Wirelessgate, Inc. · TSE:9419
Wirelessgate — Investor Presentation (June 2014)
30 slides from Wirelessgate's investor presentation, June 2014
Slide 1: WirelessGate
WirelessGate TSE Mothers 9419 June 2014 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 2: Summery
Summery • We are THE ONLY COMPANY which can provide flexible wireless solutions as an independent MVNO. • We are going into 2nd era to achieve rapid and sustainable growth. • Though our financial results in FY2013 are excellent, we can be better. – ROE: 26.8% (ranking 115/3279*) – DOE: 13.9% (rankin
Slide 3: Wireless Technology Comparison
Wireless Technology Comparison Combination of Wireless Technologies is essential. Wi-Fi WiMAX LTE Speed ◎ ○ ○ Coverage × ○ ◎ Cost ◎ △ × Usable Device ◎ × △ Data limitation ◎ ◎ △ Frequency Band Unlicensed Licensed Licensed 2 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 4: Business Positioning
Business Positioning Wireless Carrier ・・・ Wi-Fi WiMAX LTE (TD-LTE) (FDD-LTE) Borrow Wireless Platformer Partnership Sales Channel/ Retail Device Solution Location Distributor/ ・・・ Store Vender Provider Owner Solution Partner Individual Customer Customer Business Customer ・・・ (private, business) 3 CO
Slide 5: Characteristics and Strength
Characteristics and Strength • Flexible and Dynamic Adaptation against Technology and Market Change • Low Cost Operation – No Large CAPEX – Small Company (only 16 colleagues) • Unlimited Business Opportunity 4 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 6: Market Approach
Market Approach CUSTOMER FIRST • Find Customer Demand. • Create Solutions for a Particular Customer Segment. • Find Appropriate Distribution Channel and/or Business Partner for the Customer Segment. 5 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 7: Services
Services Wireless Carrier ・・・ Wi-Fi WiMAX LTE (TD-LTE) (FDD-LTE) ② Wi-Fi Environment Enabler Services Wireless Platformer ① Wireless Services Sales Channel/ Retail Device Solution Location Distributor/ ・・・ Store Vendor Provider Owner Solution Partner Individual Customer Customer Business Customer ・・
Slide 8: Customer
Customer ① Wireless Services – Individual Customer • Data Heavy Customer (now providing) • Data Light Customer (TBA on July 1) – Business Customer • M2M/IoT Customer (TBA on August 1) ② Wi-Fi Environment Enabler Services – Regional Governments, Commercial Districts, Shopping Malls, Restaurants, Hote
Slide 9: Business Model: Wireless Services
Business Model: Wireless Services Wi-Fi WiMAX LTE Provider Provider Provider Provide Pay Infrastructure Infrastructure Usage Fee Pay Commission Provide Pay Services Usage Fee Sales Channel Provide Product/Service Description Customer 8 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 10: Service Fee for Individual Customer
Service Fee for Individual Customer Wi-Fi Wi-Fi+WiMAX Wi-Fi+LTE Monthly fee ¥390 ¥4,000 TBA on July 1 Borrowed from Wi-Fi Wi-Fi Wi-Fi NTT, KDDI, Softbank, NTT, KDDI, Softbank, NTT, KDDI, Softbank, K-Opticom K-Opticom K-Opticom WiMAX LTE UQ NTT DoCoMo Characteristics 40,000+ spots (including Wi-Fi Wi
Slide 11: Customer Segment Mapping
Customer Segment Mapping (Million customer) High PHS (5.5) Customer Demand Voice Usage Regular Cell Phone (68) Smartphone Target: (51) Data Heavy Customer Target: Data Light Customer Foreign Tourist Tablet Low (10) (12) Data Usage Low High 10 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 12: Customer Transition
Customer Transition (thousands) 450 420 400 350 350 140 Wi-Fi 300 + WiMAX 300 110 250 90 210 200 30 150 Wi-Fi 240 280 90 210 100 180 50 40 90 40 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 11 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 13: Sales Calculation
Sales Calculation Stock-Based Stable Sales ¥390× Wi-Fi Customer Monthly + = ¥4,000×Wi-Fi+WiMAX Customer Sales + ¥(TBA)×Wi-Fi+LTE Customer 12 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 14: Strength for Wi-Fi Environment Enabler Business
Strength for Wi-Fi Environment Enabler Business • Low Cost Operation/ Short Lead Time to Development • Human (Wi-Fi Devices) Behavior Analytics Cloud Cloud Server monitors Solution • Wi-Fi Environments Server • Wi-Fi Devices signals Cloud Server helps Location A Location B • Auto Configuration • Mai
Slide 15: Business Model: Wi-Fi Environment Enabler
Business Model: Wi-Fi Environment Enabler BASIC MODEL Provide Pay Hardware (AP), Hardware fee, Initial Setup and Initial Setup fee and Maintenance Services Maintenance Services fee System Integrators (SIer) Pay Provide Hardware fee, Setup and support Government Subsidy Initial Setup fee and of Wi-Fi
Slide 16: Service Fee from SIer to WG
Service Fee from SIer to WG • One-time – Hardware Fee – Initial Setup Fee • Monthly Fee – Maintenance Service Fee 15 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 17: Business Model: Wi-Fi Environment Enabler (Sponsor Model)
Business Model: Wi-Fi Environment Enabler SPONSOR MODEL NO COST for Clients Business System Integrators Sponsor WG’s merit: NO Payment Speed up on Clients’ decision making Clients 16 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 18: Business Model: Wi-Fi Environment Enabler (Outdoor Advertisement)
Business Model: Wi-Fi Environment Enabler SPONSOR MODEL （Outdoor Advertisement） Ad. Clients Revenue Ad. Fee Share Dentsu System Integrators Revenue Share NO Payment Outdoor Ad. Clients with Wi-Fi 17 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 19: Details of Outdoor Advertisement Model
Details of Outdoor Advertisement Model Ad. Client can designate Ad. Client can get the information on ・ the name of SSID ・ how many people who just walk through advertisement zone ・ the URL after connected + ・ how many people who are interested in advertisement into Wi-Fi (stay 60seconds+ in front o
Slide 20: Market Potential
Market Potential Japanese Government requests Free Wi-Fi for - Foreign Tourists - Sufferers in the case of Disaster Required Minimum Required Number of number of APs number of APs Location /location (thousands) Commercial Districts 12,000 1-200 12 Shopping Mall 3,000 1-100 3 Restaurant 670,000 1-10
Slide 21: Clients
Clients • Ginza (Basic Model) • Akihabara (Sponsor Model) • Exhibition Coordination Company (Human Behavior Analytics) • Many Potential Clients under Negotiation with Various Sponsor Models 20 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 22: Income Statement
Income Statement FY 2012 FY2013 FY2014 （JPY Million） Cons. Cons. Est. Total Sales 5,501 7,055 8,509 YoY 59.9% 28.3% 20.6% Operating Profit 597 786 900 YoY 54.7% 31.6% 14.6% Ordinary Profit 576 785 898 YoY 48.8% 36.2% 14.5% Net Income 423 483 543 YoY 51.6% 14.1% 12.4% ROE 37.5% 26.9% 21 COPYRIGHT (c)
Slide 23: FY2014 Estimation Assumption
FY2014 Estimation Assumption (thousands) No Contribution from: 600 Wi-Fi+LTE, M2M, Wi-Fi Enabler +80 500 500 +70 420 400 350 Wi-Fi + WiMAX 300 200 Wi-Fi 100 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 22 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 24: Total Sales Estimation
Total Sales Estimation Stock Option will be assigned to management team if Operating Profit in FY2016 > ¥2,000M: 50% > ¥2,500M: 75% Wi-Fi OP margin > ¥3,000M: 100% (3% of dilution) Enabler 50-70% OP margin M2M 30-50% Wi-Fi OP margin +LTE 20-40% Wi-Fi OP margin Wi-Fi 10-15% +WiMAX FY2012 FY2013 FY201
Slide 25: Principal Shareholders
Principal Shareholders Pe r c e n t age o f Nu m be r o f Principal shareholders Sh ar e s He ld t o t al Shares issued and outstanding sh ar e s h e ld 10,142,800 shares Yodobashi Camera Co., Ltd. 1,416,400 14.0 The number of Shareholders 6,984 The Master Trust Bank of Japan, Ltd. (Trust account) 9
Slide 26: Shareholder Return
Shareholder Return Share Buy-Back (May 22- July 4) （Million） ・up to 20,000 shares 5,600 shares (May 31) 600 ・up to ¥100 Million ¥543 500 ¥483 ¥133 Retained Earnings ¥293 400 (27.5%) (54.0%) 300 ¥100 Share Buy-Back (20.7%) 200 ¥250 ¥250 100 (51.8%) Dividend (46.0%) 0 FY2013 FY2014 Cons. Est. 25 COPYR
Slide 27: Trend in Share Prices
Trend in Share Prices 2014/1/1 2014/5/8 a two-for-one stock split Jul. 19, 2012: Press release on LTE-related Listed on TSE Mothers services Jan. 14, 2014: Record high at ¥5,070 2013/9/1 Jul. 19, 2012: a two-for-one stock split Yearly low at ¥452 2014/2/13 Jun. 6, 2014: Announcement of Closed at ¥3,
Slide 28: Topics
Topics • We had started the preparation to change to TSE 1st or2nd section. • We will have a presentation at Bank of America Merrill Lynch JAPAN Conference in September 2014. • LTE services for individual customer will be announced on July 1. • M2M/IoT solutions will be announced on August 1. 27 COP
Slide 29: Thank You for Your Interest.
Thank You for Your Interest. IR Website: （English） http://www.wirelessgate.co.jp/en/ （Japanese） http://www.wirelessgate.co.jp/ir/ 28 COPYRIGHT (c) WirelessGate, Inc. All Rights Reserved.
Slide 30: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The materials and information provided in this briefing contain so-called forward-looking statements. These are based on assumptions involving current expectations, forecasts and risks, and involve uncertainties that may produce results that sub