Norwood Systems Ltd · ASX:NOR
Norwood Systems — Investor Presentation (October 2015)
29 slides from Norwood Systems's investor presentation, Oct 20, 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 90 of 155 App Store countries Top g
Slide 5: A brief history of Telecoms
5 A brief history of Telecoms For personal use only Early 1800s Early 1900s 1960s 1980s Mid 1990s Op;cal First telephony Digital telephony Wireless First VoIP semaphores networks (analog) networks Cellular networks services (plus the internet)
Slide 6: A better mousetrap
6 A better mousetrap For personal use only Moscow London Arnhem Paris Beijing New York Tel Aviv Tokyo Palo Alto Austin Istanbul Mexico City Bahrain Hong Kong San Salvador Lagos Singapore Lima Durban World Phone Perth Buenos Aires Sydney Auckland Cape town Melbourne Connect Globally, Locally™ Christc
Slide 7: Disrupting telcos using the Sharing Economy
7 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 8: Experienced leadership team
8 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 9: Progress since listing
9 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 10: Two award-winning product lines
10 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 11: Norwood's key markets
11 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 av
Slide 12: Competitive landscape
12 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 13: World Phone
For personal use only World Phone Connect Globally, Locally™
Slide 14: World Phone overview
14 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 Active users in 205 countries, 5100 cities Leveraging the “sharing economy”: telco partner
Slide 15: Monetisable growth
15 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 90 App Store countries • Number 1 top grossing Travel App in 56 App Store countries World Phone – Daily* World Phone – Cumula;ve* 18,000 $ 1,800 450,0
Slide 16: World Phone customer acquisition process
16 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 17: World Phone monetisation process
17 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 18: Connect globally, locally
connect globally, locally”
Slide 19: CORONA overview
19 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 20: Low OPEX / high-margin business model
20 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 21: Investing in 2-stage monetisation model
21 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 22: Conclusion
For personal use only 22 Conclusion
Slide 23: Scalable business model
23 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 24: Industry valuations
24 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 25: Near term value drivers
25 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 26: 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
Slide 27: Appendix
For personal use only 27 Appendix
Slide 28: Case Study: ASX firm – $600k savings/year
28 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 29: Glossary
29 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
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