Commercial Overview

Aora 2 - METRASAT Project Ver 1.0

Technology Group – 2015

March, 2015

Scope Of Work

• METRASAT – PROJECT A– Duration Of Agreement 5 Years, Started from December 2014– Term Of Services 14 Months since PO (Purchase Order)– Total Decoder Acquisition with Total 12.000 Unit/Year (Schedule Rollout

Plan)– Decoder Paid by METRASAT after 14 Days based on Receive goods Document.– Provide Customer Data List Information (Data pelanggan)– Cost of Decoder IDR 300.000 + PPN / Unit Decoder– Cost Monthly Content IDR 20.000 + PPN / Subscriber– Content Monthly Subscriber Paid 1 Month after delivery, with 14 Days Max

Deadlines. (Issued on the Monthly basis after delivery)

Scope Of Work

• AORA– Provision decoder device total 12.000 Unit/Year to Metrasat– Provision for Content Services (channel lineup) with total 19 + 3 Channels to

Metrasat (Channel Lineup).– Training Installation for Decoder devices to Metrasat– Activation Decoder with Max 1X24 Hours after Metrasat received– Decoder warranty for 6 Months– Provide documentation such as, BAST (surat Jalan), Etc. to Metrasat– Harga beli IRD/Decoder CIF (Cost Insurance Freight) USD 19,5 and Import

Cost handle by Infrakom– Open PO (Purchase Order) for every Shipment refer to PO Metrasat.– Issue admin documentation for Invoice + Faktur Pajak + Surat Jalan admin +

Serial Number list to Metrasat.

Scope Of Work

• INFRAKOM– Receive Payment Decoder = IDR 290.000 + PPN / Unit Decoder from Aora.– Revenue Sharing for Monthly Subs between Aora have not Decided yet.– Issue admin documentation for Invoice + Faktur Pajak + Surat Jalan admin +

Serial Number list to Aora.

Scope Of Work

FTA & NON FTA Channel Lineup:1. Kompas TV2. SCTV3. Indosiar4. Trans TV5. Trans 76. ANTV7. TvOne8. Rajawali TV9. JTV10. Metro TV11. TVRI12. Berita Satu13. Daai TV Indonesia14. Jak TV15. NET16. Al Quran Al Kareem17. Aora 918. Aora 9 anak19. Aora 9 film20. RCTI21. Global22. MNC TV

Schedule Decoder Rollout Plan

IRD 21100 – SPECIFICATIONI. General

Produce Type Name :

IRD-21100

II. IRD FeaturesIRD Type :

DVB-S/S2 SD MPEG-4 Satellite Receiver

Main Chipset : MSD5045CPU Freq. : 400 MhzMemory Size :

8 Mbyte SPI Flash + 128 Mbyte DDR3

NV-RAM :

Non Support

CA System :

Latens CCA

Freq. Range :

950～ 2150MHz

Input Impedance : 75ΩInput Level Range : -65dBm ~ -25dBmSignal input : IEC 169-24, F-Type, FemaleDemodulation : DVB-S QPSK FEC code rate:1/2, 2/3, 3/4, 5/6, 7/8;

DVB-S2 QPSK/8PSK FEC code rate:1/2, 3/5, 2/3, 3/4, 4/5, 5/6, 8/9, 9/10;

Symbol Rate : 2~45Msps(8PSK),1~45Msps(QPSK)III. Hardware Features

Back Panel LNB IN :

1*IEC 169-24, F-Type, Female

RCA : 1*RCA (1CVBS(yellow). 1 Audio_L(white), Audio_R(red)DC Input : 12V/1.5A European Standard AdapterFront PanelLED Indicator : 2*LEDS ( Bi-colour LED: Standby(RED),On(GREEN);

Single LED : Lock ( Green ) Key :

7 Keys ( CH+,CH-, Vol+, Vol - , Menu, Exit , STANDBY

IR : 1*38K Infrared receiver in front pannelIV. Mechanical

Dimension : W : 170,0 MM, D : 110,0 MM, H : 36,0 MMNet Weight : < 1.5 kg

V. Accessories Power Adapter : 1* 12V/1.5A AdapterBattery Remote :

2 *1.5V AAA

AV Cable : 1 *1.5mPower Supply : ExternalAC Input (V/Hz) : 100～ 240V， 50Hz/60HzOutput Voltage(V) :

12V DC

Consumption :

18W Max

Decoder/IRD Specification

Agreement Overview

• Commitment by Thaicom to chip in bandwidth equivalent to 2 transponder of Measat 3A.

• This will impact on the AORA’s existing subs.• Sales areas cannot be restricted.• Only sales /distribution and contents that are still missing, and STB partners do need

AORA or Trikomsel’s experise for sales/distribution.• Coverage of Thaicom 4 is only Java and Sumatra.• Should be in line with AORA’s future plan on Measat 3 A. If AORA never plans to

migrate model A to Thaicom 4, then AORA is loosing potential revenues that to be split with Thaicom.

• Migrating the existing Model A customers will need to do repointing of their ODU.• If Thaicom is offering this scheme to other local DTH, then it will be a threat to

AORA.• AORA’s plans for NDS CA.• Need authority to develop business model including contents.

Executive Summary

2. AORA 2 (Outright) - B• Cheap or free contents + FTA• Measat 3A• CA: NDS, Latens, ABV ?• STB : Skyworth, ED ?• STB vendor will invest

1. AORA 1 (Existing) - A• Premium Contents• Measat 3A• CA: NDS, Latens, ABV ?• STB : Skyworth, ED ?

3. AORA 2 – Thaicom - C• Cheap or free contents + FTA• Measat 3A• CA: NDS, Latens, ABV ?• STB : Skyworth, ED ?• STB vendor will invest• Thaicom will also chip in xpdr

• AORA invest everything• Revenue is also fully taken by AORA• AORA takes risk on STB• High Churn• Relatively high arpu

• AORA contribute Head End system• Revenue is shared• STB vendor joint with AORA or other• Relatively low arpu, and revenue is

expected from initial selling of STB, initial subs fee, and Adv.

• AORA contribute Head End system• Revenue is shared• STB vendor joint with AORA or other• Thaicom will chip in Thai 4 xpdr• Relatively low arpu, and revenue is

expected from initial selling of STB, initial subs fee, and Adv.

Thailand Case Study

10

2007

:: Started DTV Service Co., Ltd.:: 1st to the market with Free-To-Box DTH STB under KU Band:: On-Air own D-News Channel

2008

:: Celebrate first 300K boxes sold

:: Change own channel to D-Channel 20

10Celebrate first 1 million boxes sold 20

11

:: Open “D-Life Channel”

:: Launch low cost box “D-Khoom”

Product launch in 2007: USD 96.5-One time fee with no monthly subscription fee

Product Launch: DTV HD in April 2014

Target Customers: Rural Area for TV clarity

Package: 6 FTA channels Now has up to 300+ channels on DTV Ku platform since inception.

Partnership with True Vision (DTH provider) for PayTV content.

‘Cooperation’ Business Process

11

1

2

3

4

5

6

ATV provides DTH licenses for import of GW Equip & OPS & CPETC provides IPSTAR-1 bandwidth and GW Antenna

ATV & TC to provide DTH service

Business Operations Process to the End Users

Aora TV: GW Hosting

Thaicom

Provide BW

Master Dealers

Aora TV

Installers Customer

4

1

2

5 6Provide License & CAPEX

Distribution Channel

Installation Sell to Customer

JSC subcontract GW hosting services from ATV

Sells to Master Dealers or Dealers

Installation of DTH products Or serve as reseller

Sell DTH Service

JSC3

Thaicom 4 Coverage Area

Strategy: High Eye Balls

AORA

ED-ABV

B

C

AORA-2 Strategic PlanningGeneral AssumptionProduct Positioning

Channel Line-UpSummary Financial

AORA-2 Strategic Planning

• Vision & Mission

• Goals

• Corporate Strategies

• Action Plan

• Strategic Action Plan (Reach Strategy)

• Why We Different– Cost– Content (FTA, etc)– Easy to subscribe– Distribution

• Revenue Model : Subscription and Advertising Base through normal Ads and EPG

• SES (Status Economic Social) : C & C+• Gender : Mom & Kids• Aora-2 Positioned : Affordable entertainment for the mass• Market Characteristic : Like to watch FTA & Lokal content or Serial

Owned parabola Ram/Jaring (non Solid)• Coverage Area : Jawa – Sumatera using Thaicom 4• Target Area by Island : Jawa 60% - Sumatera 40%• Targeted Subscriber in 2 Years : 500,000 Subs• Setup Box & ODU : Sale (one time charge)• Landing cost to Subscriber : Rp. 400,000 (max)•Payment Model : Pre-Paid or with Ala carte (Depend on Channel

Lineup).•Delivery Model : Distribution through Channel

: (Distributor & dealers)•Distribution Concept : Single or Two Tier Only

General Assumption aora-2

• The delivery cost of the STB full set : Jawa is IDR 25.000 and Sumatera IDR 50.000• Branches Open : by Stages in Q1 (10 branches),

: Q2 (10 branches)• Margin distribution channels : By tearing

Distributor-Master Dealer-Dealer-Sub Dealer is estimated at IDR 50.000, to be

divided into : IDR 10.000-IDR 15.000-IDR 25.000

• Sales achievement bonus : estimated at IDR 20.000-30.000/unit• Incentives for store employees : 5K – 10K• Content Strategy : (FTH National, FTH Lokal) 100% Indonesian

Content, Local Premium Content (In-House Production & Co Production /Joint Venture)

• Programming Strategy : Series in Mandarin, Soup Opera & Kids• Call Center Strategy :

General Assumption aora-2

Product Positioning

C-Band Satellite Dish

Segment Market

Rp. 700K Parabola C-Band

Rp. 400K  Parabola Mini  

Rp. 200K/300K    UHF    

     

Magic Quadrant

Parabola Premium C-Band o

o     

Parabola Mini   o  

    UHF   o     

FTA Pay TV

Parabola Premium

Summary Financial Plan