Norwood Systems Ltd · ASX:NOR
Norwood Systems — Investor Presentation (June 2015)
29 slides from Norwood Systems's investor presentation, Jun 16, 2015
Slide 1: Transforming global telecommunications in the shared economy
Transforming global telecommunications in the shared economy Investor presentation – June 2015 ASX:NOR
Slide 2: Overview
2 Overview Norwood has developed service platforms that provide Capital Structure business travellers with seamless access to high-quality, ASX Code NOR low-cost voice global telecommunications services. Shares on Issue 773,859,598 Key highlights: Performance Shares1 157,739,522 – The company is add
Slide 3: Why invest?
3 Why invest? 1. Cloud-based disruptive technology Norwood makes it easy to connect roaming business travellers to local landline telephony services – delivering large savings 2. A high margin scalable business model Voice-as-a-Service (VaaS) revenue model, requiring minimal CAPEX and OPEX to scale
Slide 4: Corporate Voice Roaming - $30B and growing @ 12%
4 Corporate Voice Roaming - $30B and growing @ 12% Growth in passenger travel Monthly Revenue Passenger 350 Kilometers (Billion) Voice is the key driver Leisure'travel $8 Billion $8'Billion' 170 2007 2014 $7 Billion $30 Business' Business' $30'' Billion voice' ' $7'Billion' Carrier roaming income (f
Slide 5: First-mover advantage with zero-CAPEX platform
5 First-mover advantage with zero-CAPEX platform Business travellers’ core needs Traditional means to service need Shared economy: Low-end Premium “Premium service at lower cost” Transportation: Accommodation: Backpackers Commercial Hotel Communication: Voice over IP Cellular Roaming E W ! N www.nor
Slide 6: CORONA serves a unique two-sided market
6 CORONA serves a unique two-sided market Local service delivery Roaming customers SIP TRUNK PROVIDERS CORPORATE TRAVELLERS Local/regional business voice • Bridges the gap between Performance-sensitive users of connectivity providers needs and services communications High-quality and low-cost • CORO
Slide 7: CORONA – how it works
7 CORONA – how it works CORONA is our service platform that intelligently connects your organization’s telephone system with your employees’ smartphones, using: Partner • Our “Work Phone” App, plus service node Smartphone International using cellular • The high quality, inexpensive Internet telephon
Slide 8: Low OPEX / high-margin business model
8 Low OPEX / high-margin business model Service delivery: CORONA Network CORONA App Corporate end-user International Landline Telco Phone Network Partners Billing and reporting: Corporate account Third-party Payments-As-a- Service Provider Landline Telco Partners Telephony signaling and traffic Billin
Slide 9: Corporate roaming – redefined
9 Corporate roaming – redefined Disruptive Key value Re-engineered and simplified access to global telephony networks drivers Superior cost profile and call experience to cellular roaming Significantly reduced total cost of ownership for the organisation Seamless End-user Always connected to their c
Slide 10: Corporate connectivity with better quality and usability
10 Corporate connectivity with better quality and usability Affordable Establishing a unique market space VoIP Apps Lower usability, Higher usability, seamlessness, seamlessness & voice quality Cellular & voice quality Local/global Roaming (Daypacks) SIMs Cellular Roaming Expensive www.norwoodsystems
Slide 11: CORONA is live – supporting a global footprint
11 CORONA is live – supporting a global footprint Local service partners deliver high-quality telephony access in each region Moscow London Arnhem Paris Beijing New York Tel Aviv Tokyo Palo Alto Austin Istanbul Mexico City Bahrain Hong Kong San Salvador Lagos Singapore Lima Durban Perth Buenos Aires
Slide 12: 3 million airtime seconds on 6 continents
12 3 million airtime seconds on 6 continents Direct sales focus 100%+ monthly average airtime growth § Mid-size to large organisations with international operations and mobile workforces § 30+ corporates are using CORONA, including iiNet Increasing usage per user per month Indirect partner develop
Slide 13: Investing in 2-stage monetisation model
13 Investing in 2-stage monetisation model Door-opener Relationship builder No client upfront costs – zero CAPEX, no SIMs Disruptive efficient pricing model • 45¢ per minute – delivering 70-80% savings • Flat-rate Voice-as-a-Service (VaaS) • Immediate ROI – only bill client when we have • $45/month/us
Slide 14: Case Study: ASX 200 firm – $600k potential savings/year
14 Case Study: ASX 200 firm – $600k potential savings/year Highlights: 200-300 active roamers/month Spending $1m annually on roaming Largest cost driver is voice (2x data) Current Savings Scenarios* Situation 30% Wi-Fi 100% data Current cost 100% Wi-Fi 70% cellular roaming Total voice roaming bill t
Slide 15: Get ready for EUROPA!
15 Get ready for EUROPA! EUROPA = End User ROaming Personal Access CORONA App EUROPA App Enterprise Prosumer
Slide 16: EUROPA’s place in Norwood’s strategy
16 EUROPA’s place in Norwood’s strategy Commercial relationship Individual Corporate CORONA On-premises Not applicable or private cloud Corporate Integration Work Phone Deployment model EUROPA CORONA Lite Public cloud World Phone Individual adoption Work Phone Company takes over (within a Company) (
Slide 17: Significant external recognition through 2014
17 Significant external recognition through 2014 Multiple winner at the WAITTA awards – June 2014 Multiple winner at the National iAwards – August 2014 Finalist representing Australia at APICTA 2014 – November 2014 www.norwoodsystems.com
Slide 18: 65+ years experience in Comms & IT
18 65+ years experience in Comms & IT Paul Ostergaard, CEO – MBA (INSEAD), BE (UWA) § 25 years high-tech experience § Founded and led one of Europe’s 30 Hottest Tech Firms (Time Magazine, 2001 & 2002) in the 2000s § Led strategy for a $1 Billion datacoms platform at 3Com Corporation in the 1990s
Slide 19: Industry Valuations
19 Industry Valuations 2014 2014 2014 2013 2011 Sold to Japan’s Sold to Facebook Estimated value 23.3% private Sold to Microsoft Rakuten for US for US$19bn US$13bn1 investment; for US$8.5bn $900m implied valuation US$470m 300m users 450m users 580m users 400 businesses 170m users signed up ~US$3 per
Slide 20: Near-term value drivers
20 Near-term value drivers Contracts with regional operating units of Global 5000 firms. Customers Great up-sell opportunity to other operating units within firms. Imminent launch of World Phone – “prosumer” viral pre-pay Products offering to be made available for download from the App Store. Signifi
Slide 21: Appendix
21 A Appendix www.norwoodsystems.com
Slide 22: IP & patent filings
22 IP & patent filings A.1 Details of all trade mark, design and patent registers maintained by IP Australia (or another intellectual property agency) in the name of Norwood Systems or which are licensed to Norwood System are provided below: PATENTS Application/ Title Applicant(s) Inventor(s) Filing
Slide 23: Innovative and seamless automation
23 Innovative and seamless automation A.2 Sequence of events: CORONA (London Service Node) 4 ProcessGeorge takes place automatically: Virtual Appliance 1. George travels from New York to London – No end-user action Direct: +1 (212) required 555-4123 – No ITCell: staff intervention +1 (212) 555-9100 n
Slide 24: No change of behaviour required
24 No change of behaviour required A.3 Sequence of events: George 1. George’s smartphone is present Roam: +44 (207) 555-4014 on the London Service Node and 1 is reachable via the landline 2 network on his hidden roam (212) 555-9100 number “014” 5 3 2. Helen calls George on his normal London cell pho
Slide 25: Inspired by Australian mid-century innovator
25 Inspired by Australian mid-century innovator A.4 Named after Arthur F. B. Norwood, renowned WA mining entrepreneur, metallurgist and innovator in the 1930s-60s, whose values of innovation, entrepreneurship and service the company aims to emulate Norwood Systems’ 21st century platform innovations:
Slide 26: Seamless corporate roaming – across networks
26 Seamless corporate roaming – across networks A.5 ” lity calls h -qua , hig cost “Low- Phone Networks (voice traffic) ” pri vate ure and “Sec Internet (roaming signaling) Seamless corporate connectivity Based on proven standards Extremely scalable – Employees can roam between their corporate – Uses
Slide 27: Seamless corporate roaming – across networks
27 Seamless corporate roaming – across networks A.6 Corporate phone systems Cellular networks Public landline networks www.norwoodsystems.com
Slide 28: Disclaimer
28 Disclaimer A.7 This presentation has been prepared by Norwood Systems Ltd (the “Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents of this presentation,
Slide 29: For further information contact:
29 For further information contact: Paul Ostergaard CEO and Founder, Norwood Systems +61 8 9200 3501 +61 404 270 421 [email protected] www.norwoodsystems.com