

participating in quiz shows, making bets, adding their opinion, and

making purchases. MobyleTv brings operators more directly into the

media world and opens opportunities for new industries to develop.

MobyleTv might not follow the path of traditional multichannel TV but

could deliver a combination of unicast, multicast and broadcast services

including new interactive services using the return channel which would

represent a new opportunity for innovative multimedia services.

MobyleTv is not simply conventional TV 'on the go' - it is personal TV

and a multimedia device in your pocket. Its primary value is in a

converged environment where a single system can deliver all kinds of

mobile TV services - an environment where viewing times are not

necessarily the most relevant metric. Mobile TV trials and commercial

services have proliferated recently. Rather diverse approaches have been

taken to services, pricing, marketing and technology. Getting the

approach right is extremely important as mistakes could be expensive and

the potential of mobile TV may not be fully realised. Mobile TV services

are also challenged by the fact that customer demand for acceptable form

factors can limit the radio sensitivity of terminals that are often used

indoors. Such constraints impose particularly demanding coverage

requirements on mobile TV services. Providing the necessary level of

service quality and reliability requires mobile TV to match the design

parameters of a cellular radio network including the delivery of in-

building coverage. MobyleTv broadcast networks therefore have to

provide a higher level of received signal strength on the ground and

indoors than digital terrestrial TV.

Page 4: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Highlights

1.1. Objectives

Page 5: WiZE MobileTv Malaysia Business Plan & Investment Proposal

1.2. Objectives

To offers high-tech service providers a reliable, high-quality

alternative to in-house resources for business development, market

development, and channel development on an international scale. A

true alternative to in-house resources offers a very high level of

practical experience, know-how, contacts, and confidentiality. Clients

must know that working with WiZe Mobile Sdn Bhd is a more

professional, less risky way to develop new areas even than working

completely in-house with their own people.

Initial focus will be development in towards our 6 main channels,

later offering our content providers their own premium channel. WiZe

Mobile Sdn Bhd will offer a wide variety of compelling niche

programming to mobile users within an economic model that is

considered affordable by the viewer and financially rewards the

operator and the program producer.

Page 6: WiZE MobileTv Malaysia Business Plan & Investment Proposal

1.3. Mission

The Broadcast Network Operator (BNO) plays a key role in the

delivery of mobile TV over the MNO Network. Working together, the

BNO and mobile network operator (MNO) can achieve cost-

effective nationwide broadcast network roll out with good indoor

coverage.

Successful broadcast mobile TV depends on partnerships between

mobile network operators and the broadcast service providers. It's a

golden fit, with both parties enjoying the benefits of lower

infrastructure investment and less risk. The opportunity for mobile

Page 7: WiZE MobileTv Malaysia Business Plan & Investment Proposal

and hybrid network operators is clear. Adding to their portfolio

toward 3G communications services, WiZe Mobile Sdn Bhd

strengthens existing customer relationships, opening up new revenue

streams and providing a powerful way to create churn-beating

sticking.

1.4. Keys to Success

Five steps to mobile TV success

It takes more than just launching a mobile TV service to generate

worthwhile revenue. The service must be easy to activate and use. It

must also provide users with value for money and enrich their

lifestyle. We work with you to:

Page 8: WiZE MobileTv Malaysia Business Plan & Investment Proposal

1. Explore the opportunity: understand the market, customer

needs, and segmentation and business opportunities. Find

appropriate services, the business model and the right device

offering

2. Develop and deploy the service: implement the service in the

network complete with charging mechanisms, followed by

testing, often with friendly users

3. Excite subscribers: launch and market the service. Ensure

effective service provisioning and device/phone management,

as well as charging

4. Operate the service: provide appropriate care services and

manage Service Level Agreements for guaranteed service

quality, especially for enterprise users

5. Manage the service lifetime: manage all services throughout

their lifecycle. Monitor the service performance and manage

the network and its capacity

Page 9: WiZE MobileTv Malaysia Business Plan & Investment Proposal

2. Company Summary

WiZe Mobile Sdn Bhd was formed through the vision of a team of

experience and well-qualified professionals to provide information

technology (IT) solutions and services to customers through the

combination of business and technology skills.

The senior professionals in this company have experience of applying

information technology to customers' businesses. Our multi–discipline

and diverse expertise in field allows us to combine our technical

expertise, marketing knowledge and creative talents to develop and

market the best IT solution for our customers' needs.

2.1. Company Ownership

Investor Partner,

Partners:

CEO -

COO -

CBD -

Page 10: WiZE MobileTv Malaysia Business Plan & Investment Proposal

2.2. Company History

XCHG Technology is a sole proprietary company, currently holding

the whole IP for the technology involve in deploying this business

solution. XCHG Technology is a SI company that has been establish

since 2004, focusing towards technology development a new entity

shall be incorporated to run the whole business operation. WiZe

Mobile Sdn Bhd shall be the organization to manage and operate the

business. The company anticipates that its first operation center will

be located in I-City Shah Alam.

Page 11: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Past Performance

FY 2007 FY 2008 FY 2009

Sales $0 $0 $0

Gross Margin $0 $0 $0

Gross Margin % 0.00% 0.00% 0.00%

Operating Expenses $50,000 $50,000 $50,000

Balance Sheet

FY 2007 FY 2008 FY 2009

Current Assets

Cash $0 $0 $0

Other Current Assets $45,000 $150,000 $150,000

Total Current Assets $45,000 $150,000 $150,000

Long-term Assets

Capital Assets $200,000 $200,000 $200,000

Accumulated Depreciation $0 $0 $0

Total Long-term Assets $200,000 $200,000 $200,000

Total Assets $245,000 $350,000 $350,000

Current Liabilities

Current Borrowing $150,000 $130,000 $200,000

Other Current Liabilities $50,000 $50,000 $50,000

Total Current Liabilities $200,000 $280,000 $350,000

Long-term Liabilities $150,000 $150,000 $150,000

Total Liabilities $350,000 $430,000 $500,000

Paid-in Capital $200,000 $200,000 $200,000

Retained Earnings ($305,000) ($280,000) ($350,000)

Earnings $0 $0 $0

Total Capital ($105,000) ($80,000) ($150,000)

Total Capital and Liabilities $245,000 $250,000 $250,000

Page 12: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Past Performance

3. Services

MobyleTv is a mobile television channel that will exhibit, initially, 6

special interest mini channels to mobile phone users that have Wi- Fi

or subscription to Telco 3G data platform, that allows viewers to watch

programs entirely at their convenience, as many times as they wish, for

free.

The 6 mini-channels are targeted to special interest groups where there is

a quantifiable demand for programming that hasn't been satisfied ... a

programming need waiting to be filled. It is expected that additional

premium content mini-channels will be offered to third party content

providers which enable users to subscribe daily, weekly or monthly direct

to the CP accounts. As public awareness increases and the number of

viewers grow, MobyleTv shall increases its content thus encouraging

local production houses to develop more mobile based content

programmed.

Page 13: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Services

Rather than undertaking the formidable task of creating and sustaining an

infrastructure capable of producing 150 hours of distinctive and high-

quality programming each month, MobyleTv has chosen a unique and

cost-effective business model: assembling and managing a group of

content providers, who will be the producers of their own content.

Under this model, MobyleTv administers the enterprise, including

overall brand management (i.e., establishing and promoting a strong

identity among cable operators and consumers as a unique and

valuable television network), affiliate sales, trade marketing,

advertising sales, technical distribution and back-office support.

Page 14: WiZE MobileTv Malaysia Business Plan & Investment Proposal

4. Market Analysis Summary

Page 15: WiZE MobileTv Malaysia Business Plan & Investment Proposal

ONE BILLION PHONES READY FOR GREAT

SERVICES

While it is widely acknowledged that services on handsets are key to

non-SMS data growth, analysts tend to lower expectations, as the users'

uptake is not as rapid as anticipated. The relatively slow pace of the

industry is usually attributed to multiple causes, ranging from the low

number of high-end devices to the fact that the industry fragmentation

renders application development nightmarish and extremely

costly. WiZe Mobile Sdn Bhd looks at the situation from a different

angle:

1) High-end handsets or smart phones account for a small percentage of

the existing devices. Even if the number of smart phones grows

constantly, expecting that they will represent one hundred percent of the

market is unrealistic. This is why the WiZe Mobile Sdn Bhd platform

allows the development of innovative applications and services that can

be deployed on both mid-range and high-end devices.

2) The mobile industry is extremely fragmented and will not defragment

anytime soon. Fragmentation is not all that negative: it also allows device

manufacturers and service providers to differentiate, which also enables

innovation. Hence, why don't we adopt fragmentation?

4.1. Market Segmentation

Get a first-hand knowledge of what users are interested in and build

sound marketing programs based on real data from your user's are

interested in and build sound marketing programs based on real data

from your users population. WiZe Mobile Sdn Bhd environment

comes with an analytics platform that allows for focused and targeted

marketing efforts.

Page 16: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Market Analysis

2009 2010 2011 2012 2013

Potential

Customers

Growth CAGR

Consumer Age 16 -

27

35% 5,000 6,750 9,113 12,303 16,609 35.00%

Consumer Age 27 -

40

40% 10,000 14,000 19,600 27,440 38,416 40.00%

Consumer Age 40 -

55

25% 2,000 2,500 3,125 3,906 4,883 25.00%

Business Owners 30% 1,000 1,300 1,690 2,197 2,856 30.00%

Tourist 10% 3,000 3,300 3,630 3,993 4,392 10.00%

Premium

Consumer

45% 40,000 58,000 84,100 121,945 176,820 45.00%

Advertisers 25% 100 125 156 195 244 24.98%

Total 41.40% 61,100 85,975 121,414 171,979 244,220 41.40%

Page 17: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Market Analysis (Pie)

4.2. Target Market Segment Strategy

In 2008, the Mobile Internet may be, in some respects, where the

Internet was ten to twelve years ago, i.e., in a sort of advanced

infancy, with a lot of trials and errors and, more often than not,

somewhat sketchy strategies. Yet, MobyleTv is most likely to

blossom overnight, just as the Internet did, and in considerably higher

proportions: there are over 2 billion phones in the hands of

consumers today, making it the most pervasive and targeted media

market one could imagine! Getting ready for that moment is

primarily a matter of using the right platform today.

Page 18: WiZE MobileTv Malaysia Business Plan & Investment Proposal

1. Traditional

These are the 30 second (or less) spots typically seen on television today.

2. Long-Form

These may vary from 60 seconds to 2 minutes and can take the form of traditional advertising, infomercials or advertainment.

3. Preview Spots

A 30 second (or shorter) spot to preview. The content of long form advertising. Viewers to click-through.

4. Direct Response and Per Inquiry

The viewer is encouraged to respond to the ad to purchase merchandise/services or to get additional information.

5. Banner Ads

As described above, the viewer encounters several menus when choosing a mini-channel and then choosing a program. These menus will include banner ads that the viewer can .click-through. with his/her mobile to get additional information.

6. Companion web sites

Ads will offer the viewer the ability to spontaneously access the sponsor's web.

7. Classifieds

The mini-channels can offer its viewers the opportunity to advertise in an interactive classified section.

Page 19: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Advertisers pay for impressions in most online banner campaigns, and for clicks in search engine marketing campaigns. However, they pay exclusively for leads in an online lead generation campaign – irrespective of the impressions and clicks that went into generating the leads. This is why online lead generation advertising is commonly referred to as Cost-per- Lead (CPL) advertising.

Fact: Online Lead Generation is the fastest growing segment in online advertising. With 71% YTY growth, it is growing twice as fast as the online advertising market, and is projected to cross $2 billion by 2008. (Source: IDC Research).

Page 20: WiZE MobileTv Malaysia Business Plan & Investment Proposal

4.3. Service Business Analysis

Page 21: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Some of the multiple benefits for advertisers include:

a) Precise targeting

Any user can be qualified with the utmost accuracy. If you have a GPS, a MobyleTv driven advertising campaign can alert you if there is a promotion on items for which you have shown interest in the mall where you are walking. This level of granularity is possible today as WiZe Mobile Sdn Bhd transparently combines data from multiple sources within a unified interface - in other words, delivers mash ups on the fly.

b) Wide range of ad designs

MobyleTv enables the largest possible range of advertising styles from simple context-sensitive texts to elaborate video animations, with clicks to call or clicks to SMS. The ad specifications can also be of virtually any type ranging from very short interstitials to clickable banners, rectangles, skyscrapers, or surround sessions enabling advertisers to create a story line that develops as users navigate within an application. Because of the powerful Rich Media capabilities offered by WiZe Mobile Sdn Bhd, only creative skills are the limit of what can be conceived.

c) Massive audience and massive content

The slow take-up of mobile data services has inevitably translated into a slow take-up of advertising. As indicated earlier, by being OS and device agnostic, MobyleTv eliminates the silted implementation of services, and its overall technology considerably simplifies access to the Web, which enables even small vendors to also implement mobile services at reasonable costs.

d) Real-time copy-testing

Page 22: WiZE MobileTv Malaysia Business Plan & Investment Proposal

The MobyleTv dynamic, real-time enables advertisers to easily copy-test their advertisements and based on initial reactions, select what works best for a given audience. In reality, no advertisement needs to ever be in a final state. Just as any content served by a content provider, a piece of advertising is an ongoing service that is likely to improve continuously based on users' reactions.

4.3.1. Competition and Buying Patterns

Page 23: WiZE MobileTv Malaysia Business Plan & Investment Proposal

A cell phone is virtually always on – which means that users

can always connect or be invited to connect to a service. The

unique efficiency of WiZe Mobile Sdn Bhd for advertising

results from the combination of several unique aspects of the

technology:

A terrestrial generalist channel simulcasts on mobile,

with a wide audience.

A new "made for mobile" channel broadcast exclusively

on the mobile broadcast network.

A premium channel simulcasts on mobile.

The solution is commercialized in a country with

approximately 70 000 inhabitants at the date of trial

launch.

Revenue is calculated based on the service’s theoretical

audience, i.e. where all equipped users (for the free

model)/subscribers (for the fee-based model) actually

consume the service.

Common Short Codes represent the fastest, surest, and

most proven way for brands and organizations of any size

to obtain access to today's mobile culture and create a

mobile presence. Using CSCs and layering on a mobile

marketing campaign can typically represent a fraction of

a marketing budget, and existing marketing

collateral information can easily be repurposed for mobil

e. Companies should begin to think today about how to

mobilize their brands with CSCs.

5. Strategy and Implementation Summary

CRM has proven its ability to enhance business performance time and

time again. However, the path to effective implementation is not always

easy - complexities often arise as a result of trying to align an entire

company behind the concept. You can find the success that comes from

leveraging customer knowledge to the fullest measure by following

these steps:

Page 24: WiZE MobileTv Malaysia Business Plan & Investment Proposal

1. Calculate the value. Exactly how will CRM benefit your

business? Strive to answer this question in terms of

measurable ROI (return on investment) and how CRM helps your

employees use customer data more effectively.

2. Work closely with key departments. Good planning is critical to your

success.

3. Budget realistically. Be a bit pessimistic when it comes to the budget

to avoid the painful process of increasing cost estimates.

4. Organize customer data. The underlying customer data is the

backbone of a CRM solution.

5. Lead the project from the top down. CRM as a corporate-

level initiative, dedicate significant time and energy, motivate

stakeholders and keep everyone on

track.

6. Implement gradually.

7. Actively manage the implementation. Technical difficulties,

management turnover, employee resistance and adjustments in company

direction will happen. Managers need to stay on their toes and quickly

address changes to maintain momentum.

8. Develop a culture of continuous improvement. CRM solutions

should be adjusted to deliver a sharper competitive edge as a company

and its business evolve. Be sure to keep employees in the communication

loop, and they will help supply the information needed to continuously

improve the way the system leverages customer information. Not all

companies will achieve CRM success because many fail to take into

account the items listed above. Then again, for the ones who do succeed,

the rewards are great. Stick to these steps, and you will rig the game in your favor.

Page 25: WiZE MobileTv Malaysia Business Plan & Investment Proposal

5.1. Competitive Edge

Page 26: WiZE MobileTv Malaysia Business Plan & Investment Proposal

New 24/7 Channels - The most successful mini-channels will have

the opportunity to evolve into new 24/7 channels, dramatically

increasing the company revenues as well as its market position as the

premier content supplier to mobile.

Direct Response Advertising Sales -Through its application of Free

to Air TV Station over mobile technology and internet websites,

MobyleTv is, at its core, a powerful direct response advertiser and

sales agent of specialized programming. The programming offered on

these mini-channels opens the viewer to a vast array of products and

services catering to his/her unique interests.

Next Generation Technology - Through its technological expertise

and extensive library of short-form content, MobyleTv anticipates

that it will dominate distribution of special interest programming to

next-generation platforms (content over cell phones, PDAs, etc.).

Media Sales - In servicing its many mini-channels, MobyleTv have

the opportunity to develop its own powerful media buying agency

thereby creating a substantial profit center.

Direct Response Fulfillment – MobyleTv will have the opportunity to

create its own fulfillment operation to service direct response sales

for its many mini-channels.

Production and Studio Facilities – MobyleTv will develop its own

production/studio facility. It will be able to lease its production

services to its various mini-channel producers, re-purpose programs

for other media and retail distribution, and cost-effectively produce a

variety of programming.

Data Bank of Targeted Demographics - As MobyleTv develops its

various services, it will acquire a tremendous wealth of proprietary

data in relation to targeted markets: consumers. Viewing habits,

demographics, psychographics, effectiveness of various types of

advertising, sales, etc. As its data grows, the company will emerge as

a leader in the targeted advertising and sales industry with its bank of

invaluable data.

Page 27: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Licensable Intellectual Property - Through its pioneering and cost-

effective use of the new technologies in superior quality low

bandwidth media streaming, MobyleTv is in the position of

developing the first bona-fide economically feasible models of media

convergence. As an industry leader in this exciting new arena, the

company will develop intellectual property that can be licensed to

third-parties.

Expansion to International Markets -Many, if not most, of the above

businesses can be expanded into the international marketplace as the

value of the MobyleTv brand grows.

5.2. Marketing Strategy

MobyleTv is the first open and transparent cost per lead (CPL)

market for publishers, advertisers and technology

providers. Advertisers connect to brand-conscious consumers

through MobyleTv and pay only for specific customer

leads, not just clicks or impressions that might never convert.

MobyleTv has redefined consumer lead generation marketing, the

fastest growing segment in online advertising. The

company makes advertising accountable and delivering on advertiser

demand for performance based pricing models.

These are the pricing methods commonly found in the online

advertising industry:

CPM: Cost per Thousand. The CPM model refers to

advertising bought on the basis of impressions. Advertisers pay

a predetermined price for a thousand impressions.

CPC: Cost per Click. Advertisers pay for a click, irrespective

of the impressions. Commonly found in search advertising.

Also referred to as PPC (Pay per Click) advertising.

CPL: Cost per Lead. Advertisers pay for customer leads,

irrespective of clicks or impressions. Fastest growing segment

in online advertising.

Page 28: WiZE MobileTv Malaysia Business Plan & Investment Proposal

5.3. Sales Strategy

Page 29: WiZE MobileTv Malaysia Business Plan & Investment Proposal

ACTIVITY

LIVE STREAMING?

M-AWARD SHOW?

M-MUSIC SHOW?

M-FASHION

OTHER REVENUE STREAM

M-DOWNLOADS… LIVE STREAMING…

M-HEALTH… M-AWARD SHOW…

M-LEARNING… M-MUSIC SHOW…

M-BANKING… M-FASHION…

5.3.1. Sales Forecast

Mobile TV should be anytime, anywhere and anything

– Anytime: watching television every moment of the day: as a time killer or dedicated in the evening and at night

– Anywhere: watching mobile television wherever you want: private and public spaces (limited due to social pressure)

– Anything: same content as traditional TV, but shorter time sessions.

Page 30: WiZE MobileTv Malaysia Business Plan & Investment Proposal
Page 31: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Sales Forecast

FY 2010 FY 2011 FY 2012

Unit Sales

CSC 250,000 350,000 500,000

CPM 250,000 350,000 500,000

CPC 250,000 350,000 500,000

CPL 250,000 350,000 500,000

CRM 250,000 350,000 500,000

Total Unit Sales 1,250,000 1,750,000 2,500,000

Unit Prices FY 2010 FY 2011 FY 2012

CSC $1.00 $1.00 $1.00

CPM $0.50 $0.50 $0.50

CPC $0.50 $0.50 $0.50

CPL $0.50 $0.50 $0.50

CRM $0.50 $0.50 $0.50

Sales

CSC $250,000 $350,000 $500,000

CPM $125,000 $175,000 $250,000

CPC $125,000 $175,000 $250,000

CPL $125,000 $175,000 $250,000

CRM $125,000 $175,000 $250,000

Total Sales $750,000 $1,050,000 $1,500,000

Direct Unit Costs FY 2010 FY 2011 FY 2012

CSC $0.55 $0.55 $0.55

CPM $0.28 $0.28 $0.28

CPC $0.28 $0.28 $0.28

CPL $0.28 $0.28 $0.28

CRM $0.28 $0.28 $0.28

Direct Cost of Sales

CSC $137,500 $192,500 $275,000

CPM $68,750 $96,250 $137,500

CPC $68,750 $96,250 $137,500

CPL $68,750 $96,250 $137,500

CRM $68,750 $96,250 $137,500

Subtotal Direct Cost of Sales $412,500 $577,500 $825,000

Page 32: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Sales Monthly

Page 33: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Sales by Year

Page 34: WiZE MobileTv Malaysia Business Plan & Investment Proposal

5.4. Milestones

MobyleTv:

1. A better understanding of the wants (expectations) of the customer because it is: based on the reality of the market estimated in an objective way

2. A better economic planning of the purposes and the objectives of the company by centering on what takes place outside controlled

3. A better increase of the productivity: resolution of the real problems Understanding of the processes and what they produce”

4. Better current practices Search for the change many decisions practices of break

5. A better competitiveness thanks to: a solid knowledge of the competition a strong implication of the staff new ideas on practices and tried techniques

Page 35: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Milestones

Milestone Start Date End Date Budget Manager Department

Startup fund 4th qtr

2009

1st qtr

2010

$2,000,000 PASHA CEO

Setup New Co 4th qtr

2009

1st qtr

2010

FIRDAUS CFO

Main Personnel 4th qtr

2009

1st qtr

2010

PASHA CEO

Setup Office 4th qtr

2009

4th qtr

2009

FIRDAUS CFO

Purchasing Assets For Infra 4th qtr

2009

1st qtr

2010

PASHA CEO

Bandwidth acquisition 4th qtr

2009

1st qtr

2010

FIRDAUS CFO

Setup Main Operation

Personnel

4th qtr

2009

1st qtr

2010

PASHA CEO

Dry Run Trial 4th qtr

2009

1st qtr

2010

FIRDAUS CFO

Grants Acquisitions 4th qtr

2009

1st qtr

2010

PASHA CEO

Pre Launch Ceremony 4th qtr

2009 01.01.10 FIRDAUS CFO

Totals $2,000,000

Page 36: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Milestones

6. Management Summary

Pasha Zahari - CEO/CTO

Pasha Zahari is the backbone of XCHG Technology; and he currecntly

holds the position of Managing Director. He completed his SPM (Sijil

Pelajaran Malaysia) in 1996 at Sek Men Sultan Salahudin Abdul Aziz

Shah in Shah Alam, Selangor. In 1999, he received his Professional

Certificate in Computer Science/Information Technology at BMC

Institute before continuing to pursue a Bachelor's Degree in the same

subject at Universiti Tun Abdul Razak in Kelana Jaya, Selangor.

The most notable companies he has worked for are Ericsson Malaysia,

Pintar Technology, KnowledgeBaze and Jaring Malaysia. In Ericsson,

Pasha garnered experience as IT System Integrator from 1999 to 2002.

His responsibilities included supporting the company and consulting on

the new technologies that should be implemented. His many

Page 37: WiZE MobileTv Malaysia Business Plan & Investment Proposal

accomplishments include VoIP via Ericsson routers and WAP and GPRS

development.

In mid 2002, he was recruited by Pintar Technology as its Technical

Consultant. He was responsible for the tenure to complete 447 IT school

laboratories all throughout the Northern region. His other duties included

Internal Support, System Administrator, System Developer and

Integrator.

He then spread his wings to KnowledgeBaze (M) Sdn Bhd and was

recruited as its Technical Executive. His highest accomplishment, and

would be most likely to be remembered for having a hand in "Projek

penyediaan infrastructur fizikal makmal komputer di zon utara

Semananjung Malaysia" as its System Designer. He duties there also

included internal support, IS/IT, system administrator, project

management and project coordination.

His last employer before starting up XCHG Technology would be Jaring

Communications Sdn Bhd. He held the position of NOC/NMC Engineer

for 2 years. His duties included Network Support/monitoring for Jaring's

VPN, Lease Line, Wireless Broadband etc.

Pasha Zahari is a multi skilled individual. His prowess in both Business

Management and hands on skills in IT are enviable and surpasses

expectations. Despite his age, he has a reputation for being a killer in

boardroom presentations and public speaking. He is fluent in both

English and Bahasa; and highly skilled in Networking, PC maintenance

and repair, NT server, SQL, Access, C++, pascal, Visual Basic, WAP

(WML development), MS Exchange server etc. He is also very active;

camping and football being his favorite pastimes. He is dependable, a

capable leader and a highly energetic and positive individual.

Firdaus Mohammad Zainal - COO

With his mass Communication background, he has worked in almost all

television station in the country. Started as a 'stringer' for TV3 from

1996-1997, and later in Metrovision as a Broadcast Journalist in 1997 to

1998.

Page 38: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Firdaus developed his intrest in investigative reporting after joining ntv7

and worked in Edisi Siasat in 2003. He was one of the journalists who

went to Southern Thailand at the height of the political crisis in 2004.

After the takeover of ntv7 by Media prima in 2006, he was transferred to

TV9. He later resigned from TV9.

Currently, Firdaus Maju Sdn Bhd, a Production House under Firdaus

Mohammad Zainal are resposible to produce television programs for

RTM and Astro.

6.1. Personnel Plan

Customer service is paramount in our business and our business

plan. The management team will accomplish this

goal by targeting employees who are willing to be trained and by

providing encouragement and employee incentive programs:

Health care insurance;

Dental care insurance;

Life insurance;

Vacation time;

Up sell incentive programs;

Discount passes for staff family members;

401k retirement plans;

Pay checks.

Our Personnel Plan reflects how we intend to utilize our peoples'

assets. Most of them will be cross trained and the management team

of WiZE Mobile Sdn Bhd believes that an employee who is happy at

work will enjoy working. It is always easier to please customers

with a staff that cares, a facility that is clean and equipment that

is kept in proper working order.

Page 39: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Personnel Plan

FY 2010 FY 2011 FY 2012

CEO $156,000 $200,000 $230,000

CFO $132,000 $170,000 $200,000

CTO $120,000 $150,000 $180,000

COO $144,000 $180,000 $210,000

TECHNICAL $180,000 $250,000 $250,000

HUMAN RESOURCE $36,000 $100,000 $100,000

BUSINESS DEVELOPMENT $144,000 $200,000 $200,000

Total People 21 50 100

Total Payroll $912,000 $1,250,000 $1,370,000

7. Financial Plan

7.1. Important Assumptions

Creating a dialog and a relationship. CSCs (common short codes)

are being used effectively to create a dialog with mobile users.

Voting, polling, requests for feedback, sweepstakes, and contests

all require interactivity with the consumer and the

brand. This interaction through CSCs provides valuable information

about target audiences, allowing organizations to even more closely

tailor their products and associated marketing to evolving

marketplace needs.

Customer and employee communications. CSCs and text messaging are

being used by companies and even

schools distribute information, such

as employee alerts, school closings, airline

reservation updates, and sales alerts. Catalog companies and

direct-to-consumer mobile commerce companies are using

CSCs along with keyword item numbers as a way to allow

customers to order products without calling into a service

center. This approach reduces

Page 40: WiZE MobileTv Malaysia Business Plan & Investment Proposal

the number of calls handled by operators, which in turn reduce

s costs and can increase customer satisfaction.

Increasing brand reach. CSCs are also playing a key role

in increasing the reach of brands and organizations. For

instance, groups in the United States that may index low for

home PC penetration conversely often index high for mobile

phones. Through CSCs, they can now be reached with

electronic media. In the developing

world, national short codes allow consumers to be cost-

effectively reached on an individual basis for the

first time ever, whereas previously, advertising campaigns

were limited to mass-market radio and billboards.

Sales lead generation. U.S. companies of all sizes are using CS

Cs in their marketing efforts to generate interest and engageme

nt with brands, which immediately or eventually turn into sales

leads. For instance, Lexus

successfully used CSCs to develop self-

qualified sales leads. And it has been reported that Denver-

based Clarion Ventures is planning to launch the CSC that

spells the word "House" on the cell phone keypad as a way

for users to request that more information be sent to their

cell phones on houses that are for sale. Brands have reported

that potential customers who signal their product interest

through CSCs are often highly motivated, which can result in

CSC response rates as high as 10%.

Content distribution. Short codes are one of the key ways that

mobile content providers distribute content directly

to mobile users, which avoids reliance on already-crowded

wireless carrier "content decks." Carrier decks are the screens

of content options that each carrier's subscribers

see on their cell phones. Getting placement on a carrier deck is

a costly and long process and must be done on a carrier-by-

carrier basis. While brands can get immediate access to all

subscribers on a particular carrier deck, carriers make frequent

changes to their decks, offering less control for brands. By

using CSC and other forms of "off deck" access, brands can

reach almost all wireless users, not just those of a particular

carrier. Fundraising. Nonprofits are increasingly interested in

Page 41: WiZE MobileTv Malaysia Business Plan & Investment Proposal

short codes for fundraising efforts, having successfully used

them to raise relief funds for the 2004 tsunami in Asia and for

Hurricane Katrina in 2005.

Mobile advertising. Brands from almost every industry sector

are beginning to incorporate CSCs into their marketing

campaigns such as on billboards, in print, and even in TV

advertising in order to deliver additional marketing information

directly to users. For instance, shows

on MTV regularly include CSC information to further involv

e audiences and drive additional content sales. New mobile

advertising formats

are coming onto the scene, including banner ads, sponsorships,

product placement and idle screens, and pre- and post-

roll video. Like CSCs, each of these mobile advertising

formats is a sophisticated way to reach customers. In fact, text

advertising can be added to CSCs so that the confirming

message the consumer receives from the brand can also have

a line of advertising in it. This not only allows brands to

engage with consumers through CSCs but also allows their clo

sest advertisers to advertise contextually next to the appropriate

mobile content. However, unlike

most mobile advertising, CSCs require single or double opt-

ins. Thus, brands know consumers are interested and receptive

to messages initiated by CSCs.

Building databases.

Information is power, and savvy organizations are using CSCs

to build powerful mobile information databases on existing and

prospective customers, such as what promotions they respond

to, which mobile coupons they actually redeem and when

and how often they respond to mobile alerts, by integrating

CSC response data into existing databases. These databases

can be used to develop and support loyalty

programs, coupon and direct response offers, and Internet-like

experiences with media ranging from print to radio.

Page 42: WiZE MobileTv Malaysia Business Plan & Investment Proposal

7.2. Break-even Analysis

Break-even Analysis

Monthly Units Break-even 318,704

Monthly Revenue Break-even $191,222

Assumptions:

Estimated Monthly Fixed Cost $86,050

Break-even Analysis

Page 43: WiZE MobileTv Malaysia Business Plan & Investment Proposal

7.3. Projected Profit and Loss

Pro Forma Profit and Loss

FY 2010 FY 2011 FY 2012

Sales $750,000 $1,050,000 $1,500,000

Direct Cost of Sales $412,500 $577,500 $825,000

Other Costs of Sales $0 $0 $0

------------ ------------ ------------

Total Cost of Sales $412,500 $577,500 $825,000

Gross Margin $337,500 $472,500 $675,000

Gross Margin % 45.00% 45.00% 45.00%

Expenses

Payroll $912,000 $1,250,000 $1,370,000

Marketing/Promotion $0 $0 $0

Depreciation $0 $0 $0

Rent $0 $0 $0

Utilities $0 $0 $0

Insurance $0 $0 $0

Payroll Taxes $120,600 $0 $0

Other $0 $0 $0

------------ ------------ ------------

Total Operating Expenses $1,032,600 $1,250,000 $1,370,000

Profit Before Interest and

Taxes

($695,100) ($777,500) ($695,000)

Interest Expense $31,458 $20,000 $20,000

Taxes Incurred $0 $0 $0

Net Profit ($726,558) ($797,500) ($715,000)

Net Profit/Sales -96.87% -75.95% -47.67%

Page 44: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Profit Monthly

Page 45: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Profit Yearly

Page 46: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Gross Margin Monthly

Page 47: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Gross Margin Yearly

7.4. Projected Cash Flow

Page 48: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Cash

Page 49: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Pro Forma Cash Flow

FY 2010 FY 2011 FY 2012

Cash Received

Cash from Operations

Cash Sales $750,000 $1,050,000 $1,500,000

Subtotal Cash from Operations $750,000 $1,050,000 $1,500,000

Additional Cash Received

Sales Tax, VAT, HST/GST

Received

$0 $0 $0

New Current Borrowing $500,000 $0 $0

New Other Liabilities (interest-

free)

$0 $0 $0

New Long-term Liabilities $0 $0 $0

Sales of Other Current Assets $500,000 $0 $0

Sales of Long-term Assets $3,000,000 $0 $0

New Investment Received $5,000,000 $0 $0

Subtotal Cash Received $9,750,000 $1,050,000 $1,500,000

Expenditures FY 2010 FY 2011 FY 2012

Expenditures from Operations

Cash spending $912,000 $1,250,000 $1,370,000

Subtotal Spent on Operations $427,310 $589,492 $784,831

Additional Cash Spent

Sales Tax, VAT, HST/GST

Paid Out

$0 $0 $0

Principal Repayment of

Current Borrowing

$250,000 $0 $0

Other Liabilities Principal

Repayment

$500,000 $0 $0

Long-term Liabilities Principal

Repayment

$500,000 $0 $0

Purchase Other Current Assets $350,000 $0 $0

Purchase Long-term Assets $3,000,000 $0 $0

Dividends $0 $0 $0

Subtotal Cash Spent $5,027,310 $589,492 $784,831

Net Cash Flow $4,722,690 $460,508 $715,169

Cash Balance $4,722,690 $5,183,198 $5,898,367

Page 50: WiZE MobileTv Malaysia Business Plan & Investment Proposal

7.5. Projected Balance Sheet

Pro Forma Balance Sheet

FY 2010 FY 2011 FY 2012

Assets

Current Assets

Cash $4,722,690 $5,183,198 $5,898,367

Other Current Assets ($0) ($0) ($0)

Total Current Assets $4,722,690 $5,183,198 $5,898,367

Long-term Assets

Long-term Assets $200,000 $200,000 $200,000

Accumulated Depreciation $0 $0 $0

Total Long-term Assets $200,000 $200,000 $200,000

Total Assets $4,922,690 $5,383,198 $6,098,367

Liabilities and Capital FY 2010 FY 2011 FY 2012

Current Liabilities

Current Borrowing $550,000 $550,000 $550,000

Other Current Liabilities ($450,000) ($450,000) ($450,000)

Subtotal Current Liabilities $100,000 $100,000 $100,000

Long-term Liabilities ($350,000) ($350,000) ($350,000)

Total Liabilities ($250,000) ($250,000) ($250,000)

Paid-in Capital $5,200,000 $5,200,000 $5,200,000

Retained Earnings ($350,000) ($1,076,558) ($1,874,058)

Earnings ($726,558) ($797,500) ($715,000)

Total Capital $4,123,442 $3,325,942 $2,610,942

Total Liabilities and Capital $3,873,442 $3,075,942 $2,360,942

Net Worth $5,172,690 $5,633,198 $6,348,367

Page 51: WiZE MobileTv Malaysia Business Plan & Investment Proposal

7.6. Business Ratios

Ratio Analysis

FY 2010 FY 2011 FY 2012 Industry

Profile

Sales Growth 0.00% 40.00% 42.86% 5.66%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 63.56%

Total Current Assets 95.94% 96.28% 96.72% 75.77%

Long-term Assets 4.06% 3.72% 3.28% 24.23%

Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 2.03% 1.86% 1.64% 13.29%

Long-term Liabilities -7.11% -6.50% -5.74% 32.17%

Total Liabilities -5.08% -4.64% -4.10% 45.46%

Net Worth 105.08% 104.64% 104.10% 54.54%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 45.00% 45.00% 45.00% 78.28%

Selling, General &

Administrative Expenses

141.87% 120.95% 92.67% 47.76%

Advertising Expenses 0.00% 0.00% 0.00% 3.91%

Profit Before Interest and

Taxes

-92.68% -74.05% -46.33% 3.85%

Main Ratios

Current 47.23 51.83 58.98 2.38

Quick 47.23 51.83 58.98 1.89

Total Debt to Total Assets -5.08% -4.64% -4.10% 57.57%

Pre-tax Return on Net Worth -14.05% -14.16% -11.26% 3.42%

Pre-tax Return on Assets -14.76% -14.81% -11.72% 8.06%

Additional Ratios FY 2010 FY 2011 FY 2012

Net Profit Margin -96.87% -75.95% -47.67% n.a

Return on Equity -14.05% -14.16% -11.26% n.a

Activity Ratios

Accounts Payable Turnover 4.11 4.11 4.11 n.a

Payment Days 77 86 76 n.a

Total Asset Turnover 0.15 0.20 0.25 n.a

Debt Ratios

Debt to Net Worth -0.05 -0.04 -0.04 n.a

Page 52: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Current Liab. to Liab. 0.00 0.00 0.00 n.a

Liquidity Ratios

Net Working Capital $4,622,690 $5,083,198 $5,798,367 n.a

Interest Coverage -22.10 -38.87 -34.75 n.a

Additional Ratios

Assets to Sales 6.56 5.13 4.07 n.a

Current Debt/Total Assets 2% 2% 2% n.a

Acid Test 47.23 51.83 58.98 n.a

Sales/Net Worth 0.14 0.19 0.24 n.a

Dividend Payout 0.00 0.00 0.00 n.a

Page 53: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Sales Forecast

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Unit

Sales

CSC 0% 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833

CPM 0% 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833

CPC 0% 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833

CPL 0% 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833

CRM 0% 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833

Total

Unit

Sales

104,167 104,167 104,167 104,167 104,167 104,167 104,167 104,167 104,167 104,167 104,167 104,167

Unit

Prices

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

CSC $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00

CPM $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50

CPC $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50

CPL $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50

CRM $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50

Sales

CSC $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833

CPM $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417

CPC $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417

CPL $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417

CRM $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417

Total

Sales

$62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500

Direct

Unit

Costs

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

CSC 55.00% $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55

Page 54: WiZE MobileTv Malaysia Business Plan & Investment Proposal

CPM 55.00% $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28

CPC 55.00% $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28

CPL 55.00% $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28

CRM 55.00% $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28

Direct

Cost of

Sales

CSC $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 $11,458

CPM $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729

CPC $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729

CPL $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729

CRM $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729

Subtotal

Direct

Cost of

Sales

$34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375

Page 55: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Personnel Plan

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

CEO 0% $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000

CFO 0% $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000

CTO 0% $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

COO 0% $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000

TECHNICAL 0% $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000

HUMAN

RESOURCE

0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

BUSINESS

DEVELOPMENT

0% $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000

Total People 21 21 21 21 21 21 21 21 21 21 21 21

Total Payroll $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000

Page 56: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Pro Forma Profit and Loss

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Sales $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500

Direct Cost of Sales $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375

Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------

Total Cost of Sales $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375

Gross Margin $28,125 $28,125 $28,125 $28,125 $28,125 $28,125 $28,125 $28,125 $28,125 $28,125 $28,125 $28,125

Gross Margin % 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00%

Expenses

Payroll $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000

Marketing/Promotion $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Payroll Taxes 15% $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------

Total Operating

Expenses

$86,050 $86,050 $86,050 $86,050 $86,050 $86,050 $86,050 $86,050 $86,050 $86,050 $86,050 $86,050

Profit Before Interest

and Taxes

($57,925) ($57,925) ($57,925) ($57,925) ($57,925) ($57,925) ($57,925) ($57,925) ($57,925) ($57,925) ($57,925) ($57,925)

Interest Expense $3,576 $3,403 $3,229 $3,056 $2,882 $2,708 $2,535 $2,361 $2,188 $2,014 $1,840 $1,667

Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($61,501) ($61,328) ($61,154) ($60,981) ($60,807) ($60,633) ($60,460) ($60,286) ($60,113) ($59,939) ($59,765) ($59,592)

Net Profit/Sales -98.40% -98.12% -97.85% -97.57% -97.29% -97.01% -96.74% -96.46% -96.18% -95.90% -95.62% -95.35%

Page 57: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Pro Forma Cash Flow

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Cash

Received

Cash from

Operations

Cash Sales $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500

Subtotal

Cash from

Operations

$62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500

Additional

Cash

Received

Sales Tax,

VAT,

HST/GST

Received

0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Current

Borrowing

$41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667

New Other

Liabilities

(interest-

free)

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-

term

Liabilities

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of

Other

Current

Assets

$41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667

Sales of

Long-term

$250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000

Page 58: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Assets

New

Investment

Received

$416,667 $416,667 $416,667 $416,667 $416,667 $416,667 $416,667 $416,667 $416,667 $416,667 $416,667 $416,667

Subtotal

Cash

Received

$812,500 $812,500 $812,500 $812,500 $812,500 $812,500 $812,500 $812,500 $812,500 $812,500 $812,500 $812,500

Expenditures Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Expenditures

from

Operations

Cash

spending

$76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000

Subtotal

Spent on

Operations

$0 $0 $1,600 $47,996 $47,822 $47,648 $47,475 $47,301 $47,128 $46,954 $46,780 $46,607

Additional

Cash Spent

Sales Tax,

VAT,

HST/GST

Paid Out

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal

Repayment

of Current

Borrowing

$20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833

Other

Liabilities

Principal

Repayment

$41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667

Long-term

Liabilities

$41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667

Page 59: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Principal

Repayment

Purchase

Other

Current

Assets

$29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167

Purchase

Long-term

Assets

$250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal

Cash Spent

$383,333 $383,333 $384,933 $431,329 $431,155 $430,982 $430,808 $430,634 $430,461 $430,287 $430,114 $429,940

Net Cash

Flow

$429,167 $429,167 $427,567 $381,171 $381,345 $381,518 $381,692 $381,866 $382,039 $382,213 $382,386 $382,560

Cash

Balance

$429,167 $858,334 $1,285,900 $1,667,071 $2,048,416 $2,429,934 $2,811,626 $3,193,492 $3,575,531 $3,957,744 $4,340,130 $4,722,690

Page 60: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Pro Forma Balance Sheet

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Assets Starting

Balances

Current

Assets

Cash $0 $429,167 $858,334 $1,285,900 $1,667,071 $2,048,416 $2,429,934 $2,811,626 $3,193,492 $3,575,531 $3,957,744 $4,340,130 $4,722,690

Other

Current

Assets

$150,000 $137,500 $125,000 $112,500 $100,000 $87,500 $75,000 $62,500 $50,000 $37,500 $25,000 $12,500 ($0)

Total

Current

Assets

$150,000 $566,667 $983,333 $1,398,400 $1,767,071 $2,135,916 $2,504,934 $2,874,126 $3,243,491 $3,613,031 $3,982,743 $4,352,630 $4,722,690

Long-term

Assets

Long-term

Assets

$200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000

Accumulated

Depreciation

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Long-

term Assets

$200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000

Total Assets $350,000 $766,667 $1,183,333 $1,598,400 $1,967,071 $2,335,916 $2,704,934 $3,074,126 $3,443,491 $3,813,031 $4,182,743 $4,552,630 $4,922,690

Liabilities

and Capital

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Current

Liabilities

Current

Borrowing

$300,000 $320,833 $341,667 $362,500 $383,333 $404,167 $425,000 $445,833 $466,667 $487,500 $508,333 $529,167 $550,000

Other

Current

$50,000 $8,333 ($33,333) ($75,000) ($116,667) ($158,333) ($200,000) ($241,667) ($283,333) ($325,000) ($366,667) ($408,333) ($450,000)

Page 61: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Liabilities

Subtotal

Current

Liabilities

$350,000 $329,167 $308,333 $287,500 $266,667 $245,833 $225,000 $204,167 $183,333 $162,500 $141,667 $120,833 $100,000

Long-term

Liabilities

$150,000 $108,333 $66,667 $25,000 ($16,667) ($58,333) ($100,000) ($141,667) ($183,333) ($225,000) ($266,667) ($308,333) ($350,000)

Total

Liabilities

$500,000 $437,500 $375,000 $312,500 $250,000 $187,500 $125,000 $62,500 ($0) ($62,500) ($125,000) ($187,500) ($250,000)

Paid-in

Capital

$200,000 $616,667 $1,033,333 $1,450,000 $1,866,667 $2,283,333 $2,700,000 $3,116,667 $3,533,333 $3,950,000 $4,366,667 $4,783,333 $5,200,000

Retained

Earnings

($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000)

Earnings $0 ($61,501) ($122,829) ($183,983) ($244,964) ($305,771) ($366,404) ($426,864) ($487,150) ($547,263) ($607,201) ($666,967) ($726,558)

Total

Capital

($150,000) $205,165 $560,504 $916,017 $1,271,703 $1,627,563 $1,983,596 $2,339,803 $2,696,183 $3,052,738 $3,409,465 $3,766,367 $4,123,442

Total

Liabilities

and Capital

$350,000 $642,665 $935,504 $1,228,517 $1,521,703 $1,815,063 $2,108,596 $2,402,303 $2,696,183 $2,990,238 $3,284,465 $3,578,867 $3,873,442

Net Worth ($150,000) $329,167 $808,333 $1,285,900 $1,717,071 $2,148,416 $2,579,934 $3,011,626 $3,443,491 $3,875,531

$4,307,743 $4,740,130 $5,172,690

Page 62: WiZE MobileTv Malaysia Business Plan & Investment Proposal

Business Plan By – Mahadevan

Chief Development Officer

[email protected]

WiZE Mobile Sdn Bhd