Customers - OnMobile

2
1. Company Overview
3
2. Products
6
3. Customers
12
4. Geographies
14
5. Management
16
6. Financial Performance
19
3
Company Overview
Products
Customers
Geographies
Management
Financial Performance
4
• A Mobile VAS pioneer in Emerging Markets with products such as RBT,
Business
Company Structure
Music, Infoservices and Personal Cloud
• Delivers value using white-labeled Managed Services model, with a recurring
revenue share business model
•
•
•
•
•
Headquartered in Bangalore, India. Founded in 2000, incubated by Infosys
Head Count: Around 1,700 employees
R&D Centers Globally : 6
FY2014 Revenue: $144 million; publicly listed in India
Acquisitions: Voxmobili (2007), Telisma (2008), Dilithium Networks (2010),
LiveWire Mobile (2013)
• Boston, Cairo, Delhi, Dubai, Johannesburg, Jakarta, Kuala-Lumpur, London,
Global Offices
Customer Impact
Mumbai, Nairobi, Paris, Silicon Valley, Sao Paulo, Seattle, Singapore, Sydney
• Offices in 45 countries
• 2-4% contribution to Operators’ top-line in large customers
• Generating > $1.25 billion for our customers in revenues
VAS Pioneer
5
100+ million
9 billion
1,500+ million
Unique Users/month
Calls handled/month
Market Reach
63+ million
35 million
6 million
RBT Users/month
OnCloud Downloads
On Device Portal Downloads
6
Company Overview
Products
Customers
Geographies
Management
Financial Performance
• Network
Address Book
& Social
Address Book
• Phone
Backup
• Multi-media
& Messaging
Sync
Services
• OnCloud
Locker
• OnCloud
Secure
Utilities
• Voice
Portals,
using
Speech
Recognition
in local
languages
• Infotainmen
t (Sports,
Jokes,
Religion,
News, etc.)
Cloud & Speech
•Ring Back Tones
•Reverse Ringback
Tones
•Ad-RBT
•Music Platform
(Ringtone / Fulltrack downloads
/ Video)
•Speech Music
Search
•User generated
content RBT
•M-Radio
Infotainment
4
Music & RBT
7
• Governance
• Health
• Education
OnMobile Multimodal Platform
Multi-channel: Voice, SMS, Video, USSD, MMS, 2.5/3G – WAP, On-device portal and handset clients;
multiple languages
Payment Models: Access, Pay-per-use, Subscription, Sachet
Payment Modes: Operator bill, Credit, Debit, Cash Cards
8
Telephony
Apps
SS7, PRI, SIP/RTP
Multimodal
OnMobile
Mobile Positioning
Network Deployment
Center
Differentiated applications for both
corporate and consumer markets
Monitoring
Architecture
MMP2500
Voice, WAP, SMS local languages
sequential/concurrent
Architecture
station
Distributed & scalable
architecture with no single point
of failure
HTTP/Location APIs
MSC
T1/E1/J1
C7/PRI/R2
3rd Party Apps
Internet
CIMD/SMPP
SMSC
Firewall
HTTP
Speech
VoiceXML 2.1, SpeechObjects
Location
Application
Radius/DHCP
MRCP for ASR/TTS integration
SLM /Grammar based ASR
SGSN
Speaker-independent, hotwork
recognition speaker identification
WML
Application
X-HTML
Application
LAN
BSS
Voice
Application
GGSN
WAP 1x
Billing System
MultiModal
Application
OSS
Gateway
Local language models
Management systems
SMS/WAP
Payment
Portal management system
Models: Premium access,
subscription, transaction etc.,
Local language support
Hosted infrastructure
SMSC: SMPP, CIMD
Mechanisms: Prepaid/Post-paid
credit card, direct debit
Cash card
High entry barrier + High switching costs
Content management data
warehousing personalization
(Collab-filter) 247 NOC
Customer care reporting
9
2000-2004
2005-2006
2007-2009
● Karaophone
● OnCloud Locker
● M-Search (Voice &
SMS)
● Customer Lifecyle
Management
● OnCloud Secure
● M-Radio
● Zero Balance
Missed Call
● Support for more
languages
● Ring tones
● 10 Indian languages
● Karaoke
● Live Audio
streaming
● Dynamic Voice Mail
● Ticketing (Railways,
Movies)
● SMS/USSD
● CheckMate
● AdRBT
● Pricing innovations:
Subscription, Not
Enough Funds
● Reverse RBT
● Indian Languages
Model (3 languages)
● Ring back tones
● Contests
● M-Commerce:
Shopping Mall,
I-Pay, Bill Payment
● Multimodal Support
including SMS, WAP
● Multi-language
WAP
2012-2014
● Try & Buy
● Platform – Voice
portal 1.0 (English)
● Infotainment
2010 – 2011
● RBT: Press* to copy
● Business
Intelligence
● Anti Theft
● Social RBT
● OnMobile
Developer Network
● Cell Broadcast
● Music Download
service
● Converged VAS
● Help Me on Mobile
● Digital Football
● Mobile Kunji
10
•
Best RBT managed service provider
o Have 50 RBT customers on managed services across 35 countries
o Already managing 63 million+ subscribers on RBT across customers
•
Technology Leadership
o Track Record on Innovation
 Search & Discovery (* Star to Copy, I-Call-I, Msearch) Pricing Innovations (Pay-perUse, Sachets), Cross-Operator features
o Integration Expertise with large number of Network Elements, Billing Systems
o Framework-based Open Architecture for faster Innovation
•
Unmatched RBT Replacement experience
o Maximum number of RBT replacements by any company
o Replaced all the major RBT vendors and across the world
o Handled large concurrent deployments across Africa and LATAM
11
Media & Content
TV, Radio, Publishing
Music, Movies, Video,
Print…
Enterprises
Internet
Mobile Services
Enterprises and
Governments
Portals, E-Commerce
Verticals, P2P, UGC
Mobile
Handset
Manufacturers,
NEPs, Operators,
MVNOs
12
Company Overview
Products
Customers
Geographies
Management
Financial Performance
13
92
Customers
14
Company Overview
Products
Customers
Geographies
Management
Financial Performance
15
59+
92
Finland
UK
Netherlands
France
Canada
Countries
USA
Spain
Poland
Germany
Belgium
Romania
Italy
Turkey
Cyprus
Mali
Nicaragua
Senegal
Venezuela
Saudi
Arabia
Niger
Ghana
Rwanda
Uganda
Kenya
Tanzania
Brazil
Peru
China
Bangladesh
India
Thailand
South Korea
Taiwan
Burkina Faso
Nigeria
Sierra Leone
Panama
Colombia
Ecuador
Customers
Qatar
UAE
Egypt
Mexico
Guatemala
El Salvador
Costa Rica
Pakistan
Angola
Sri Lanka
Malaysia
Singapore
Indonesia
Malawi
Zambia
Madagascar
Australia
Chile
Uruguay
Argentina
South Africa
16
Company Overview
Products
Customers
Geographies
Management
Financial Performance
17
Name
Background
H. H. Haight
Executive Chairman
• MBA, Harvard Business School and Bachelor of Science, University of California, Berkeley
• Over 20 years of experience in the leadership and growth of various enterprise companies
• Previously served as MD in Advent International Corp and CEO in Argo Global Capital, LLC
Rajiv Pancholy
Chief Executive Officer
and Managing
Director
• Has degrees from McGill University, Montreal and Indian Institute of Technology (IIT), Delhi
• Over 30 years of experience in the telecommunications industry
• Founder, TTP Media and previously served as CEO and Chairman, TenXc Wireless; President and CEO, Mitec
Telecom and President and COO, Microcell Connexions
Sanjay Bhambri
Chief Commercial
Officer
• MBA from FMS, MS University
• Over 18 years of strong experience in industries like IT, Satellite Services, Travel, Telecom, VAS and Energy
utilities
• Was previously Senior Vice President, Infratsructure Solutions at Enzen Global Solutions
Florent Stroppa
Senior Vice President,
Products
• MS, Telecom and Network Architecture, Telecom Paris Tech University
• Over 13 years of experience in product management, software engineering, business development and user
experience
• Has also worked with Vodafone as Senior Manager, Communication Services and co-founded Wstadium
Christy George
Senior Vice President,
Technology
• Bachelor of Technology degree from Indian Institute of Technology (IIT), Mumbai
• Previously worked at Infosys Technologies and various other companies for more than 8 years
Praveen Kumar
Vice President, Finance
• Chartered Accountant
• Over 13 years of experience in financial accounting and reporting, revenue assurance, systems implementation,
partnering with business on strategic initiatives, treasury management, taxation and investor relations
• Was previously with Hewlett Packard, MetLife India, GE Capital and A F Ferguson
18
Name
Background
H. H. Haight
Executive Chairman
• MBA, Harvard Business School and Bachelor of Science, University of California, Berkeley
• Over 20 years of experience in the leadership and growth of various enterprise companies
• Previously served as MD in Advent International Corp and CEO in Argo Global Capital, LLC
Rajiv Pancholy
Chief Executive
Officer and Managing
Director
• Has degrees from McGill University, Montreal and Indian Institute of Technology (IIT), Delhi
• Over 30 years of experience in the telecommunications industry
• Founder, TTP Media and previously served as CEO and Chairman, TenXc Wireless; President and CEO, Mitec
Telecom and President and COO, Microcell Connexions
François-Charles
Sirois
Additional Director
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•
BAA in Finance and Marketing from HEC Montreal
President and Chief Executive Officer of Telesystem and OnMobile Systems
Over 15 years of experience in corporate mergers, acquisitions and financing
Founded Microcell i5, Masq and Up2 technologies and serves on the boards of Telesystem, Zone3, Stingray
Digital Group and iPerceptions
Naresh Malhotra
Independent Director
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•
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Qualified as a Chartered Accountant in 1970, trained with Price Waterhouse
Over 35 years of experience in India and overseas in various companies
Previously served as founding partner and managing director of corporate finance in KPMG in India
On board of Blue Star Infotech, Royal Orchid Hotels, Amalgamated Bean Coffee Trading Company (Coffee Day)
Harit Nagpal
Independent Director
• BE, Punjab University and Management degree from FMS, Delhi
• Currently the CEO and MD at Tata Sky and was previously with the Vodafone Essar
• Over 25 years of experience in Telecom and consumer marketing positions both in India and overseas
Rajiv Khaitan
Independent Director
• LLB, University of Calcutta
• Over 25 years of experience in general legal practice with focus on business laws
• Currently leads the corporate and commercial law practice of Khaitan & Co LLP at Bangalore
Barry White
Independent Director
• Graduate from Harvard College and Harvard Law School and retired US Ambassador
• An eminent lawyer and thought leader who worked with Mr. Barack Obama in his presidential campaign in 2008
• Was appointed the US Ambassador to the Kingdom of Norway in 2009 and has over 35 years of experience at
Foley Hoag, a major law firm in Boston
19
Company Overview
Products
Customers
Geographies
Management
Financial Performance
20
FY10
FY11
FY12
FY13
FY14
FY10
FY11
18.2%
4,544
5,372
6,380
8,653
7,253
FY12
FY13
18.8%
FY14
19.3%
13.7%
11.8%
Y-o-Y Growth
Net Revenue (` million)
43.8%
22.5%
18.5%
1,208
21.9%
1,399
20.6%
1,493
15.8%
15.1%
840
6.7%
1,305
(12.6%)
(34.4%)
Y-o-Y Growth
EBITDA (` million) and Margins (%)
11.9%
8.8%
60.7%
7.0%
8.8%
399
642
559
507
Operating Profit (` million) and Margin (%)
(0.7)%
(61)
(52.6%)
(12.9%)
(9.3%)
0.0%
21
Profitable mix of diversified revenue sources
Revenue by Geography
FY2012
6%
FY2013
6%
6%
56%
9%
4%
14%
12%
FY2014
3%
11%
39%
27%
13%
14%
22%
11%
24%
23%
Revenue by Products
FY2012
24%
FY2013
FY2014
11%
17%
49%
58%
30%
25%
27%
RBT
Voice & Text Services
Data and others
59%
Q4
FY2014
Q4
FY2013
%
Y-o-Y
Q3
FY2014
%
Q-o-Q
FY2014
FY2013
%
Y-o-Y
2,035
1,841
10.5%
2,043
(0.4)%
8,044
7,253
10.9%
India
641
667
(3.9)%
522
22.8%
2,313
2,845
(18.7)%
Latam
488
476
2.7%
497
(1.8)%
2,054
1,661
23.6%
Other Emerging Markets
341
318
7.2%
353
(3.3)%
1,417
1,273
11.4%
Developed Markets
564
380
48.4%
672
(16.0)%
2,260
1,475
53.3%
337
350
(3.6)%
338
(0.1)%
1,453
1,493
(2.7)%
16.6%
19.0%
18.1%
20.6%
367
432
1,483
1,609
18.0%
23.5%
18.4%
22.2%
(1,243)
108
(984)
472
% Margin
(61.1)%
5.9%
(12.2)%
6.5%
Basic EPS (`)
(10.89)
0.95
nm
0.22
nm
(8.62)
4.14
nm
1,034
0
nm
0
nm
1,034
0
nm
113
171
(33.8)%
67
68.9%
241
513
(53.0)%
5.6%
9.3%
3.0%
7.1%
(` million)
Net Revenue
EBITDA
% Margin
EBITDA (Excl. Forex) 1
% Margin
Net Profit
Exceptional Items 2
Normalized Net Profit 3
% Margin
16.5%
(15.1)%
338
8.7%
16.5%
nm
26
nm
1.2%
3.3%
(7.9)%
nm
Notes:
1 EBITDA normalized for Forex loss of `30 million, `82 million, `30 million and `117 million in Q4 FY2014, Q4 FY2013, FY2014 and FY2013
2 Relate to IP settlement with Synchronoss regarding Voxmobili of `354 million and impairment for Telisma of `680 million
3 Net Profit normalized for post tax impact of Forex loss of `322 million, `82 million, `57 million, `191 million and `117 million in Q4 FY2014, Q4
FY2013, Q3 FY2014, FY2014 and FY2013 and other exceptional items
Q4
FY2014
Q4
FY2013
%
Y-o-Y
Q3
FY2014
%
Q-o-Q
FY2014
FY2013
%
Y-o-Y
2,251
1,841
22.3%
2,255
(0.2)%
8,653
7,253
19.3%
India
641
667
(3.9)%
522
22.8%
2,313
2,845
(18.7)%
Latam
488
476
2.7%
497
(1.8)%
2,054
1,661
23.6%
Other Emerging Markets
341
318
7.2%
353
(3.3)%
1,417
1,273
11.4%
Developed Markets
781
380
105.2%
883
(11.6)%
2,869
1,475
94.6%
256
350
(26.7)%
295
(13.1)%
1,305
1,493
(12.6)%
11.4%
19.0%
15.1%
20.6%
286
432
1,335
1,609
12.7%
23.5%
15.4%
22.2%
(1,392)
108
(1,320)
472
% Margin
(61.8)%
5.9%
(15.3)%
6.5%
Basic EPS (`)
(12.19)
0.95
(11.56)
4.14
1,034
0
1,034
0
(36)
171
(96)
513
(1.6)%
9.3%
(1.1)%
7.1%
(` million)
Net Revenue
EBITDA
% Margin
EBITDA (Excl. Forex) 1
% Margin
Net Profit
Exceptional Items 2
Normalized Net Profit 3
% Margin
13.1%
(33.7)%
295
(3.0)%
13.1%
nm
(84)
nm
(3.7)%
nm
(0.73)
nm
0
nm
(27)
(1.2)%
nm
(17.1)%
nm
nm
nm
Notes:
1 EBITDA normalized for Forex loss of `30 million, `82 million, `30 million and `117 million in Q4 FY2014, Q4 FY2013, FY2014 and FY2013
2 Relate to IP settlement with Synchronoss regarding Voxmobili of `354 million and impairment for Telisma of `680 million
3 Net Profit normalized for post tax impact of Forex loss of `322 million, `82 million, `57 million, `191 million and `117 million in Q4 FY2014, Q4
FY2013, Q3 FY2014, FY2014 and FY2013 and other exceptional items
24
Debt (Rs. mn) and Debt/EBITDA (x)
Mar 31,
2014
Dec 31,
2013
Mar 31,
2013
Long Term Borrowings
443
593
3
Short Term Borrowings
440
732
488
Total Debt
883
1,325
491
1,240
2,126
2,009
(` million)
Less: Cash & Cash
Equivalents
1.3x
1.1x
0.9x
1,758
0.4x
1,325
0.3x
883
Net Cash / (Net Debt)
357
801
1,518
491
469
Net Worth (excluding
Goodwill)
6,303
7,229
7,044
Q4 FY2013
Q1 FY2014
Q2 FY2014
Q3 FY2014
Q4 FY2014
o Cash balance affected by IP settlement payment, repayment of loans and forex loss in Venezuela in Q4
FY2014 and payment of minimum guarantee during Q3 FY2014
25
Shareholding Pattern
Shareholders as on Mar 31, 2014
Public and
Others
48%
Promoters
38%
DIIs
9%
FIIs
5%
Shareholder Name
Shares (in mn)
%
On Mobile Systems
39.0
34.2
Promoter Group
4.7
4.1
Reliance Capital Trustee
8.5
7.4
ICICI Pru Life Insurance
5.4
4.7
Kotak Mahindra (UK)
2.7
2.3
Altruist Technologies
2.1
1.8
Public & Others
52.0
45.5
Total
114.2
100.0
26
Market:
o
o
o
o
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
Significant MTN deal, presenting a $80-$120 million revenue opportunity over 5 years
Products:
o
o
Breadth of product lines in VAS, ability to cross-sell and piggyback
Product innovation track record
Operations:
o
o
o
o
o
o
Strong barrier to entry: Installed base of equipment which is heavily integrated into telco
network and OSS-BSS
Operating scale, billing capability
Business model and long-term customer contracts
India-based low cost structure, scalable
Proven track record, results, customer relationships
Onsite teams embedded within customers
Management:
o
o
Quality of management team
Corporate governance and quality of Board
OnMobile Global Limited
(CIN: L64202KA2000PLC027860)
Tower # 1, 94/1 C & 94/2, Veerasandra Village, Attibele Hobli,
Anekal Taluk, Electronic City Phase-1, Bangalore - 560100
Ph: +91 80 4009 6000
Fax: +91 80 4009 6009
www.onmobile.com
Girdhar Patel
OnMobile Global
Anirudh Bhardwaj
Churchgate Partners
[email protected]
+91 80 4009 6707
[email protected]
+91 22 3953 7444