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eServGlobal
LSE: ESGLondon Stock Exchange, AIM market
ASX: ESVAustralian Stock Exchange
p. 2 | Copyright © 2007 eServGlobal. All rights reserved.
Our Role in Essence
Telephone companies run complex communications networks
which connect and manage billions of phone calls instantly.
IN software makes the network intelligent – providing services
as well as phone-calls.
eServGlobal specialises in charging and messaging Re-charging the balance of a pre-paid mobile phone Charging for calls, services and data in real time Voice mail, SMS messaging and content delivery
Global IN market valued at US$2.6billion (2007) Gartner DataquestGartner Dataquest Convergent billing market: US$0.5billion (2007) Juniper ResearchJuniper Research
p. 3 | Copyright © 2007 eServGlobal. All rights reserved.
Telecoms is not just about phone calls any more: New uses of networks mean more complex network logic:
Data, Messaging, Web services
New business models mean more complex charging:
Pre-paid, sponsorships, micro credit usage, recharge.
Requires systems with all the reliability and stability of the network, but with all the configurability and flexible logic of software.
Most new telephone customers are pre-paid
Most new services are complex and configurable
Most telephone companies are competitive and need to differentiate themselves
Fastest growth area: developing world
Revolutionary change
p. 4 | Copyright © 2007 eServGlobal. All rights reserved.
eServGlobal provides exposure to…
Software revolution
Telcos compete through promotions & servicesRequire ability to create personalized offerings
Developing world
World’s highest telecom growth rates Middle East / Asia / Africa / Latin Am.
In developing world, telcos are the new banksCharging and recharge drive their cash flow
Big, sticky customers
Payments revolution
Our revenue: 77% Middle East / Asia
Our revenue: 72% Charging & Recharge
Our revenue: 100% software & related services
Our customers: 100% telephone companies
Replacing network systems is high riskOngoing support annuities in all cases
p. 5 | Copyright © 2007 eServGlobal. All rights reserved.
Installed Base includes 80+ carriers in 50+ countries
p. 6 | Copyright © 2007 eServGlobal. All rights reserved.
Our People
> 50% of employees are engineers
13% of annual revenue invested in R&D, and growing
Professional, proven, multi-national management
team
Established organization: 740 staff worldwide with offices in 15 countries Dedicated support & delivery organization 20 years experience in telecommunications
A truly global company: no dominant nationality, over 30 languages
p. 7 | Copyright © 2007 eServGlobal. All rights reserved. MAILIS
Our ProductsModular software for real-time transaction & event handling in telco networks
PromotionsPromotions
Sponsored WiFISponsored WiFI
Third Party Third Party TransactionsTransactions
MashupsMashups
AccessAccess
Sponsored SMSSponsored SMS
MessagesMessages
PROMOMAX
MESSAGEMAX
INMAXCHARGINGMAX
TOP-UP SUITE
RechargeRecharge
Cash Flow
Revenue
It’s a Multi-play
world
p. 8 | Copyright © 2007 eServGlobal. All rights reserved.
First half results
AUD Six months to
31 Dec 2007 Six months to
31 Dec 2006 Growth
Sales Revenue 91,194 74,202 23% Cost of Sales 43,572 39,389
Gross Profit 47,622 34,813 Other Revenue 121 3
Research & Development Costs 14,622 8,413 Sales & Marketing Costs 8,176 6,579
Administration Costs 11,753 10,802 Total Opex 34,551 25,794
EBITDA 13,192 9,022 46% Depreciation 1,492 1,157 Amortisation 3,411 3,523
EBIT 8,289 4,342 91% Interest Expense 169 133
Profit before Tax 8,120 4,209 Tax Expense / (Benefit) 2,875 1,942
Profit after tax 5,245 2,267 131% Minority Interest 51 64
Profit attributable to members 5,194 2,203 136%
p. 9 | Copyright © 2007 eServGlobal. All rights reserved.
Growth drivers:Growth of mobiles and prepaid in developing worldUse of recharge and charging to differentiate & manage cash flowIncreasing, focussed R&D investment
Growth
Fastest growing markets, with a long way to go: Our 2 current biggest markets are both high-growth:
Middle East: (22% telecoms CAGR) Developing Asia: (24% telecoms CAGR)
Estimated competitive position: #1 in Recharge with approx 20% market share #1 in Real-time convergent Charging control #4 in Charging & Service control
source: Analysys Research
source: eServGlobal (unaudited)
p. 10 | Copyright © 2007 eServGlobal. All rights reserved.
www.eservglobal.com
