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, Music, Infoservices and Personal Cloud Business • 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 Company Structure • 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 Mumbai, Nairobi, Paris, Silicon Valley, Sao Paulo, Seattle, Singapore, Sydney • Offices in 45 countries
• 2-4% contribution to Operators’ top-line in large customers Customer Impact • 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
7
•Ring Back Tones • Voice • Network • Governance Portals, Address Book •Reverse Ringback • Health using & Social Tones • Education
Speech Address Book Utilities •Ad-RBT Recognition • Phone
Music & RBT & Music •Music Platform in local 4 Infotainment Backup (Ringtone / Full- languages
Cloud & Speech & Cloud • Multi-media track downloads • Infotainmen & Messaging / Video) t (Sports, Sync •Speech Music Jokes, Services Search Religion, • OnCloud •User generated News, etc.) Locker content RBT • OnCloud •M-Radio Secure
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 Differentiated applications for both corporate and consumer markets
OnMobile Mobile Positioning Network Deployment Center Monitoring Multimodal Architecture Architecture station Distributed & scalable Voice, WAP, SMS local languages MMP2500 architecture with no single point sequential/concurrent HTTP/Location APIs of failure
MSC T1/E1/J1 C7/PRI/R2 3rd Party Apps
Internet Voice Application CIMD/SMPP Firewall WML HTTP Application SMSC LAN X-HTML BSS Application Speech Location Application VoiceXML 2.1, SpeechObjects Radius/DHCP MultiModal MRCP for ASR/TTS integration Application Billing System SLM /Grammar based ASR GGSN WAP 1x SGSN OSS Speaker-independent, hotwork Gateway recognition speaker identification Local language models Management systems SMS/WAP Payment Content management data warehousing personalization Portal management system Models: Premium access, (Collab-filter) 247 NOC subscription, transaction etc., Local language support Customer care reporting Mechanisms: Prepaid/Post-paid Hosted infrastructure credit card, direct debit SMSC: SMPP, CIMD Cash card High entry barrier + High switching costs 9
2000-2004 2005-2006 2007-2009 2010 – 2011 2012-2014
● Platform – Voice ● Support for more ● Try & Buy ● Karaophone ● OnCloud Locker portal 1.0 (English) languages ● ● Customer Lifecyle ● OnCloud Secure M-Search (Voice & ● 10 Indian languages SMS) Management ● Ring tones ● OnMobile ● Live Audio ● M-Radio ● Zero Balance Developer Network ● Karaoke streaming Missed Call ● RBT: Press* to copy ● Cell Broadcast ● Ticketing (Railways, ● Anti Theft ● Dynamic Voice Mail ● ● Music Download Movies) SMS/USSD ● Social RBT service ● ● Infotainment ● CheckMate AdRBT ● Converged VAS ● ● Indian Languages ● Pricing innovations: Reverse RBT ● Help Me on Mobile Model (3 languages) Subscription, Not ● Business Enough Funds Intelligence ● Digital Football ● Ring back tones ● M-Commerce: ● Mobile Kunji ● Contests Shopping Mall, I-Pay, Bill Payment ● Multimodal Support including SMS, WAP ● Multi-language WAP 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-per- Use, 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 Portals, E-Commerce Governments 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
Finland
Canada UK Poland 59+ Netherlands Germany Belgium Countries France Romania Italy USA Spain Turkey South Korea Cyprus Pakistan China
Egypt Qatar Bangladesh Mexico UAE India Taiwan Mali Niger Saudi Thailand Guatemala Nicaragua Senegal Arabia El Salvador Burkina Faso Nigeria Costa Rica Panama Sierra Leone Malaysia Colombia Ghana Uganda Venezuela Rwanda Sri Lanka Singapore Ecuador Kenya Indonesia 92 Tanzania Brazil Customers Peru Angola Malawi Zambia Madagascar Australia
Chile Uruguay South Africa Argentina 16
Company Overview
Products
Customers
Geographies
Management
Financial Performance 17
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 International Corp and CEO in Argo Global Capital, LLC
Rajiv Pancholy • Has degrees from McGill University, Montreal and Indian Institute of Technology (IIT), Delhi Chief Executive Officer • Over 30 years of experience in the telecommunications industry and Managing • Founder, TTP Media and previously served as CEO and Chairman, TenXc Wireless; President and CEO, Mitec Director Telecom and President and COO, Microcell Connexions Sanjay Bhambri • MBA from FMS, MS University Chief Commercial • Over 18 years of strong experience in industries like IT, Satellite Services, Travel, Telecom, VAS and Energy Officer utilities • Was previously Senior Vice President, Infratsructure Solutions at Enzen Global Solutions
Florent Stroppa • MS, Telecom and Network Architecture, Telecom Paris Tech University Senior Vice President, • Over 13 years of experience in product management, software engineering, business development and user Products experience • Has also worked with Vodafone as Senior Manager, Communication Services and co-founded Wstadium
Christy George • Bachelor of Technology degree from Indian Institute of Technology (IIT), Mumbai Senior Vice President, • Previously worked at Infosys Technologies and various other companies for more than 8 years Technology
Praveen Kumar • Chartered Accountant Vice President, Finance • 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 • 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 International Corp and CEO in Argo Global Capital, LLC
Rajiv Pancholy • Has degrees from McGill University, Montreal and Indian Institute of Technology (IIT), Delhi Chief Executive • Over 30 years of experience in the telecommunications industry Officer and Managing • Founder, TTP Media and previously served as CEO and Chairman, TenXc Wireless; President and CEO, Mitec Director Telecom and President and COO, Microcell Connexions François-Charles • BAA in Finance and Marketing from HEC Montreal Sirois • President and Chief Executive Officer of Telesystem and OnMobile Systems Additional Director • 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 • Qualified as a Chartered Accountant in 1970, trained with Price Waterhouse Independent Director • 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 • BE, Punjab University and Management degree from FMS, Delhi Independent Director • 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 • LLB, University of Calcutta Independent Director • 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 • Graduate from Harvard College and Harvard Law School and retired US Ambassador Independent Director • 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 FY12 FY13 FY14
18.2% 18.8% 19.3% 13.7% 8,653 11.8% 6,380 7,253 4,544 5,372
Net Revenue (` million) Y-o-Y Growth 43.8%
22.5% 21.9% 20.6% 15.8% 18.5% 15.1% 6.7% 1,399 1,493 1,208 840 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 (0.7)% 0.0% (12.9%) (9.3%) (61) (52.6%) Operating Profit (` million) and Margin (%) 21
Profitable mix of diversified revenue sources
Revenue by Geography
FY2012 FY2013 FY2014 6% 6% 4% 3% 6% 11% 27% 9% 56% 14% 39% 13%
12% 14% 11% 22% 24% 23%
Revenue by Products
FY2012 FY2013 FY2014 11% 17% 59% 24% 49% 58%
30%
25% 27%
RBT Voice & Text Services Data and others Q4 Q4 % Q3 % % FY2014 FY2013 (` million) FY2014 FY2013 Y-o-Y FY2014 Q-o-Q Y-o-Y Net Revenue 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% EBITDA 337 350 (3.6)% 338 (0.1)% 1,453 1,493 (2.7)% % Margin 16.6% 19.0% 16.5% 18.1% 20.6% EBITDA (Excl. Forex) 1 367 432 (15.1)% 338 8.7% 1,483 1,609 (7.9)% % Margin 18.0% 23.5% 16.5% 18.4% 22.2% Net Profit (1,243) 108 nm 26 nm (984) 472 nm % Margin (61.1)% 5.9% 1.2% (12.2)% 6.5% Basic EPS (`) (10.89) 0.95 nm 0.22 nm (8.62) 4.14 nm Exceptional Items 2 1,034 0 nm 0 nm 1,034 0 nm Normalized Net Profit 3 113 171 (33.8)% 67 68.9% 241 513 (53.0)% % Margin 5.6% 9.3% 3.3% 3.0% 7.1% 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 Q4 % Q3 % % FY2014 FY2013 (` million) FY2014 FY2013 Y-o-Y FY2014 Q-o-Q Y-o-Y Net Revenue 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% EBITDA 256 350 (26.7)% 295 (13.1)% 1,305 1,493 (12.6)% % Margin 11.4% 19.0% 13.1% 15.1% 20.6% EBITDA (Excl. Forex) 1 286 432 (33.7)% 295 (3.0)% 1,335 1,609 (17.1)% % Margin 12.7% 23.5% 13.1% 15.4% 22.2% Net Profit (1,392) 108 nm (84) nm (1,320) 472 nm % Margin (61.8)% 5.9% (3.7)% (15.3)% 6.5% Basic EPS (`) (12.19) 0.95 nm (0.73) nm (11.56) 4.14 nm Exceptional Items 2 1,034 0 0 1,034 0 Normalized Net Profit 3 (36) 171 nm (27) nm (96) 513 nm % Margin (1.6)% 9.3% (1.2)% (1.1)% 7.1% 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, Dec 31, Mar 31, 1.3x (` million) 2014 2013 2013 1.1x Long Term Borrowings 443 593 3 0.9x Short Term Borrowings 440 732 488
Total Debt 883 1,325 491 1,758 Less: Cash & Cash 1,240 2,126 2,009 0.4x 1,325 Equivalents 0.3x 883 Net Cash / (Net Debt) 357 801 1,518 491 469 Net Worth (excluding 6,303 7,229 7,044 Goodwill) 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 Shareholder Name Shares (in mn) % Others On Mobile Systems 39.0 34.2 48% Promoters 38% 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
FIIs Altruist Technologies 2.1 1.8 5% DIIs Public & Others 52.0 45.5 9% Total 114.2 100.0 26
Market: o Leading market position: First-mover advantage in India, emerging markets o Strong international presence enabling us to bring the best-of-breed products/practices o Immediate foray into North American market with the acquisition of LiveWire Mobile o Significant MTN deal, presenting a $80-$120 million revenue opportunity over 5 years Products: o Breadth of product lines in VAS, ability to cross-sell and piggyback o Product innovation track record Operations: o Strong barrier to entry: Installed base of equipment which is heavily integrated into telco network and OSS-BSS o Operating scale, billing capability o Business model and long-term customer contracts o India-based low cost structure, scalable o Proven track record, results, customer relationships o Onsite teams embedded within customers Management: o Quality of management team o 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 [email protected] OnMobile Global +91 80 4009 6707 Anirudh Bhardwaj [email protected] Churchgate Partners +91 22 3953 7444