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VALUE PROPOSITION

Truphone is the only mobile operator in the world that expands the reach of businesses beyond the borders of their home country. Truphone achieves this by providing multiple international numbers on a single SIM. This enables businesses to make international calls at local rates, providing contacts a direct way to get in touch on a local, cost-effective number. Truphone Increases Productivity, Saves Costs (50% - 93% (£270 - £950 per device per month) reduction) and offers a truly Global Service.

14%Local

Presence

9%Global Service

Reliability

13%Great

Customer Service

14% Cost

Savings

14% Increased

Productivity

13%Global

Presence

9%Global Service

Coverage

5%Global Bundles

5%Seamless Switching

2%Connectivity

2%Innovation

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VALUE PROPOSITION

Truly Global Offering

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REVENUE STREAMS

Revenues are generated through the sale of voice, text, data (individually or bundled) and mobile recordings through an innovative delivery model.

Truphone Enterprise/SME

Truphone World - Enterprise

•Up to eight numbers on one SIM•Local rates in the Truphone Zone•66 countries included in-bundle•Low rates in over 200 countries•Fast downloads•Exceptional international call quality•Bespoke plans to suit your business - Enterprise•24/7 global support

500/1000/2000 Truphone World Plan - SME1 bundle, 1 tariff, 66 countries£48/£72/£108 per month

Local #s £5 per Truphone Zone per month

1GB/2GB£24/£42 per month

Truphone SIM/APP

Our pre-pay zone covers the UK, US and Australia – choose up to three international numbers and a single voicemail service, all on one SIM.

•Up to 3 numbers on one SIM•6p per minute, message or MB to call, text or browse data anywhere within the Truphone Countries1. 7c for Euro-paying customers. 9c USA and AUD.•Low rates in over 200 countries•Excellent international call quality•24/7 global support

•Keep track of your spendingFree international callsExcellent international call qualityBetter visibility of call rates

Truphone Mobile Recording

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REVENUE STREAMS

Revenues are generated through the sale of voice, text, data (individually or bundled) and mobile recordings through an innovative delivery model.

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REVENUE STREAMS

Revenues are generated through the sale of voice, text, data (individually or bundled) and mobile recordings through an innovative delivery model.

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REVENUE STREAMS

Revenues are generated through the sale of voice, text, data (individually or bundled) and mobile recordings through an innovative delivery model.

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REVENUE STREAMS

Revenues are generated through the sale of voice, text, data (individually or bundled) and mobile recordings through an innovative delivery model.

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KEY PARTNERS – TECHNICAL/SALES CHANNELS

Truphone has recently partnered with Verint and NICE to provide global clients with an integrated solution that helps financial organisations comply with the international spread and evolving mobile recording regulations. Regulations, such as the Dodd Frank Wall Street Reform and Consumer Protection Act and regional rulings, such as those set by the Financial Conduct Authority (FCA).These new rules mandate financial institutions that capture, store and retrieve mobile communications across specific mobile communications related to trading activity in the UK and US, with further regulation being considered across many European and Asian financial centres. By deploying this solution, breaches of internal rules can be avoided, improving trading floor behaviour, while saving manpower and money usually spent on policy enforcement. Combined with Truphone Mobile Recording, Verint Recording and Verint Voice of the Customer Analytics; our integrated solution provides a patent-protected recording infrastructure. Using a single interface, organisations can analyse and manage large amounts of data, and record seamlessly in over 200 countries, meeting global compliance along the way. The addition of Truphone Mobile Recording, which provides seamless recording in over 200 countries, gives Nice Trading Recording (NTR) customers an integrated solution to storing and analysing data, as well as staying in line with global regulatory requirements for mobile call recording. The integrated NTR system offers organisations the increased security and privacy of having one platform on their premises to record voice, use instant messenger and utilise data communications across fixed and mobile platforms. NTR suite comprises trading-floor/back-office recording, combines innovative software and hardware to empower trading floors to actively record and monitor interactions BT Global Services markets Truphone Mobile Recording and manages various aspects of the contract in-life including ordering, billing, collections and reporting. It also leads service reviews on the customer’s behalf. BT's world class service management and customer service provides an end-to-end solution that can be scaled, according to the subscribers’ needs.

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KEY PARTNERS – SALES CHANNELS

Partnership Ecosystem: this sees Truphone open up its network so that others can use it to sell new services to their customers,

Truphone will allow Bristol Telecom Solutions to ensure its clients have the global mobile service they need to conduct business internationally. Together, Truphone and Bristol Telecom Solutions are able to align customer expectations, and budgets with an unparalleled global mobile communications solution in a complete service offering. The partnership also represents a commitment to world class service, with Bristol Telecom providing clients with dedicated account managers, regular account reviews and impartial customer support without ‘queues’ to ensure that customers are more than just a number. Truphone and Millgate understand that communication is at the heart of a successful business and increasingly the business environment is international and mobile. This partnership addresses this need directly, with superior customer support and an unparalleled telecoms service. WorldNet is an ideal strategic partner due to their global fixed line capability. It became clear in our discussions that Truphone compliments the WorldNet service and empowers WorldNet to provide both fixed and mobile solutions to multinational companies. This lower costs and improves service and quality. Our partnership with Truphone means we can offer our customers a fantastic fixed and mobile solution as well as superior customer service.

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CUSTOMER SEGMENTS

Truphone’s is suited to any and every industry no matter the size only stipulation would be operations in a multitude of countries. Some of their existing customers can be seen below.

Retail RetailMusic

Finance Music

Advertising Hospitality

Manufacturing Aerospace

Manufacturing

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AWARDS

Winner: Best Business Communications Provider, eBrand Awards 2014

Winner: Best MVNO, Telecoms.com Awards 2014

Winner: Outstanding Enterprise Award, Capital Magazine, 2014

Winner: Customer Service Training International Award, 2014

Shortlisted: Best MVNO, Mobile Industry Awards, 2014

Shortlisted: Best Enterprise Mobile Provider, Global Mobile Awards 2014

Shortlisted: Best innovation (Truphone Mobile Recording), FSTech awards 2014

Shortlisted: Most Innovative Telecom Project, Telecom Asia Awards 2014

Shortlisted: World’s best customer service team, Contact Centre World Awards

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KEY STAKEHOLDERS

Steve Robertson, Chief Executive OfficerPrior to joining Truphone, Steve served as CEO of Openreach from its inception until 2011 – helping to revolutionise the UK broadband market. Prior to that, he served as Managing Director of BT Wholesale Operations, and Managing Director of Colt S.A. across Europe. Steve has an MA from Edinburgh University and an MSc from the London School of Economics. James Tagg, Founder and Chief Technology OfficerJames studied Engineering and Management at Cambridge University, and has a BSc in Physics and Computer Science from Manchester University. Colin Windsor, Chief Operations OfficerColin is a veteran of major business and IT transformation projects. He was the founding CIO of Openreach, responsible for the multibillion pound implementation of the technology that underpins all UK fixed line telecoms operators. Prior to joining Truphone, Colin served as a partner within PricewaterhouseCoopers Consulting (PwC) and spent two years driving organisational change and data driven performance at Ribbit Inc. in Silicon Valley.

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KEY STAKEHOLDERS

Alan More, Chief Information OfficerAlan has held a wide variety of senior business and technology roles, most recently with Centrica plc, the FTSE 30 integrated energy company. There he delivered the hostile acquisition of Venture Production plc, and, for Centrica Energy, was CIO; Strategy and Innovation Director. Prior to Centrica Alan worked for consulting firm A.T. Kearney in the UK and Australasia, and helped build a retail technology business. He holds a PhD from the University of Southampton. Tim Raby SVP, Truphone AmericasTim has been shaping the future of mobile technology and IT in international marketplaces for 30 years. Prior to joining Truphone, Tim headed technology and major customer projects for Obsidian Wireless Compliant Solutions, which was acquired by Truphone in 2012. Formerly, he was CEO of OMTP, responsible for key industry wide initiatives such as gaining agreement of Micro USB for device connectivity. Tim also led the Devices division for O2 Group where he owned all terminal technology, testing and portfolio activity duringthe European 3G launch period.

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KEY STAKEHOLDERS

Harminder Sehmi, Finance DirectorHarminder has over 20 years’ experience in the Telco and digital media space. He has a record building profitable businesses in both blue chip and startup environments. He brings detailed working knowledge of international finance to his strategic role at Truphone. Harminder is a registered Chartered Accountant and an MBA from Cranfield, with experience spanning strategic planning, decision support, ERP systems, process reengineering, business simplification, cost reduction and major turnarounds. Gregory Mappledoram, General Counsel & Company SecretaryGreg provides legal counsel in relation to all of Truphone’s commercial operations as well as all matters of employment, corporate and commercial law. His team spans legal jurisdictions in Asia Pacific, Europe and the Americas, as well as regulatory affairs and IP protection. Greg joined Truphone in 2009 following 12 years in various legal positions across communications organisations ranging from BT Plc. to Intec Plc. Greg is admitted as a practising Solicitor in England & Wales and has an LLB and LLM in International and Comparative Business Law.

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KEY STAKEHOLDERS

Igor Borisoglebski, Networks DirectorIgor joined Truphone in 2008 with a top class Engineering Degree in Electronics, Telecommunications and Computing from the Instituto Superior de Engenharia in Lisbon. Working closely for several years with company founder James Tagg, Igor has emerged as a leading light in the global telecoms arena in his own right, with several patents in global telecommunications that help underpin Truphone’s unique proposition. A Post Graduate in International Management, Igor has built a strong team of leaders in the organisation to design, develop and run the global mobile network at the heart of Truphone. Elliot Cox, Director of Corporate StrategyElliot has been at the heart of Truphone’s commercial strategy since he joined the company in 2007. Prior to joining Truphone, Elliot served in a range of commercial and strategic roles covering over a decade on the innovative side of mobile telecoms, including five years with Virgin Mobile UK and strategic projects with BT Retail. Elliot holds an MBA from Imperial College London, where he led a research project into Discontinuous Innovation which was published by Imperial College in 2013. In his current role he is tasked with accelerating the growth of the business through identifying, prioritising and supporting the execution of strategic opportunities David Campbell, Director of Customer ServicesDavid, a Chartered Engineer, began his career in Scotland as an apprentice telecoms engineer. Prior to joining Truphone he spend over 20 years in a variety of senior international roles, including running a $2bn/year Global Supply Chain Management organization, completing the $1bn acquisition and postmerger integration of Infonet, managing a £2.5bn Superfast Fibre broadband programme at BT Openreach, and as Chief Strategy Officer at Qatar National Broadband Network. Married with two sons David has an MBA and a degree in Telecom and Electronic

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LOCATIONS

1. Europea) United Kingdom - Londonb) The Netherlands - Bilthovenc) Germany - Oberurseld) Spain - Madride) Poland - Warsawf) Portugal - Lisbon

2. Americasa) United States - Cleveland, Ohiob) United States - Durham, NCc) United States – New York

3. Asia Pacifica) Australia - Sydneyb) Hong Kong

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KEY RESOURCES – COST STRUCTUREA mobile infrastructure designed for global business.

Additional bi-lateral roaming agreements with a wide range of operators around the world

Scalable by volume, geography and Innovation.

By connecting the control plane to radio access networksaround the world, Truphone can see and manage eachsubscriber in real time, wherever they go. This is a unique,cornerstone capability for Truphone, enabling advancedservices and network-level customer service internationally.

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KEY RESOURCES – COST STRUCTURE

Patented Technical innovations:1. Current Innovations:

a) The Truphone SIM, IMSI broker pair, Smart CLI , Smart Dialling., International recording in a mobile network and Call Forking2. Planned Innovations:

a) Truphone has planned and tested GSM-to- VoIP integration with its own Internet Calling Application, the Truphone App, and VoIP integration with customers’ enterprise VoIP networks.

b) Several new integrations are already planned, including integration with various enterprise Voice over Internet Protocol (VoIP) calling networks. Project Clearwater Demos With Truphone, Canonical, TeleStax and Fairwaves at #MWC15

Technical Networks group 3. Senior industry leaders, some of whom hold cornerstone worldwide patents in GSM and IP communications technologies. 4. Business Support Services team in London5. High degree of technical training and flexibility. This was one of the reasons Truphone sited its main network office in Lisbon, close to

the Instituto Superior Técnico; one of Europe’s leading telecommunications universities. Recruits are highly educated telecoms engineers who undergo advanced Truphone networks training through the Truphone Networks Academy,

6. Truphone Operations Centre – which takes care of all Truphone environments on a 24/7 basis.7. Architecture Team – which ensures the network is scalable, the roadmap can be delivered upon, and that the technology evolves in the

right way.8. Project Management – which keeps all cross-functional groups organised and working to a cohesive plan.9. Service Management – which continually tests and iterates upon processes to find incremental improvements.10. Development Team – which designs and builds network elements to meet the needs of the business, but which cannot be bought off-

the-shelf.11. Network Performance Group – which monitors and reports on the performance of each network element.12. Testing and Quality – which ensures all elements are tested prior to roll-out; this includes documentation and training of all changes

and processes.13. IP Network Team – which designs, builds and manages the datacentre networks, IP transport between countries and interconnects to

external partners.14. Operations Support Services – which ensure we have the right tools to drive efficient operations.

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KEY CHALLENGES

Truphone is developing a number of new methods to monetise its global network, with the company also aiming to get more traffic in the process. ‘While we have possibly the highest ARPUs on the planet we don’t have enough of them to up our traffic in order to break even,’ Truphone’s head of research and development James Body told Mobile. ‘We’re developing a number of new strategies that not only increase traffic but also represent different revenue streams with higher margins.’ One of the new revenue streams that Truphone is pursuing is described as a ‘partnership ecosystem’, this sees it open up its network so that others can use it to sell new services to their customers, Body explained. ’With the partnership eco-system we’re putting in, it’s about creating an infrastructure that allows other companies to use our network to provide services to their customers that they couldn’t before. Our UK sales director Andrew Lowe is leading that. What we provide is a ready-made network with global reach that they can plug into once and then achieve global reach, which gives them an advantage.’

Another space the network is exploring is the application market. In order to make this work Truphone has built a new cloud-based platform for developers to use: ‘The other area we’re looking at is the new application-based market, to which we’re building a new platform, taking the MNO into the cloud. We have identified telecoms apps as a new area to sell into. Having feature-rich applications is a key differentiator; it’s not about minutes and data it’s about what your network can do if you are a bank or business.

‘It’s all about increasing traffic and giving ourselves new higher-margin revenue streams. It’s the future for telcos – as traffic revenues continue to disappear, applications will be required to generate more revenue. We’ve found that with our mobile recording service for banks, which has been a key differentiator for those customers.

Body said that they had also found other benefits in its use of open source platforms: ‘A lot of these new methods are open source and don’t actually cost a lot of money to put in place. One of the things we found with the old Truphone infrastructure was that it was quite difficult to change. But the settings with open source stuff are flexible – if something is not working or we need to change the functionality, we can change it. A

major benefit of the open source platform is the speed at which we can change things.’

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KEY CHALLENGES

Challenge 1

Roaming charges in the European Union are unlikely to be removed by the end of 2015 after member states voted in favour of a delay. Fees for making calls, sending texts and using mobile data could now remain until at least 2018.

Truphone view

‘Our Truphone World tariff plan means that the European roaming regulations are irrelevant for our customers, and so they should be because not only are businesses and trade going increasingly global but also communication trends such as IP communications, the internet of things and cloud computing extend far beyond the reach of the 28 EU member states. The demand for international data is skyrocketing across the whole of Europe, America, Asia and Oceania, so the EU data roaming proposals do not have a large impact on our customers or our business plan.’

My view

Product/Service differentiation to cater to these new growing markets as well has offering Truphone services to non EU countries limits the impact of the changes to the business but it still has an impact. It will impact the value proposition of Truphone because it’ll change the cost saving element. For example if your value proposition currently proposes savings of 50%-93%, then a 10 percent reduction in roaming charges will bring down the cost savings element of the value proposition to 44%-89%, a 20% reduction takes it to 38%-88%,. So it does have an effect.

But this is problem for 2018.

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KEY CHALLENGES

Headcount reduction cutting roughly 25% + £91m loss in 2013 to go with a £35M loss in 2012

Headcount reduction £91m loss in 2013 to go with a £35M loss in 2012 as it has pursued aggressive international expansion but UK's performing strongly interims of sales growth. “There is no question we are going to burn less cash than we previously did,” Truphone Chief Executive Steve Robertson said in a phone interview. “We are going to need less people.”

“We are still expecting to treble the size of the business,” Robertson said. “This isn’t a policy where we are going to retrench the business.” “The drivers are the growth in mobility and continued globalisation - business has become international,” “We are still expecting to treble the size of the business,” Robertson said. “This isn’t a policy where we are going to retrench the business.” “However, it has become clear that, while Truphone continues to grow quarter on quarter, we must accelerate our progress towards profitability,” Robertson said.

Truphone is still at a relatively early stage of its development. We have invested £200m in the past two and a half years to develop and improve our infrastructure to create a unique, scalable network and to roll out our value proposition to additional territories.’ Looking at the big picture trends such as the demand for IP communications, internet of things and cloud computing, the international use of data is surging, and we are uniquely placed to benefit from this. We and our investors are very happy with progress.’

He’s stated some key points here with regards to how this problem is being handled. What is your take on this this as an insider?

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INVESTORS

Alexander Abramov £210M - 60% Minden £81M 23%,

Straub Ventures, Burda Digital Ventures, Eden Ventures, Independent News & Media (now part of the empire of another Russian oligarch, Alexander Lebedev) and Wellington Partners

£42M 12 % Others - £17M 5% Total Valuation £350M

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THREATS

Hutchison Whampoa reveals wholesale plans to enable global MVNOs Hutchison Whampoa’s mobile wholesale business unit, Hue, has launched a global operator-led mobile virtual network enabler (MVNE) to act as a single point of entry for MVNOs.

The MVNE platform will allow users access Whampoa’s networks across Europe and Asia and moves one step closer towards building an international MVNO. For companies wanting to gain connectivity outside Whampoa’s footprint, Hue will negotiate with local operators in order to provide connectivity.

Hutchison Whampoa claims the platform will be aimed at operators who want to access a wholesale agreement on one price covering more than one geography. It is targeting brands that are looking to enable their customers to use data or mobile services in different markets and M2M businesses who are looking to track company devices over a wider area. In this way the company look to usher in a new market by creating one environment across Europe.

‘Today’s mobile wholesale market is fragmented and new entrants to mobile are often challenged with needing to understand market nuances and regulations in different countries,’ said Jarrod Nink, CEO of Hue.

’Hutchison Whampoa’s industry-wide credibility provides our customers with the reassurance that they will be able to connect end users to the latest 4G technology and robust networks.’

Threat to Truphone

Partnerships with a number of MVNOs are expected to be announced in the coming months. However, with Google allegedly eyeing up an international calling deal with Whampoa, the launch is set to open up competition in a marketplace already occupied by companies such as Truphone.

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OPPORTUNITIES

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OPPORTUNITIES

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OPPORTUNITIES

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OPPORTUNITIES

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OPPORTUNITIES

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OPPORTUNITIES

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OPPORTUNITIES

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OTHER FACTORS

•RAN commoditization

•MVNO disassociation

• Truphone joins GSMA as an Associate Member

•Product Innovation

• The longer term view on mobile communications is that as everything moves to data only, for example with the developments of VoLTE, mobile VoIP, protocols like WebRTC, and the prevalence of various IM applications, the future will be about capturing wireless data packets rather than GSM mobile voice. Mobile voice will simply be one of many data packets transited to and from a wireless device.

• Video Built-into the Phone

• APIs and WebRTC

• Wi-Fi

• Bridging

• Bring Your Own Device

• Health and Well-being

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OTHER FACTORS