NextGenTel Holding ASA The Kvantel acquisition. Eirik Lunde, CEO. Felix Konferansesenter Oslo, 15 October 2015

Transcription

1 NextGenTel Holding ASA The Kvantel acquisition Eirik Lunde, CEO Felix Konferansesenter Oslo, 15 October 2015

2 Agenda NextGenTel Growth initiatives the business segment Kvantel Company history in brief Products and services Customer segments The business case and rationale for the acquisition Financing of the acquisition Kvantel 2

3 Strategy - new growth initiatives Growth area 1 B2C MDUs (Broadband,TV, mobile) Growth area 2 B2C Fiber partners Telenor fiber (Broadband,TV, VOIP Mobile) Growth area 3 B2C Vectoring (Broadband,TV, VOIP Mobile) Growth area 4 B2C Mobile MBB post and pre paid Growth area 5 B2B Mobile/IN services SIP/UC Kvantel 3

4 Business new IN-Voice services Historically, NextGenTel s focus in the corporate segment has been modest due to a relatively narrow product offering In Q a new IN-Voice platform will be up and running enabling NextGenTel with a complete product offering A complete modern product offering should form the basis for the an attractive price/performance ratio not only in the SME market, but also to higher end customer segments and in public tenders Full Cloud based PBX switchboard; Mobile & Sip Trunk with Skype for business Integration No physical installation needed All in one platform Advanced conferencing solution Uses preferred One-number full presence, use any device PC, tablet, mobile phone, desk phone User defined profile management Datanet secure VPN voice services Full self-service solution for customers and partners Kvantel 4

5 The Kvantel history in brief Kvantel 5

6 Ethernet IPVPN Internet Wholesale Voice Voice (SIP, Lync Connect, ISDN) Co-location Kvantel 6

7 Kvantel - the business case and rationale for the acquisition Kvantel Datacom & Kvantel Voice B2B Customer segments: B2B, professionals and public sector Showing growth in partner sales; IT and System Integrators Ethernet, IP-VPN, Internet fiber and xdsl connections SIP Trunk Certified on Microsoft Lync and other IP/PBX suppliers 586 km Fiber Aust Agder + Vest Agder Cost Synergies OPEX savings related to focusing company towards partner sales & system integrators CoGS savings Purchasing power fiber owners On-net production Backbone & co-location Growth 3 % YoY in business case NKOM report 2014 Kvantel Highest growth on Ethernet Kvantel 7

8 Kvantel - the business case The business case is based on identified cost synergies planned to be phased in over the next 24 months CoGS Backbone Personnel Business case (Datacom+Voice) (NOK million) Revenues Gross profit Gross margin 45.8% 48.2% 50.0% Opex EBITDA EBITDA in year 2 and EV of NOK 137 million implies an EV/EBITDA multiple of 3.9 Kvantel 8

9 Kvantel + NextGenTel ~500 mnok B2B player SME s procure data communications services from outsourced IT company or with Mobile-/IN node provider With the acqusition of Kvantel and Kvantel Voice NextGenTel has secured a solid position for further growth in B2B Strengthened position to leverage wholesale business towards professional partners, system integrators and IT companies. «One-stop shopping» Kvantel has an established position with integrators (Telecomputing, Intility ) Combined entity opens opportunities towards larger IT companies/partners and thereby large Norwegian IT communications contracts Kvantel 9

10 Kvantel + NextGenTel Kvantel Voice carrier grade IP telephony platform; focused towards operators and system integrators NextGenTel Voice focused towards end users single line VoIP Merge product roadmap for combined entity voice platforms benefits both wholesale and direct-sale operations Direct sales positioned to be a strong competitor to SME and public tenders; Unified communications/voice and IP-VPN. Kvantel / NextGenTel tech synergies in backbone, network platforms, voice platforms, monitoring, Internet & voice traffic optimization Kvantel 10

11 Financing of the Kvantel acquisition Loan Term Installments Existing loan (originally NOK 250 million, NOK 175 million balance as of October 2015) New loan - NOK 140 million to finance the acquisition of Kvantel AS and Kvantel Voice AS 3.5 years (parallel to existing loan) 5 year Semi-annual NOK 25 million Semi-annual NOK 10 million Bullet (remaining loan balance after 3.5 years) of NOK 80 million Main terms new loan: Interest rate 3m NIBOR % until 1 July 2016, reduced to 3m NIBOR+2.50% thereafter (covenant: 17.5% equity ratio) Key financial covenants Equity ratio 15% until 30 June % thereafter (15% extended one quarter) Leverage (Net debt/ebitda) 31 Dec 2015: Jun 2016: Dec 2016 and thereafter: 1.50 Capex NOK 150 million (annually) Kvantel 11

12 Thank you! Investor relations:

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