Enablence Technologies Inc. · TSXV:ENA
Enablence Technologies — Shareholder Meeting (October 2010)
31 slides from Enablence Technologies's shareholder meeting presentation, Oct 28, 2010
Slide 1: Welcome to the 2010 Annual General Meeting
Welcome to the 2010 Annual General Meeting
Slide 2: CEO Presentation, Annual General Meeting October 28, 2010
CEO Presentation Annual General Meeting October 28, 2010
Slide 3: Safe Harbor Statement
Safe Harbor Statement The presentation of this information may contain forward looking statements that are based on current expectations, forecasts and assumptions that include risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties in
Slide 4: Presentation Outline
Presentation Outline 1. Overview of Enablence Today 2. Major Achievements in FY10 3. Vision for Moving Forward 4. Economic & Business Environment 5. Business Stimulus Worldwide 6. Business Strategy 7. Customer Traction 8. Profitability Target 9. Q&A 4
Slide 5: Demand for More Bandwidth
Demand for More Bandwidth 1. Global IP traffic will quadruple between 2009 to 2014, CAGR of 34% 2. By 2014, traffic will be equivalent to 12 billion DVDs crossing the internet each month 3. Video traffic will be 40% of the total Source: Cisco Visual Networking Index 5
Slide 6: Next Generation Services
Next Generation Services Video • 500+ TV Channels • 100+ HDTV Channels • Access to 1000s Video on Demand Titles • 100+ Hours of Digital Video Recording • 3DTV Voice (phone) • Internet Telephone • Low cost local and international calls • Video Conference • Multiple phones with individual numbers in t
Slide 7: Enablence Today
Enablence Today A global leader in next generation broadband communications networks to enable service providers to provide triple play services for increased profitability. A vertically integrated company, designs, manufactures and sells PLC-based integrated optical components for access, metro, lo
Slide 8: Systems Product Offerings
Systems Product Offerings ENA MAGNM-20/10 ENA TRIDENT7 TD BroadAccess 1000E & ONT Family & BAS & COLT 300E 23” North American 19” International 19” International Standard Standard Compliant Standard Compliant Compliant Global Compliance with NA Markets Served and Int’l Versions Hybrid fiber/copper P
Slide 9: Major Achievements in FY10
Major Achievements in FY10 1. Increased revenues from $45.2M to $53.9M by 19% in difficult economic times 2. Cut operating costs by 10% from $35.6M to $31.9M 3. Announced 11 new customer wins and 5 more in FY11 so far 4. Completed a capital raise of $28.8M 5. Hired Tim Thorsteinson as the new CEO 6.
Slide 10: Company Growth
Company Growth Revenue Growth ($1000) Employees $53,892 239 $60,000 $45,237 219 250 $50,000 200 $40,000 150 89 $30,000 $20,000 100 $3,153 $10,000 50 $- 0 April 30, 08 April 30, 09 April 30,10 April 30, 08 April 30, 09 April 30,10 Number of Customers Revenue/Employee ($1000) 600 $246 540 600 $250 $18
Slide 11: Financial Results FY 10
Financial Results FY 10 Income Statement 2010F 2009FY 2008FY Revenues $ 53.9 $ 45.2 $ 3.2 Gross Profit $ 11.4 21% $ 11.1 25% $ 1.2 38% Sales & Marketing $ 10.2 19% $ 9.7 21% $ 0.4 13% R&D $ 14.0 26% $ 16.8 37% $ 5.7 178% G&A $ 7.7 14% $ 9.1 20% $ 4.1 128% Operating Profit (Loss) $ (31.3) -58% $ (36.
Slide 12: Financial Results FY 10
Financial Results FY 10 Stub 2011 June 30, Balance Sheet 2010FY 2009FY 2008FY 2010 Current Assets $ 52.7 $ 45.6 $ 52.8 $ 64.1 Equipment (NBV) $ 10.7 $ 14.3 $ 10.5 $ 11.6 Intangibles & Goodwill $ 18.7 $ 32.7 $ 44.5 $ 76.7 $ 82.1 $ 92.6 $ 107.8 $ 152.4 Current Liabilities $ 20.4 $ 26.6 $ 2.9 $ 48.7 Te
Slide 13: Geographical Distribution of Revenue
Geographical Distribution of Revenue Enablence FY10 Asia Pacific, 19 % Teledata CY09 Asia Pacific, 5 CALA, 35 % % EMEA, 16% North America, 6 5% North EMEA, 60 America, % 0% 13
Slide 14: Vision for Moving Forward
Q Enablence Vision for Moving Forward
Slide 15: The Economic & Business Environment
The Economic & Business Environment Past 12 Months Outlook: Next 12-18 Months Slow process of economic recovery Financial markets, institutions Financial markets recovering return to normal business activity Stimulus for Broadband started Slow economic recovery will flowing into our market
Slide 16: Market Growth Trends
Market Growth Trends POTs, VOIP xDSL, HDTV Multi-Services Access VOD Platform $2B/Yr 2011 Stable DSL Aggregation FTTH Market Market $1.9B 2009 $2.3B/Yr 2011 $3.7B 2011 Stable 40% YoY Growth DSL, ADSL, ADSL2+ VDSL, VDSL 2 GPON, GE-PON Active P2P Source: Infonetics Research 16
Slide 17: Global Broadband Stimulus
Global Broadband Stimulus Broadband Stimulus Dollars in Selected Nations Country Funding Amount (USD) Funding Source Comments United States 7.2 billion Economic stimulus Grants and loan programs National broadband policy Germany 227 million Economic stimulus commitment Government, EU, private co- Un
Slide 18: How is Enablence positioned to win?
How is Enablence positioned to win? Moving to next generation fiber networks is not a question of “if”, but rather “when” due to explosive bandwidth demand
Slide 19: Our Goals for FY11
Our Goals for FY11 1. Drive significant top line growth in all product lines and geographies 2. Drive significant gross margin improvement 3. Leverage all of our Intellectual Property into our industry- leading product portfolio 4. Become a profitable cash generating business 19
Slide 20: Systems Division Business Strategy
Systems Division Business Strategy Highlights 1. Achieve critical mass to reach profitability 2. Reduce costs and improve profitability through improved outsourcing, “design to cost” and by consolidating the supply chain 3. Improve product mix by adding new higher margin products (e.g. wireless ONTs
Slide 21: Systems Division Value Proposition
Systems Division Value Proposition Highlights 1. Industry leading solutions from a specialized access vendor for more value than large systems vendors 2. Industry’s widest range of field proven network and technology solutions for all optical or copper communications standards, unmatched by even lar
Slide 22: Component Division Business Strategy
Component Division Business Strategy Highlights 1. Strategically position the division as a 40G/100G supplier 2. Aggressive cost reduction, including supply chain changes and “design to cost” approaches 3. Improve product mix by adding new higher margin products, reduce lower margin products 4. Focu
Slide 23: Component Division Value Proposition
Component Division Value Proposition Highlights 1. Expert in four areas: transmission, switching, routing, wavelength and signal performance management 2. Broad range of 40G and 100G integrated PLC modules and subsystems for next generation metro and long haul networks 3. Leader in supplying integra
Slide 24: Our Systems Installed in 75 Countries
Our Systems Installed in 75 Countries Greenland Norway Russia Denmark Estonia 300+ NA Customers Germany Poland Netherlands Kazakhstan Andorra France Japan Portugal Turkey Czech Cyprus China Egypt Republic Jordan Slovakia Bangladesh Dominican Republic Austria Mexico Hungary Aruba Ukraine Thailand Hon
Slide 25: Customer Announcements FY10
Customer Announcements FY10 1. OCT 29, 2009 – Unnamed Tier 1 global telecommunications system developer signs 2 year agreement for $3.5M for PLC based next generation network components with Enablence 2. NOV 3, 2009 – McDonald County Telephone selects Enablence’s MAGNM platform for its network migra
Slide 26: Customer Announcements FY10
Customer Announcements FY10 8. FEB 16, 2010 - Cablevision Argentina, the nation's largest cable television provider, with more than 3.2 million subscribers in 96 urban markets across the country rolling out a fiber–to-the-business network 9. MAR 1, 2010 - Valley Telephone Cooperative Inc. (VTCI). ex
Slide 27: Customer Announcements FY11
Customer Announcements FY11 1. MAY 4, 2010 – Various Unnamed International Customer Orders - Enablence builds international sales momentum in Q4 in all three international regions 2. JUL 27, 2010 - Tier 1 Central American Service Provider - Enablence Secures follow-on order for broadband deployment
Slide 28: TD Integration Update
TD Integration Update • Teledata Networks was acquired as of June 23, 2010 • Transformative acquisition for (1) critical size, (2) complementary international market reach and (3) complementary product line • Enhances the international reach for the Systems Division, as there was no customer overlap
Slide 29: Summary
Summary 1. Very large global market fuelled by about $100 billion in stimulus spending next 5 to 7 years with ~ 12 to 15% for products & services we provide 2. Global scale business with customers, channel partners and products/technology deployed 3. $135 to $145M in revenue with short term profitab
Slide 30: Questions & Answers
Q Enablence Questions & Answers
Slide 31: End of Presentation Thank you
End of Presentation Thank you
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