Touchpoint Group Holdings, Inc. · OTC:TGHI
Touchpoint — One Horizon Group — Investor Presentation (February 2015)
29 slides from Touchpoint's investor presentation, Feb 5, 2015
Slide 1: optimized VoIP for operators and carriers
Slide 2: Safe harbor notice
safe harbor notice. 9 horizon This presentation contains forward-looking statements and management may make additional forward-looking statements in response to your questions. Such written and oral disclosures are made pursuant to the Safe Harbor provision of the Private Securities Litigation Refor
Slide 3: Equity snapshot
equity snapshot. 9 horizon NASDAQ OHGI Share Price 1/29/15 $1.70 Market Cap 1/29/15 $81.8M Fully Diluted Shares Outstanding 35.4M YTD FY 2014 Revenue $4.1M YTD FY 2014 Net Income After Tax ($1.3) M FY 2013 Revenue $9.1M FY 2013 Net Income After Tax ($0.7) M
Slide 4: Who we are. What we do.
y who we are. what we do. 9 horizon One Horizon Group provides the world’s first, carrier-grade, mobile VoIP solution. Using our proprietary SmartPacket™ technology platform, we can improve the efficiency by which voice signals are transmitted by radio over the Internet resulting in a 10x reduction
Slide 5: The market opportunity
the market opportunity. 9 smartphone adoption rates climb in target markets horizon In MM of units > 67% of all handsets shipped he * In 2013, the total number of smartphones 1,600 Ae shipped around the globe (1,004.2 million) 7 will surpass feature phones for the first time 1,400 oe aa! = handsets
Slide 6: Why do carriers care?
é ) why do carriers care? ma horizon * Operators and carriers are at a crossroads and are being threatened by third-party, Over the Top (“OTT”) apps. * 100’s of millions of subscribers routinely circumvent operators’ platforms. * Carriers are losing control of voice and text functions along with bil
Slide 7: A smartphone explosion could lead to a network implosion
a smartphone explosion could lead to a network implosion. Smart phones consume 24X more data than feature phones Tablets consumes 120X more data than smartphones ... what happens to network data? .. what happens to call service quality? ... what happens to telecom operators’ capex requirements? ¢ Se
Slide 8: The Horizon VoIP call platform solution
FY the horizon VoIP call platform solution. = horizon The white-labeled, total solution for carriers and enterprises isp) Connects with any phone system using an optimized IP technology “y) Works via EDGE, GPRS, 2G, 3G, 4G/LTE, WiFi or WiMax Messaging; text, video, picture, location-advertising Adve
Slide 9: Advertising
advertising. 9 horizon Opportunity Mobile advertising grew 47% this year yet only makes up 11% of the total — lots of room for mobile advertising to grow. Mobile performs 4-5x better than online ads for key metrics such as brand favorability, awareness and purchase intent. (source: weitson study, 20
Slide 10: Carrier products & services combat OTT
carrier products services combat OTT. 9 horizon Se a , 4 [7 Carrier Products & Services ‘One Horizon is the world's most bandwidth-effcent VoIP solution designed from ground up for mobile communications. ts dataflow needs a connection only 2ktps (not SIP-based, not-G.729 based). One Horizon is desig
Slide 11: Our business model provides carriers with a method to monetize VoIP calling
our business model provides carriers 9 with a method to monetize VoIP calling. horizon Carrier Capex Model * 5-yr system’s license fees of $3.0m * Annual maintenance fees Per subscriber fees of $1 - $4 per subscriber 1-time subscriber fee in the range of $1-$4 per subscriber depending on number of s
Slide 12: Horizon call integrates seamlessly with carrier infrastructure
horizon call integrates seamlessly carrier 9 infrastructure and puts carriers in the connection. horizon cote/onrer ESE Bsinars DICE Horizon Global Exchange ‘Stosctbe reisraton al sigalg 1 Routing Horizon VolP Server installation Sendra ary Horizon Call App Resevng ary He — Horton VoP Server | ‘Orne
Slide 13: Our customers
our customers. Tier 1 Addressable Market over 50m Tier 2 Addressable Market over 1m ‘sve Ss) horizon Satellite og) Addressable Market under 1m lot SingTel @smartfren live smart iShuo Pzzapp Eee (ze, IEC TELECOM IEG TELECOM GROUP Indonesia B
Slide 14: Recent customer developments
9 recent customer developments. J horizon December 18, 2014 - One Horizon Group's Software Expected to Launch With Device Csmarttren Operating Systems in First Quarter 2015 fem + Tier 1 Telecom operators, including Smartfren Telcom, Tbk in Indonesia and the Philippines, will make One Horizon softwar
Slide 15: Efficient technology drives down cost
efficient technology drives down cost. The world’s most bandwidth-efficient VoIP platform 100% developed in house, Switzerland; patent-pending 10x more efficient than SIP (Session Initiation Protocol) 9 horizon SmartPacket™ technology enables low bandwidth transmission TALKING LISTENING Other VoIP (
Slide 16: Case study: savings on international roaming
case study: savings on international roaming horizon ¢ Massive savings through . . . bandwidth efficiency Savings with Horizon ¢ Make and receive calls using GSM data roaming or WiFi GSM providerjper, ME) soso * You break out the PSTN GSM provider per minute $3.00 minutes cesenseseten * Target marke
Slide 17: Seven clear carrier benefits of deploying One Horizon
seven clear carrier benefits of deploying one AQ horizon. horizon uP WN FP A mobile VoIP platform that carries 10x voice and data Maximizes the value of spectrum Improved call quality Reduced capex Displace “free” OTT apps with a high quality branded offering Charge for app to PSTN minutes Recapture
Slide 18: Competitors
9g 4 competitors. - horizon 1. Systems integrators that combine various elements of SIP (Session Initiation Protocol) dialers and media gateways — but only where their high bandwidth needs are supported by existing cellular networks 2. Competitors in Horizon’s mobile operators’ end-user space: y t C
Slide 19: Comparison feature matrix
comparison feature matrix. 2.56 (GPRS) mVolP 2.756 (EDGE) mVolP_ 3G (EV-DO) mVolP 3.56 (HSPA) VoIP 4G (LTE) mVolP. Wi-FiVoIP Wired (ethernet) VoIP WiMAX VoIP Fixed Satellite VoIP Mobile Satellite VoIP App to App VoIP Calls (toll free) 4 ApptoLandline/mobile calls Landline/mobile to App calls Caller
Slide 20: Growth strategy one: contract new tier one and tier two carriers
growth strategy one. contract new tier one and tier two carriers. horizon *Carriers worldwide is a trillion dollar marketplace with hundreds of tier one and tier two companies all over the world. *TMT analysts estimate that carriers’ business’ will face diminishing returns if they cannot learn to fu
Slide 21: Growth strategy two: leverage Chinese JV
growth strategy two. 8 leverage Chinese JV to take market by storm. horizon * China branded apps dominate the marketplace with viral adoption of popular messaging apps * No app with comparable functionality or technology to Horizon Call UC Websrowser Coverage Rate of Top Apps 4/5 tencent has 4 of th
Slide 22: Compelling LeiXin-JV value proposition
compelling LeiXin-JV value proposition. 9 growth strategy two (cont.) horizon More powerful solution ... Phase I: App targets youth market, fast adopters + Free app2app VoIP calls that work over 3G, 2G and EDGE (first to market) * Free app2app MolP (Text, Picture and Video Messaging) — like WhatsApp
Slide 23: Pro forma estimates for LeiXin-JV
pro forma estimates for LeiXin-jv. 9 growth strategy two (cont.) horizon Al figures in SMM LEIXIN 3 YEAR FORECAST 0 2 3 ss Py 3g Stoultewee i pit a i sg ear = 16 E caper M0 J seeetreon cere we rian Ucens Fes 0 eijang number rena 6 3s be —susscres 18 “10 38 o ay (s10) OHGI holds 45% Share in JV Addre
Slide 24: Growth strategy three: introduce and develop enterprise customers
growth strategy three. 9 introduce and develop enterprise customers. horizon ee —e J The Enterprise Solution The new mobile workforce expects access to global data and voice resources from anywhere in the world and to be able to collaborate with any colleague anywhere in the world. The world's ‘most
Slide 25: Horizon management
horizon management. Brian Collins, CEO and Founder Martin Ward, CFO 9g A horizon Founded with Abbey Technology in Switzerland in 1999, merged with OHGI in Nov. 2010 and assumed role of Group CTO Co-inventor of the Horizon Platform; has over 20 years experience in software engineering Previously work
Slide 26: Selected financials
selected financials. (All data in $000's) Income Statement Data: Revenue Gross Profit Income from Operations (Loss) Net Income (Loss)= Non-GAAP Net Income (Loss) Balance Sheet Data: cash ‘Working Capital Shareholders’ Equity 3 Months Ended Sep. 30, 2014 1641 879 (408) (348) (1.022) Sep. 30,2014 650
Slide 27: Recent financing
recent financing. h I orizon * Closed a $3.5 million Private Placement with a single institutional investor on December 29, 2015 - Investor Granted a Board Seat on Chinese Subsidiary * Use of Proceeds: - Further develop Aishuo solution in China - Commenced the first phase of infrastructure rollout i
Slide 28: Investment highlights
investment highlights. 9 horizon * Only mobile VoIP platform that effectively operates on 2G networks which dominate wireless infrastructure in very sizable, fast-growing Asian and emerging markets * Proprietary SmartPacket™ core technology dramatically improves quality and efficiency of voice and d
Slide 29: Contact us
Q I contact us. : horizon Company Brian Collins, CTO and Founder Tel: +41-79-6422265 brian.collins@ onehorizongroup.com www.onehorizongroup.com Investor Relations Matthew Selinger Senior Vice President — MZ North America Tel: +1-949-298-4319 mselinger@mzgroup.us www.mzgroup.us
One Horizon Group — Investor Presentation (February 2015) on 6ix