1 / 14

ECI Telecom in Brazil

ECI Telecom in Brazil. Brazil: Technological Innovation & investment Opportunities. December 15, 2008 Tel Aviv. Aviel Tenenbaum Executive Vice President, GS&M. ECI Snapshot.

lynde
Download Presentation

ECI Telecom in Brazil

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ECI Telecom in Brazil Brazil: Technological Innovation & investment Opportunities December 15, 2008Tel Aviv Aviel Tenenbaum Executive Vice President, GS&M

  2. ECI Snapshot Global provider of equipment infrastructure solutions and services for telecom operators with focus on Transport and Broadband Access solutions for bandwidth-intensive applications (3rd. Quad play, IPTV) Strong, entrenched positions with major carriers in emerging markets and in developed ones Established in 1961. HQ in Israel, went public in 1982 and became private in 2007 Development centers in Israel, U.S., India and China, employing more than 1,000 R&D engineers 2008 revenues of over US$700 million, booking run rate approaching US$1B Installed base of over US$7 billions worldwide 2

  3. On September 2007 ECI was acquired by the Swarth Group and the London-based Ashmore Group in a transaction valued at $1.25 billion. Following the acquisition, the company made a very successful turnaround, including: Structure Reorganization - simplifying, reducing redundancies, increasing efficiencies - cost savings of $30 million annually; Outsourcing the manufacturing to Flextronics, the world leader outsourcing group ($40 bln annual sales) to allow ECI focusing on its core competencies; Expanding product offering – CESR, GPON Expanding to new territories – inc. Brazil and Africa (more than 10% of ECI’s orders in the first year) Considering M&A opportunities The 2007 Acquisition

  4. A Global Player Global Headquarters Regional Headquarters R&D Locations Sales Offices • ECI has over 400 customers in approximately 70 countries • ECI service its customers mainly through its direct sales force • 2,500employees worldwide,1,500 employees in Israel 4

  5. Strong Presence in Mature & High-Growth Markets (Svyaz Invest) (MGTS) 2007 Sales Breakdown CAGR CAGR 17% 6% 29% 11% 5

  6. 2008 is becoming a record year for ECI: Major wins in India, Latin America, North America, Africa Russia and Europe Launching of new products (CESR – awarded the Best Product of the Year, more than 10 new customers in first 4 months) Order intake in 2008 of over US$800M, more than 25% growth compared to 2007 and a current run rate approaching US$1B Revenues more than $700M, over 10% growth YoY Services revenues of more than $100M Current backlog of $270 million – double YoY. Increased profitability 2009 forecast – continuous growth 2008 – Going to a Record Year

  7. ECI in Brazil

  8. Brazil • Vibrant, stabilized economy • Democracy • Transparency and fair laws & regulations • High-growth economy • 8th largest GDP in the world: $1.3T(2007) • Growth rate of 4% • Lowest inflation among BRIC countries (4.5%) • Telecom growth target • Population of over 185M • Potential for communications: broadband and wireless • Telecom Highlights: • Fixed Line Subs: 50M, Wireless 100M, Data: 12M, Cable TV 4M 8

  9. Potential Utilities customers

  10. * 31-march-2008 ECI’s Growth Strategy • Emerging Markets • Fast growth of mobile subscriber’s base • Data services and broadband access expansions • Strong and efficient fit of ECI’s solutions to support such needs • Developed Markets • Traffic continues to grow: • Streaming media • Mobile data applications and access bitrates Simplicity and availability of content and applications everywhere,at any time Any Service…Any Device…Everywhere…Anytime

  11. Brazil is Part of ECI’s Growth Strategy • Expertise of working in the BRIC markets • Experience of growing with Tier 1 operators as well as with high growth 2nd Tiers • Good fit product offering – wireless backhaul, Governmental and Defense, next generation networks • Financing capabilities and packages

  12. ECI Experience in Brazil • Understanding of local market and business requirements is vital • Learning curve – 7 years • Competitive dynamics • Regulatory issues • Unique and tailored solutions • Local presence a must • Relationship – Relationship – Relationship • Local team and management (including support) • Technological innovation • Commitment to market and growth • From Vendor - customer to Partnerships

  13. Looking Ahead • ECI view Brazil as it base for Latin America expansion and regional support hub, to further support our growth (doubling LATAM business YoY) • Our focus in Brazil is to expand both with 2nd. tier as well as incumbent operators • Brazil’s operators can enjoy technology leapfrog with ECI • Considering local manufacturing and partnerships

  14. Thank you! Aviel.tenenbaum@ecitele.com

More Related