Small Cap Conference Borsa Italiana. Milan, 19 November 2015

Transcription

1 Small Cap Conference Borsa Italiana Milan, 19 November 2015

2 Summary Company Overview 2 Company Services 3 Technology 5 Business Model 6 Agreement with Huawei Ghz band 8 Key Financials 9 1

3 Company Overview GO internet at a glance "GO internet S.p.A." is an Italian company active in the Mobile Internet industry. GO provides internet and telephone services using Wimax/LTE 4th Emilia-Romagna Marche generation wireless technology (4G). The service is offered in the Marche and Emilia-Romagna regions where GO has an exclusive right of use for 42mhz in the 3.5Ghz frequency band. As of October 2015 GO counts 29,572 active customers and it is market leader in the two regions. The Base Stations cover 12% of the population. GO s distribution network is made up of over 437 affiliated shops Wholesale phone traffic reseller End April 2012 August Founded 3.5Ghz License for the Marche region New Management and start of the new business Focus on building 4G network License for the Emilia Romagna region IPO Territorial expansion Launch 4G LTE service New identity 2

4 Company Services CUSTOMER NEEDS Many households are abandoning Telecom Italia landline Households do not use and do not want to pay for the Telecom Italia landline fee Internet usage is more and more on mobile devices In Italy there is no cable TV and cable internet Fiber infrastructure is very limited in coverage and available only in major cities In Italy, the only alternative to the landline is 4G MARKET OPPORTUNITY P l u g i n. E n j o y. Home broadband you can install yourself. No long waiting. No land lines. No engineers. E v e r y w h e r e Subscribers can have internet access always and everywhere within the GO network coverage 2 4 / 7 S u p p o r t Customers are supported by the help desk team throughout the day 3

5 Company Services GO s Services Data and Voice combined offer Data Connectivity Voice Mobile broadband service using 4G technology even in areas not reached by ADSL coverage. Phone calls using VoIP technology, number portability allows the retaining of own telephone number. MOBILE ONLY 34% of Italian families (about 900k families in Emilia Romagna and Marche regions) have abandoned the fixed phone line and use exclusively mobile phones to place calls. These families are looking for a broadband Internet service. DIGITAL DIVIDE In Italy about 4% of families (120k families in Emilia Romagna and Marche regions) live in digital divide areas not reached by the adsl service. HIGH PERFORMANCE BUSINESS SERVICE Industrial areas do not have high speed Internet adequate for their needs. Wimax/LTE gives a better and cheaper service Coverage even in rural areas High performance everywhere 4

6 Technology Technology Market in Italy Compared to August 2014, the number of fixed phone lines (twisted pair cabling) experienced a downward trend. The total number decreased by 560,000 lines (-1.01 million in the last two years) In 2014 mobile internet traffic exceeded traffic from personal computers Source: Osservatorio trimestrale sulle Telecomunicazioni, AGCOM Direct access through FWA Lines / Mln 0,60 0,50 0,40 0,30 0,20 0,10 0,00 3Q 20124Q 20121Q 20132Q 20133Q 20134Q 20131Q 20142Q 20143Q 2014 The reference market shows a CAGR of 0.6% while the subsegment has experienced a much higher growth (CAGR +19%) Mobile Internet Trends Units on the market (2014) SMART- PHONES 1.3 billion According to ITU (International Telecommunications Union) there are about 3 billion Internet users. The use of the Internet increased by 6.6% in 2014, reaching an increase of 8.7% in the richest Countries. According to Cisco, by 2018 more than 50% of the Internet traffic will be generated by gadgets rather than computers (33% in 2013). As a consequence, wireless connections will increase, reaching 61%, while the old cableswill becomeaminority. World wide Italy In Italy, web-surfing through mobile device is quickly becoming part of the habits of the population. In 2014, the penetration of the smart-phones in the country (calculated on the total number of mobile phones) reached 67%. As the graph shows, the number of PC users is stable, the number of mobile device users is experiencing a sharp growth. Devices used for internet connection 67% smartphone 36,8% tablet Ericsson, a member of G.S.A., projects that in 2020 there will be 8 billion mobile broadband subscribers TABLETS and over 50 billion gadgets will be connected to the Internet through IP (Internet Protocol), while the sector 229 million will be dominated by video contents. Source: ITU, CISCO, Ericsson 64,4% laptop 62,7% PC desktop Source: Eurispes, Rapporto Italia

7 Business Model Value proposition Ready to GO Self installed 4G desktop device is readily available at retail outlets. Activating and getting online is a matter of minutes. The GOBOX can be easily installed by the customer autonomously with no aid from a technician. Try & Buy Customers can pick up the GOBOX CPE from an affiliated shop and try it for 5 days. The GOBOX is a self install CPE, but if needed phone support is available. No Telecom Italia landline fee Does not require a land line (telephone wire) at home from Telecom Italia. Everywhere with no data restriction The 4G service is mobile and can be used anywhere within the coverage area. The service is unlimited, no cap in the amount of Gigabytes that can be transferred. Best in class Customer Care No endless IVR menus, our customers have personalized support from our help desk team right from the world GO. 6

8 Agreement with Huawei GO internet and Huawei signed an agreement for the supply of LTE base stations. The new LTE network based on Huawei equipment was launched in June The LTE base stations enable GO internet s network to reach a speed of 100 Mbit/s (from the current 7 Mbit/s) and allow an increased number of active customers for each base station. Huawei base stations have beamforming technology that provides better indoor signal coverage, making the signal reception inside houses much stronger. The new 4G LTE service will allow the company to strengthen its presence in both cities and digital divide regions. Thanks to the new base stations, the company will be able to increase its active customer base. The launch of the new 4G LTE service is an important step forward in terms of both technology and commercial activity. 7

9 Ghz band New tender for the Ghz band The Italian Communication Authority (Agcom) published a consultation on the Ghz band to discuss the rules of a tender to assign this band over the next few months. Emilia-Romagna Marche This is a very important growth opportunity for GO internet because it could allow the Company to extend its network coverage to other Italian regions other than Marche and Emilia Romagna. The Government is also promoting the fulfillment of the digital agenda, thus creating a favorable environment for broadband and the Company. 8

10 Key Financials Strong Customer Acquisition Rate GO is experiencing an exponential growth in customer acquisition -Not only is GO growing its customer base, the pace of growth is increasing The churn rate refers to the proportion of subscribers who leave an operator during a given time period YEARLY CAGR (12-15): +68% 0 mar giu set mar giu set mar giu set mar ago ott acquisizioni mensili > January Aug customer acquisition Jan - Oct: 5,565 customers From May 2011 to October 2015 GO acquired 34,572 subscribers, of which 29,572 are currently active and 5,000 customers have cancelled their subscription. The average yearly churn rate is 4% Source: Internal source

11 Key Financials Income Statement - IAS/IFRS Income Statement ( /000) 30/06/ /06/2014 Revenues Operating Costs (1.577) (1.192) EBITDA EBITDA Margin 36,3% 34,4% Depreciation& Amortization (663) (506) EBIT Financial Revenues & Costs (154) (136) Extraordinary Revenues & Costs (58) (1) Gross Income 22 (18) Taxes (1) (45) Net Income 21 (63) EBITDA 34% EBITDA Margin 36% 30/06/ /06/ Sales revenue increased by +36% equal to EUR 2,441 million. - EBITDA grewby +44% equal toeur 897 thousand, withan EBITDA Margin at36% 10

12 Key Financials Balance Sheet IAS/IFRS Balance Sheet ( /000) 30/06/ Trade Payables (4.163) (4.749) Trade Receivables Inventory Other short-term operating assets (liabilities) Net Working Capital (1.692) (1.272) Intangible assets Tangible assets (Funds) (86) (95) Other net assets (liabilities) Uses Shareholders' Equity Net Financial Position Net Financial Debt Breakdown ( /Mln) 30/06/ Long-term Financial Debt Short-term Financial Debt Financial Lease - Back WimaxerSpa Debt(Emilia Romagna License) Shareholders' loan Other Cash & Equivalents (1.313) (2.284) Net Financial Debt Sources Intangible Assets: include the acquisition of a license from Wimaxer S.p.A. in 2012, providing an exclusive right of use for 42mhz in the 3.5ghz band covering the Emilia Romagna region, the license cost was 1.1 mln. The equivalent license covering the Marche region was acquired in 2008and was paid 1.15 mln. - Tangible Assets: the 4G network infrastructure defined as sites on air in the Marche and Emilia Romagna regions. 11

13 Contact Details Alessandro Frizzoni, CEO Alessandro Ronchi, CFO Flavio Ubaldi, COO 12

14 Disclaimer This document has been prepared by GO internet S.p.A. (the Company ) solely for use in connection with this Road-show presentation held in connection with the proposed institutional offering of shares of the Company (the Shares ). This document is not an advertisement and does not constitute an offer or invitation to purchase or subscribe for any Shares and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment or investments decision whatsoever. The Company has not prepared and will not prepare any prospectus for the purpose of the initial public offering of the Shares (the Offering ). Any decision to purchase or subscribe for securities in connection with the Offering should be made independently of this presentation. This presentation does not constitute a recommendation regarding the securities to be offered in the Offering. This presentation has been prepared solely for the use in connection with the possible Offering of Shares by the Company. The information contained in this document has not been independently verified and no representation or warranty express or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither the Company, nor any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. THIS PRESENTATION IS ADDRESSED SOLELY TO ITALIAN QUALIFIED INVESTORS WITHIN THE MEANING OF ARTICLE 34-TER, PARAGRAPH 1, LETTER B), OF CONSOB REGULATION ON ISSUERS NO OF MAY 14, 1999, AS SUBSEQUENTLY AMENDED AND TO CERTAIN OTHER PERSONS IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA ( EEA ) OTHER THAN ITALY (IN RESPECT OF WHICH THE REGULATION AND REQUIREMENTS REFERRED TO ABOVE APPLY) WHO ARE QUALIFIED INVESTORS WITHIN THE MEANING OF ARTICLE 2(1)(E) OF THE PROSPECTUS DIRECTIVE (DIRECTIVE 2003/71/EC). THE INSTITUTIONAL OFFERING OF SHARES OF THE COMPANY, IF ANY, WILL BE MADE AS PART OF THE ADMISSION OF THE SHARES OF THE COMPANY ON AIM ITALIA / MERCATO ALTERNATIVO DEL CAPITALE ORGANIZED AND MANAGED BY BORSA ITALIANA S.P.A. AND REPRESENTS A CONDITION OF SUCH ADMISSION TO TRADING. THIS DOCUMENT IS NOT ADDRESSED TO ANY MEMBER OF THE GENERAL PUBLIC NEITHER IN ITALY NOR ELSEWHERE. NO PUBLIC OFFERING OF SHARES IN ITALY OR ELSEWHERE WILL BE MADE. This presentation is not for distribution in, nor does it constitute an offer of securities for sale in the United States of America, Canada, Australia, Japan or any jurisdiction where such distribution is unlawful, (as such term is defined in Regulation S under the United States Securities Act of 1933, as amended (the Securities Act ). Neither this presentation nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions or to any US person. Any failure to comply with this restriction may constitute a violation of United States securities laws. The Shares proposed to be offered by the Company have not been, and will not be, registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction in the United States and may not be offered or sold within the United States, absent registration requirements of the Securities Act and applicable state laws. The Company does not intend to register any portion of the Offering in the United States or conduct a public offering of securities in the United States. This document and its content are confidential and are being provided solely for information purposes and may not be copied, recorded, transmitted, further distributed to any other person or published, in whole or in part, by any medium or in any form for any purpose. Certain information contained in this presentation may contain forward-looking statements which involve risks and uncertainties and are subject to change. Actual results may differ materially from those contained in any forward-looking statement due to a number of significant risks and future events which are outside of the Company s control and cannot be estimated in advance, such as the future economic environment and the actions of competitors and others involved on the market. These forward-looking statements speak only as at the date of this presentation. The Company cautions you that forward looking-statements are not guarantees of future performance and that its actual financial position, business strategy, plans and objectives of management for future operations may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company s financial position, business strategy, plans and objectives of management for future operations are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.the information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. The recipient will be solely responsible for conducting its own assessment of the information set out in the materials and for the underlying business decision to affect any transaction recommended by, or arising out of, the materials. The Company has not made an independent evaluation or appraisal of shares, assets or liabilities (contingent or otherwise) of the Company. By accepting this presentation, you acknowledge and agree to be bound by the foregoing limitations and restrictions. 13