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1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

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Page 1: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec
Page 2: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

1. Company Overview 3

2. Products 6

3. Customers 12

4. Geographies 14

5. Management 16

6. Financial Performance 19

2

Page 3: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

Company Overview

Products

Customers

Geographies

Management

Financial Performance

3

Page 4: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

• A Mobile VAS pioneer in Emerging Markets with products such as RBT, Music, Infoservices and Personal Cloud

• Delivers value using white-labeled Managed Services model, with a recurring revenue share business model

• Boston, Cairo, Delhi, Dubai, Johannesburg, Jakarta, Kuala-Lumpur, London, Mumbai, Nairobi, Paris, Silicon Valley, Sao Paulo, Seattle, Singapore, Sydney

• Offices in 45 countries

Business

Company Structure

Global Offices

Customer Impact

• 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)

4

VAS Pioneer

• 2-4% contribution to Operators’ top-line in large customers

• Generating > $1.25 billion for our customers in revenues

Page 5: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

63+ million RBT Users/month

100+ million Unique Users/month

1,500+ million Market Reach

35 million OnCloud Downloads

6 million On Device Portal Downloads

5

9 billion Calls handled/month

Page 6: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

Company Overview

Products

Customers

Geographies

Management

Financial Performance

6

Page 7: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

4 M

usi

c &

RB

T

•Ring Back Tones

•Reverse Ringback Tones

•Ad-RBT

•Music Platform (Ringtone / Full-track downloads / Video)

•Speech Music Search

•User generated content RBT

•M-Radio

Info

tain

me

nt •Voice

Portals, using Speech Recognition in local languages

• Infotainment (Sports, Jokes, Religion, News, etc.)

C

lou

d &

Sp

eech

•Network Address Book & Social Address Book

•Phone Backup

•Multi-media & Messaging Sync Services

•OnCloud Locker

•OnCloud Secure

Uti

litie

s •Governance

•Health

•Education

7

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

Page 8: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

Speech VoiceXML 2.1, SpeechObjects

MRCP for ASR/TTS integration

SLM /Grammar based ASR

Speaker-independent, hotwork recognition speaker identification

Local language models

Telephony SS7, PRI, SIP/RTP

SMS/WAP Portal management system

Local language support

Hosted infrastructure

SMSC: SMPP, CIMD

Apps Differentiated applications for both corporate and consumer markets

Management systems Content management data

warehousing personalization (Collab-filter) 247 NOC

Customer care reporting

Payment Models: Premium access,

subscription, transaction etc.,

Mechanisms: Prepaid/Post-paid credit card, direct debit

Cash card

Multimodal Voice, WAP, SMS local languages

sequential/concurrent

3rd Party Apps

Voice Application

WML Application

X-HTML Application

Location Application

MultiModal Application

Monitoring

station

Firewall

OSS

LAN

Internet

WAP 1x

Gateway

GGSN SGSN

BSS

Radius/DHCP

HTTP SMSC

MSC

OnMobile

Network Deployment

Architecture

T1/E1/J1

C7/PRI/R2

HTTP/Location APIs

MMP2500

Architecture Distributed & scalable

architecture with no single point of failure

High entry barrier + High switching costs

Mobile Positioning

Center

CIMD/SMPP

Billing System

8

Page 9: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

● Support for more languages

● 10 Indian languages

● Live Audio streaming

● Ticketing (Railways, Movies)

● CheckMate

● Pricing innovations: Subscription, Not Enough Funds

● M-Commerce: Shopping Mall, I-Pay, Bill Payment

● Multimodal Support including SMS, WAP

● Multi-language WAP

● Try & Buy

● M-Search (Voice & SMS)

● M-Radio

● RBT: Press* to copy

● SMS/USSD

● AdRBT

● Reverse RBT

● Business Intelligence

● Platform – Voice portal 1.0 (English)

● Ring tones

● Karaoke

● Dynamic Voice Mail

● Infotainment

● Indian Languages Model (3 languages)

● Ring back tones

● Contests

● Karaophone

● Customer Lifecyle Management

● Zero Balance Missed Call

● Anti Theft

● Social RBT

● OnCloud Locker

● OnCloud Secure

● OnMobile Developer Network

● Cell Broadcast

● Music Download service

● Converged VAS

● Help Me on Mobile

● Digital Football

● Mobile Kunji

2000-2004 2005-2006 2007-2009 2010 – 2011 2012-2014

9

Page 10: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

• 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

10

Page 11: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

Media & Content

TV, Radio, Publishing Music, Movies, Video,

Print…

Mobile

Handset Manufacturers,

NEPs, Operators, MVNOs

Internet

Portals, E-Commerce Verticals, P2P, UGC

Enterprises

Enterprises and Governments

Mobile Services

11

Page 12: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

Company Overview

Products

Customers

Geographies

Management

Financial Performance

12

Page 13: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

Customers

13

92

Page 14: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

Company Overview

Products

Customers

Geographies

Management

Financial Performance

14

Page 15: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

15

Countries

Customers

Canada

USA

Mexico

El Salvador Nicaragua

Panama

Colombia

Ecuador

Peru

Chile

Venezuela

Brazil

Uruguay

Argentina South Africa

Zambia Madagascar

Guatemala

Costa Rica

Senegal

Sierra Leone

Ghana

Mali

Burkina Faso Nigeria

Niger

Rwanda

Angola Malawi

Tanzania Kenya

Uganda

UK

Finland

Spain

Netherlands Germany

France

Egypt

Italy

Poland

Belgium Romania

Turkey

UAE

Cyprus Pakistan

India

Sri Lanka

Bangladesh

China

Thailand

Malaysia

Singapore Indonesia

Australia

Taiwan

South Korea

Qatar

Saudi Arabia

59+ 92

Page 16: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

Company Overview

Products

Customers

Geographies

Management

Financial Performance

16

Page 17: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

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

17

Page 18: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

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

• 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

• 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

18

Page 19: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

Company Overview

Products

Customers

Geographies

Management

Financial Performance

19

Page 20: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

(52.6%)

60.7%

(12.9%) (9.3%) 0.0% 399 642 559 507

(61)

8.8%

11.9%

8.8%

7.0%

(0.7)%

840 1,208

1,399 1,493

1,305

18.5% 22.5% 21.9% 20.6%

15.1%

4,544 5,372 6,380 7,253 8,653

FY10 FY11 FY12 FY13 FY14

Net Revenue (` million)

FY10 FY11 FY12 FY13 FY14

EBITDA (` million) and Margins (%)

Operating Profit (` million) and Margin (%)

20

11.8%

18.2% 18.8%

13.7%

19.3%

Y-o-Y Growth

(34.4%)

43.8%

15.8%

6.7%

(12.6%)

Y-o-Y Growth

Page 21: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

FY2014

59%

30%

11%

27%

24% 22%

13%

11% 3%

Profitable mix of diversified revenue sources

Revenue by Geography

Revenue by Products

21

FY2012 FY2013

FY2012 FY2013 FY2014

49%

27%

24% 58%

25%

17%

RBT Voice & Text Services Data and others

56%

11%

12%

9%

6% 6%

39%

23%

14%

14%

6% 4%

Page 22: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

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

(` million) Q4

FY2014 Q4

FY2013 %

Y-o-Y Q3

FY2014 %

Q-o-Q FY2014 FY2013

% 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%

Page 23: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

(` million) Q4

FY2014 Q4

FY2013 %

Y-o-Y Q3

FY2014 %

Q-o-Q FY2014 FY2013

% 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

Page 24: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

24

(` million) 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

Less: Cash & Cash Equivalents

1,240 2,126 2,009

Net Cash / (Net Debt) 357 801 1,518

Net Worth (excluding Goodwill)

6,303 7,229 7,044

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

491 469

1,758

1,325

883

0.4x 0.3x

1.3x

1.1x

0.9x

Q4 FY2013 Q1 FY2014 Q2 FY2014 Q3 FY2014 Q4 FY2014

Debt (Rs. mn) and Debt/EBITDA (x)

Page 25: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

Shareholding Pattern Shareholders as on Mar 31, 2014

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

25

Promoters 38%

FIIs 5% DIIs

9%

Public and Others

48%

Page 26: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

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

26

Page 27: 1. Company Overview 3 - OnMobile Investor Presentation... · 1. Company Overview 3 2. Products 6 3. Customers 12 4. Geographies 14 5. ... TenXc Wireless; President and CEO, Mitec

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

[email protected] +91 80 4009 6707

Anirudh Bhardwaj Churchgate Partners

[email protected] +91 22 3953 7444