Onmobile Global Limited · NSE:ONMOBILE
Onmobile Global — Investor Presentation (March 2011)
49 slides from Onmobile Global's investor presentation, March 2011
Slide 1: Pioneer in global Mobile Value Added Services & leader in Emerging Markets
Pioneer in global Mobile Value Added Services (MVAS) & leader in Emerging Markets Investor Presentation __________________________________ March 2011 1 OnMobile Proprietary & Confidential
Slide 2: OnMobile Proprietary & Confidential
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Slide 3: OnMobile Proprietary & Confidential
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Slide 4: OnMobile Proprietary & Confidential
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Slide 5: OnMobile Proprietary & Confidential
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Slide 6: OnMobile Proprietary & Confidential
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Slide 7: Agenda
1. What is MVAS? 2. Introduction to OnMobile 3. Products & Customers 4. Financial summary 7 OnMobile Proprietary & Confidential
Slide 8: MVAS = Convergence of giant Industries
MVAS = Convergence of 3 giant Industries Time Warner, EMI, SONY Yahoo, Google, AOL, Media & Content Internet BBC, Disney, ESPN, Expedia, Monster, Facebook, TV, Radio, Publishing Portals, E Commerce Cricinfo, MTV MySpace, Goal.com, Ebay Music, Movies, Video, Verticals, P2P, UGC Print. . . MVAS Mobile
Slide 9: What is the addressable MVAS market?
What is the addressable MVAS market? Texting (Person to person SMS) Connectivity Roaming based Data Access (passive pipe to internet) Telco branded Telco billed Addressable market for OnMobile (Walled garden) Ring Back Tones (“RBT”) Voice Portals “Data” / Mobile Person to Application (“P
Slide 10: MVAS is at an early stage of huge growth
MVAS is at an early stage of huge growth - MVAS trails the net in evolution - MVAS will be much larger than the net VAS INTERNET 1995 1999 TODAY 10 OnMobile Proprietary & Confidential
Slide 11: Inflection point is not far away
Inflection point is not far away 2,000 1,600 Desktop internet users (m)e r s (m) 1,200 ne t us Int erUsers 800 Mobile internet users 400 0 2007E 2008E 2009E 2010E 2011E 2012E 2013E 2014E 2015E Mobile internet users Desktop internet users Source: Morgan Stanley Mary Meeker report, Dec 2009 11 OnMobil
Slide 12: Seismic shift underway in telecom industry
Seismic shift underway in telecom industry ARPU Trends ?? 20% 100 MVAS Entertainment Connectivity • Commerce • P2P Calls • Utility 90% • Lifestyle • P2P SMS 80% • Internet Access • ??? 10% TODAY T + 10 Years Emerging market telcos have taken lead in building out their walled gardens, and are well en
Slide 13: Compelling forces driving rapid growth in Telco MVAS
Compelling forces driving rapid growth in Telco MVAS Handset OEMs Using bundled/embedded MVAS as differentiator to attract new handset buyers Build in continuity of relationship post-sale with consumers, upgrade sales Content Owners Telecom operators Music labels are focusing on digital sales,
Slide 14: Agenda
1. What is VAS? 2. Introduction to OnMobile 3. Products & Customers 4. Financial summary 14 OnMobile Proprietary & Confidential
Slide 15: OnMobile At a glance
OnMobile “At a glance” Founded in 2000 History Incubated by Infosys Key services/ In - Network: Ring Back Tones, Mobile Social Networking, Video 3G, Cloud Services, Network Address Book, Phone Backup, Voice Portal, Sports, Music, User Generated Content, Churn Management & Business intelligence
Slide 16: OnMobile Highlights
OnMobile Highlights Market leader in India with a reach of over 800m subscribers and contracts with majority 1 Market leader in MVAS space of telecom operators Global reach of over 1bn subscribers in more than 52 countries Unsurpassed breadth of MVAS products and leading OnMobile’s offerings c
Slide 17: OnMobile differentiators and competitive edge
OnMobile differentiators and competitive edge • Breadth of product lines in VAS, ability to cross-sell and piggyback • Product innovation, track record • First-mover advantage in India, emerging markets • Installed base of equipment which is heavily integrated into telco network and OSS-BSS • Operat
Slide 18: Blue chip customer base
Blue chip customer base Media Houses M-Commerce ` Telecom Operators Data`Services Phone backup/Address Book Customers 18 OnMobile Proprietary & Confidential
Slide 19: Proven track record with telecom operators
Proven track record with telecom operators (customers) Market reach 1 billion mobile subscribers across 43 countries Unique users 105 million in Dec 10 Client experiences indicate that monthly RBT revenues surpass that of P2P SMS making RBT the highest revenue contributor 20%+ market penetration; 11
Slide 20: Seasoned Management Team & Board
Seasoned Management Team & Board Strong Top Management Board of Directors ● Master of Business Administration degree from Harvard ● MBA, Wharton School of Business; Bachelor of Technology, IIT Mumbai Business School; Bachelor of Science from the University of ● Over two decades of experience in IT,
Slide 21: Leading franchise in India MVAS market
Leading franchise in India MVAS market 100% = INR 122,000 M = US $2.7 bn 21% Alerts* P2P SMS 28% 7% P2A SMS GPRS & Data 17% 22% Voice Portal* MVAS 39% RBT* 55% 7% WAP* 4% Misc FY 10 – 11 Overall Market * = products addressed by OnMobile Based on company estimates and industry data 21 OnMobile Propri
Slide 22: Dominant share of RBT Market in India
Dominant share of RBT Market in India RBT Market Share IMI Operator RBT Vendor Mobile Vodafone OnMobile 11% IDEA OnMobile Huawei Airtel 11% South OnMobile Rest of India Comviva Reliance Huawei Tata Comviva OnMobile CDMA Huawei / OnMobile 16% 62% Docomo OnMobile BSNL South + East OnMobile North + Wes
Slide 23: Rapidly Expanding International Presence
Rapidly Expanding International Presence UK CANADA NETHERLANDS POLAND RUSSIA GERMANY BELGIUM CZ REPUBLIC FRANCE ROMANIA USA AUSTRIA SPAIN ITALY TURKEY PAKISTAN CHINA CYPRUS JORDAN BAHRAIN MEXICO U.A.E BANGLADESH NICARAGUA EGYPT INDIA GUATEMALA EL SALVADOR THAILAND SENEGAL MALI PANAMA MALAYSIA VENEZU
Slide 24: Telefonica LAM (TISA) = Largest international Foray from OnMobile
Telefonica LAM (TISA) = Largest international Foray from OnMobile Contract •6 years exclusive to OnMobile for 13 countries, start = go – live date in the last country •25 – 30 OnMobile products incl. RBT, Mobile Social Networking, MRadio, Futbol, Dating, Voice Search, Customer lifecycle Management,
Slide 25: Recent awards
Recent awards Arvind Rao, Chairman, CEO and Co-founder was awarded the prestigious Dataquest 'Path breaker of the Year 2009' award in recognition of his contribution in the field of Telecom and Infotech, in creating the biggest telecom VAS company in India. For the third year in a row, we have b
Slide 26: Agenda
1. What is VAS? 2. Introduction to OnMobile 3. Products & Customers 4. Financial summary 26 OnMobile Proprietary & Confidential
Slide 27: OnMobile MVAS product lines
OnMobile MVAS product lines Consumer VAS Portal In-call Solutions Data Products ● Music & Entertainment ● Ring Back Tone (“RBT”), adRBT ● Phone Backup ● Sports & Live Streaming ● Reverse RBT ● Network Address Book ● Infotainment ● Missed Call Alert ● Phonebook 2.0 ● User generated content ● Voice SM
Slide 28: In-network deployments in major telcos worldwide
In-network deployments in major telcos worldwide = sticky asset with unlimited software driven growth potential Telephony Apps SS7, PRI, SIP/RTP Differentiated applications for both corporate and consumer markets OnMobile Mobile Positioning Network Deployment Center Multimodal Architecture Monitorin
Slide 29: Proven track record in new product innovation
Proven track record in new product innovation 2000-2004 2005 2006 2007 2008 2009 2010 ● Platform – ● Support for ● Pricing ● Content ● Cross- ● AdRBT Trial ● Karaophone Voice portal more innovations: Discovery Operator * to Subscription, Copy ● Four new ● Churn 1.0 (English) languages Not Enough ● M
Slide 30: Customers – 100% contract renewal record over 9 yrs
Customers – 100% contract renewal record over 9 yrs SEGMENTS EXAMPLES Global • Vodafone telcos • Telefonica • Orange • DTAG Regional • Airtel telcos • Orascom • Singtel Single-country • IDEA telcos • Esia • Maxis 30
Slide 31: Agenda
Agenda 1. What is VAS? 2. Introduction to OnMobile 3. Products & Customers 4. Financial summary 31 OnMobile Proprietary & Confidential
Slide 32: Financials summary - INR
Financials summary - INR 32 OnMobile Proprietary & Confidential
Slide 33: Rolling Quarters Financials
Rolling 4 Quarters Financials Rs Mn 4 Quarters 4 Quarters Rs. Mn %Gr ending Mar 10 ending Mar 11 Net Revenue 4,544 5,372 18.2% COGS 1,323 1,303 -1.5% Gross Profit 3,221 4,069 26.3% Gross Margin 71% 75.7% Total Opex 2,390 2,863 19.8% EBITDA 831 1,206 45.1% 18% 22.4% Depreciation 441 567 28.6% Operati
Slide 34: FY 2010-11 Investment & Core
FY 2010-11 Investment & Core Rs Mn Core TOTAL Business Investments Net Revenue 5,372 5,077 295 COGS 1,303 1,247 56 Gross Profit 4,069 3,829 240 Gross Margin 76% 75% Total Opex 2,863 2,119 744 EBITDA 1,206 1,710 (504) 22% 34% Depreciation 567 418 149 Operating Profit 639 1,292 (653) % 12% 25% Other I
Slide 35: Core Business – Margin Trends
Core Business – Margin Trends 90% 80% 70% 60% 50% GM 40% EBITDA 30% OP 20% 10% 0% 35 OnMobile Proprietary & Confidential
Slide 36: Balance Sheet
Balance Sheet INR (Mn) 31st Mar 10 31st Mar 11 Stockholders' Equity 586 590 Retained Earnings 6,810 7,732 Current Liabilities 2,531 2,024 Other Liabilities 1,901 853 Total Liabilities & Equity 11,828 11,199 Goodwill 2,046 2,046 Property & Equipment 3,387 3,921 Investments 677 542 Current Assets 5,71
Slide 37: Cash Flow Statement
Cash Flow Statement Rs Mn 2009-10 2010-11 Cash flow from operating activities Net Profit before taxation 616 1,079 Depreciation & Amortisation/ Forex 295 759 Changes in current assets / liabilities (23) (398) Income taxes paid during the year (388) (343) Net cash generated from operating activities
Slide 38: Financials summary – USD
Financials summary – USD 38 OnMobile Proprietary & Confidential
Slide 39: Rolling Quarters
Rolling 4 Quarters USD Mn 4 Quarters 4 Quarters Gr % ending Mar 10 ending Mar 11 Net Revenue 99 117 18.2% COGS 29 28 -1.5% Gross Profit 70 88 26.3% Gross Margin 71% 76% Total Opex 52 62 19.8% EBITDA 18 26 45.1% 18% 22% Depreciation 10 12 28.6% Operating Profit 8 14 63.7% % 9% 12% Other Income / (Exp
Slide 40: FY 2010-11 Investment & Core
FY 2010-11 Investment & Core USD Mn Core TOTAL Business Investments Net Revenue 117 110 6 COGS 28 27 1 Gross Profit 88 83 5 Gross Margin 76% 75% Total Opex 62 46 16 EBITDA 26.2 37.2 (11.0) 22% 34% Depreciation 12 9 3 Operating Profit 14 28 (14) % 12% 25% Other Income / (Exp) 10 Profit before Tax 23
Slide 41: Balance Sheet
Balance Sheet USD (Mn) 31st Mar 10 31st Mar 11 Stockholders' Equity 13 13 Retained Earnings 151 172 Current Liabilities 56 45 Other Liabilities 42 19 Total Liabilities & Equity 263 249 Goodwill 45 45 Property & Equipment 75 87 Investments 15 12 Current Assets 127 104 Total Assets 263 249 Note: Conve
Slide 42: Cash Flow Statement
Cash Flow Statement USD Mn 2009-10 2010-11 Cash flow from operating activities Net Profit before taxation 13 23 Depreciation & Amortisation/ Forex 6 17 Changes in current assets / liabilities (1) (9) Income taxes paid during the year (8) (7) Net cash generated from operating activities (A) 11 24 Net
Slide 43: Key Parameters
Key Parameters 1 FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11 India Revenue 100% 100% 100% 95% 85% 77% 75% 73% Overseas Revenue 0% 5% 15% 23% 25% 27% Revenue From top 5 Customers 100% 100% 95% 86% 77% 70% 72% 70% Number of R&D Sites 1 1 1 2 3 4 4 6 Number of Offices Worldw
Slide 44: Key Parameters
Key Parameters 2 KPI Jun’09 Sep’09 D ec’09 M ar'10 Jun’10 Sep’10 D ec’10 M ar'11 Subscriber Reach (Mn) 630 687 673 727 786 1,016 1,151 1,230 Unique Users (Mn) 64 71 77 83 86 88 105 100 Active RBT Users (Mn) 37 40 42 44 46 49 52 57 Number of Employees 1,154 1,223 1,209 1,236 1,271 1,241 1,281 1,344 C
Slide 45: Ratios for last 5 years
Ratios for last 5 years………………… FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11 Balance Sheet Ratios Current Ratio 1.71 1.39 1.75 1.59 2.01 Capital Expenditure/Total Income* 20% 32% 14% 9% 12% Depreciation/ Average Gross Block* 31% 27% 27% 21% 20% Return Ratios RONW* 27% 15% 13% 6% 11% RONW (excluding i
Slide 46: Shareholding – OGL India
Shareholding – OGL India Shareholders of OGL as on May 06, 2011(Grouped) Shareholder Name Shares % OnMobile Systems Inc. (OMSI) 40,869,190 34.66 Promoter and group (AR + MR) 16,199,448 13.74 Employees of OGL 3,201,734 2.72 Capital Group 8,124,110 6.89 ICICI Prudential 5,496,900 4.66 Amansa Investmen
Slide 47: OM Stock Performance- Indexed
OM Stock Performance- Indexed 300.0 200.0 NIFTY Airtel Idea RCom Motricity Buongiorno 100.0 OnMobile - 47
Slide 48: India and Global Offices
India and Global Offices Registered Office Regional Headquarters & Development Centres South Africa #26, Bannerghatta Road, OnMobile Global Limited J. P. Nagar, Phase III, France Central Office Park No. 3 Bangalore - 560 076 – INDIA Voxmobili SA 257, Jean Avenue, Centurion, Ph: +9180 41802500 36, ru
Slide 49: Thank You
THANK YOU OnMobile Proprietary & Confidential