Pelatro Limited · NSE:PELATRO
Pelatro — FY2017 Earnings Presentation
28 slides from Pelatro's earnings presentation, May 2018
Slide 1: Preliminary Results Presentation
Preliminary Results Presentation May 2018 Confidential 1
Slide 2: Presentation Team
Presentation Team Subash Menon Nicholos Hellyer Managing Director Finance Director Nic, is a Chartered Accountant and former Subash co-founded Pelatro in April 2013. investment banker of over 25 years of Prior to Pelatro, Subash was the CEO and experience. Nic spent the majority of Founder of Subex
Slide 3: Overview
Overview ▪ Founded in 2013, Pelatro has developed and deployed its proprietary technology, mViva, to provide precision marketing, particularly for Telcos ▪ IPO in December 2017 raising £3.8 mln for the company, at 62.5p per share ▪ mViva uses Big Data analytics to channel the right offer, to the rig
Slide 4: Highlights – 2017
Highlights – 2017 ▪ Revenue of $3.15 mln, up 161% (2016: $1.21 mln) ▪ Adjusted EBITDA $2.0 mln (2016: $0.5 mln); PBT $1.8 mln (2016: $0.4 mln) ▪ Adjusted EPS of 8.9c (2016: 2.2c) ▪ Revenue mix: License (72%), Gain Share (15%), Services (5%) and Hardware (8%) ▪ Net cash of $3.1 mln following IPO at y
Slide 5: The Market
The Market ▪ In the telecom industry, emerging markets have faced tougher competition, making it necessary for them to be more innovative with marketing initiatives ▪ Developed telecoms markets seen as mature and ex-growth; always looking to increase ARPU to drive top line ▪ Pelatro has developed pr
Slide 6: Telco Market Dynamics
Telco Market Dynamics Subscriber addition dropping Average Revenue Per User (ARPU) dropping Unique mobile subscriber penetration (global average) ARPU Mobile subscriber penetration Subscriber growth (year-on-year) Source: GSMA Intelligence 2016 Source: Strategy & Research and Analysis 2017 Confident
Slide 7: Precision Marketing
Precision Marketing Peter ▪ Marketing to a Segment of One (N=1) ▪ Highly relevant offers ▪ Contextually connected offers ▪ Closed loop marketing Margaret Using data-driven insights to deliver the right message, to the right person, at the right time, through the right channel Confidential 7 7
Slide 8: Pelatro Methodology
Pelatro Methodology ▪ Generate a detailed profile for each subscriber by collecting all available data from different data sources within the Telco’s operations ▪ Generate personalised campaigns that will be relevant to each individual subscriber, on the basis of the analysis of profile and behavior
Slide 9: Proprietary Technology
Proprietary Technology Intelligent N Dimensional Vector search framework Smart Hypercube Based data modelling Nimble In-Memory distributed cache mViva deploys customised and proprietary Big Data technology to deliver end-to-end solution – patent filing in process for IP protection of highlighted tec
Slide 10: Global Footprint
Global Footprint Kazakhstan UK US Bangladesh Morocco Cambodia Bahamas Sudan Singapore Sri Lanka Malaysia Office Locations Customer Locations Confidential 10 10
Slide 11: Pipeline
Pipeline ▪ Asia – 2 nos. ▪ Africa – 12 nos. ▪ Central & Eastern Europe – 2 nos. ▪ Central and Latin America – 4 nos. Confidential 11 11
Slide 12: Robi Axiata – Case Study
Robi Axiata – Case Study Robi Axiata is the 2nd largest mobile operator in Bangladesh ▪ Previous providers: UK company, Business Logic Systems (wholly owned by NASDAQ listed Evolving Systems Inc.) could not meet Robi’s requirements. FlyTxt replaced them through a conventional RFP, but could not impl
Slide 13: Robi Axiata – Case Study Contd.
Robi Axiata – Case Study Contd. ▪ Benefits for Robi Axiata ✓ Campaign take up rate doubled ✓ RoI of 8 to 10 months ✓ Incremental revenue of US$ 3 mln in the 1st year (including the ramp up period) going up to US$ 4 to 5 mln from the 2nd year onwards ▪ Benefits for Pelatro ✓ Large and well respected
Slide 14: Telco Market Opportunity – Medium Term
Telco Market Opportunity – Medium Term Total : 12 Target Group : 5 Total : 160 Target Group : 105 Total : 34 Target Group : 26 Total : 56 Target Group : 46 Total : 140 North America Target Group : 120 Latin America Total : 116 Target Group : 60 Africa Europe Middle East 362 APAC ▪ Overall market for
Slide 15: Revenue Models
Revenue Models Managed Services Licence Pelatro earns a fixed monthly Licence: Pelatro licenses the fee for providing the product product with additional licence and managing the operations fee based on growth of subscribers in the network Customers: Tele2 Revenue Gain Share Includes on-going mainte
Slide 16: Customer Concentration
Customer Concentration No. of Customers – 1 No. of Customers – 3 2015 2016 No. of Customers – 7 2017 Increasing diversity of customers and regions – reducing customer concentration over time Confidential 16 16
Slide 17: Financial Information
Financial Information Profit and Loss 2016 2017 US$’000 US$’000 Continuing operations Revenue 1 1,205 3,146 Notes: Cost of sales 2 (632) (799) Gross profit 573 2,347 Other income - - 1) Revenue (and cost of sales) for 2017 includes $262,000 arising Adjusted Administrative expenses 3 (213) (546) Adju
Slide 18: Financial Information
Financial Information Balance Sheet as on 31.12.2016 31.12.2017 US$’000 US$’000 Non-current assets Intangible assets 1 357 1,211 Property, plant and equipment 30 Deferred tax asset 113 Total non-current assets 357 1,354 Notes: Current assets Trade and other receivables 2 157 1,778 Other Assets 217 C
Slide 19: Financial Information
Financial Information Cash Flow 2016 2017 US$’000 US$’000 Profit for year 844 311 Operating cash flows before movements in working Notes: 1 1,303 460 capital (Increase)/decrease in trade and other receivables 59 (1,698) 1) Add-backs include income tax expense; depreciation; Increase/(decrease) in tr
Slide 20: Positioning for Further Growth
Positioning for Further Growth ▪ Appointed new Sales Director for North & West Africa and Central & Eastern Europe ▪ Entered into largest ever contract with a Central Asian subsidiary of a Western European Telco ▪ $1.7 mln contract including license fee, implementation and managed services for one y
Slide 21: Growth Strategy
Growth Strategy Finance Finance Current Product, New Vertical Retail Retail New Product, Current Market Telco Telco Telco Current Product, Telco – US & Telco – US & Telco – US & New Market Europe Europe Europe Current Product, Current Market Telco Telco Telco 2018 2019 2020 Confidential 21 21
Slide 22: Summary
Summary ▪ Strong 2017 performance, together with IPO proceeds, position Pelatro well for the future ▪ Full visibility for 2018 revenue, thanks to largest contract win ▪ Enhanced pipeline generated by expanded sales team ▪ Acquisition opportunities ▪ Continued investment in product ▪ Good start in th
Slide 23: Appendix
Appendix Confidential 23 23
Slide 24: Customer Reference
Customer Reference Campaign management is an area which needs tremendous flexibilities as new requirements and new ideas keep on coming every day and Pelatro scores high from both technical and people perspectives. mViva’s state of the art technology framework optimizes not only the infrastructure c
Slide 25: Customer Reference
Customer Reference Robi was looking for an end to end campaign management system with the capability of smart profiling, segmentation, dynamic offer creation, intelligent communication, execution and campaign performance analysis. Having all these under one platform was really challenging. The integ
Slide 26: Board Members
Board Members Subash Menon Sudeesh Yezhuvath Nic Hellyer Richard Day Pieter Verkade Managing Director Executive Director Finance Director Non-Executive Chairman Non-Executive Director As COO of Subex, was Nic, is a Chartered A qualified solicitor, co- Pieter spent 20 years Founded Subex and led foun
Slide 27: Track Record – Subex Story
Track Record – Subex Story 1999 2004 2008 Start-up Global Leader Global Dominance Start-up competing with 75+ Installations 200+ Customers Ericsson, 40+ Countries 70+ Countries Alcatel, HP etc Founded by Subash in telecom Fraud & Revenue Assurance space - Revenue grew from US$ 3.24 million in 2000 t
Slide 28: Current Shareholding Structure of Pelatro Plc
Current Shareholding Structure of Pelatro Plc Name of the Shareholder No. of Shares Holding Kiran Menon 4,842,122 19.9% Varun Menon 4,842,122 19.9% Sudeesh Yezhuvath 3,309,309 13.6% Suresh Yezhuvath 2,294,613 9.4% Herald Investment Management Ltd. 1,600,000 6.6% Artemis Fund Managers Ltd. 1,200,000