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Techstep ASA Investor Presentation 2010
3770_rns_2010-05-20_e600b116-958c-4dd6-9cca-4cc4079465f2.pdf
Investor Presentation
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Birdstep Technology ASA
- Cutting costs for mobile operators and enterprises
Torbjörn Sandberg
CEO & President
birdstep TECHNOLOGY
Birdstep Technology ASA
- Headquartered in Oslo
- Listed on Oslo Stock Exchange since 2002 (BIRD)
- 100 employees
- Offices in Norway, Sweden, Finland, UK and the US
- Turnover 2009 – MNOK 107
- Market Capitalisation MNOK 119
2010.05.11
birdstep TECHNOLOGY
An experienced and capable team
More than 40 successful operator deployments, 30 Enterprise customers and close to 10 OEM partners around the world
ZTE中兴
birdstep TECHNOLOGY
Finding Focus to increase returns
Birdstep Technology 2009
Four Business Units
- Four market segments
- Limited operational synergies
- Distributed management attention
- Differing company conditions
birdstep TECHNOLOGY
Finding Focus to increasing returns
Birdstep Technology 2009
Re-organised for focus and long term growth
birdstep TECHNOLOGY
Focusing on core products in high growth markets
2010
EasyConnect
SafeMove
birdstep TECHNOLOGY
Finding focus and increasing returns
Birdstep Technology
- Focus on core products in high growth markets – SafeMove and EasyConnect
- Divesting Raima
- Running Orbyte stand alone
Resulting
- Operational synergies
- Market synergies
- High growth potential
- New long term revenue targets
Page • 7
birdstep TECHNOLOGY
Our Focus Market - Mobile Broadband (MBB)
High Growth
- Fastest growing mobile service in history
- Now outstripping voice traffic
- Permeating social and business lifestyles
- A massive and growing market
- A truly global phenomenon
Global Mobile Broadband Subscribers
Source: Informa Telecoms & Media
Forecasted annual subscriber growth > 40%
birdstep TECHNOLOGY
Our Focus Market - Mobile Broadband (MBB)
2010
- 337 Commercially live HSPA networks in 128 Countries today
GSMA May 2010 - 2.3% of global workforces have access to mobile broadband.
GSMA 23rd Sep 2009 - 67 million modems shipped
ABI Research - 2008
Forecast growth
- 150% subscriber growth by 2013
GSM A Dec 2009 - 25% Increase in Enterprise connectivity in coming 12 months
GSMA 23rd Sep 2009 - 138 Million modems shipping 2013
ABI Research - 2008
Page • 9
birdstep TECHNOLOGY
Operators and MBB: Great growth – low returns
Page • 10
biidstep TECHNOLOGY
Globaldata revenue and traffic growth 2008-2013
Source: Informa Telecoms & Media
Industry Challenges
- Poor pricing models
- Expensive Traffic Growth
- Increasing OPEX and CAPEX
- Low consumer satisfaction
Enterprises and MBB: Great growth – low returns
Modem Shipments to Business
Source: ABI Research
Cellular Modems and Mobile Broadband Connectivity 2008
Industry Challenges
- Difficult to Deploy and manage
- Expensive data plans
- Security challenges
- Complex to use
birdstep TECHNOLOGY
A Fast Growing Market With Challenges
Mobile Operators
- Data traffic growth
- The support burden
- Quality of service
- Low/No Profitability
- Device diversity
- Monetising customers
Enterprises
- Usability issues
- Uncontrolled 3G data costs
- Complex connectivity
- Lack of Security
- Low Network reliability
- VoIP disfunctional
birdstep TECHNOLOGY
Birdstep Product Direction
Stephen Morris – VP Products & Strategy
birdstep TECHNOLOGY
Birdstep Technology Today
Addressing industry challenges with solutions for connectivity and access management that cut costs for enterprises and operators
birdstep TECHNOLOGY
2010 EasyConnect Solutions
Mobile Operators Challenges
- Data traffic growth
- The support burden
- Quality of service
- Device diversity
- Monetising customers
Birdstep Solutions
- Data tarriffs and handoff
- Minimising/Resolving support
- Intelligent Communication
- Migrating all customers
- Intelligent and flexible billing
An Small European Operator can save 3 Million Euro p.a. with Birdsteps solutions
birdstep TECHNOLOGY
2010 SafeMove Solutions
Enterprise needs
- Simple connectivity
- Control 3G data costs
- Use multiple networks
- Security & Network reliability
- Deploy VoIP
Birdstep Solutions
- Auto-Connect
- Network Prioritisation
- Intelligent switching
- Authentication and encryption
- Session persistence
SafeMove can increase efficiency by up to 30% and provide significant operational savings in an expanded mobility workforce
birdstep TECHNOLOGY
Birdsteps Competitive Position – Software clients
birdstep TECHNOLOGY
Cutting Costs for Operators and Enterprises
From a firm current market base to a highly competitive position in the high growth MBB market
birdstep TECHNOLOGY
EasyConnect Sales Insight
Michael Jönsson— VP Global Sales EasyConnect
birdstep TECHNOLOGY
Experience
Michael Jönsson
- 46 years, Danish, live in Stockholm
- 20+ Years of experience in the Telecom Industry
- Former VP EMEA for Lavastorm
- 14 Years with Ericsson in various international roles
- Specialisations
- International Sales
- Sales Management
birdstep TECHNOLOGY
Birdstep's Portfolio & Solutions
Product Match against Market Needs
birdstep TECHNOLOGY
Birdsteps Operator Product - EasyConnect
EasyConnect BEC 2.9
Comes Pre-Installed on USB and/or embedded modems
- Connects to operator networks
- Supports roaming control
- Includes pre-paid and post billing
- Simplifies support
- Automate Hot-Spot logins
- Automatic Hand-over / 3G handoff
Sold to Mobile Operators & Service Providers who:
- Deliver Mobile Broadband Services
- Have Wifi Footprints or partnerships
birdstep TECHNOLOGY
EasyConnect Market Drivers
Operator Market Drivers
- Fastest growing mobile service in history
- Now outstripping voice traffic
- Permeating social and business lifestyles
- A massive and growing market
- A truly global phenomenon
Global Mobile Broadband Subscribers
Source: Informa Telecoms & Media
Forecasted annual subscriber growth > 40%
birdstep TECHNOLOGY
Page • 24
Delivering Connectivity via 3G & WiFi in Ireland
Wifi Handoff, Hot Spot Access, consumer management to Meteor Ireland
Why Birdstep?
- Proven technology with strong presence in the European market
- Standard product tailor-made through configurations
- Strong solution for both WiFi and 3G
- Strong and flexible handling of pre-paid & roaming
- Focused, highly responsive company able to support specific requirements
- Time to market - capable of meeting tough timelines
- Strong Roadmap for future
Birdstep's Portfolio & Solutions
Meeting Operator Challenges
birdstep TECHNOLOGY
2010 EasyConnect Solutions
Mobile Operators Challenges
- Data traffic growth
- The support burden
- Quality of service
- Device diversity
- Monetising customers
Birdstep Solutions
- Data tarriffs and handoff
- Minimising/Resolving support
- Intelligent Communication
- Migrating all customers
- Intelligent and flexible billing
Page • 26
birdstep TECHNOLOGY
Solution in Detail EasyConnect Traffic handoff
Challenge – Data Traffic
- Data increased with 193% in 2009
- Revenues grew at only 24%
- Offload strategy can provide savings of 20 to 25 per cent per annum by 2013
Sources: Cisco, from Operators' network data and Analysts, 2008; Informa, 2008; and Pyramid, "Mobile data revenue will double by 2012," Dan Locke, Analyst Insight, 4/2008.
Birdstep Data Handoff
- EasyConnect provides inbuilt handoff and network prioritization for all operators allowing
- Handoff to Wifi Platforms
- Prioritisation of lower cost networks
- Login to Hot-Spots
-
Data plan Bundling
-
Swedish Telco Analysis provided for up to 2 Million Euro in annual savings
Page • 27
birdstep TECHNOLOGY
European Operator Customer Delivering Broadband Connectivity at home and work
Chosen Birdstep as their unified Connectivity and Customer Communication Solution in Nordic
Need for speed
Download speeds of 50-70 Mbps will be sufficient until 2020
No mainstream need for 100+ Mbps
EasyConnect Sales
Strategy, Objectives & Pipeline
birdstep TECHNOLOGY
Addressable Market and Objectives - EasyConnect
Target Markets 2013
- Target Operators: ~400 HSPA Deployed 2013
- Established MBB markets
- Focus Regions:
- Europe & ME
- Latin America
- Far East
EasyConnect Objectives
- Maintain European market lead
- Become world leading provider 2012
- Increased installed base with 50% by end 2010
- Achieve 40+ Customers 2013
40+ Mobile Operator Customers 2013
2010 – 2 new wins/quarter
2011 – 2 new wins/quarter
2012 – 3 new wins/quarter
brdstep TECHNOLOGY
Page • 31
Current EasyConnect Pipeline
- Current Opportunities in Closing
- Current Qualified Opportunities in Process (from proposal stage)
- Current Qualified Leads & Opportunities
EasyConnect Customer Pipeline Breakdown
Page • 32
3G only
- Delivering MBB to mass market:
- Simple and Robust Connectivity, Ease of use
- Provide End Customer Portal for communication
- Reduce OPEX
Incumbent/Wifi & 3G
- Delivering One Solution to fit mass market & business users:
- Same platform, different Skins / UI
- Technology Agnostic (3G, WiFi, LAN)
- 3G Off-load (to WiFi)
Multi-National Operator groups
- Delivering One Solution to fit different operational needs:
- Same platform, different features and skins
- Support Economy of Scale with multi lingual, multi UI
- Strong Roaming Solution w/ 3G Off-Load (to WiFi)
HW Partners
- Delivering purpose built state-of-art SW Solution:
- Avoid costly own SW Development and customization
- Achieve much improved Time to Market
- Segmentation & Marketing Possibilities thru server backend
Page • 33
Key Performance Benchmarks
In order to achieve our projected growth
| Dominate Europe | Increase Market Reach | Capatilize on base |
|---|---|---|
| - Build strong & coherent sales team in Europe | ||
| - Coninue to build pipeline | ||
| - Proven product & strong experience w/ commercial guile to close new deals | ||
| - Provide superior product support & road-map to grow existing accounts | ||
| - Close 2 new deals per Quarter in 2010 | ||
| - Maintain # 1 position in Europe | - Expand regional sales teams | |
| - Partnering with leading global & regional SI's | ||
| - Partnering with leading HW vendors | ||
| - Use position and foothold in US to enter US Operator Market | ||
| - Use new products to enter competitors fields | - Close partnership with customers to increase run-rate | |
| - Use strong Road-map for continued upsale | ||
| - Use new products to convert entire MBB bases at customer to Birdstep | ||
| - Create significant recurrent revenue for Birdstep | ||
| - Truly become Market Leader |
EasyConnect Sales Insight
In summary:
- Market is there: Fastest Growing Mobile Technology Ever
- Strong Birdstep Solution & Portfolio matching market needs
- Strong Growing Sales Pipeline with successful international sales team
- Achieving 2010 customer growth targets – 2 per quarter YTD
birdstep TECHNOLOGY
Page • 35
Questions
SafeMove Sales Insight
Tim Carter – VP Global Sales SafeMove
birdstep TECHNOLOGY
Experience
Tim Carter
- 15 years software industry experience
- Former VP Sales EMEA XcelleNet / Sybase iAnywhere
- Specialisations
- Enterprise Mobility
- Direct Sales
- Channels and Alliances
- European growth
birdstep TECHNOLOGY
Enterprise Product - SafeMove
SafeMove
- Available on Notebooks, PDAs, Smartphones
- Manages wireless network connectivity
- Provides advanced security
- Allows seamless sessions
- Reduces costs and increases productivity
Sold to enterprises who:
- Have mobile workforces
- Recognise that successful mobility needs a different approach
- Require secure access to data
birdstep TECHNOLOGY
SafeMove Market Drivers
Enterprise Market Drivers
- Ubiquitous, faster wireless networks
- User demand for high-end smartphones
- Improved enterprise software support
- Access to Cloud-based services
- Trend towards flexible working
Enterprise Mobility Growth
Global enterprise mobility forecast (000's)
Ovum Enterprise mobility connections and revenue forecasts, 2009-14
- Enterprise wireless connections (000s)
- Mobile computer connections (000s)
- Total enterprise revenues ($m)
birdstep TECHNOLOGY
SafeMove Customer Example
Delivering secure remote access to the Government of Finland
Why Birdstep?
- Proven technology with strong presence in the Nordic market
- Tight integration of IPsec VPN and Mobile IP for seamless mobility into a single solution
- Focused, highly responsive company able to support specific security requirements
- Scalable, reliable product now deployed in 12 of 15 Finnish ministries
- Partnership approach
birdstep TECHNOLOGY
2010 SafeMove Solutions
Enterprise Challenges
- Simple connectivity across multiple networks
- Control 3G data costs
- Security
- Network reliability
- Deploy VoIP
Birdstep Solutions
- Zero-Click Connectivity
- Network Prioritisation
- Intelligent switching
- Authentication and encryption
- Session Persistence
Page • 41
SafeMove can increase productivity by up to 30% and provide significant operational savings across mobile field forces and enterprise deployments of laptops and smartphones.
birdstep TECHNOLOGY
SafeMove Customer Pipeline Breakdown
Page • 42
Enterprise
- Financial Services, Utilities, HiTech, Field Service.
- Simple, location-independent use of laptops and smartphones
Public Sector
- Central and Local Government, Emergency Services, Healthcare.
- Secure, reliable remote access to central applications and data
Device Vendors
- Nokia, Motorola
- Seamless switching between 3G and Wi-Fi networks
Service Providers
- Orange, Arris Group, Nokia Siemens Networks
- Enable next-generation, value-added services with seamless mobility
Page • 43
Current SafeMove Pipline
Looking Forward to 2013
SafeMove Market 2013
- 1800 MNOK total market
- 8m licenses
- Mobile VPN and Mobile IP
SafeMove Target
- No.2 Market Share
- Europe, AsiaPac and US
- Enterprise, VARs, Sis, Device Vendors and Service Providers
Enterprise Targets
brdstep TECHNOLOGY
Key Performance Benchmarks
| Internationalisation | Expanded Reseller Channel | Systems Integrators |
|---|---|---|
| • Replicate Finnish success to other countries | ||
| • 2010 focus on Northern / Western Europe and US | ||
| • Sales team based in the UK with international experience | ||
| • Provide support for wide range of devices | ||
| • Global partnerships with Cisco and Nokia | ||
| • Capture #2 market position within 2 years | • Appoint specialist mobility VARs for major target countries | |
| • Market mobile VPN as an essential component of a successful mobility infrastructure | ||
| • Increased sales coverage without increasing size of the team | ||
| • Create regular revenue streams for reliable forecasting | • Engage selected Global SI's | |
| • Penetrate Tier 1 Enterprise & Govt Accounts | ||
| • Increase credibility & reduce cost of sale | ||
| • Enable SI innovation |
Page • 45
SafeMove Sales Summary
Market for seamless mobility has arrived
Products and roadmap aligned with market requirements
Sales team & strategy in place to secure long term growth
birdstep TECHNOLOGY
Page • 47
Questions
Birdstep Technology in Summary
Strategically positioned in a high growth market
Re-focused and achieving operational and market synergies
Competitively positioned with an attractive product range
An experienced team capable of delivering
Torbjörn Sandberg
CEO & President
birdstep TECHNOLOGY
Page • 49