Annual Report 2009 a Nnu Al R Ep Or T 2009
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SINGAPORE GERMANY euNetworks Group Limited euNetworks AG 50 Raffles Place Eschborner Landstraße 112 #32-01 Singapore Land Tower 60489 Frankfurt Annual Report 2009 Singapore 048623 Deutschland Tel: +65 6230 9795 Tel: +49 69 90554 0 Fax: +65 6532 1633 Fax: +49 69 90554 111 Email: [email protected] Email: [email protected] Directors Noel Meaney, Brady Reid Rafuse, Daniel Aegerter, Vorstand Noel Meaney Thomas P. Byrnes, Nicholas George, Lam Kwok Chong, William Vorsitzender des Aufsichtsrats Thomas P. Byrnes Gregory Mesch, Kai-Uwe Ricke, John Tyler Siegel Jr Umsatz-ID-Nr DE 201 739 716 Registered in Singapore Number 199905625E Steuernummer 04523251638 Amtsgericht Frankfurt am Main UNITED KINGDOM Handelsregister Nummer 58594 euNetworks Fiber UK Ltd Aufsichtsbehörde Bundesnetzagentur für Elektrizität, Gas, 7th Floor Telekommunikation, Post und Eisenbahnen; Tulpenfeld 4; 90 High Holborn 53113 Bonn London WC1V 6XX United Kingdom euNetworks Services GmbH Tel: +44 20 3178 8003 Eschborner Landstraße 112 Fax: +44 20 3178 8004 60489 Frankfurt Email: [email protected] Deutschland Directors Nicholas George, Brady Reid Rafuse Tel: +49 69 90554 0 Registered in England Number 4840874 Fax: +49 69 90554 111 VAT Registration Number 877685941 Email: [email protected] Geschäftsführer Albrecht W. Kraas IRELAND Umsatz-ID-Nr DE 188 444 657 euNetworks Ireland - Private Fiber Limited Steuernummer 04522802149 Suite D16 (2nd floor M) Amtsgericht Frankfurt am Main The Cubes Offices Handelsregister Nummer 48468 Beacon South Quarter Sandyford, Dublin 18 European Fiber Networks “GND” GmbH Ireland Eschborner Landstraße 112 Tel: +353 1 652 1200 60489 Frankfurt Fax: +353 1 652 1201 Deutschland Email: [email protected] Tel: +49 69 90554 0 Directors Nicholas George, Brady Reid Rafuse Fax: +49 69 90554 111 Registered in Ireland Number 314398 Email: [email protected] VAT Registration Number IE 6334398A Geschäftsführer Noel Meaney Umsatz-ID-Nr DE 188 444 657 THE NETHERLANDS Steuernummer 04523251638 euNetworks BV Amtsgericht Frankfurt am Main Paul van Vlissingenstraat 16 Handelsregister Nummer 77008 1096BK Amsterdam The Netherlands European Fiber Networks Asset GmbH Tel: +31 20 354 8080 Eschborner Landstraße 112 Fax: +31 20 653 5791 60489 Frankfurt Email: [email protected] Deutschland Directors Nicholas George, Brady Reid Rafuse Tel: +49 69 90554 0 VAT Registration Number NL 8119.14.409.B.01 Fax: +49 69 90554 111 KvK 341 844 91 Email: [email protected] Geschäftsführer Noel Meaney FRANCE Umsatz-ID-Nr DE 188 444 657 euNetworks SAS Steuernummer 04523251638 Registered office Amtsgericht Frankfurt am Main 102 Avenue des champs Elysées Handelsregister Nummer 77116 75008 Paris France Email: [email protected] Président de la Société Nicholas George A Directeur Générale Brady Reid Rafuse nnual Registered in France Number 490505 773 RCS Paris VAT Registration Number FR 4905 057 730 0013 BELGIUM euNetworks BVBA R Blvd Louis Schmidtlaan 119 Bus 3, Brussels 1040 eport Belgium Email: [email protected] Zaakvoerder Nicholas George, Brady Reid Rafuse Registered in Belgium Number 0887 348 674 2009 EUNETWORKS GROUP LIMITED AND ITS SUBSIDIARIES 2009 1 Contents OPERATIONAL OVERVIEW 4 Financial and Operational Highlights 6 Group Profi le 9 Chairman’s Statement 10 Chief Executive Offi cer’s Message 14 Operational Review and 2010 Outlook SECTION 1 CORPORATE PROFILE 20 Corporate Pro file 21 Board of Directors 26 Key Management SECTION 2 PRODUCTS & SERVICES 30 Products and Services SECTION 3 CORPORATE GOVERNANCE 34 Corporate Governance Report 44 Report of the Directors 52 Statement of the Directors SECTION 4 AUDITORS REPORT 56 Independent Auditors Report to the Members of euNetworks Group Limited SECTION 5 FINANCIAL STATEMENTS 60 Consolidated Income Statement 61 Consolidated Statement of Financial Position 62 Statement of Financial Position of the Company 63 Consolidated Statement of Cash Flows 64 Statements of Changes in Equity 66 Notes to the Financial Statements SECTION 6 STATISTICS OF SHAREHOLDINGS 112 Statistics of Shareholdings SECTION 7 NOTICE OF ANNUAL GENERAL MEETING 116 Notice of Annual General Meeting This annual report has been prepared by the Company and its contents have been reviewed by The contact person for the Sponsor is:- 123 Proxy Form the Company’s Sponsor, CIMB Bank Berhad, Singapore Branch for compliance with the relevant Jason Chian (Director, Corporate Finance) rules of the Singapore Exchange Securities Trading Limited (“SGX-ST”). The Company’s sponsor CIMB Bank Berhad, Singapore Branch #09-01 Singapore Land Tower This annual report has not been examined or approved by the SGX-ST and the SGX-ST assumes Singapore 048623 euNetworks Group Limited no responsibility for the contents of this annual report, including the correctness of any of the formerly known as statements or opinions made or reports contained in this annual report. Telephone: (65) 6337 5115 Global Voice Group Limited 2 EUNETWORKS GROUP LIMITED AND ITS SUBSIDIARIES 2009 euNetworks owns a network that contains up to 6 ducts in the metro with the capability to deploy 7,500 fi bre pairs in most of our metropolitan networks. As an example, a 10Gbits fi bre pair has the capacity equivalent to delivering 250,000 simultaneous high quality voice calls. Our high density cables contain 216 fi bre pairs. On average there could be at least 6 cables in a duct, and 6 ducts in a trench. Our network has the capacity that is equivalent to delivering approximately 2 billion simultaneous high quality voice calls, or transport the entire contents of the British Library (14 million books) ten times per second over the network. EUNETWORKS GROUP LIMITED AND ITS SUBSIDIARIES 2009 3 Financial and Operational Highlights ............................................ 4 Operational Group Profi le ...................................... 6 Chairman’s Statement .................... 9 Chief Executive’s Message ............. 10 Operational Review & Overview 2010 Outlook...................................... 14 4 EUNETWORKS GROUP LIMITED AND ITS SUBSIDIARIES 2009 Financial & Operational Highlights Financial Highlights • Generated 25% year on year growth in recurring revenues. • Selling, General and Administrative expenses increased by 11% in the year following establishment of the London offi ce • Total revenue increased by 26% to €30.1 million for the full and its subsequent build out as the European headquarters and year 2009. as a result of strengthening the management team. Financial • Reported a net loss of €9.9 million for the fi nancial year compared strengthening of the business was undertaken through the year. to a net loss of €18.2 million a year ago. This reduction was mainly • In April 2009, we successfully completed a fund-raising exercise, due to an exceptional gain arising on the repurchase of convertible raising S$92 million from a share subscription and rights issue. bonds of €6.9 million and a resulting reduction in fi nance costs. Subsequently the group used S$60.1 million to redeem 100% of • Efforts to improve effi ciencies and target long term recurring the convertible bonds due for repayment in 2011 and to redeem revenue contracts is underway. €14.5 million of its convertible bond due in 2012, thus reducing the principal amount of the two bonds from €61.3 million to • Exited 2009 with a monthly recurring revenue run rate €17.5 million. of €2.6million. • In conjunction with this, the company entered into a subscription • 74 new customers were signed in 2009, driving €21million agreement with EUN Partners V, LLC, a controlled by Columbia in aggregate contract value. Capital V, LLC subsidiary. • Growing shift towards the networking side of the business, • On 6 April 2010, the Company completed a renounceable partially with 75 % of new sales in 2009 from network based services, underwritten rights issue of approximately S$86.5 million in and 25% from colocation. aggregate principal amount of zero coupon convertible bonds due 2013 in the denomination of S$1 on the basis of one convertible • Gross margin improved in the year following better management bond for every 100 existing ordinary shares at an issue price of of direct costs associated with servicing new revenues. In 2009 S$0.97 for each convertible bond. The net proceeds raised will gross margin was 45%, up from 43% in the previous year. be used to repay the convertible bonds due in 2012 and to fund capital expenditure and working capital. • EBITDA in 2009 was a loss of €4.2million, an improvement from 2008 EBITDA loss of €6.0 million, excluding exceptional items and non-operating income on the basis they are non-recurring. In April 2009, we successfully completed a fund-raising exercise, raising S$92 million from a share subscription and rights issue. EUNETWORKS GROUP LIMITED AND ITS SUBSIDIARIES 2009 5 26% 25% 74 106 growth in year on year in year on year new customers employees at total revenue recurring revenue in the year year end Operational Highlights Revenue Growth 2008: Revenue Growth 2009: • Appointment of Brady Rafuse to Chief Executive Offi cer in March 2009. • Began transformation to a bandwidth infrastructure company. 17% 26% • Changes in management team with the appointment of Richard Taylor to General Counsel, Uwe Nickl to Chief Marketing Offi cer and Claire Leake to Vice Revenue Blend 2008-2009 President Human Resources. Colocation Network • Change of name of listed entity on the Singapore 08 50% Stock Exchange from Global Voice Group Limited 08 40% to euNetworks Group Limited. This consolidates 09 09 56% the value of the brands inherent on both listed entity 36% and European operating entities. • Completed the fi rst phase of the new London network build out and lit further fi bre in the network. New Sales Blend 2008-2009 • This network development contributed to growing Colocation Network success serving the fi nancial services segment with 08 46% 08 54% high-performance and ultra-low latency networking solutions. 09 25% 09 75% • The fastest growth segment was fi nancial services in 2009, with strong demand for euNetworks’ euTrade platform. The largest deal signed during the year was with Chi-X Global Technology BV (Chi-Tech).