5g Networks Limited · ASX:5GN
5g Networks — Investor Presentation (April 2008)
15 slides from 5g Networks's investor presentation, Apr 30, 2008
Slide 1: Acquisition of DBMS from Verisign
Acquisition of DBMS from Verisign C t the Creates th #1 global l b l digital di it l bbrandd services i company April 2008
Slide 2: DBMS Acquisition Summary
DBMS Acquisition Summary Melbourne IT has acquired the assets of VeriSign, Inc.'s Digital Brand Management Services (DBMS) division Combined with MLB’s existing Corporate Brand Services (CBS) division, this is expected to create the #1 global digital brand services company Deal specifics Con
Slide 3: DBMS Acquisition Summary
DBMS Acquisition Summary This acquisition is expected to make Melbourne IT a global leader in: Managing and protecting digital brands Optimising the performance of digital brands Part of VeriSign, Inc. leading global provider of internet infrastructure services Historically strong financial
Slide 4: DBMS Acquisition Summary
DBMS Acquisition Summary Strong global presence Established sales channels 8 offices USA - Mountain View, Dulles, New York Sweden – Malmo UK – London Germany – Wiesbaden France – Valbonne South Africa – Cape Town Outstanding product & service capabilities Sophisticated monitori
Slide 5: Melbourne IT Experience in Digital Brands
Melbourne IT Experience p in Digital g Brands Melbourne IT CBS division - strong track record of growth More than 20% growth in revenue year on year since 2005 More than 80 staff across 9 offices More than 150,000 digital brands under management Strong portfolio of 500+ 500 clients includi
Slide 6: Combined Business – The Market Leader
Combined Business – The Market Leader VeriSign VeriSign’ss DBMS business will be integrated with Melbourne IT IT’ss Corporate Brand Services division + = Digital Brand Management Services Melbourne IT Digital Brand Services is expected to have: 2,500+ , ppremium enterprise p clients > 450,00
Slide 7: Combined Business – Product & Support Capabilities
Combined Business – Product & Support Capabilities Accelerated product development Best practice technical and infrastructure heritage Best practice digital brand security services Sophisticated monitoring and analysis services Dedicated recovery teams Enhanced web site optimisation & pe
Slide 8: Financial Contribution to Melbourne IT
Financial Contribution to Melbourne IT DBMS Contribution in 2008 (8 months) Neutral contribution in FY2008 (after expensing of integration and transition costs) t ) One-off integration & transition costs of approximately US$2.8m Investment in capex of approximately US$1.5m US$1 5m Establis
Slide 9: Strong Balance Sheet Maintained
Strong Balance Sheet Maintained Approximate net debt of US$40m post the transaction Interest coverage estimated at >18 times combined FY2008 EBITDA Deal funding through a 5 year USD facility with NAB USD debt provides low cost of funding of LIBOR plus margin Appropriate given existing and
Slide 10: Strategic Rationale – Digital Brands in Demand
Strategic Rationale – Digital Brands in Demand Digital brand services is an attractive growth segment Strong growth in domains - 28% in 2007 153 million illi domains d i worldwide ld id 58 million ccTLDs Primary driver of brand protection Internationalised Domain Names (IDNs) Growth Ab
Slide 11: Strategic Rationale – Digital Brands Booming
Strategic Rationale – Digital Brands Booming Growth G th off di digital it l bbrands d eclipsing li i offline ffli bbrands d (Interbrand/BusinessWeek: Best Global Brands 2007) Top 50 global brands are valued at $930b Some of the fastest growing brand values in 2007 were digital brands: Googl
Slide 12: Strategic Rationale – Online Business Threats
Strategic Rationale – Online Business Threats Vulnerability of brands to malicious attack is rising In 2007, cybersquatting complaints rose 18% (World Intellectual Property Org, Mar 2008 ) More than 320,000 320 000 phishing fraud sites reported in 2007 (Anti-Phishing (A ti Phi hi WWorking ki G
Slide 13: Executive Summary
Executive Summary Acquisition positions Melbourne IT as #1 global digital brand services company Successful track record of acquiring and integrating companies Demonstrated abilityy to manage, g , operate p and ggrow within the international environment O Over e thee pas past 5 years yea s w
Slide 14: Creates #1 Global Digital Brand Services Company
Creates #1 Global Digital Brand Services Company Global leader in digital brand services - 450,000+ , domains - 2,500+ customers Global leader in monitoring and brand protection Global leader in web traffic management g & optimisation 14
Slide 15: Questions?
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