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INVESTMENT SUMMARY
ASN CORPORATION SDN BHD
CONTENTS
This investment summary sets to detail out an investment opportunity in ASN Corporation Sdn Bhd
(“ASN Corp” or the “Group”) for the provision of;
ASN Corp, through its wholly owned subsidiary, ASN Networks Sdn Bhd (ASNC) is offering High
Throughput Satellite (HTS) Broadband services under geosynchronous orbits to serve the
ASEAN region. ASN Networks will be the owner and operator of 2 satellites to be named as
ASNSAT-1 and ASNSAT-2 which utilise the Ka-Band frequency with a capability to provide
much higher transmission rates than the older technology satellites that are currently in use.
The satellite broadband business will target mobile operators and fixed and wireless
Broadband Service Providers and other industries as well as governments in ASEAN region.
ASN Corp also through ASNC is designing and implementing a nationwide Fiber Optics
backbone infrastructure complete with all network components. This is a top-level Backbone
Convergence Network (BCN) with full integration with internet, mobile communications,
telephone, DMB and cable TV networks. It is also a large-scale transmission network that
interconnects various pieces of network, providing a path for the exchange of information
between different LANs and subnetworks.
The construction and operation of a Fiber Optics backbone infrastructure over 2,300 km range
which include Fiber to the Home (FTTH) last mile connectivity covering the peninsular of
Malaysia. The network is capable in providing Gigabit internet speeds, thus providing the
platform for a nationwide Broadband Convergence Network (BCN); and
For the scheduled implementation of the above initiatives, ASN Corporation is seeking USD2.0 Billion
of direct investment in a combination of equity and debt financing. The investment plan aims to
generate an equity IRR of 18% and yield on debt of 6% p.a. to the prospective investor over 15 years
period.
The following highlights the problems faced by the ASEAN region as a whole:-
Large population - more than 640 million people, totalling 9% of the earth’s population.
Large land mass - a total land area covering over 4.46 million cubic kilometers; around 3% of the Earth’s
land mass.
Large Ocean mass - connecting an ocean around 3 times larger than the land.
High demand for services - six major economies to meet consumer demand for data traffic, in the face
of stagnating or declining revenue
Limited existing communications infrastructure - No current viable internet pipeline to upgrade.
A high proportion of populace who are unbanked - these 438 million people are underserved, under-
educated with few options for economic or educational advancement.
High proportions of rural, remote and offshore locations - much of the Malaysian peninsula is extremely
remote and rural, with the need for offshore access out to sea for populations working on boats and
within the fishing industries.
High costs - Even in the relatively small economy of Myanmar, for example, which could be described
as the “final frontier” in telecommunications, Telenor expects to spend as much as $1 billion over the
next year to provide connectivity, while Japan’s KDDI and Sumitomo Corporation are partnering with
Myanmar Posts and Telecommunications (MPT) to invest $2 billion to jointly operate a new converged
telecommunications business.
A. MARKET ATTRACTIVENESS
The Association of Southeast Asian Nations (ASEAN) is a regional grouping that facilitates economic, political,
security, military, educational and socio-cultural integration amongst its ten members which are Brunei,
Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam and other
Asian countries and globally. ASEAN countries collectively have a population of nearly 640 million people and a
combined GDP of $2.57 trillion.
B. SIZEABLE ECONOMY
ASEAN has the potential to leapfrog other countries and rank as an elite global digital economy. A true digital
revolution will transform ASEAN by 2025. Singapore, Malaysia, and Thailand should be in the top 20 of the global
digital rankings, while all other ASEAN countries should be ranked in the top 40 worldwide. Achieving this
ambition would go hand in hand with delivering a substantial increase in GDP across the 10-nation. Transforming
ASEAN into a global digital economy powerhouse could potentially generate an additional $1 trillion in GDP over
the next 10 years. Realizing this goal will require a joint effort and a shared vision across ASEAN. To uplift the
GDP by 2025, it will be driven by three major factors: -
An increase in broadband penetration
Higher worker productivity
New digital industries, such as e-commerce and mobile financial services
Although ASEAN as a single community lags behind its global peers in the digital economy, it has the potential
to enter the top five digital economies in the world by 2025. Moreover, implementation of a radical digital
agenda could add $1 trillion to the region’s GDP over the next 10 years.
E. MALAYSIA AS A LAUNCHPAD
Malaysia ranks number two in terms of its attractiveness for infrastructure investment in Asia and is in 5th place
globally according the third edition of The Global Infrastructure Index by Arcadis a global design and consultancy
firm. Strong economic performance and continued long-term investment in infrastructure have made the
market attractive for private/inward investment.
Four pillars that attribute Malaysia’s success towards becoming a fully developed nation as far as information
and communications technology is concerned are;
Positioned as a Malaysian company in building core competencies in high bandwidth satellite communications,
Gigabit speeds fiber optics backbone infrastructure as well as SMART-CITYs and consumer centric mobile
applications with fintech components intends to support all government initiatives to realise the objective of
becoming a fully developed country by 2030.
This paves the way in setting the groundwork in terms of data infrastructure for the 4th Industrial Revolution
in ASEAN whereby improved productivity, flexibility and efficiency rise from distributed and networked
intelligence that fuels critical decision-making, reduces excess capacity and eliminates many manual processes.
This contributes to overall efficiency and productivity of industries and hence the nations.
With the presented opportunity, ASN CORP’s innovative integrated solutions are aimed to address the
challenges by way of:-
Deliver high performance HTS Ka-Band satellite that is not reliant on existing low-tech infrastructure and that can
combat the challenges of cost-effectiveness, remoteness, rural populations, large land mass and high demand for
services.
Enable high-speed broadband service for the e-Government of ASEAN.
Provide high-speed connectivity to remote areas.
Help build backbone Networks for further distribution.
With ASN CORP as the catalyst, we are ready to ride the digital revolution that could transform the daily life in
ASEAN, for instance making physical cash increasingly obsolete and cities smarter, safer places to live. With a
large and youthful population increasingly equipped with smartphones, ASEAN has an opportunity to pioneer
the development of new digital services.
ASN CORP aims to be a leading satellites broadband service provider, Broadband Convergence
Network (BCN) operator and mobile application developer in the ASEAN region. The various business
entities in the Group and their core businesses are tabulated as below:-
ASN NETWORKS RM100 Million 1. Satellite Broadband Services for ASEAN: Own and
CORPORATION SDN (US$25 Million) operate the 2 satellites namely ASNSAT-1 and ASNSAT-2
BHD 2. Gigabit Fiber Optics BCN Network: For the integration of
(“ASNC”)/2017 Internet, Mobile Communications, Telephone, DMB and
Cable TV Network
ASN MOBILE SDN RM8 Million (USD2 Development, operation and maintenance of a secured
BHD Million) mobile transactional platform named National Unity Social
(“ASNM”)/ 2015 Application (NUSA)
ASN SATELLITE SDN RM62 Million Broadband Service Operator for ASEAN’s aviation and
BHD (US$15.5 Million) maritime industries.
(“ASN SAT”)/2016
A. CORPORATE STRUCTURE
ASN CORPORATION
SDN BHD
ASN NETWORKS
ASN MOBILE SDN ASN SATELLITES SDN
CORPORATION SDN
BHD BHD
BHD
B. ADDRESSES
C. COMPANY SECRETARY
In order to provide the satellite broadband services, ASNC shall own and operate 2 satellites namely ASNSAT-1
and ASNSAT-2 . In its plan, ASNC has scheduled to launch its GEO HTS Ka Band ASNSAT-1 by June 2021 and
ASNSAT-2 by October 2021, respectively. These satellites will be deployed into selective orbital slots covering
the footprint of all ASEAN countries. ASNC will conduct its satellites flight operations remotely via the Command
and Control Centre located in Malaysia.
By design, ASNC will be operating the wholesale low cost but high-performance services under Ka Band
frequency in ASNSAT-1 and ASNSAT-2 coverage areas. The satellites will be operated and maintained at the
selective orbital slots targeting mobile operators and fixed and wireless Broadband Service Providers and other
industries as well as governments in ASEAN region.
Once in service, they are set to become the world's highest capacity
communication satellites with at least 100Gbit/s (can be up to 1.5 Tbit/s) in
capacity.
The designated orbital locations for this project are within excellent footprint for all ASEAN countries at high
elevations in excess of 50 degrees, which provide additional resilience to rain fade degradation due to the
shorter path the signals take through the atmosphere which can be referred to as “Slant Path”.
With the implementation of the High-Speed Backbone, Malaysia could increase the much needed overall
Internet Speed to more than 100Mbps from the current average of 7MB/s to the end user (last mile).
In its plan, the construction and implementation of this BCN shall commence in November 2018 in which the
expected deliverables of the business will be as follows:-
Provide user-oriented secure high-quality wired and
wireless multimedia services
Multimedia knowledge services (Remote Medical
Treatment, Remote Education etc.)
Ensured QoS (Quality of Service) with Service Level
Agreement (SLA)
Unified wired and wireless network convergence
An All-fiber Next Generation nationwide broadband
network
A major portion of this will include the long-overdue upgrade to the current Fiber Optics Backbone infrastructure
in Malaysia by replacing it with a top-level Fiber Optic BCN using next-generation fiber optic technologies known
as Reconfigurable Optical Add-drop Multiplexer (ROADM).
This will entail more than 2,300 kilometers of new fiber optics implementations throughout the Peninsular of
Malaysia. The biggest challenge facing the Fiber Optics Backbone and FTTH technologies industry is not a
technology development, but rather business and service development, as well as financing. The networking
market changes rapidly over time, therefore the need for the industry to remain flexible in terms of types of
services and applications can be provided is key. To be inclusive, ASNC preaches for the appropriative practices
in these areas:-
NUSA by ASNM is a community app available on the web and mobile that puts together the telecommunication,
financial and learning analytic functionalities on a unified digital platform. Aim to digitalise the lifestyle of the
underserved, the app serves as the gateway to the multiple services that the community needs seamlessly. As
a social enterprise, we believe digitalisation is the way forward to address the social inequality amongst the
Malaysian. The digital ecosystem we are creating through this app is depicted as below: -
In this age, the mass usage of smartphones has enabled people to access mobile apps downloaded on their
phones. This has profoundly impacted how people live their lives in a very unprecedented way. On the other
hand, having thousands of apps available for downloads create a limitation to smartphones performance and
spoilt the consumer with choices. Recognising this fact, ASNM at the onset is embarking on a journey to provide
a unified mobile app that aggregate multiple service apps on a single platform for its community of users. With
a profound architecture, NUSA that denotes for National Unified Social Apps which aggregate and combine few
apps into a single app has been crystallised.
In this age, the mass usage of smartphones has enabled people to access mobile apps downloaded on their
phones. This has profoundly impacted how people live their lives in a very unprecedented way. On the other
hand, having thousands of apps available for downloads create a limitation to smartphones performance and
spoilt the consumer with choices. Recognising this fact, ASNM at the onset is embarking on a journey to provide
a unified mobile app that aggregate multiple service apps on a single platform for its community of users. With
a profound architecture, NUSA that denotes for National Unified Social Apps which aggregate and combine few
apps into a single app has been crystallised.
Despite the proliferation of mobile apps that come into play today, we have been selective in picking up the
apps to be embedded onto the platform founded based on sharing of beliefs towards the environment, social
and governance components. The apps functionalities and user experience have to be relevant and inclusive to
our communities that predominantly represent the bottom group of the society and collective community of
cooperatives movement.
We are creating a sustainable and inclusive ecosystem that emphasize on every important aspects of our
members community daily life namely lifelong learning and transformation, healthcare, media, transportation,
marketplace, environmental, fintech application which in the end will improve the QoL appropriative practices
that combine the capitalist and gift economies in a unique hybrid way.
Developing and populating NUSA aside from serving the general public with a much-needed platform for
interactions with multitudes of online services, also acts as a downstream activity for ASN Corporation that
provides cohesiveness of all our solution offerings in SATCOM and BCN.
With the holistic satellite broadband and ground networks services by ASN CORP, ASN SAT is
designated for the downstream business serving the pre-identified and dedicated strategic industries.
ASN SAT, in its subsequent phase of business expansion shall focus on providing GEO HTS Broadband
Services throughout the ASEAN region primarily covering aviation and maritime industries across the
South China Sea to Indian Ocean.
ASN CORP expects that the project will generate sterling returns on investments to position it towards
future expansion plan within the platform that are being strategically put in place.
The forecasted total revenue over the 15 years life of the satellite is expected to be US$ 16.0 Billion
derived from the broadband data from satellites, backbone convergence networks and mobile
commerce operation. The total Profit After Tax for the 15 years is about US$ 6.8 Billion with an average
net margin at [46] %. Net cash at the end of the 15th year is estimated at US$ 7.0 Billion.
Further details of the projected financials are as follows which are set out in Appendix 13.3.3:
Year (1-5) Year (6-10) Year (11-15) Total
For the purpose of this valuation exercise, we have used the following methodologies:
Discounted Cash Flow;
Earnings Based;
Net Present Value.
In order to determine the fair value of the Company adopting an average of the above
methods we used the following assumptions:
1. The forecast period used for the valuation exercise is 15 years including 2 years of construction
period before the satellites are fully operational. For conservatism, it is assumed that the
satellites will be in operation for a lifespan of 13 years.
2. The valuation date is on 7th August 2018.
3. The terminal value at the end of the 15-year projection period was calculated using a
perpetuity growth rate of 2.25%. The terminal value being the value of the Company’s
expected cash flow beyond the projected period.
4. Corporate tax rate was assumed to be 24 percent.
5. WACC Calculations:
Risk free rate 3.50%
Levered Beta 1.00
Market risk premium 25.00%
Cost of equity 25.00%
Cost of Debt 6.00%
Target Debt ratio 70.00%
WACC 10.69%
The Company’s Fair Value is derived from the average of the valuations obtained from the
discounted DCF & EBITDA Multiple and NBV methods.
Gross
PEx Valuation Discount Net Valuation
DCF
Valuation (US$'M) 2,745.36 40% 1,647.22
PEx
Valuation 5 (US$'M) 4,090.42 40% 2,454.25
Avg Discounted Valuation (US$'M) 2,050.73
NPV (US$'M) 2,395.38 2,395.38
Considering that the project status is “Greenfield”, the stakeholders have applied a valuation
discount of 40% on both the DCF & EBITDA Multiple gross valuation.
The valuation derived is in the range of US$ 1.6 to US$ 2.4 Billion (as per table above) on the
back of a Project NPV of US$ 2.4 Billion. For the purpose of this investment summary, the
final enterprise valuation is determined to be US$ 2.0 Billion.
Based on the indicated valuation, ASN CORP is raising a total of US$2 Billion of which US$600
Million in issuance of new ordinary shares which represents 30% of the enlarged equity
interest in the Company. The remaining balance of US$1.4 Billion shall be raised by way of
debt financing.
7.1 UTILISATION OF PROCEEDS AND FUNDING STRUCTURE
The following table summarises the required funding and the funding plan: -
Parameter Indicator
Project IRR 22%
Equity IRR 18%
ROE 2.27 times
Yield on debt financing 6% p.a.
Debt cover ratio 5 times
A. INTERNET CONNECTIVITY
The Association of Southeast Asian Nations (ASEAN) is a regional grouping that facilitates
economic, political, security, military, educational and socio-cultural integration amongst its ten
members which are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines,
Singapore, Thailand, and Vietnam and other Asian countries and globally. ASEAN countries have a
population of nearly 640 million people and a combined GDP of $2.57 trillion.
The number of Internet users has grown rapidly over the past decade and today two-fifths of the
world’s population is online. There is increasingly equipped with smartphones, consumers
depend on the Internet for a growing range of everyday activities, from connecting with friends
and family to shopping and banking. Businesses also harness the Internet extensively across their
operations. A complex and dynamic value chain comprising both global and local players has
developed to deliver digital services to consumers and businesses. The digital economy’s value
chain broadly consists of three elements: devices, networks, and applications.
If ASEAN were a single country, with a combined GDP of $2.5 trillion, it would be among the
largest economies in the world, behind only the United States, China, Japan, Germany, the United
Kingdom, and France. The six largest economies in ASEAN (Indonesia, Thailand, Malaysia,
Singapore, Philippines, and Vietnam) contribute 99 percent of the total ASEAN GDP. Economists
project GDP will grow at about 9 percent from 2015 to 2020, which falls between GDP growth
forecasts for China and India.
BSHR program is here to stay for the needy particularly the B40 segment. However, the program
requires effective tools using digital way in monitoring and measuring the hand outs for the
Government because it will balloon the Government commitment. In its first run, RM2.6 billion was
given to around 4.2 million households, or roughly 80% of Malaysian households. Five years on, the
government had spent a whopping RM26.2 billion on BR1M. On the average BSHR recipients receive
about USD300 each yearly.
The app market landscape is changing worldwide and consumer spending. According to the latest
comprehensive Newzoo Global Mobile Market Report, consumer spending on apps is set to reach
$44.8bn this year with spend set to almost double to $80.6bn by 2020.
Financial inclusion is legislated as one of the primary functions of the Bank under the Central Bank Act
of Malaysia 2009. The financial inclusion agenda continues to be advanced with the introduction of a
holistic Financial Inclusion Framework under the Financial Sector Blueprint which has spurred the
development of fintech in Malaysia.
Amongst others, the NFP licence is highly sought after by the network infrastructure and
telecommunication players given its wide scope coverage. The NFP allows to own network facilities,
namely infrastructure such as, cables, towers, satellite earth stations, broadband fibre optic cables,
telecommunications lines and exchanges, radiocommunications transmission equipment, mobile
communications base stations and broadcasting transmission towers and equipment. These
represent the fundamental building blocks of the convergence model upon which network,
applications and content services are provided. Whilst NSP, can provide the basic connectivity and
bandwidth to support a variety of applications. Network services enable connectivity or transport
between different networks. A network service provider usually owns or deploys the said network
facilities. However, a licensee providing connectivity services may use the network facilities owned by
another licensee.
11.0 APPENDICES
DIGITAL GROWTH
The number of Internet users has grown rapidly over the past decade and today two-fifths of the
world’s population is online. There is increasingly equipped with smartphones, consumers
depend on the Internet for a growing range of everyday activities, from connecting with friends
and family to shopping and banking. Businesses also harness the Internet extensively across their
operations. A complex and dynamic value chain comprising both global and local players has
developed to deliver digital services to consumers and businesses. The digital economy’s value
chain broadly consists of three elements: devices, networks, and applications.
The ASEAN digital economy currently generates approximately $150 billion in revenues per year.
Connectivity and online services are the biggest components, each accounting for 35 to 40
percent growth rate of overall revenues. The user interface including devices, systems, and
software constitutes the third largest segment, accounting for close to 20 percent of revenues
growth. Content and enabling technologies constitute the remaining 10 percent. However, these
elements are growing at very different speeds.
ASEAN IN 2025
ASEAN has the potential to leapfrog other countries and rank as an elite global digital economy.
A true digital revolution will transform ASEAN by 2025.
First, on the supply side, multiple studies across different geographies in the world have shown that a
10-percentage point increase in broadband penetration increases GDP growth by 0.16 to 0.25
percentage points. In addition, studies have shown that doubling the broadband speed can add 0.3
percentage points to annual GDP growth. The immediate impact of an increase in broadband
penetration is akin to the impact of any infrastructure project, with a rise in employment and
multiplier effect on other industries. Moreover, an increase in broadband access for households and
enterprises boosts income and the consumer surplus, further fuelling GDP growth.
Second, on the demand side, equipping employees with digital tools is likely to increase their
productivity by 4 to 8 percent and create a higher-skilled ICT workforce in the long run.
Finally, digitization will spur the development of new industries, such as e-commerce, mobile financial
services, IoT, and cloud computing. Each of these industries will contribute to GDP growth in multiple
ways. For instance, e-commerce can boost GDP growth by improving the efficiency of existing sales
while also promoting the growth of allied industries, such as logistics, infrastructure, and payments.
Research has also shown that e-commerce increases spending by meeting latent demand more
effectively than conventional commerce.
MANAGEMENT TEAM
Mr. Lee is presently holding portfolios in multiple companies. He sits on the Board as Chairman cum
CEO of ANC, he also sits on the Board and CEO of Median Group Inc which is a company incorporated
in Texas, USA and quoted on the US OTC under NASDAQ market with a market capitalisation of USD63
million as at Q1 2017.
CECIL HO
Chief Financial Officer, ASN CORPORATION SDN BHD
Mr. Cecil Ho is currently the CFO of Asia Times Holdings Limited, a digital online
publication in Hong Kong. Most recently, Mr. Ho was the CFO for Reorient
Group Limited (now known as Yunfeng Financial Group Limited) (HKSE:0376)
from 2011-2015. Reorient is engaged in financial services in Hong Kong and was
sold to Jack Ma led consortium in 2015.
Mr. Ho was also the Executive Director and Company Secretary of Varitronix
International Limited (now known as BOE Varitronix Limited) (HKSE: 0710), a
company engaged in the design, manufacturing and distribution of display
products from 2005-2016. Mr. Ho has over 25 years of experience in accounting, finance and
corporate affairs working mainly in an executive position in Hong Kong listed companies.
Mr. Ho also worked in an executive capacity on provision of corporate services, including listing, for
companies on Nasdaq and the Australia Securities Exchange. Mr. Ho is a member of the Canadian
Institute of Charted Accountants and a member of the Hong Kong Institute of Certified Public
Accountants.
Mr. Shukri graduated with his law degree from University of Wales, Cardiff, Wales in 1996 and then in
1997, obtained his Barrister at Law from the Honourable Society of Gray's Inn. In 2011, he pursued
and obtained his Certificate of Usuluddin from Universiti Malaya. He is currently also the Legal Counsel
for MEDIAN GROUP INC. and ASN GROUP.
SHAZILAN DAHALAN
Chief Financial Officer, ASN NETWORKS CORPORATION SDN BHD
Prior to joining Siraj Capital, he was the Vice President - Finance & Operations of Tricubes Berhad, a
public company formerly listed on Kuala Lumpur Stock Exchange. Shazilan started his career with
PricewaterhouseCoopers (PwC) Malaysia.
Mr. Shazilan is a Chartered Accountant (“CA”) registered with the Malaysian Institute of Accountants
(MIA). He is a member (“MIPA”) of The Institute of Public Accountants in Australia (IPA) and a member
(“AFA”) of The Institute of Financial Accountants UK (IFA). He holds a Bachelor’s Degree in Accounting
(Hons). He is currently the Group Chief Financial Officer for MEDIAN GROUP INC. and ASN GROUP.
His overseas work experience started with Siraj Capital Ltd, a private equity
firm based in Saudi Arabia with offices in Dubai, Washington and London that focuses on investments
for high net worth individuals in ICT, infrastructure, energy and real estate projects in the Middle East
and North America.
As VP of Operations in Anan Iskan limited, a wholly owned subsidiary of Saudi BinLaden Group, the
largest contractor in the Middle East he was responsible for overseeing the operations of their housing
and worker accommodations projects that houses close to 200,000 workers.
Nick has a Bachelor of Engineering Degree with Hons from Universiti of Malaya and a Diploma in
Entrepreneurial Management as well as a Masters in Business Administration (MBA) from the
University of Waterloo in Ontario, Canada.
ZALIFAH ZAKARIA
Chief Executive Officer, ASN MOBILE SDN BHD
She owns Smart World Travel & Tours, Smart Creative Pictures and Milyuner
Femme, a distributor of cosmetic and health supplements. She is also
engaged as a financial consultant with a fund management company and has personally closed fund-
raising deals of more than RM500 Million over the last 3 years. She specializes in handling corporate
clients ranging from agencies, GLC, private companies and high net worth clients.
BERNARD KHOO
Chief Operating Officer, ASN MOBILE SDN BHD
Over the years, Mr Khoo has both operations and sales experience; he was
involved in the setting up of a foreign financial institution and branches and
handling sales of asset management, corporate, commercial and consumer
products.
Mr Khoo holds a Bachelor Degree in Economics from Flinders University, South Australia and received
his Master in Business Administration from University of Bath, UK. He is also a licensed unit trust and
insurance consultant. He is currently responsible for all aspects of operations work in ASN Networks
Sdn Bhd and ASN Mobile Sdn Bhd.
Prior to that, he was the Adviser to AGA Group, a big data analytics company
pioneering the big data initiatives focusing on customer experience
management and business insights for telco and government services.
In the financial space, he has accumulated more than 20 years of complete cycle of private equity and
debt fundings experiences for investment optimization in companies seeking for growth. He served
as Chief Investment Officer and COO at Intrasys Sdn Bhd, a private equity management services
company registered with the Securities Commission of Malaysia, overseeing the management and
operations of SME Growth Acceleration Fund amounting to RM200 million. Throughout his career, he
has managed numerous successful deals structuring, fund raising, IPOs and turnaround situation.
He started his career with Maybank Group covering all aspects of the banking operations ranging from
wholesale, international and corporate banking covering transactions locally, and across ASEAN and
MENA, to its venture capital/private equity arm with FUM of more than RM500 million. He received
his Bachelor Degree (Hons.) in Accountancy from Universiti Utara Malaysia.
Dato’ Seri Hj Shaik Aqmal Bin Dato’ Hj Shaik Allaudin, a well-established and
renowned Malaysian businessman, investor, founder of multiple companies
and an avid social activist focusing on humanitarian and the empowerment of
communities through education.
Shaik Aqmal had embarked in a career in Televenture Sdn Bhd, a fiber optic
project that elevated the telco industry. Shaik Aqmal is founder of Virtual Print
International Sdn Bhd (VPI). Shaik Aqmal is currently the Executive Chairman
of SAA Resources Sdn Bhd, an Investment Holding company. He also sits on
the Board of various companies.
As a social activist, Shaik Aqmal has played key roles in promoting several Non-Government
Organizations (NGOs), Chairman of Biasiswa Mutiara, President of Liga Muslim Wilayah Persekutuan,
Vice President of Liga Muslim Malaysia and now advisor to Malaysian India Muslim Chamber of
Commerce.
SAMUEL LAW
In 2015, Sam received the MTA Preferred Entrepreneur award from the 3rd What Malaysian Youth
Should Know (WMYSK) Global Leadership Series from the Chairman of CIMB Group, Dato’ Seri Nazir
Razak.
His accolades include being the Chairman of the Information Technology & Operations Management
Committee; Chairman of the Risk Management Committee.
Tatiana began her career in the cybersecurity field in 2006. Her major
professional interests in cybersecurity include information security model
development, penetration testing, vulnerability discovery, DLT (especially
blockchain), SCADA and IoT security, security of the heterogeneous multi-
agent systems in the highly hostile environment (the latter has become the
topic of her PhD).
She was one of the organizers of the cybersecurity conference and CTF (capture-the-flag) contest in
2013 and 2014, used to be an Associate Professor at the Peter the Great St. Petersburg Polytechnic
University.
Her work experiences include serving as a cybersecurity analyst where she is the tech lead in the
cybersecurity company in Russia. Today, she is the founder and Lead Presentation Designer for her
own start-up. At DESTO, she is a crucial team as their Content Strategist and Storyteller, lending her
expertise in cybersecurity experiences. Tatiana is a remarkable young talent who speaks Russian,
fluent English and German.
Dr Kim is currently also a Professor at Graduate School of Technology Management, Kyung Hee
University, Republic of Korea.
SUNNY LOH
Later, he spent twelve years in the field of Information Technology, where he trained in and dedicated
his time to system development. For the next seven years thereafter, he delved into the area of mobile
application.
For the past five years Sunny has been studying blockchain technology, an up and coming
technological application to information management. Sunny has also equipped himself with how
Swift and Quark protocols work, and Proof-of-Work, Proof-Stake, Proof-of-Services, Internet-of-Things
(IoT) and smart contracts function in a blockchain.
Operating Cost (3,401) (29,315) (129,971) (246,710) (292,753) (318,231) (338,478) (358,743)
Net Earnings (4,149) (28,988) 214,697 282,956 391,003 454,135 504,813 555,788
Cumm Earnings (4,149) (33,137) 181,559 464,516 855,518 1,309,653 1,814,466 2,370,254
Operating Margin 0.0% 0.0% 0.0% 71.6% 72.2% 72.4% 72.6% 72.7%
Net Margin 0.0% 0.0% 0.0% 32.5% 37.2% 39.4% 40.9% 42.3%
Operating Cost (371,002) (379,269) (383,546) (387,848) (392,178) (396,538) (400,932) (4,428,914)
Corporate Tax (185,931) (193,565) (198,322) (203,297) (208,399) (213,633) (219,009) (2,170,656)
Net Earnings 588,780 612,956 628,019 643,775 659,929 676,504 693,527 6,873,745
Cumm Earnings 2,959,035 3,571,991 4,200,010 4,843,785 5,503,714 6,180,218 6,873,745
Operating Margin 72.8% 72.8% 72.8% 72.8% 72.8% 72.9% 72.9% 72.3%
Net Margin 43.2% 43.9% 44.5% 45.1% 45.7% 46.3% 46.9% 42.9%
Prefinancing Cash Flow (1,115,113) (736,359) 55,225 376,355 544,401 602,508 657,374 708,350
Cummulative PrefInancing CF (1,115,113) (1,851,472) (1,796,247) (1,419,891) (875,490) (272,982) 384,393 1,092,742
Net inc(dec) in cash and cash eqv 284,887 (136,359) 55,225 280,563 442,862 494,877 543,285 587,415
Cash and cash equivalents bf - 284,887 148,528 203,753 484,317 927,179 1,422,056 1,965,341
Cash and cash equivalents cf 284,887 148,528 203,753 484,317 927,179 1,422,056 1,965,341 2,552,756
Prefinancing Cash Flow 741,341 765,518 774,718 796,755 812,909 829,484 846,507
Cummulative PrefInancing CF 1,834,084 2,599,601 3,374,319 4,171,074 4,983,982 5,813,467 6,659,974
Net inc(dec) in cash and cash eqv 613,150 629,635 630,682 644,078 651,071 657,936 664,666
Cash and cash equivalents bf 2,552,756 3,165,906 3,795,541 4,426,224 5,070,301 5,721,372 6,379,308
Cash and cash equivalents cf 3,165,906 3,795,541 4,426,224 5,070,301 5,721,372 6,379,308 7,043,974
IRR 22.4%
8% NPV 2,395,384
Projected Revenue USD'000 1,060 2,135 2,530 3,109 3,821 3,944 4,160 4,397
Total Projected Revenue USD'000 1,060 2,135 403,810 869,380 1,051,841 1,153,457 1,233,930 1,314,422
Projected Revenue USD'000 4,656 4,939 5,250 5,591 5,964 6,372 6,820
Total Projected Revenue USD'000 1,362,835 1,395,221 1,411,583 1,427,975 1,444,399 1,460,859 1,477,358
NOTE:
Backbone Delivery Schedule 30% 60% 10%
Total Backbone costs US$'000 (216,180)
No further capex after Year 4
Capex - - - - - - -
Interests (64,561) (56,869) (48,716) (40,074) (30,914) (21,203) (10,910)
Capex -Carried forward (2,697,628) (2,762,188) (2,819,058) (2,867,774) (2,907,848) (2,938,762) (2,959,966)
Total Capex (2,762,188) (2,819,058) (2,867,774) (2,907,848) (2,938,762) (2,959,966) (2,970,876)
70% 70%
Year 1 Year 2 Year 3 Total
US$'000 US$'000 US$'000 US$'000
Loan Disbursement 800,000 600,000 - 1,400,000
Interest Rate 6%
Tenure 12 Years
Annual Repayment 192,752
DATA ANALYTICS
Number of Database 800,000 1,800,000 2,200,000 2,690,000 3,290,500 3,427,219 3,576,633 3,739,963
Number of Transactions 1 800,000 1,800,000 2,200,000 2,690,000 3,290,500 3,427,219 3,576,633 3,739,963
Transactions Revenue 0.20 160,000 360,000 440,000 538,000 658,100 685,444 715,327 747,993
Projected Revenue 1,060,000 2,055,000 2,530,000 3,108,500 3,820,825 3,943,872 4,159,985 4,396,572
DATA ANALYTICS
Number of Database 3,918,549 4,113,864 4,327,523 4,561,301 4,817,149 5,097,208 5,403,829
Number of Transactions 1 3,918,549 4,113,864 4,327,523 4,561,301 4,817,149 5,097,208 5,403,829
Transactions Revenue 0.20 783,710 822,773 865,505 912,260 963,430 1,019,442 1,080,766
VALUATION METHODOLOGIES
Projections Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Operating cost: (3.40) (29.31) (129.97) (246.71) (292.75) (318.23) (338.48) (358.74)
Operating cost: (371.00) (379.27) (383.55) (387.85) (392.18) (396.54) (400.93) (4,428.91)
Gross
PEx Valuation Discount Net Valuation
DCF Valuation (US$'M) 2,745.36 40% 1,647.22
PEx Valuation 5 (US$'M) 4,090.42 40% 2,454.25
Avg Discounted Valuation (US$'M) 2,050.73
NPV (US$'M) 2,395.38 2,395.38
EBITDA Retuns (600.00) (0.70) (8.15) 82.15 186.80 227.73 250.57 268.64
Terminal Value
Cumm Returns (600.00) (600.70) (608.86) (526.70) (339.90) (112.18) 138.39 407.03
Payback (Years) - - - - - 5.45 -
1,798,676
EBITDA Retuns 286.70 297.55 304.79 308.41 312.04 315.67 319.30 322.93
Terminal Value
Cumm Returns 693.73 991.28 1,296.07 1,604.48 1,916.51 2,232.18 2,551.48 5,198.97
Payback (Years) - - - - - - - -
WACC 10.69%
Free Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
Revenue 1,060 2,135 403,810 869,380 1,051,841 1,153,457 1,233,930 1,314,422
Revenue growth 0% 101% 18814% 115% 21% 10% 7% 7%
EBIT -2,341 -27,180 273,840 622,670 759,088 835,227 895,451 955,679
EBIT*(1-tax) (1,779) (20,657) 208,118 473,229 576,907 634,772 680,543 726,316
Depreciation & Amortization 1,808 1,808 1,808 153,399 153,399 152,561 152,561 152,561
Change in NWC (18) (1,883) 88,887 194,090 235,296 258,258 276,436 294,618
CAPEX -1,102,397 -709,179 -161,280 -60,000 - - - -
DCF Valuation 31/12/18 31/12/19 31/12/20 31/12/21 31/12/22 31/12/23 31/12/24 31/12/25
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
83% 69% 58% 48% 40% 33% 28% 23%
FCF (1,102,350) (726,144) (40,241) 372,538 495,010 529,075 556,668 584,259
Discount factor 90% 82% 74% 67% 60% 54% 49% 44%
Discounted FCF (995,871) (592,639) (29,670) 248,145 297,874 287,621 273,390 259,224
NPV of FCF
Key Assumptions
Tax 24%
Perpetuity growth rate 2.25%
AR Outstanding Days 24.7%
PE Multiple
Valuation
PE Multiple 5
Valuation 4,090.42
Net Present Value (NPV) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
US$'Mil US$'Mil US$'Mil US$'Mil US$'Mil US$'Mil US$'Mil US$'Mil
Free Cash Flow (1,115.11) (736.36) 55.23 376.36 544.40 602.51 657.37 708.35
NPV at 8%
Free Cash Flow 741.34 765.52 774.72 796.75 812.91 829.48 846.51
NPV at 8% 2,395.38
DISCLAIMER
The material in this Investment Summary has been prepared by ASN Corporation Sdn Bhd
and is general background information about ASN Corporations’ current activities till August
2018.
This information is given in summary form and does not purport to be complete.
Information in this Investment Summary, including forecast financial information, should
not be considered as advice or a recommendation to investors or potential investors in
relation to holding, purchasing or selling securities or other financial products or
instruments and does not consider your particular investment objectives, financial situation
or needs.
Before acting on any information you should consider the appropriateness of the
information having regard to these matters, any relevant offer document and in particular,
you should seek independent financial advice.
This Investment Summary may contain forward looking statements including statements
regarding our intent, belief or current expectations with respect to ASN Corporations’
businesses and operations, market conditions, results of operation and financial condition,
capital adequacy, specific provisions and risk management practices.
While due care has been used in the preparation of forecast information, actual results may
vary in a materially positive or negative manner. Forecasts and hypothetical examples are
subject to uncertainty and contingencies outside ASN Corporations’ control.