Gateway - vodacom.co.za...Source: Gateway Analyst presentation 2009. 01095D250A.ppt Gt C i tiGateway...
Transcript of Gateway - vodacom.co.za...Source: Gateway Analyst presentation 2009. 01095D250A.ppt Gt C i tiGateway...
Gateway
Analyst presentation 2009
01095D250A.ppt
L di id f Af i i ti iLeading provider of pan-African communication servicesDelivers the platform for growth in African total communications solutions
♦ Leading provider of pan-African voice and data connectivity services to the African mobile industry
♦ Leading provider of managed network IT solutions to multinational corporations operating in Africa
Blue-chip global
customer-base
Blue-chip African customer-base
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Rapid growth in demand for
Africa’s most extensive network directly connecting 40 countries
p gAfrican telecoms infrastructure
Local presence in 13 African countries with strong and broad management team
Analyst presentation 2009
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Af i ’ t t i i ti t kAfrica’s most extensive communications networkDirect connectivity into 40 African countries
Teleports (Belgium, UK, USA and Germany)
Full IP, Next Generation
NetworkNetwork
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POPLondon/Brussels/ New York
International carriers
WACS cable
♦ Network connects 40 countries across Africa
SEACOM cable
Sat-3 cable
♦ 43 equivalent transponders of satellite capacity1
♦ Satellite capacity suppliers include Intelsat and SES Newskies
♦ Major satellite hubs in 5 African countries
African office
♦ SAT-3 and SEACOM cable capacity, WACS planned
Note:1 Equivalent to a 36 MHz transponder
Gateway operations
Analyst presentation 2009
E t i th dExtensive on-the-ground presenceStrong and broad management team with unparalleled African experience
• Sales and support office
Mali
• Group headquarters (finance and sales)
UK• Regional office—Major hub (sales and technical support)
Nigeria
• Support office
Sierra Leone
Cote d’Ivoire
• Major technical and support centre
Belgium
K
• Support office
Uganda
• Support and technical offices
• West and North Africa
Ghana Tanzania
• Support and sales office
Kenya
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§Seychelles
Cameroon• East Africa and
Angola headquarters
Mozambique
• West and North Africa headquarters
• Sales, support and technical office
France
• Support office
Angola
• Central Africa headquarters
• Sales, support and technical office
Cameroon
M j h b ffi
South Africa Zimbabwe
Angola headquarters• Sales, Support and
Technical office
• Commercial and sales
Switzerland
• Sales office
• Sales, support and technical office
Angola
• Sales and support office being established
DRC • Major hub office,
Southern Africa headquarters
• Support office office
Analyst presentation 2009
01095D250A.ppt
Strong relationships in key industries
Long-term blue chip customer base
African mobile
International carriers
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International carriers
Banking and finance
Oil & Gas
Analyst presentation 2009
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C t ib ti d i b li f b iContribution and gross margin by line of business
Gross margin contribution by line of business (9M 2008)
32
4840
4853
10
32
Inbo
und
voice
Outbo
und voice
Data
services
Data &
ternet
Other¹
VSAT
O
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Source: GatewayNote:1 Other includes e-commerce services, equipment sales and operations and maintenance
D In
O
Inbound voice55%
Data services18% VSAT
Other17%
Revenue contribution by line of business (9M 2008)
55%
Outbound voice27%
18% VSAT51%
Data & Internet32%
17%
27%
Source: Gateway
Analyst presentation 2009
01095D250A.ppt
Fi t lFigures at a glance
9M 2007 Growth1 (%)9M 2008Year-end December 9M 2007 Growth (%)
Number of voice minutes (m)
9M 2008
813 1,232 51.6
Year-end December
Revenue (US$m) 179 253 41.1
Gatew
ayEBITDA (US$m) 30.1 35.8 19.1
EBITDA margin (%) 16.8 14.1 2.7
Average VSAT sites 971 1,391 43.3
Note:1 Year-on-year growth for the nine month period to 30 September 2008
Analyst presentation 2009
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Gateway best positioned for growth in total communicationsGateway has a track record of success in total communications and is best positioned to lead growth in the pan-African total communications market
Focus on high-growth Local on-the-ground Pan-African markets presenceInfrastructure
Pan-African connectivity for mobile
operators
Blue-chip customer base
Meet the needs of MNCs in Africa
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F d ti f Af i t t l i ti b iFoundation for pan-African total communications business
Analyst presentation 2009
01095D250A.ppt
G t id th d t itiGateway provides growth and synergy opportunities
Accelerates international expansion
♦ Broadens Vodacom’s international footprint into key regional markets, especially Nigeria
♦ Provides platform for further regional expansion
Provides platform for further expansion
♦ Opens new growth markets in Africa and allows Vodacom to exploit growth in mobile services without GSM footprint expansion,
♦ Complements Vodacom Business
p♦ Leverages Vodacom’s capital strength to accelerate Gateway’s growth
Strengthening of total
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♦ Provides access to Gateway’s blue-chip corporate customer base
♦ Places Vodacom at the heart of African broadband growth story
Strengthening of total communications strategy
♦ Cost savings from satellite operations, vertical integration and procurement
♦ Further potential upside through co-operation with Vodafone operationsGroup synergies
Analyst presentation 2009
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G t C i ti C i S i iGateway Communications — Carrier Services overviewGateway provides the highest quality inbound, outbound and intra-African voice and data connectivity services
♦ One of the largest providers of carrier network solutions in Africa
♦ Extensive satellite network and multiple sub-sea fibre landing points
♦ Major clients include Vodacom Zain and Millicom as well as major European and global carriers♦ Major clients include Vodacom, Zain and Millicom, as well as major European and global carriers
Inbound voice services Outbound voice services Intra-Africa connectivity
GA
TEW
AY
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Satellite dish
Satellite
Satellite dish
VSAT Bandwidth
Modem
VSAT Hub
Modem
VSAT Hub
International wholesale and retail carriers and partner operators
Africanoperators International wholesale and retail
carriers and partner operators
Africanoperators Router Router
Hub Hub
Modem Bank Modem Bank
MSC
Veraz iGateMedia Gateway
Veraz iGateMedia Gateway
Radio towerRadio tower Radio tower
Modem
Router
Modem
Router
Fixed or Mobile Operator BFixed or Mobile Operator A
MSC
Radio tower
GatewayPOP
Radio tower Radio tower
GatewayPOP
♦ Gateway provides African interconnection to international
♦ Gateway provides international network connection for African
♦ Gateway provides intra- Africa network connectivity for the
Fixed or Mobile Operator BFixed or Mobile Operator A
telcos for the completion of calls originated internationally
telcos for the completion of international calls
completion of calls between African telcos
Analyst presentation 2009
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C i S i D tCarrier Services—DataGateway is the leading provider of cellular backhaul and internet services in Africa, providing high-quality, reliable connectivity for mobile networks
GA
Cellular backhaul Mobile internet (GPRS / 3G)
ATE
WA
YG
ateway
Public Internet & Private IP
♦ Gateway provides national connectivity to allow mobile operators to connect switches and cell sites within a particular
♦ Gateway provides high speed internet connectivity to mobile operators to support the roll-out of GPRS and 3G services
♦ Gateway has recently launched IPJetDirect, an enhanced internet i d t th i t f ll l tp
country
♦ Gateway provides international leased-lines for voice, data and signaling traffic
service geared to the requirements of cellular operators
signaling traffic
Analyst presentation 2009
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L di titi iti C i S i
Competitiveness Service offering
Leading competitive position—Carrier ServicesGateway’s unique business model makes it well suited for serving the African market
Operator African focus Price Quality Voice Data Satellite VAS1
Cellular Backhaul
Gateway Carrier Services
Belgacom International
ato
rs
Carrier Services
France Telecom
British Telecom
Glo
ba
l op
era T-Systems (subsidiary of
Deutsche Telekom)
Taide (subsidiary of Telenor)
T l It li
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Glo
bal
Telecom Italia
IDT
Tata VSNL
Afri
can Mednet
M-Link
her Global Voice Global Voice
Afr
ican
erO
th
Intelsat – –
HighLowSource: Gateway estimatesNote:1 Value added services
Oth
e
Analyst presentation 2009
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C i i iCarrier services—voice
Revenue per quarter Number of voice minutes
94104 109 110
105249
342385
406 429396
19 429 19,348 18 93247,312
53,975 58,185 60,167 58,345
Revenue per quarter Number of voice minutes
$ thousands Millions
152 163248 281 297 319 29121
86
94
173
249
20,883 21,53230,291 35,161 38,756 40,819 39,413
12,556 15,77517,021
18,814 19,429 19,348 18,93233,439 37,307
Q107 Q207 Q307 Q407 Q108 Q208 Q308
Outbound Inbound
Q107 Q207 Q307 Q407 Q108 Q208 Q308
Outbound Inbound
Gross margin 1 Average voice revenue per minute
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0.14 0.13 0.12 0.13 0.13 0.13 0.14
0.18 0.18 0.18 0.18 0.18 0.18 0.18
7,5008,886 9,098 9,672 10,710 9,931
9,349
$ thousands $
0.12
2,549 2,991 3,362 3,235 3,931 3,765 3,952
4,9515,895 5,736 6,437
6,779 6,166 5,397
,
Q107 Q207 Q307 Q407 Q108 Q208 Q308Inbound Outbound
Q107 Q207 Q307 Q407 Q108 Q208 Q308
Outbound InboundSource: GatewayNote:1 Excludes inter-company
Analyst presentation 2009
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C i i d t d thCarrier services—data and other
Revenue per quarter Average leased line and data bandwidth
687 711785
847754 736 751
674 1,355 126 2,647 1,604
Revenue per quarter Average leased line and data bandwidth
$ thousands Mbps
10,229 10,506 11,778 12,128 11,131 10,719 11,553
126 ,
Q107 Q207 Q307 Q407 Q108 Q208 Q308Q107 Q207 Q307 Q407 Q108 Q208 Q308Data Other
Gross margin1 Average leased line and data revenue per average MBPS provided
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14,889 14,776 15,010 14,380 14,763 14,274 15,3835,640 5,164
6,7486,202
5,4886,336 6,274
average MBPS provided$ thousands $
Q107 Q207 Q307 Q407 Q108 Q208 Q308Q107 Q207 Q307 Q407 Q108 Q208 Q308
Note:1 Excludes inter-company
Source: Gateway
Analyst presentation 2009
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G t C i ti B i S i iGateway Communications—Business Services overviewGateway’s business service segment provides the most extensive range of corporate telecommunications solutions in the region, with unparalleled local presence in 13 African countries
♦ Gateway is a leading provider of high quality, end-to-end connectivity solutions to MNCs and large businesses operating across Africa
K li t ti l i l d fi i l i il & i i f t i d f t i d♦ Key client verticals include financial services, oil & gas, mining, manufacturing and fast-moving consumer goods
♦ Strong VSAT, VPN, microwave and internet access services and capabilities
♦ Experienced strategic and OPCO management team and technical support staff
GA
TEW
A
♦ Gateway provides private satellite networks to major multinational
♦ Gateway provides managed data network services using
♦ Gateway delivers high capacity corporate Internet access via
AY
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VSAT services Managed data services Internet services
networks to major multinational corporations for their IT applications, data and voice communications
data network services using MPLS, Frame Relay and ATM for business critical communications and access to Gateway’s e-Commerce
corporate Internet access via both satellite and terrestrial transmission links
yservices
Private CustomerNetwork Gateway Comms
DisasterRecovery
LocalConnectivity
InternationalConnectivity
BankingServices
ASP
yRAS Access
Analog/ISDNModem Remote User
WWW
Network Management
Hosting Services
EDI Services
Fax ServicesPublic Internet &
Private IP
Computer
Computer
ComputerComputer
Analyst presentation 2009
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T k d f d t i ti i b i iTrack record of product innovation in business services
Broadband Wireless MPLS expansion Ku-Band
BWA-AccessBenin
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♦ Gateway is rolling out broadband ♦ Gateway is expanding its ♦ Gateway is implementing a Ku Band♦ Gateway is rolling out broadband wireless networks in the 10.5GHz frequency band to provide last mile access in urban areas as a cost effective and reliable alternative to
♦ Gateway is expanding its international MPLS network to all of its African points of presence, to provide high capacity access to multinationals operating across
♦ Gateway is implementing a Ku Band VSAT service targeted at distributed networks of bank branches, retail chains, garage forecourts etc
fibre and microwave services, and as a replacement for its 5.8GHz wireless links
Africa who require high quality yet cost effective shared data network services
Analyst presentation 2009 15
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L di titi iti B i S i
Competitiveness Service offering
Leading competitive position—Business ServicesGateway’s unique business model makes it well suited for serving the African market
Operator Pan-African
focus Price Quality VSAT Managed
data Internet Projects BWA
Gateway Business Services
Cable & Wireless ce
Orange Business Services
British Telecom
GE Satlynx rnat
iona
l ser
vic
prov
ider
s
GE Satlynx
Schlumberger
DCC
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ay
Inte
ray
ers
Telnet IPNX
K-Net
Netcom Reg
iona
l pla
Internet Solutions
MTN Network Solutions
Telkom Business SA p
laye
rs
Source: Gateway estimatesNote:1 Value added services
HighLow
Analyst presentation 2009
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B i S iBusiness Services
Revenue per quarter Average number of business VSAT sites
1 025 1,092 1,128
1,4231,538
9,034 9,396 9,748 10,07811,852 12,602
14,210
Revenue per quarter Average number of business VSAT sites
$ thousands
929 958 1,025
Q107 Q207 Q307 Q407 Q108 Q208 Q308Q107 Q207 Q307 Q407 Q108 Q208 Q308
Gross profit1 Business VSAT revenue per average number of sites
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4,9855,542 5,121
5,5824,860 4,460 4,6774,496 5,072 5,250 4,971
5,870 5,763
6,890
number of sites$ thousands $
Q107 Q207 Q307 Q407 Q108 Q208 Q308Q107 Q207 Q307 Q407 Q108 Q208 Q308
Source: GatewayNote:1 Excludes other and inter-company
Analyst presentation 2009
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A f d ti f t t l i ti i Af iA foundation for total communications in AfricaGateway’s track record of success positions Vodacom to lead the pan-African total communications market
Leadership in broadband
and connectivity
services
Grow core mobile
businesses
Expansion in
sub Saharan
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businesses sub-SaharanAfrica
Develop converged
ICT solutions
Analyst presentation 2009
18
Q&A
Gateway
Analyst presentation 2009Analyst presentation 2009