Norwood Systems Ltd · ASX:NOR
Norwood Systems — Investor Presentation (February 2016)
29 slides from Norwood Systems's investor presentation, Feb 8, 2016
Slide 1: Investor Presentation and Strategy Update
For personal use only Investor Presentation and Strategy Update February 2016 ASX:NOR
Slide 2: Disclaimer
2 Disclaimer For personal use only This presentation has been prepared 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
Slide 3: Overview
3 Overview For personal use only Norwood provides voice, messaging and data services to consumers, enterprises and carriers around the world, leveraging its global federated telecommunications services network partnerships. Norwood delivers amazing end-user communications Apps that streamline and si
Slide 4: Key achievements since listing on June 16, 2015
4 Key achievements since listing on June 16, 2015 For personal use only Operational • World Phone, successfully launched Jul 2015, currently following a path to profitable monetisation • 3.3 million downloads in 6 months, active users in more than 200 countries and 5100 cities • Annualised revenue r
Slide 5: Progress since listing
5 Progress since listing For personal use only Second capital Customer acquisition raising of $7.1m Growth strategy costs 50% lower than completed announced Growth Strategy plan 21 December 23 September 2015 18 November 2015 2015 Listing and Launch of World National iAward Partnership with Android W
Slide 6: Strategy update
For personal use only Strategy update
Slide 7: Norwood's Strategic Direction
7 Norwood’s Strategic Direction For personal use only Having proven World Phone market adoption, Norwood is now focusing on the following strategic priorities: • Creating a multi-service App portfolio to support diverse end-user communications needs – beyond just voice services • Integrating the Com
Slide 8: CORONA Recap
8 CORONA Recap For personal use only Phone Networks (voice traffic) Internet (roaming signaling) Seamless corporate connectivity Based on proven standards Extremely scalable – Employees can roam between their corporate – Uses the cellular networks’ very own – Supports 100,000s of corporate networks
Slide 9: Enhancing the CORONA service portfolio
9 Enhancing the CORONA service portfolio For personal use only Voice, messaging and data products for Businesses. Using patented, award-winning tech. EXISTING NEW NEW NEXT TBD CORONA CORONA On-Prem CORONA Cloud Global Trunk Services Next Gen CORONA • On-premises architecture • ‘Cloud-first’ scalable
Slide 10: CORONA Cloud
10 CORONA Cloud For personal use only “Effortlessly add existing World Phone users to your CORONA Cloud account” “Migrate easily from individual pre-pay usage to centralised post-pay contracts” • Compelling, simple migration for World Phone user groups • Centralised web-based administration, payment
Slide 11: CORONA Global Trunk Services
11 CORONA Global Trunk Services For personal use only “Connect your office(s) directly to our Global Federated Telco Network” “Deal with a single vendor at highly competitive rates, across borders” • Captures all office fixed-line voice traffic, not just the roamers • Enables companies to connect di
Slide 12: Expanding Norwood's Channels
12 Expanding Norwood’s Channels For personal use only Direct-To-Consumer Digital Marketing. Highly effective, proven, low- cost and global means to acquire consumer customers Direct and Indirect Corporate Sales. Team now spans Australia, US, UK and Asia – also leveraging insights from digital market
Slide 13: Expanding Norwood's App portfolio
13 Expanding Norwood’s App portfolio For personal use only A revolutionary, simple-to-use, Over-the-Top (OTT) telephony App that delivers the best possible voice experience on a global scale World Phone A revolutionary, simple-to-use OTT messaging App that delivers a great messaging experience on a
Slide 14: One network, multiple Apps, multiple segments
14 One network, multiple Apps, multiple segments – spanning diverse use cases and markets For personal use only Consumer SMB / Enterprise Carrier / Telco Telephony World Phone World Phone CORONA Cloud White label Messaging World M essage CORONA Cloud World M essage White label Data World Wi-Fi World
Slide 15: Norwood's World App Ecosystem
15 Norwood’s World App Ecosystem For personal use only World Credit Economic Framework …............. Core service apps …....................................... ................... World Phone World Message Access enabler …........................................................... World Wi-Fi Netwo
Slide 16: World Credit Update
16 World Credit Update For personal use only Users can purchase common “World Credit” on any of Norwood’s World Apps A common, secure value store, to be shared between Apps World Phone World Message World Wi-Fi Each App can use the available common credit balance for calls, SMSs, or data, respective
Slide 17: Global Dynamic Pricing Update
17 Global Dynamic Pricing Update For personal use only Current scenario • Users purchase 20 minute, 60 minute or unlimited calling packs • Pros: easy to understand, always same cost • Cons: doesn’t allow for pricing to change and adapt for different routes, competitive pressure; confusing pricing fo
Slide 18: World Phone update
For personal use only World Phone update
Slide 19: World Phone Recap
19 World Phone Recap For personal use only An easy-to-use and high-performance Over-The-Top (OTT) Voice app A first-rate user experience: Delivering worldwide access: Top-ranked Travel App on iOS and Android Active users in 200+ countries, 5000+ cities Leveraging the “sharing economy”: telco partner
Slide 20: Controlled, monetisable growth
20 Controlled, monetisable growth For personal use only • World Phone has earned more than A$ 500,000 in revenues since launch 6 months ago • Routinely in Top 5 downloaded / grossing Travel App ranks on both iTunes & Google Play • “Entrenched” in many App Stores, alongside the likes of Uber, AirBnB,
Slide 21: Financials / share price / issued capital
21 Financials / share price / issued capital For personal use only Capital Structure ASX Code NOR Shares on Issue 867,609,598 Performance Shares & Rights1 165,595,070 Options (various exercise prices) 95,974,485 Share Price $0.066 Market Capitalisation ~$57.2m Cash on hand (31 Dec 2015) ~$6.5m Enter
Slide 22: Board and Governance
22 Board and Governance For personal use only Paul Ostergaard Amit Pau Giles Everist Mike Edwards Managing Director & Founder Non Executive Director Non Executive Director Non Executive Chairman • One of Australia’s 100 Most • Former Group Managing • Extensive corporate and • Over 20 years Senior In
Slide 23: Senior Leadership Team
23 Senior Leadership Team For personal use only Paul Ostergaard CEO Mans David Wilson Shapshak Mike Vosper Nick Horton Steve Tot CTO VP Analytics VP Operations VP Marketing VP Sales Technical lead Digital Marketing lead Infrastructure lead Consumer lead Enterprise lead • New product • Growth hacker
Slide 24: Conclusion
For personal use only Conclusion
Slide 25: Investment highlights
25 Investment highlights For personal use only 1. A scalable business model Communications-as-a-Service (CaaS) revenue model, requiring minimal CAPEX and OPEX – targeting carrier partners for scale 2. A monetisable App Store presence A$ 500,000 in generated revenue – just in the past six months Most
Slide 26: Industry valuations
26 Industry valuations For personal use only 2014 2014 2014 2013 2011 Sold to Japan’s Sold to Facebook Estimated value 23.3% private Sold to Microsoft Rakuten for for US$19bn US$13bn1 investment; for US$8.5bn US$900m implied valuation US$470m 300m users 450m users 580m users 400 businesses 170m user
Slide 27: A World Leader in 'Sharing Economy' Telco Services
For personal use only A World Leader in ‘Sharing Economy’ Telco Services For further information contact: Paul Ostergaard Shane Murphy CEO and Founder, Norwood Systems FTI Consulting Office: +61 8 9200 3500 Office: +61 8 9485 8888 Web: www.norwoodsystems.com Mobile: +61 420 945 291 Twitter: @paulost
Slide 28: Appendix
For personal use only Appendix
Slide 29: Glossary
29 Glossary For personal use only A number of consumer mobile app industry metrics may be referred to in this presentation, alongside traditional financial metrics. For the benefit of readers, these metrics are defined further below. Revenue for mobile apps refers to gross revenue earned from sale o
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