Norwood Systems Ltd · ASX:NOR
Norwood Systems — Investor Presentation (October 2015)
27 slides from Norwood Systems's investor presentation, Oct 12, 2015
Slide 1: Investor Presentation October 2015
For personal use only Investor Presentation October 2015 ASX:NOR
Slide 2: Disclaimer
2 Disclaimer For personal use only This presentation has been prepared Norwood Systems Ltd (the “Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents of this
Slide 3: Overview
3 Overview For personal use only Norwood provides business travellers with seamless access Capital Structure to high-quality, low-cost voice global telecommunications ASX Code NOR services. Shares on Issue 774,859,598 Performance Shares1 157,739,522 Norwood disrupts existing telecoms markets through
Slide 4: Why invest?
4 Why invest? For personal use only 1. A high-margin scalable business model Voice-as-a-Service (VaaS) revenue model, requiring minimal CAPEX and OPEX – targeting channels partners for scale 2. A strong, monetisable App Store presence Most downloaded Travel App in 84 of 155 App Store countries Top g
Slide 5: Disrupting telcos using the Sharing Economy
5 Disrupting telcos using the Sharing Economy For personal use only Business travellers’ core needs Traditional means to service need Sharing economy Low-end Premium “Premium service at lower cost” Transportation: Accommodation: Backpackers Commercial Hotel Communication: Voice over IP Cellular Roam
Slide 6: Experienced leadership team
6 Experienced leadership team For personal use only Paul Ostergaard, CEO – MBA (INSEAD), BE (UWA) § Recognised by Engineers Australia as one of Australia’s 100 Most Influential Engineers in 2015 § Led strategy for a $1 Billion revenue data communications platform at 3Com Corporation in the 1990s § F
Slide 7: Two award-winning product lines
7 Two award-winning product lines For personal use only World Phone Connect Globally, Locally™ • Very popular consumer ‘Over-The-Top Voice’ App • Disruptive corporate Unified Communications (UC) adjunct – Top ranked and Top Grossing on many iOS App Stores – First revenue customers are Eni Australia
Slide 8: Progress since listing
8 Progress since listing For personal use only 400,000+ downloads Declining cost of Warm corporate sales pipeline Viral engagement customer acquisition Growth strategy announced September 23 2015 Lis;ng and Launch of World Na;onal iAward Partnership with recompliance Phone Winner Booking.com June 16
Slide 9: Norwood's key markets
9 Norwood’s key markets For personal use only Consumer Mobile Enterprise Voice Roaming • $1 trillion global market • $30 billion annual cost to Corporates • Consumer Roaming well known for “bill shock” • “Cheap” doesn’t cut it – users need to be – Customers understand the issue and actively seek ava
Slide 10: Competitive landscape
10 Competitive landscape For personal use only Affordable Establishing unique market space World Phone Connect Globally, Locally™ VoIP Apps Lower usability, Higher usability, seamlessness, seamlessness & voice quality Local/global Cellular & voice quality SIMs Roaming (Daypacks) Cellular Roaming Expe
Slide 11: World Phone
For personal use only World Phone Connect Globally, Locally™
Slide 12: World Phone overview
12 World Phone overview For personal use only An easy-to-use and high-performance Over-The-Top (OTT) Voice app A first-rate user experience: Delivering worldwide access: Top-ranked App on iOS. On Android in Q4 Ac:ve users in 205 countries, 5100 ci:es Leveraging the “sharing economy”: telco partners
Slide 13: Monetisable growth
13 Monetisable growth For personal use only World Phone has seen strong growth since launch on July 31, 2015 • Number 1 most downloaded Travel App in 84 App Store countries • Number 1 top grossing Travel App in 45 App Store countries World Phone – Daily* World Phone – Cumula;ve* 18,000 $ 1,800 450,0
Slide 14: World Phone customer acquisition process
14 World Phone customer acquisition process For personal use only Focus on quantitative digital marketing analytics, driving: • User engagement • User acquisition using Facebook, Weibo, WeChat, Twitter • App Store visibility Legend Norwood App Driver product quality Func2ons Download driver User App
Slide 15: World Phone monetisation process
15 World Phone monetisation process For personal use only Monetise customers using simple in-App purchases • Consumables: call minutes (50% of existing run-rate) • Subscriptions: numbers and plans (50% of existing run-rate) Legend Driver Intermediate KPI Norwood App Func=ons Final KPI product design
Slide 16: CORONA: connect globally, locally
connect globally, locally”
Slide 17: CORONA overview
17 CORONA overview For personal use only ” lity calls h -qua , hig w - cost “Lo Phone Networks (voice traffic) ” pri vate ure and “Sec Internet (roaming signaling) Seamless corporate connectivity Based on proven standards Extremely scalable – Employees can roam between their corporate – Uses the cellu
Slide 18: Low OPEX / high-margin business model
18 Low OPEX / high-margin business model For personal use only Service delivery: CORONA Network CORONA App Corporate end-user International Landline Telco Phone Network Partners Billing and reporting: Corporate account Third-party Payments-As-a-Service Provider Landline Telco Partners Telephony sign
Slide 19: Investing in 2-stage monetisation model
19 Investing in 2-stage monetisation model For personal use only Door-opener Relationship builder No client upfront costs – zero CAPEX, no SIMs Disruptive efficient pricing model • 45¢ per minute – delivering 70-80% savings • Flat-rate Voice-as-a-Service (VaaS) • Immediate ROI – only bill client when
Slide 20: Conclusion
For personal use only 20 Conclusion
Slide 21: Scalable business model
21 Scalable business model For personal use only Consumer / World Phone • Deep global market opportunity • User growth and associated revenue can grow without scaling up fixed costs in proportion • Key metrics: – Cost of acquiring (CAC) a new user to download the app – ad spend and promo give-aways
Slide 22: Industry valuations
22 Industry valuations For personal use only 2014 2014 2014 2013 2011 Sold to Japan’s Sold to Facebook Estimated value 23.3% private Sold to Microsoft Rakuten for US for US$19bn US$13bn1 investment; for US$8.5bn $900m implied valuation US$470m 300m users 450m users 580m users 400 businesses 170m use
Slide 23: Near term value drivers
23 Near term value drivers For personal use only Ongoing World Phone growth – targeting 1 million downloads as Consumers next major milestone. Contracts with regional operating units of Global 5000 firms. Corporates Great up-sell opportunity to other operating units within firms. Channels Significan
Slide 24: Appendix
For personal use only 24 Appendix
Slide 25: Case Study: ASX firm – $600k savings/year
25 Case Study: ASX 200 firm – $600k savings/year For personal use only Highlights: 200-300 active roamers/month Spending $1m annually on roaming Largest cost driver is voice (2x data)
Slide 26: Glossary
26 Glossary For personal use only A number of consumer mobile app industry metrics may be referred to in this presenta;on, alongside tradi;onal financial metrics. For the benefit of readers, these metrics are defined further below. Revenue for mobile apps refers to gross revenue earned from sale of the
Slide 27: For further information contact
For personal use only For further information contact: Paul Ostergaard CEO and Founder, Norwood Systems Office: +61 8 9200 3500 Web: www.norwoodsystems.com Twitter: @paulostergaard, @norwoodsystems Shane Murphy FTI Consulting Office: +61 8 9485 8888 Direct: +61 8 9485 8804 Mobile: +61 420 945 291 Twitte
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