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STRICTLY PRIVATE AND CONFIDENTIAL
Presentation Materials
Global Invacom Group Limited(formerly known as Radiance Group Limited)
August 2012
1
Business Description Evolution of Global Invacom Group Limited
� Global Invacom Group Limited is a fully integrated supplier of high‐tech
satellite communications peripheral equipment for satellite operators
and EMS provider to OEMs/ODMs
� One of seven companies worldwide involved in R&D, design and supply
of SatCom products to large scale satellite broadcasters (e.g. BSkyB and
DISH Networks)
� 31 patent applications filed to date (of which 9 are granted)
� Major markets are in the US and Europe with manufacturing base in
China
� Able to capitalize on strong growth opportunities in the SatCom industry
Corporate Structure Key Financial Information (Proforma)
Financial Performance (S$ mn) FY2009 FY2010 FY2011
Revenue 150 118 138
Profit before Income Tax 13 2* 16
EPS (Cents) 4.6 (0.6)* 6.3
Snapshot – Global Invacom Group Limited
Global Invacom Group Limited
Global Invacom Radiance
Financial Position (S$ mn) As at 31 Dec 2011
Total Assets 103
Total Liabilities [ net debt] 47
1985
Global
Communications
was established
Leading
manufacturer of
satellite
equipment
////////2000
Invacom was
founded
Specialist
manufacturer
of volume
VSAT and LNB
equipment
2008
Global
Communications
and Invacom
merged to form
Global Invacom
2012
Reverse
takeover of
Radiance by
Global Invacom
to create Global
Invacom Group
Limited
A specialist EMS provider to OEMs
or ODMs of products in the
satellite communications,
TV/cable peripherals, and
consumer electronics industries
A world‐leading designer,
manufacturer and supplier of LNB,
switches, VSAT, fibre, wireless HD
transmission and dishes
A vertically integrated, high-tech enterprise with design, R&D
and manufacturing expertise across various industries
* PBIT and EPS are stated net of a one‐off S$11.7m cost associated with past services received. Without
this one‐off cost, PBIT would have been S$13.8m and EPS would have been 5.6 cents
2
Satellite Communications – Our Core Business
Broadcasting Satellite
Transmission
Footprint
Transmission
from Satellite
to dish and
from dish to
satellite
Transmission
from Satellite
to dish only
Satellite BroadbandSatellite TV
Broadcasting Satellite
www.globalinvacom.com Commercial & Confidential
DBS triple play solution to the Residence
VSAT & DBS Dish
Set Top Box
Telephony H/W & S/W
IP Satellite ModemTelevision
Internet
Telephone
www.globalinvacom.com Commercial & Confidential
Fibre DBS isolated Solution
Stacker
Wavelength
Division
Multiplexer
Combiner
Ethernet SwitchIP Satellite Modem
GTU
GTU
GTU
GTU
GTUGTU
Pon and Passive Splitter
Fibre Headend
VSAT Headend
ADSL
The Vision: Wireless Enabled The Vision: Wireless Enabled The Vision: Wireless Enabled The Vision: Wireless Enabled
HomeHomeHomeHome
www.globalinvacom.com Commercial & Confidential
HD content throughout the home over 802.11n Wi-Fi
Wireless Satellite Wireless Satellite Wireless Satellite Wireless Satellite
around the homearound the homearound the homearound the home
www.globalinvacom.com Commercial & Confidential
7
An Integrated Platform for the Satellite Communications
Industry
Extensive portfolio (> 400 products) used in satellite-related
transmissions of video/audio signals and other types of data across
various market segments
Well equipped manufacturing facilities coupled with value-added
product development and testing capabilities
Manufacturing Capability
� Undertakes EMS activities for
high/moderate/low volume customer
� Shanghai factory (11,000m2 with 10 SMT
lines and c.800 staff / Shenzhen factory
(6,000m� with 5 SMT lines and c.600 staff)
Test and Engineering
� In‐Circuit Testing, Functional
Testing and diagnostic to
ensure final products meet
customer requirements
Materials and Logistics
� Sourcing for reliable/price competitive
vendors for materials/components
procurement
� Offers customers flexible, just‐in‐time
delivery and direct shipment of
packaged products to customers
Direct Broadcast Satellite
� Switches and LNB
products for OEM
customers
� Began supplying satellite
dishes to BSkyB in 2010
Fibre
� Optical products that convert
RF analogue signals at the
satellite dish via laser into fibre
optic transmission
VSAT and accessories
� VSAT satellite components in
the Ka and Ku frequency bands
such as LNBs, transmitters and
OMTs
� Installers and distributors such
as the tvLink® range and the
Stacker De‐Stacker
8
Satellite Communications – Our Core Business
Europe:
• Satellite is the leading TV infrastructure
• During the period 2008 – 2012:
o Satellite TV subscriber growth rate of 22%
o Terrestrial TV lost 16mn homes
o Cable lost 2mn households
o Satellite reaches 44% of all 186mn digital TV homes
and is still growing
Good Prospects for SatCom Business
USA:
• 34% Pay TV households Satellite
• 58% Pay TV Cable (but reducing YoY)
9
With a Globally Integrated Value Chain
Services highly attractive US and European markets with high quality European products sourced from low cost Asian base
North America
Europe
Major Markets
Future growth markets
Singapore head office
� Althorne facility –
Switch and optical
products
� Stevenage facility –
Satellite dishes,
LNBs and VSAT
products
� Birmingham facility
Satellite dishes
manufacture
� Bristol ProVision
Wireless products
� Shanghai facility –
Focused on
manufacturing
SatCom products
� Shenzhen facility –
Focused on EMS
provision for 3rd
party OEMs or
ODMs
� Denver-
Warehousing
� Washington-
Warehousing
� Atlanta-
Warehousing
www.globalinvacom.com Commercial & Confidential
Locations
www.globalinvacom.com Commercial & Confidential
Strategic Partners
12
Built through Acquisitions and Integration
Notes:
(1) Most of the manufacturing activities are outsourced to third-party contract manufacturers in Asia, with Radiance Group Limited being the largest of them.
(2) Marconi and Grundig were market leaders in electronic research and product development in the 1960’s
2008
Merger between Global Communications (UK) Ltd
and Invacom Ltd
� Founded in 1985
as a designer and
manufacturer of
products for the
nascent satellite
market
� A leading
manufacturer of
satellite switching
and distribution
equipment
� Formed in the year
2000 by 2 former
employees of the
Marconi/Grundig(2)
DBS Group
� Specialist
manufacturer of
volume LNB and
VSAT equipment
2012
Acquisition of Global Invacom by
Radiance Group Limited (RTO)
� A world‐leading
designer,
manufacturer(1) and
supplier of LNB,
switches, VSAT, fibre,
wireless HD
transmission and dishes
� One of only 7 approved
major suppliers to the
DirecTV group and DISH
� A specialist EMS
provider to OEMs or
ODMs of products in
the satellite
communications,
TV/cable peripherals,
and consumer
electronics industries
Global
Invacom
Group
Limited
Strategic Rationale
� Increase diversity of product and service offerings
� Achieve economies of scale through expanding production
volumes
� Derive meaningful synergies with improved supply chain
coordination and cost sharing
� Expand into new markets with significant growth opportunities
� Inject experienced management team into Enlarged Group
13
Significant Milestones
1998 2001
Invention of
tvLINK® for
BSkyB Launch of
the world’s
first
integrated
VSAT‐LNB
2004
Launch of
the world’s
first circular
polar/linear
polar LNB
2007
Launch of
one cable
frequency
extenders
2009
The first cost
effective
optical LNB
20062003
Upgraded to
SGX
Mainboard
Listed on
SGX‐SESDAQ
Awarded 1st prize in
the ASTRA
Innovation Contest
2006
1988 1990
Design and
manufacture
of the first DBS
multiswitch First
satellite TV
frequency
extender
First LNB
stacker
First Mini
Magic
Switch
19931992
Technology leader with many industry firsts
� US$13.8mn R&D investments from 2009 to 2011
� 31 patent applications filed to date
� 30 design staff
14
� Existing management of Global Invacom
possesses in‐depth knowledge of the SatCom
and TV peripherals industries
� Transfer of technical expertise and industry
knowledge to the Enlarged Group
� Streamline supply chain as Global Invacom
had a significant trading relationship with
Radiance since 1999
� Transfer of valuable IPs and patents from
Global Invacom to Radiance leads to better
margins as compared to the low value, high
volume EMS market
� Improved value proposition to end‐customers
with additional conceptualising and design
functions (“Low tech to High tech”)
� DBS market
– There are 34mn and 84mn subscribers in
the US and Europe respectively
– Continued expansion as pay‐TV is
increasingly being viewed as a basic home
service
� Satellite broadband market – Around 6 million
subscribers are expected by 2020
� Fibre market – Expanding MDU market
presents opportunities for Global Invacom’s
fibre solutions where it faces little competition
� Allows Radiance to capitalize on Global
Invacom’s well‐established foundations to
venture into the SatCom and TV peripherals
industries
� Growth potential for SatCom, VSAT and Fibre
� Margin sustainability
� Marine market
� US satellite broadband
� Expansion in Asia PacificPowerful Synergies to be derived
Listed through a Reverse Takeover
Rationale for the Reverse Takeover
Acquisition of Global Invacom Holdings Limited for US$49m to be satisfied by US$18.5m cash and US$30.5m in new Radiance Group
Limited sharesTransaction
Create an attractive high tech integrated entity listed on SGX
Provides a platform to venture into new
growth markets Inject experienced management team Outlook
15
FY2011 Total Sales Breakdown FY2011 Total Purchases Breakdown
70.2%
7.7%
Others(1)
22.1%
The premier global provider
of satellite operations and
video delivery solutions
Key Financials
(USDmn)
Revenue: 584
Net Assets: 6,518
Net Profit: 128
The largest pay‐TV
broadcaster in the UK with
over 11 million subscribers.
Key Financials
(USDmn)
Revenue: 4,914
Net Assets: 8,455
Net Profit: 634
72.5%
5.1%
Others(2)
26.1%
A UK based steel stockholder
that provides cold steel
pressing, powder coating
and assembly services
Solid Customer Relationships and Reliable Supply
Notes:
(1) Comprises of Hughes, Alltrade Aerial and Satellite Ltd, Draco Ltd, Bauckhage Sat-Fachgroßhandlung and DISH, each accounting for less than 5% of total revenue
(2) Comprises of third-party contract manufacturers based in the People’s Republic of China, each accounting for less than 5% of total purchases
(3) The information contained in this slide is based on GIHL’s consumer and supplier information
� Strong business relationship with EchoStar that exceeds 10 years
� Significant increase in sales to BSkyB over FY2009‐11, primarily due to
supply of satellite dishes that commenced in early FY2010
� Engaged Radiance for manufacturing services for more than 13 years
� Global Invacom is the largest customer of Radiance
� Contributed more than 50% of Radiance’s revenue from FY2009‐2011
Solid relationships with reputable customers and reliable manufacturing base
16
Experienced and Capable Management Team
� Professional career spent working within international high
technology business with diverse commercial propositions
� Over 12 years experience in senior executive leadership roles of
different information technology companies
� Founding Director of
Invacom in 2000
� Experience in designing and
developing products based
on microwave systems
� Business Development
Director at Global Invacom
since 2007
� Currently has 35 patents
under his name
� Chartered Engineer with a
proven track record in
systems engineering
� Responsible for the
development of switches
and fibre products at Global
Invacom since 1997
� 32 years cumulative
experience in this industry
Gary Stafford, Director
(New Business
Development)
Board of Directors
Malcolm Burrell, Technical
Director (Fibre and
Switches)
David Smith, Technical
Director (LNB, VSAT and
Antennas)
Goh Boon Leng, General
Manager (EMS Division)
Anthony Taylor,
Chief Executive Officer
David Newcombe, Chief
Financial Officer
� Founding Director of
Invacom and the original
designer of key early LNB
products
� Responsible for the
development of LNB and
VSAT products
� Has been with GIHL for
more than a decade
� Has more than 27 years of
experience in quality
control, production
engineering and operations
� Responsible for overall
operations and strategic
development of the EMS
business
� Has over 21 years of
management experience in
finance, strategy and
business development
across various industries
� Responsible for finance and
accounting, corporate
development, and investor
relations
Experienced management team with in-depth industry knowledge and expertise
17
Revenue Breakdown (Proforma) SatCom Revenue Mix
Profit before Income Tax (Proforma) Revenue Breakdown by Geography
13
2
16
8.7%
*1.8%
11.7%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0
2
4
6
8
10
12
14
16
18
FY2009 FY2010 FY2011Profit before Income Tax PBT Margin
S$ mn
Summary of Financials
Source: Unaudited proforma consolidated financial statements of the Enlarged Group for the financial years ended 31 December 2009, 2010 and 2011.
105
73 79
45
4559
0
20
40
60
80
100
120
140
160
FY2009 FY2010 FY2011
Contract Manufacturing SatCom
118
138150
90%
2%
8%
FY2009
84%
8%
8%
FY2010
84%
10%
6%
FY2011
68%
15%
17%
FY2009
64%
28%
8%FY2010
65%
26%
9%
FY2011
DBS Fibre VSAT
America Europe Rest of the World
S$ mn
* PBIT and EPS are stated net of a one‐off S$11.7m cost associated with past services received. Without this one‐off cost, PBIT
would have been S$13.8m and EPS would have been 5.6 cents
18
Balance Sheet Highlights as at 31 December 2011 (Proforma)
Summary of Financials
Source: Unaudited proforma consolidated financial statements of the Enlarged Group for the financial years ended 31 December 2009, 2010 and 2011.
S$ mn
Key Assets
Cash and bank balances 29
Inventories 25
Goodwill on consolidation 21
Trade receivables 16
Key Liabilities
Other payables 32
Trade payables 14
Equity
Share capital 44
19
� GIGL operates in a fast growing and attractive market
� GIGL is expanding its business through product innovation, customer acquisition and regional expansion
� GIGL enjoys potential synergies through this RTO (e.g. supply chain coordination, sharing of costs and new platform to venture into new industries)
which helps in product offering, control on supply chain, increase margins and expansion into new geographies
� GIGL possesses a strong and proven R&D capability (30+ patents, pioneered various products over the last 20 years) – first to market in Fibre
� GIGL is managed by an experienced team (many in the management team have more than 20 years’ experience in respective fields, and most of the
technical staff are engineers)
Summary
� The core businesses of GIGL are experiencing robust growth. The flagship product for DBS provides a solid base while VSAT and Fibre (higher margins
and higher revenue growth) provides growth
� New products (viz. IP Digital LNB’s, HDMI distribution Optical, Wireless IP distribution, VSAT ODU’s) are being developed and launched. These products
can drive growth for GIGL – either by expanding the market, and/or by tapping the replacement market for existing consumers (e.g. when IP digital
LNB’s replace existing LNB’s)
� GIGL is undertaking customer acquisition and regional expansion into Asia Pacific and Latin America (already made some inroads into these 2 regions)
� GIGL intends to add ‘bolt‐on’ businesses that have the potential to grow the business in complementary area’s (through further acquisitions)
– Announced the acquisition of The Waveguide Solution Limited (“TWS”), a UK microwave waveguide transmission specialist, for £4.75 mn (c. S$9.27
mn) on 4 August 2012;
– With manufacturing facilities in Newton Abbott, Devon, TWS is an approved military and marine supplier having a prestigious list of customers; and
– Besides being earnings accretive, the acquisition of TWS offers synergies as well as access to new sub‐sectors in the SatCom industry for GIGL.
Why should I invest in Global Invacom Group Limited as a business?Why should I invest in Global Invacom Group Limited as a business?
What are the growth drivers for Global Invacom Group Limited?What are the growth drivers for Global Invacom Group Limited?
20
Valuation
Name
Country of
Listing
Share
Price
Local
CCY
52-week
Mkt Cap
US$m
EV
US$m
P/E
EV/
EBITDA P/B EV/Sales(1) EV/EBITDA(1) P/E(1)
High Low Current Current Current CY12E CY13E CY14E CY12E CY13E CY14E CY12E CY13E CY14E
SGX-Listed Peers in Contract Manufacturing
Huan Hsin Holdings Singapore 0.1 0.20 0.05 19 56 ‐0.8x 8.4x 0.1x NA NA NA NA NA NA NA NA NA
Valuetronics Holdings Singapore 0.2 0.26 0.19 61 29 4.3x 1.7x 1.0x 0.1x 0.1x NA 1.1x 1.0x NA 3.4x 3.2x NA
CEI Contract Manufacturing Singapore 0.11 0.12 0.09 31 42 10.4x 6.9x 1.2x NA NA NA NA NA NA NA NA NA
Advanced Integrated
Manufacturing Corp. Singapore 0.07 0.14 0.06 36 37 5.7x 4.2x 1.0x NA NA NA NA NA NA NA NA NA
Mean 4.9x 5.3x 0.8x 0.1x 0.1x NA 1.1x 1.0x NA 3.4x 3.2x NA
Median 5.0x 5.5x 1.0x 0.1x 0.1x NA 1.1x 1.0x NA 3.4x 3.2x NA
Listed Peers in Satellite Equipment
CAlAmp Corp. US 7.39 8.42 2.61 213 211 58.2x 28.5x 9.1x 1.3x 1.2x NA 11.0x 9.3x NA 13.8x 11.3x NA
Microelectronics Technology Taiwan 11.25 12.80 4.60 155 191 ‐2.5x ‐3.6x 1.6x NA NA NA NA NA NA ‐4.5x 6.8x 5.7x
Prime Electronics & Satellites Taiwan 25.50 26.55 21.17 138 142 8.9x 5.1x 1.4x 0.3x 0.3x NA 5.0x 4.9x NA 8.8x 8.6x NA
Wistron NeWeb Corp. Taiwan 59.60 89.80 42.75 575 559 10.5x 5.5x 1.9x 0.5x 0.4x 0.4x 5.8x 5.4x 5.0x 11.8x 11.3x 10.9x
Zinwell Corp. Taiwan 28.80 40.80 28.05 305 185 11.4x 5.1x 1.5x 0.4x NA NA NA NA NA 10.7x 10.7x NA
Mean 17.3x 8.1x 3.1x 0.6x 0.7x 0.4x 7.3x 6.5x 5.0x 8.1x 9.7x 8.3x
Median 10.5x 5.1x 1.6x 0.4x 0.4x 0.4x 5.8x 5.4x 5.0x 10.7x 10.7x 8.3x
Global Invacom Group
LimitedSingapore 0.3087 0.43 0.29 57 42 6.0x 2.6x 1.3x NA NA NA NA NA NA NA NA NA
Source: Factset as at 6th August 2012.
Note (1): Based on market consensus estimates.