*For all investors investing up to an issue volume of 75.000 €, a company valuation of 19.000.000 € instead of 21.000.000 € applies.

It has been clear since 2005 that the SIM card will be replaced by the eSIM. This means that almost all of today's smartphones would have to be replaced sooner rather than later, as only very few smartphones already support the eSIM standard. This is a huge financial burden for smartphone users and also harms the environment.

With eSIM.me, we are giving smartphones, that are already in use, a longer life and are accelerating the global introduction of environmentally friendly eSIM technology. Android devices can solely be upgraded with eSIM functionality with our eSIM.me. This is good for the customer and our planet. Removable eSIM and dual eSIM on Android can also solely be achieved by eSIM.me.

The eSIM.me Card has been ordered and delivered in over 120 countries so far - our customers are primarily travelers and technology enthusiasts, who want to save on roaming costs when traveling or want to add a new feature to their flagship smartphone or need to experience that eSIM.me indeed works. In addition to the until now dominant B2C business, our B2B business is also growing.

By offering eSIM profiles, we materialize the extensive traffic of our eSIM.me homepage, increase the footprint in the eSIM industry and diversify the business model.

TelcoVillage is an owner-managed, German mobile core network operator and constant innovator in telecommunications. After the loss-making years 2019 & 2020, 2021 ended with a positive EBITDA and for 2022 we can report a profit of 290.000 €..

TelcoVillage GmbH was founded in 2005 as Smilous GmbH. As a family-owned telecommunications company, we have had to continually adapt our business models over the years. Our largest and most successful transformation took place in the past four years: from the almost invisible B2B problem solver in the background to the globally sought-after B2C brand with eSIM.me. The cost-intensive development of eSIM.me and MNiC (Mobile Numbers in the Cloud) led to loss-making years in 2019 & 2020 and a black zero in 2021. The final turnaround took place in 2022 with a positive annual result of EUR 290 thousand! The financing round serves to scale the existing business and to launch new products such as the eSIM profiles and the MNiC app.

eSIM.me is the only way worldwide to upgrade an existing smartphone with eSIM functionality, so that the switch to eSIM can be made in a resource-saving manner. This saves the user money and is good for the environment.

The operation of eSIM.me is very simple, so that every user can retrofit their Android smartphone without further knowledge. Since the eSIM.me card was designed in the form of a SIM card, it can be inserted into the SIM card slot as you are used to with a normal SIM card. Plug & play!

eSIM technology is digitizing the entire SIM card industry and promises potentially large cost savings for mobile network operators (MNO), e.g. in sales and shipping. However, as long as the market share of eSIM-enabled devices remains small, the corresponding investments are not worthwhile.

eSIM.me offers the possibility of making an incredible number of end devices eSIM-capable ad hoc and thus enormously accelerating the transition to the eSIM-only age, which benefits end customers, MNOs and the environment.

To date, eSIM.me has mainly generated its revenue from the sale of eSIM.me cards to end customers.

eSIM.me consists of the eSIM.me Card and the eSIM.me App. The eSIM.me Card is hardware that looks like a SIM card. In fact, however, it is a storage medium for eSIM profiles that runs on our proprietary firmware. The eSIM.me App is necessary in order to be able to install and manage eSIM profiles on the eSIM.me Card - no app is required to read an activated eSIM profile. This means that any end device with a SIM card slot can read the eSIM.me Card like a normal SIM card. This makes it possible to use end devices with eSIM profiles that were never intended for this, such as Mifi routers or laptops.

eSIM.me is not only superior to regular SIM cards, but also to built-in eSIM chips, because it combines the advantages of both worlds: full eSIM functionality + flexibility of a SIM card. We call this feature removable eSIM.

Many Android smartphones also support the DUAL eSIM feature, which means that two eSIM profiles can be actively used at the same time. Either the smartphone already has eSIM from the factory or, in the case of a DUAL SIM smartphone, both SIM card slots are compatible with eSIM.me.

As a result, eSIM.me is not only interesting for users who can only get eSIM functionality with eSIM.me, but also for those who want the best eSIM product on the market.

So far there is no product in the world that is directly comparable to the eSIM.me Card. In the broadest sense, eSIM.me competes with eSIM-enabled smartphones ex works. However, we already have many customers today, who already have an eSIM-enabled device and absolutely want to have removable and/or DUAL eSIM for their smartphone and that is only available with eSIM.me.

By contrast, there is competition in the sale of eSIM profiles. The other providers of eSIM profiles do not have their own infrastructure and are only resellers with a large marketing effort. On the contrary, thanks to our assets as a mobile network operator, we can create more flexible offers and operate with higher margins. Furthermore, we can use the traffic from eSIM.me to sell eSIM profiles and leverage further synergies in SEO through the additional content of the eSIM profiles.

We generate another unique selling proposition through our eSIM.me customers. Due to the existing customer relationships and the technical processes in them, we have a unique sales channel for the eSIM profiles of MNOs. For example, we can see in our database when an eSIM profile is deactivated and in this case, unlike the MNO whose profile has been deactivated, we can send a message to our customer that can serve a wide variety of purposes (marketing, sales, surveys, etc.).

We currently generate our revenue primarily from the sale of eSIM.me Cards. The majority of the turnover is accounted for by worldwide sales (so far in more than 120 countries) to the end customer via our online shop. However, the B2B2C business with resellers is catching up recently.

In production, an eSIM.me Card currently costs us around €2. We sell for at least €23 via our online shop and thus achieve a contribution margin of at least 92% or a mark-up margin of at least 1,150%. The Omni15 variant of the eSIM.me Card, which is sold for €69.95, has a contribution margin of 97% and a mark-up margin of 3,400%. Overall, there is still plenty of room for future price reductions, which are currently not (yet) planned.

We are constantly entering into new partnerships with local resellers. The biggest advantage here is that the delivery times in certain regions are significantly reduced and the eSIM.me Card gets sold at physical points of sale (POS) - thus we leverage global marketing and sales activities at the expense of the margin. For wholesale prices, we grant discounts from 39.88% (for 100 cards) to 71.94% (for 50,000 cards).

The second revenue stream from eSIM.me is now the sale of eSIM profiles under the XA.AX brand. These are offered directly on the eSIM.me homepage and achieve contribution margins of between 20% and 60%.

We addressed the world market with the eSIM.me Card from the start, because the problem solved by eSIM.me is global and more acute in some countries than in others. Anyone can easily order an eSIM.me Card via our online shop - however, delivery to some destinations takes a relatively long time and is also partially unreliable. That is why we are constantly expanding our regional sales partnerships. So far we have delivered eSIM.me cards to more than 177 destinations (= countries and overseas territories or similar). The eSIM.me app has been downloaded over 260,000 times to date and the eSIM.me homepage has had over 6 million visitors.

The current version of the eSIM.me Card is only compatible with Android smartphones. There are currently 2.5 billion Android smartphones worldwide, which corresponds to the Total Addressable Market (TAM). The successor to the current eSIM.me Card, the eSIM.me Card 2.0, will work device-independently and thus increase the TAM.

So far, our target groups for eSIM.me Cards have primarily been travelers and technology enthusiasts.

Our eSIM profiles are device-independent and therefore work on all end devices that have eSIM functionality. As a result, we can serve the global market for eSIM profiles, which is expected to grow by 15.7% per year until 2028 (excluding the impact of eSIM.me). The target group for our eSIM profiles is primarily travellers. As soon as the eSIM.me store is populated with local MNO offers, the target group will expand to include local users.

TelcoVillage's operating cash flow is already positive and it should remain like this so that our ability to act and our independence are not endangered. The capital is therefore primarily used to initiate even faster growth. The following projects are to be implemented (sorted in descending order of importance):

• The development of the eSIM.me Card 2.0, which will be compatible with all end devices, including iPhones and IoT devices, and the Workside/XA.AX App (B2B & B2C MNiC-VoIP-Apps). We will buy a large part of the development capacities externally.
• Marketing activities for eSIM.me (tech & travel influencer marketing, improve website SEO, visits to trade fairs, etc.)
• Website creation for Workside-/Xa.aX-App
• Increase in inventory of eSIM.me Cards & eSIM profiles
• Establishment of a customer support team with temporary workers in Berlin (1 FTE)
• Personnel reinforcement in business development (2 FTE), marketing (1 FTE), R&D (2 FTE)

If the desired volume cannot be acquired in the digital financing round, this only means that some of the mentioned planned uses can be implemented later than planned; just when the cash flow will allow it.

Mobile Numbers in the Cloud (MNiC):

Until now, the world of mobile communications has meant that a mobile phone number must have a SIM card. As a result, your own flexibility is severely restricted: roaming costs abroad; limited privacy, as one's own cell phone number is used for everything (private, work, delivery service, etc.); a maximum of two mobile phone numbers can be active on one end device at the same time (dual SIM).

With the decoupling of the mobile phone number from the SIM card, the problems mentioned above are solved. TelcoVillage's Mobile Numbers in the Cloud (MNiC) are the only fully-fledged (Voice + SMS) MNiC in Germany.

The MNiC are very easy to integrate into different environments (apps, web apps, APIs, etc.) and platforms (smartphones, PCs, smart speakers, IoT devices, etc.) and thus generate new markets.

Our MNiC with the prefix number 015888 are already live and are already being used by the first customers. We have almost completed the development of our own MNiC VoIP&SMSoIP app, which gets sold directly to end customers. In addition, the market penetration of MNiC is leveraged via resellers. The contract negotiations with two international resellers are already on the home stretch.

The MNiC hold enormous potential. In the business plan, we explain the technical background, market conditions and potential and provide further application examples. We cordially invite you to find out more about our MNiC there - it's worth it!

• Monthly profitability in August 2021
• Launch of eSIM.me in November 2021
• Black zero result in fiscal year 2021 (EBITDA > 0)
• Successful global establishment of eSIM.me in 2022
• November 2022 MNiC (Mobile Numbers in the Cloud) realized in Germany
• Profit of EUR 290 thousand in the 2022 financial year + sales > EUR 1,000,000
• March 2023 LTE Cat 1 DOT Proof of Concept

• Scalable business model with a high return and manageable risk
• Perfect timing for an investment -> The eSIM industry is still very young and has huge growth ahead of it. eSIM.me is already optimally positioned to achieve a dominant position.
• The eSIM.me solves a central and global problem of the lack of compatibility of existing smartphones with the new eSIM standard
• Sustainable investment
• Experienced founding and management team with a track record of implemented projects and sales

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The goals from the first round of financing were not achieved, why?

• The goals were not achieved because the funds on which the planning was based (500.000 €) were not raised in full (95.500 €)

• Despite the limited capital TelcoVillage has successfully launched eSIM.me (and prioritized over the other products (MNiC & IoT DOT))

• Overly optimistic assessment regarding the interconnections with the other network operators (in relation to the MNiC) ⇒ Nevertheless, the interconnection has taken place and is technically LIVE

What is the capital used for? Why don't you raise capital from the bank?

• Perfect time to get in now, the capital is used to accelerate the scaling of the eSIM.me

• The house bank is invested as much as it is allowed to and will continue to support TelcoVillage

• Further bankability has not yet been achieved due to the negative equity

Long sales cycles in the B2B telecommunications market lead to high risks. How do you intend to minimize these risks?

• Yes, in the B2B business the sales cycles are long, so TelcoVillage focuses not only on the B2B business but also on the B2C business, which has been proven to scale (eSIM.me)

The managing director is the carrier of the know-how, what happens in the event of a failure?

• The risk is minimized because the products are already developed and ready for the market and because it is now primarily a matter of sales ⇒ Nothing would stand in the way of scaling in this case either

• The risk of commercial know-how has already been spread over several shoulders.

• Technological know-how has also been shared in the best possible way with the CTO, Thrasyvoulos