Onmobile Global Limited · NSE:ONMOBILE
Onmobile Global — Investor Presentation (June 2013)
37 slides from Onmobile Global's investor presentation, June 2013
Slide 1: OnMobile Global Limited Investor Presentation
OnMobile Global Limited Investor Presentation June 2013 OnMobile Proprietary & Confidential
Slide 2: Cautionary statement
Cautionary statement 2 Forward Looking Statements This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to OnMobile Global Limited’s (OnMobil
Slide 3: Content
Content 3 1. Company Overview 4 2. Products 7 3. Customers 13 4. Geographies 16 5. Management 22 6. Financial Performance 25 7. LiveWire Acquisition 32
Slide 4: Content
Content 4 Company Overview Products Customers Geographies Management Financial Performance LiveWire Acquisition
Slide 5: OnMobile at a glance
OnMobile at a glance 5 • A Mobile VAS pioneer in Emerging Markets with products such as RBT, Music, Infoservices & Personal Cloud Business • We deliver value using white-labeled Managed Services model, with a recurring revenue share business model • Headquartered in Bangalore, India. Founded in 2000
Slide 6: Significant reach and usage around the world
Significant reach and usage around the world 6 120+ million 12 billion 1,500+ million Unique Users/month Calls handled/month Market Reach 72+ million 35 million 6 million RBT Users/month OnCloud Downloads On Device Portal Downloads
Slide 7: Content
Content 7 Company Overview Products Customers Geographies Management Financial Performance LiveWire Acquisition
Slide 8: Major Product Lines
Major Product Lines 8 4 Cloud & Speech Infotainment Music & RBT • Voice • Network • Governance Utilities •Ring Back Tones Portals, Address Book • Health •Reverse Ringback using & Social • Education Tones Speech Address Book •Ad-RBT Recognition • Phone •Music Platform in local Backup (Ringtone / Full
Slide 9: High entry barrier + High switching costs
In-network deployments in major telcos worldwide = 9 Sticky asset with scalable software driven growth potential Telephony Apps SS7, PRI, SIP/RTP Differentiated applications for both corporate and consumer markets OnMobile Mobile Positioning Network Deployment Center Monitoring Architecture Multimod
Slide 10: Proven track record of innovation
Proven track record of innovation 10 2000-2004 2005-2006 2007-2009 2010 – 2011 2012-2013 ● Platform – Voice ● Support for more ● Try & Buy ● Karaophone ● OnCloud Locker portal 1.0 (English) languages ● M-Search (Voice & ● Customer Lifecyle ● OnCloud Secure ● Ring tones ● 10 Indian languages SMS) Man
Slide 11: OnMobile RBT – Best-in-class RBT Provider
OnMobile RBT – Best-in-class RBT Provider 11 • Best RBT managed service Provider • Have 50 RBT customer on managed services across 35 countries • Already managing 72 Mil + subscribers on RBT across customers • Technology Leadership • Track Record on Innovation • Search & Discovery (* Star to Copy, I
Slide 12: Mobile Services: Opportunities
Mobile Services: Opportunities 12 Media & Content TV, Radio, Publishing Music, Movies, Video, Print… Enterprises Internet Mobile Services Enterprises and Portals, E-Commerce Governments Verticals, P2P, UGC Mobile Handset Manufacturers, NEPs, Operators, MVNOs
Slide 13: Content
Content 13 Company Overview Products Customers Geographies Management Financial Performance LiveWire Acquisition
Slide 14: We power VAS for the Best in the World
We power VAS for the Best in the World 14 Tier 1 Clients, Global Accounts • Manages • Global contract • OnMobile has • Has a decade • Runs VAS Vodafone VAS to provide VAS deployed its old relationship Services for Music Portfolio services across Network with Orange Airtel India, in India, S. Latin A
Slide 15: Our Global Presence
Our Global Presence 15 59 Blue Chip Service Providers Countries 92 Customers Canada Mexico USA Guatemala Nicaragua El Salvador Costa Rica Senegal France Spain Mali UK Germany Italy Niger Egypt Romania Turkey Cyprus Pakistan UAE Bangladesh India Sierra Leone Nigeria Panama Malaysia Venezuela Ghana Rw
Slide 16: Content
Content 16 Company Overview Products Customers Geographies Management Financial Performance LiveWire Acquisition
Slide 17: India: Impacted by pressures in the telecom industry
India: Impacted by pressures in the telecom industry 17 Revenue Trend Comments • RBT Reach: 657 million • RBT Penetration: 4-7% 845 806 • Key Perspectives: 741 630 667 • TRAI directive expected to be milder than the September 2012 version Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 • Revenue impact from
Slide 18: Latam: Robust growth with significant potential
Latam: Robust growth with significant potential 18 Revenue Trend Comments • RBT Reach: 174 million • RBT Penetration: 7-12% • Key Perspectives: 476 409 434 • Have gone live in all the 343 289 countries covered under the Telefonica contract • Seeing robust growth in Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4
Slide 19: Latam: Largest international foray by OnMobile
Latam: Largest international foray by OnMobile 19 Finland UK Canada Netherlands Poland Contract Germany Luxembourg Belgium France Romania USA 5 years Spain exclusiveItaly to OnMobile Turkey for 14 countries, start = go –South live Korea date in the Pakistan China last country Cyprus Mexico Banglad
Slide 20: Other emerging markets: Africa driving consistent strong growth
Other emerging markets: Africa driving consistent strong growth 20 Revenue Trend Comments • RBT Reach: 116 million • RBT Penetration: 8-15% 335 338 • Key Perspectives: 327 311 • Africa seeing high growth – 298 grew 40% y-o-y in Q4 FY2013 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Net Sales (` million)
Slide 21: Developed markets: Steady growth driven by data
Developed markets: Steady growth driven by data 21 Revenue Trend Comments • Operators are mixed about competing with OTT on non- 344 392 360 372 communication services 313 • Good interest from Operators for RBT Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Net Sales (` million) • Converged VAS deal and fu
Slide 22: Content
Content 22 Company Overview Products Customers Geographies Management Financial Performance LiveWire Acquisition
Slide 23: Strong management team
Strong management team 23 Name Background H. H. Haight MBA, Harvard Business School and Bachelor of Science, University of California, Berkeley Executive Chairman Over 20 years of experience in the leadership and growth of various enterprise companies Previously served as MD in Advent Internat
Slide 24: Independent board of directors
Independent board of directors 24 Name Background Naresh Malhotra Qualified as a Chartered Accountant in 1970, trained with Price Waterhouse Independent Over 35 years of experience in India and overseas in various companies Director Previously served as founding partner and managing director o
Slide 25: Content
Content 25 Company Overview Products Customers Geographies Management Financial Performance LiveWire Acquisition
Slide 26: Financial performance
Financial performance 26 Consolidated financials Q4 Q4 % Q3 % % (` million) FY2013 FY2012 Y-o-Y FY2013 Q-o-Q FY2013 FY2012 Y-o-Y Net Revenue 1,841 1,776 3.7% 1,762 4.5% 7,253 6,380 13.7% India 667 845 (21.0)% 630 5.9% 2,845 3,538 (19.6)% Latam 476 289 64.5% 434 9.6% 1,661 705 135.7% Other Emerging M
Slide 27: Financial performance: Yearly
Financial performance: Yearly 27 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 55% 7,253 6,380 18% 19% 4,544 5,372 12% 14% 4,064 Y-o-Y Growth Net Revenue (` million) 31.5% 44.1% 22.5% 21.9% 20.6% 22.2% 18.5% 15.6% 6.8% 1,281 1,399 1,211 1,494 840 (34.4%) Y-o-Y Growth EBITDA (` million) and Margi
Slide 28: Financial performance: Quarterly
Financial performance: Quarterly 28 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY12 FY13 FY13 FY13 FY13 FY12 FY13 FY13 FY13 FY13 36% 33% 1,852 1,798 1,841 16% 1,776 1,762 5% 4% 4% 4% (3)% 4% Net Revenue (` million) (2)% Y-o-Y Growth Q-o-Q Growth 23.3% 24.8% 26% 19.4% 19.3% 19.0% 33% 33% 413 437 11% 359 348 350 5
Slide 29: Profitable mix of diversified revenue sources
Profitable mix of diversified revenue sources 29 Revenues by Geography – FY2013 Revenues by Products – FY2013 Developed Data and Markets others 20% 17% India RBT 39% 58% Other Voice & Text Emerging Services Markets 25% 18% Latam 23%
Slide 30: Low leverage and steady cash balance
Low leverage and steady cash balance 30 Consolidated Consolidated (` million) Mar 31, 2013 Mar 31, 2012 11.9% 12.1% Long Term Borrowings 3 5 Short Term Borrowings 488 817 7.0% 11,220 Total Debt 491 823 12,412 12,412 Less: Cash & Cash 9,297 13,018 2,009 2,435 Equivalents 4.6% 1.6% Net Cash / (Net Deb
Slide 31: Diversified shareholding base
Diversified shareholding base 31 Shareholding Pattern Shareholders as on March 31, 2013 Public and Shareholder Name Shares (in mn) % Others 44% OnMobile Systems 39.0 34.2 Promoters 38% Promoter Group 4.7 4.2 Reliance Capital Trustee 7.8 6.8 ICICI Pru Life Insurance 5.5 4.8 HDFC Trustee Co. 4.3 3.8 K
Slide 32: Content
Content 32 Company Overview Products Customers Geographies Management Financial Performance LiveWire Acquisition
Slide 33: Transaction summary
Transaction summary 33 • OnMobile Global to acquire selected assets of LiveWire Mobile (“LiveWire”, OTC US: LVWR) Transaction • Purchased assets to include US assets and 100% of Fonestarz stock in UK • $17.8mn Consideration • Includes contingent payments of $2.85mn for achieving certain performance
Slide 34: LiveWire at a glance
LiveWire at a glance 34 • Founded in 1983, operates as a mobile internet company providing digital entertainment solutions • Reaches over 400 million consumers worldwide • Launched the first over-the-air (OTA) mobile music service in the Americas in 2005 Overview • Sells offerings as a managed servi
Slide 35: LiveWire at a glance
LiveWire at a glance 35 Revenues by Service Type Revenues by Product Revenues by Geography Others FT Cap-ex RT 7% ROW 17% Managed 49% 11% 20% Services 83% RBT North America 33% 80% $ Mn, Dec y/e FY2012 Top 5 Customers Revenue 13.25 Sprint Nextel Growth (%) 39.4% Metro PCS EBITDA (3.58) Public Mobile
Slide 36: In a nutshell
In a nutshell 36 Market: • Leading market position: First-mover advantage in India, emerging markets • Strong international presence enabling us to bring the best-of-breed products/practices • Immediate foray into North American market with the acquisition of LiveWire Mobile Products: • Breadth of p
Slide 37: OnMobile Global Limited
Contact Details: OnMobile Global Limited Tower #1, 94/1C and 94/2, Veerasandra Village, Attibele Hobli, Anekal Taluk, Electronic City Phase I Bengaluru - 560 100 Girdhar Patel girdhar.patel@onmobile.com OnMobile Global +91 80 4009 6707 Anirudh Bhardwaj anirudh@churchgatepartnersindia.com Churchgate