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INOSAT S.A. Private Placement Offering

INOSAT S.A. Private Placement Offering. Jorge Carrilho October 2011. BUSINESS COMPLEXITY IS RISING. Globalization  Lower margins. Mega-cities  Less mobility. Oil price rising  More fuel costs. www.inosat.com. Business manager’s biggest challenge: HOW TO INCREASE PROFITABILITY?.

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INOSAT S.A. Private Placement Offering

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  1. INOSAT S.A. Private Placement Offering Jorge Carrilho October 2011

  2. BUSINESS COMPLEXITY IS RISING • Globalization  Lower margins • Mega-cities  Less mobility • Oil price rising  More fuel costs www.inosat.com

  3. Business manager’s biggest challenge:HOW TO INCREASE PROFITABILITY? • How to reduce costs with operations? • How to increase productivity of sales and field teams? How to make more juice from the same oranges? www.inosat.com

  4. TELEMATIC FLEET MANAGEMENT SYSTEMS Increase up to 25% business profitability • 18% driving time reduction • 15% lower fuel costs • 20% decrease in unauthorized stops • 19% increase in productivity www.inosat.com

  5. TELEMATIC FLEET MANAGEMENT SYSTEMS Focus on increasing productivity and reducing costs The term ‘Telematics Fleet Management Systems’ (‘TFMS’) encompasses a range of products and services that help fleet managers optimize utilization of resources through extensive use of wireless communication technology, such as GPS (Global Positioning System) and GSM (Global System of Mobile Communications). www.inosat.com

  6. TFMS MARKET DATA www.inosat.com

  7. GLOBAL MARKET B2B – 290 million vehicles Market Penetration of 5% | only 14 million vehicles equiped equipped HUGE BUSINESS OPPORTUNITY TFMS 2,3 MILLIONS T&T 4,6 MILLIONS LBS 7,3 MILLIONS TELEMATICS FLEET MANAGEMENT TRACKING & CONTROL LOCATION & SECURITY www.inosat.com

  8. PROFESSIONAL PRODUCTS Track & Trace will remain dominant, Fleet Management Systems and Remote Vehicle Diagnostics are gaining momentum

  9. MARKET GROWTH - 27% CAGR 23 million new vehicles equipped by 2015 43% CAGR 32% CAGR 17% CAGR The Telematics Fleet Management segment is growing at 43% per year www.inosat.com

  10. INOSAT’S B2B PRODUCTS

  11. INOFLEET – B2B PRODUCTS Extensive range of solutions for every type of fleet 1st Generation product with focus on Security Features: Location, Geofencing and Immobilization 2nd Generation product with focus on Control Features: Route control, Schedules and Km analysis 3rd Generation product with focus on Productivity Features: Task management, Driver’s style analysis, Fuel monitoring and Route planning www.inosat.com

  12. UNIQUE FEATURES OF INOFLEET Quick ROI through cost reduction and increase productivity www.inosat.com

  13. HIGH QUALITY PRODUCT – ENGENEERED IN EUROPE Inosat complies with the highest quality standards RELIABILITY European Quality Certification Engineered in Europe QUALITY CONTROL Less than 1% units breakdown per year Up to four years of warranty CUSTOMER SATISFACTION Customer satisfaction ratios above 95% Fast and effective response to technical issues www.inosat.com

  14. COMPANY PROFILE

  15. INOSAT IS PRESENT IN 17 COUNTRIES Market leader in Telematic business solutions Pioneers in telematics, profitable since 2002 2010’s turnover: € 6.5 M | 2010’s profits: € 868 K 100% in house development of hardware & software Strong investment in R&D and Innovation More than 40.000 location units sold Extensive portfolio of location solutions B2B & B2C www.inosat.com

  16. INOSAT – International Partners International Sales FY 2008 ~ YTD 2011 • TOP 4 countries represent 79% weight total sales: • Brazil 37% Angola 19% Morocco 18% Chile 4% www.inosat.com

  17. BRAZIL B2B MARKET: 20 MILLION VEHICLES With only 0.5% of penetration, TFMS it’s an huge opportunity Resolution 245: Starting June 2012, all new vehicles sold in Brazil, 4 Million per year, will be forced to have a location based system. www.inosat.com

  18. MORE THAN 2.500 B2B COSTUMERS With 40.000 vehicle location units installed www.inosat.com

  19. RECURRENT SALES BUSINESS MODEL Each costumer pays a monthly fee per vehicle • Costumer pays an initial fee for hardware setup • Contracts have a minimum duration of 24, 36 or 48 months • Low operating costs: GSM + Maps + Support • High margins, from 70% to 85% www.inosat.com

  20. INOSAT PORTUGAL FINANCIALS www.inosat.com

  21. Current Shareholders • Inosat share capital: € 1.000.000 • Jorge Carrilho ………………… 33,3% • Tiago Borges ………………… 33,3% • Innovation Capital SGPS ……. 33,4% • Innovation Capital SGPS is totally owned by Jorge Carrilho & Tiago Borges www.inosat.com

  22. INOSAT’S INVESTMENT PROJECT Highly profitable business model

  23. LISTING IN THE DEUTSCHE BÖRSE ENTRY STANDARD MARKET EU - regulated market Stock Exchange regulated market Entry Standard Prime Standard First Quotation Board (Open Market) General Standard Regulation Level Low High O.M. Entry Std. General Std. Prime Std. www.inosat.com

  24. ACTIVE M&A MARKET SEVERAL OPERATIONS COMPLETED RECENTLY Cybit and Masternaut Combine Forces, Creating Europe’s Leading Telematics Provider The Cybit-Masternaut agreement was overseen by technology-focused private investment fund, Francisco Partners, which acquired Cybit Holdings plc in 2009. The terms of the acquisition value the entire issued share capital of Cybit Holdings plc at approximately £23 million. www.inosat.com

  25. Dividend Policy • Distribute 50% of net income when these are > € 500 K • Distribute 75% of net income when these are > € 1M • Dividend Forecast (2013-2016) www.inosat.com

  26. Investor exit • The need for dimension will force M&A • Equity funds are looking for recurring revenue companies, typically through SaaS (Software as a Service) business models • Sell the stocks on the Stock Markets • Return on Investment through dividends www.inosat.com

  27. SWOT of the investment Strengths • Low overheads • Low risk vs startups • Present in 17 countries, 3 continents • Emerging markets exposure (Brazil, Angola, Morocco) • Current shareholders agree on a lockup period of 1 year www.inosat.com

  28. SWOT of the investment Weaknesses • Liquidity of the stock • Company current dimension vs global competitors www.inosat.com

  29. SWOT of the investment Opportunities • Technology is becoming cheaper (Hardware and GSM cost decreased 50% over the last 2 years) • Revenue from traffic data will grow in future • Listing of the Brazilian company in Bovespa in 2014 • M&A happening on this sector (Zatix, Cybit, C-Track) • Equity funds investing in SaaS companies. www.inosat.com

  30. SWOT of the investment Threats • Market prices for the service are falling • Financial markets instability www.inosat.com

  31. Inosat Peer Group Valuation www.inosat.com

  32. CONCLUSIONS www.inosat.com

  33. INVESTMENT PROJECT HIGHLIGHTS Huge business opportunity for TFMS in Brazil • Capital investment in INOSAT Portugal to boost our operations in Brazil. • An investment up to €2.25 million. • Highly profitable business based on recurring revenue model and low overheads. • To be listed in the first semester of 2012. • Attractive dividend policy. www.inosat.com

  34. Contacts Thank you Jorge Carrilho Jorge.carrilho@inosat.com www.inosat.com

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