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Safe harbor
Safe Harbor

  • This presentation contains “forward-looking” statements, including statements about business outlook and strategy, and statements about historical results that may suggest trends for our business. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. Actual results could differ materially from our current expectations as a result of many factors, including: unpredictable quarterly fluctuations in our business; the effects of competition or consumer and merchant use of our service; any adverse changes in our agreements with our listings providers; the impact of international expansion efforts on our business; and changes in our tax status. These and other risks and uncertainties associated with our business are described in the prospectus for our IPO

  • This presentation includes non-GAAP financial measures, that are different from financial measures calculated in accordance with GAAP and may be different from non-GAAP calculations made by other companies. A quantitative reconciliation of non-GAAP information to the most directly comparable GAAP financial measures is available on our website.


Syniverse at a glance
Syniverse at a Glance

Syniverse simplifies wireless technology complexities by integrating disparate wireless carriers’ systems and networks in order to provide seamless global voice and data communications to wireless subscribers.

  • 18 Years of Operations

  • Over 300 Customers, 40 countries

  • 30 Services

  • $316.0 LTM Net Revenue1

  • 44% EBITDA Margin2

  • 14% Adjusted Net Income Margin3

1 Based on LTM Net Revenue as of 3/31/05 and excludes off-network database fees of $19.2 million.

2 Based on LTM Net Revenues as of 3/31/05 and includes one-time adjustments

3 Based on LTM ending 3/31/05 and includes add-backs


Transaction based revenue model

“A Value-Added Toll Booth on the Wireless Highway”

Transaction-Based Revenue Model

Wireless Subscriber Events

Turn on phone

Caller ID data displayed

Roam on another carrier’s network

Send SMS message to subscriber on other carrier

Maintain phone number when switching carriers

Wi-Fi subscriber roams onto another network


Investment highlights
Investment Highlights

  • Leading provider of mission-critical, transaction-based technology services

  • Extensive and collaborative customer relationships

  • Well positioned for growth in existing and new markets

  • Proven management team

  • Superior operating model delivering strong financial results


A complex set of relationships

A Complex

Industry…

A Complex Set of Relationships…

A Simple Solution

Network Services

1. Allow Verizon subscriber to roam on ALLTEL’s network

Technology

Interoperability

2. Allow Verizon and ALLTEL to exchange billing records for subscriber roaming

Technology

Interoperability

3. Allow subscribers to exchange SMS messages between carrier networks

Number

Portability

4. Allow subscribers to keep their cell phone number when switching carriers


Industry complexity fuels demand for our services
Industry Complexity Fuels Demand for Our Services

Diverse Signaling Standards

(CDMA, TDMA, GSM, iDEN, Wi-Fi)

Disparate Network Architecture

(Lucent, Nortel, Ericsson, Motorola)

Multiple Network Protocols

(X.25, Frame Relay, SS7, Internet Protocol)

Distinct Billing Record Formats

(CIBER, TAP, RADIUS)


Compelling industry growth dynamics
Compelling Industry Growth Dynamics

Global Roaming Call Volume (bn)

Global Wireless Subscribers (bn)

13% CAGR

16% CAGR

Global SMS Text Messages (bn)

Global Wi-Fi Hotspots (000)

48% CAGR

15% CAGR

Source: IDC and Strategy Analytics


Network

Managing numerous networks and databases adds complexity

SS7 network and database access

NumberPortability

FCC mandate drives increased operational complexity

Centralized carrier data exchange

Other

Different protocols inhibit voice and data roaming

Translation and routing services

Broad Suite of Services

Syniverse Solution

Carrier Issue

Service Line

TechnologyInteroperability

Exchange billing data among hundreds of roaming partners

Clearinghouse services


Technology Interoperability Services

30%

  • Largest wireless clearinghouse in North America

  • Translate different protocols to support voice, data and Wi-Fi roaming

  • Route SMS messages between domestic and international carriers

Services

  • Verizon Wireless, T-Mobile, Sprint, ALLTEL, Dobson

  • SFR, SK Telecom, KDDI, China Unicom, Vivo, RadioMovil

MajorCustomers

  • Transaction-based (roaming calls cleared, SMS messages sent)

  • 1Q05 revenue $23.2mm

Revenue

  • Wireless subscriber and roaming volume

  • Wi-Fi expansion and subscriber growth

  • Mobile data services and SMS volume growth

Growth


42%

Network Services

  • Operate leading independent SS7 network

  • Provide translation and routing services that enable wireless calls

  • Provide access to databases (Caller ID, LNP, 800 Service)

Services

  • Cingular, Verizon Wireless, T-Mobile, ALLTEL, Dobson

  • BT Ignite, France Telecom, Belgacom, China Mobile, RadioMovil

MajorCustomers

  • Transaction-based (calls made) and fixed-fee (circuits, ports)

  • 1Q05 revenue $32.2mm

Revenue

  • Wireless subscriber and roaming volume growth

  • Mobile data services and SMS volume growth

  • VOIP adoption and new database services

Growth


15%

Number Portability Services

  • Process over 90% of the industry’s number porting transactions

  • Provide data exchange between carriers

  • Mitigate operational impact (billing, customer care, switching, etc.)

Services

  • Verizon Wireless, Cingular, Nextel, T-Mobile, Sprint, ALLTEL

MajorCustomers

  • Transaction-based (customers retaining number when changing carriers)

  • 1Q05 revenue $11.7mm

Revenue

  • Wireless porting growth

  • Wireless subscriber growth

  • Industry churn rates

Growth


Call Processing

Enterprise Solutions

Other Services

Enterprise 4%

Call Processing8%

  • International signaling solutions

  • Fraud detection

  • Corporate invoice consolidation, reporting and analytical tools

Services

MajorCustomers

  • SK Telecom, China Unicom, KDDI, ALLTEL, Verizon Wireless

  • Verizon Wireless, ALLTEL, U.S. Cellular

  • Subscriber-based (subscribers)

  • 1Q05 revenue $3.1mm

Revenue

  • Transaction-based (roaming calls)

  • 1Q05 revenue $6.4mm

  • International subscriber growth

  • Roaming call volume growth

  • Fraud

  • National account program growth

Growth


Defensible leadership position
Defensible Leadership Position

Competitive Landscape

Substantial Barriers to Entry

  • High business switching / disruption risk for customers

  • Strong customer relationships with long-term contracts

  • Long history of trust with confidential subscriber and financial data

  • Highly integrated and broad service offering difficult to replicate

  • Sizeable fixed operating cost base required

  • Flexible pricing options due to bundled service offering


Decreasing revenue concentration
Decreasing Revenue Concentration

1 Percentages based on Net Revenues


  • We provide both carriers with WLNP services

  • Opportunity to capture Nextel clearing and network business

  • Migration to CDMA may result in additional opportunities

Cingular / AT&T Wireless

Sprint / Nextel

  • Alltel is major customer utilizing most of our services

  • Opportunity to capture Western WLNP and network

Alltel / Western Wireless

Consolidation Provides Incremental Opportunities


Growth organically and through acquisition
Growth Organically and Through Acquisition

Strategy

Opportunity/ History

  • Further penetrate existing base of over 300 customers in 40 countries

  • Identify and win new international customers

  • Expand services and enter new sectors

  • International

  • Wi-Fi

  • Messaging & Mobile Data

  • MVNO

  • VoIP

Organic Growth

  • Extend range and scope of services offered

  • Expand and leverage customer base

  • Increase profitability and improve strategic positioning

  • Enter new markets

  • Increase scale of business

  • EDS IOS N.A.

  • Softwright

  • Brience

Acquisition Criterion


Experienced management team
Experienced Management Team

Our team has an average of 19 years relevant industry experience


Superior Operating Model

Scalable Economics

80% Transaction Based Recurring Revenues

High Visibility

98% Recurring Revenues

Low Capital Intensity

4.8% Capex / Revenue1

Scalability and Leverage: Distinct Investment Value

High Margins

61.4% Gross Margin1

43.2% EBITDA Margin1

Low Sales & Marketing

20.7% SG&A / Revenue1

Suite of Services

Proven ability to extend platform to new services

1Based on Net Revenue for 1Q05, and excludes Headquarters move related capital.


Net revenue growth in recurring business lines
Net Revenue Growth in Recurring Business Lines

($ in millions)

16.7% Recurring Business Line Revenue CAGR (’01-’04)

$309

$292

$23

$267

Non-Recurring Business Lines

$242

$112

$65

$31

Recurring Business Lines

$76

$180

$202

$211

$286

$3

$73


Diversified Product Offering Drives Solid Growth

($ in millions)

Net Revenue

1Q04

1Q05

10.6% Growth

$69.3 million

$76.6 million


Accelerating profitability momentum
Accelerating Profitability Momentum

($ in millions)

Quarterly year over year growth comparison

17.7% CAGR

90.8% CAGR

168.3% CAGR

Cash Net Income

Adj. EBITDA

Adj. Net Income


Cash net income adjustments
Cash Net Income Adjustments

Long-term Benefits – driven by prior acquisitions

  • GAAP Acquisition-Related Amortization

    • Approximately $24 million annual acquisition related tangible and intangible asset amortization

  • Tax Deductible Amortization of Goodwill

    • Approximately $24 million in additional annual deductions

    • Not amortized for GAAP purposes, only affects cash flow

    • Duration of approximately 14 years

Near-term Benefits – NOLs as of 12/31/04 totaling approximately $80 million


Strong Capital Structure

As of As of

12/31/043/31/05

Senior Subordinated Notes, net of discount $241.8 $157.3

Credit Facility, net of discount 215.6 239.4

Total Debt $457.4 $396.7

Class A Cumulative Redeemable Preferred Stock 335.6 -

Common Stock 37.1 457.3

Accumulated Deficit & other comprehensible income (143.9)(161.0)

Total Owners Equity $(106.9) $296.4

($ in millions)


Investment highlights1
Investment Highlights

  • Leading provider of mission-critical, transaction-based technology services

  • Extensive and collaborative customer relationships

  • Well positioned for growth in existing and new markets

  • Proven management team

  • Superior operating model delivering strong financial results


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