FBR Technology & Growth Conference
June 2, 2005
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Safe Harbor
This presentation contains “forward-looking” statements, including statements about business outlook and strategy, and statements about historical results that may suggest trends for our business. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. Actual results could differ materially from our current expectations as a result of many factors, including: unpredictable quarterly fluctuations in our business; the effects of competition or consumer and merchant use of our service; any adverse changes in our agreements with our listings providers; the impact of international expansion efforts on our business; and changes in our tax status. These and other risks and uncertainties associated with our business are described in the prospectus for our IPO
This presentation includes non-GAAP financial measures, that are different from financial measures calculated in accordance with GAAP and may be different from non-GAAP calculations made by other companies. A quantitative reconciliation of non-GAAP information to the most directly comparable GAAP financial measures is available on our website.
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Syniverse at a Glance
18 Years of Operations
Over 300 Customers, 40 countries
30 Services
$316.0 LTM Net Revenue1
44% EBITDA Margin2
14% Adjusted Net Income Margin3
1 Based on LTM Net Revenue as of 3/31/05 and excludes off-network database fees of $19.2 million.2 Based on LTM Net Revenues as of 3/31/05 and includes one-time adjustments3 Based on LTM ending 3/31/05 and includes add-backs
Syniverse simplifies wireless technology complexities by integrating disparate wireless carriers’ systems and networks in
order to provide seamless global voice and data communications to wireless subscribers.
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Transaction-Based Revenue Model
“A Value-Added Toll Booth on the Wireless
Highway”
Turn on phoneTurn on phone
Wireless Subscriber Events
Caller ID data displayedCaller ID data displayed
Roam on another carrier’s networkRoam on another carrier’s network
Send SMS message to subscriber on other carrierSend SMS message to subscriber on other carrier
Maintain phone number when switching carriersMaintain phone number when switching carriers
Wi-Fi subscriber roams onto another networkWi-Fi subscriber roams onto another network
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Investment Highlights
Leading provider of mission-critical, transaction-based technology services
Extensive and collaborative customer relationships
Well positioned for growth in existing and new markets
Proven management team
Superior operating model delivering strong financial results
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A Complex Set of Relationships…
2. Allow Verizon and ALLTEL to exchange billing records for subscriber roaming
1. Allow Verizon subscriber to roam on ALLTEL’s network
3. Allow subscribers to exchange SMS messages between carrier networks
4. Allow subscribers to keep their cell phone number when switching carriers
A ComplexIndustry…A Simple Solution
Network Services
Technology
Interoperability
Number
Portability
Technology
Interoperability
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Industry Complexity Fuels Demand for Our Services
Disparate Network Architecture
(Lucent, Nortel, Ericsson, Motorola)
Disparate Network Architecture
(Lucent, Nortel, Ericsson, Motorola)
Diverse Signaling Standards
(CDMA, TDMA, GSM, iDEN, Wi-Fi)
Diverse Signaling Standards
(CDMA, TDMA, GSM, iDEN, Wi-Fi)
Distinct Billing Record Formats
(CIBER, TAP, RADIUS)
Distinct Billing Record Formats
(CIBER, TAP, RADIUS)
Multiple Network Protocols
(X.25, Frame Relay, SS7,
Internet Protocol)
Multiple Network Protocols
(X.25, Frame Relay, SS7,
Internet Protocol)
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5.8
10.6
2003 2007E
1.2
2.0
2003 2007E
604.1
1,068.5
2003 2007E
44.6
213.2
2003 2007E
13% CAGR
Compelling Industry Growth Dynamics
Source: IDC and Strategy Analytics
Global Wireless Subscribers (bn)Global Wireless Subscribers (bn)
48% CAGR
Global Wi-Fi Hotspots (000)Global Wi-Fi Hotspots (000) Global SMS Text Messages (bn)Global SMS Text Messages (bn)
15% CAGR
16% CAGR
Global Roaming Call Volume (bn)Global Roaming Call Volume (bn)
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Broad Suite of Services
Carrier Issue Syniverse SolutionService Line
TechnologyInteroperability
TechnologyInteroperability Clearinghouse servicesClearinghouse servicesExchange billing data among
hundreds of roaming partnersExchange billing data among hundreds of roaming partners
SS7 network and database access
SS7 network and database access
Managing numerous networks and databases adds complexityManaging numerous networks and databases adds complexityNetwork Network
Centralized carrier data exchange
Centralized carrier data exchange
FCC mandate drives increased operational complexityFCC mandate drives increased operational complexity
NumberPortabilityNumber
Portability
Translation and routing services
Translation and routing services
Different protocols inhibit voice and data roamingDifferent protocols inhibit voice and data roamingOther Other
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Technology Interoperability Services
RevenueRevenue
Wireless subscriber and roaming volume Wi-Fi expansion and subscriber growth Mobile data services and SMS volume growth
Wireless subscriber and roaming volume Wi-Fi expansion and subscriber growth Mobile data services and SMS volume growth
GrowthGrowth
Verizon Wireless, T-Mobile, Sprint, ALLTEL, Dobson SFR, SK Telecom, KDDI, China Unicom, Vivo, RadioMovil
Verizon Wireless, T-Mobile, Sprint, ALLTEL, Dobson SFR, SK Telecom, KDDI, China Unicom, Vivo, RadioMovil
Major CustomersMajor Customers
Largest wireless clearinghouse in North America Translate different protocols to support voice, data and Wi-Fi roaming Route SMS messages between domestic and international carriers
Largest wireless clearinghouse in North America Translate different protocols to support voice, data and Wi-Fi roaming Route SMS messages between domestic and international carriers
ServicesServices
Transaction-based (roaming calls cleared, SMS messages sent) 1Q05 revenue $23.2mm
Transaction-based (roaming calls cleared, SMS messages sent) 1Q05 revenue $23.2mm
30%
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Network Services
Transaction-based (calls made) and fixed-fee (circuits, ports) 1Q05 revenue $32.2mm
Transaction-based (calls made) and fixed-fee (circuits, ports) 1Q05 revenue $32.2mm
Wireless subscriber and roaming volume growth Mobile data services and SMS volume growth VOIP adoption and new database services
Wireless subscriber and roaming volume growth Mobile data services and SMS volume growth VOIP adoption and new database services
Cingular, Verizon Wireless, T-Mobile, ALLTEL, Dobson BT Ignite, France Telecom, Belgacom, China Mobile, RadioMovil
Cingular, Verizon Wireless, T-Mobile, ALLTEL, Dobson BT Ignite, France Telecom, Belgacom, China Mobile, RadioMovil
Operate leading independent SS7 network Provide translation and routing services that enable wireless calls Provide access to databases (Caller ID, LNP, 800 Service)
Operate leading independent SS7 network Provide translation and routing services that enable wireless calls Provide access to databases (Caller ID, LNP, 800 Service)
42%
RevenueRevenue
GrowthGrowth
Major CustomersMajor Customers
ServicesServices
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Number Portability Services
Transaction-based (customers retaining number when changing carriers) 1Q05 revenue $11.7mm
Transaction-based (customers retaining number when changing carriers) 1Q05 revenue $11.7mm
Wireless porting growth Wireless subscriber growth Industry churn rates
Wireless porting growth Wireless subscriber growth Industry churn rates
Process over 90% of the industry’s number porting transactions Provide data exchange between carriers Mitigate operational impact (billing, customer care, switching, etc.)
Process over 90% of the industry’s number porting transactions Provide data exchange between carriers Mitigate operational impact (billing, customer care, switching, etc.)
Verizon Wireless, Cingular, Nextel, T-Mobile, Sprint, ALLTEL Verizon Wireless, Cingular, Nextel, T-Mobile, Sprint, ALLTEL
15%
RevenueRevenue
GrowthGrowth
Major CustomersMajor Customers
ServicesServices
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Other Services
Enterprise SolutionsCall Processing
Enterprise 4%
Call Processing 8%
Transaction-based (roaming calls) 1Q05 revenue $6.4mm
Subscriber-based (subscribers) 1Q05 revenue $3.1mm
RevenueRevenue
International subscriber growth Roaming call volume growth Fraud
National account program growthGrowthGrowth
SK Telecom, China Unicom, KDDI, ALLTEL, Verizon Wireless
Verizon Wireless, ALLTEL, U.S. Cellular
Major CustomersMajor Customers
International signaling solutions
Fraud detection
Corporate invoice consolidation, reporting and analytical tools
ServicesServices
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Defensible Leadership Position
Third Party Service Provider
Technology Interoperability
Network
Services
WLNP
Services
Call
Processing
Syniverse VeriSign NeuStar MACH
High business switching / disruption risk for customers
Strong customer relationships with long-term contracts
Long history of trust with confidential subscriber and financial data
Highly integrated and broad service offering difficult to replicate
Sizeable fixed operating cost base required
Flexible pricing options due to bundled service offering
Substantial Barriers to Entry
Competitive Landscape
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Decreasing Revenue Concentration
Revenue Concentration1
Carrier Customers 2001 1Q05 Change
Top 1 29% 13% (16%)
2 thru 5 25% 25% -
6 thru 10 10% 14% 4%
All other 36% 48% 12%
Total 100% 100%
1 Percentages based on Net Revenues
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Consolidation Provides Incremental Opportunities
Opportunity to capture Cingular GSM signaling
Opportunity to capture combined clearing
Opportunity to capture AT&T WLNP
Opportunity to capture Cingular GSM signaling
Opportunity to capture combined clearing
Opportunity to capture AT&T WLNP
Cingular / AT&T WirelessCingular / AT&T Wireless
Alltel is major customer utilizing most of our services
Opportunity to capture Western WLNP and network
Alltel is major customer utilizing most of our services
Opportunity to capture Western WLNP and networkAlltel / Western WirelessAlltel / Western Wireless
We provide both carriers with WLNP services
Opportunity to capture Nextel clearing and network business
Migration to CDMA may result in additional opportunities
We provide both carriers with WLNP services
Opportunity to capture Nextel clearing and network business
Migration to CDMA may result in additional opportunities
Sprint / NextelSprint / Nextel
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Growth Organically and Through Acquisition
Acquisition CriterionAcquisition Criterion
Organic GrowthOrganic Growth
Further penetrate existing base of over 300 customers in 40 countries
Identify and win new international customers
Expand services and enter new sectors
Further penetrate existing base of over 300 customers in 40 countries
Identify and win new international customers
Expand services and enter new sectors
International Wi-Fi Messaging &
Mobile Data MVNO VoIP
International Wi-Fi Messaging &
Mobile Data MVNO VoIP
Strategy Opportunity/ History
Extend range and scope of services offered
Expand and leverage customer base Increase profitability and improve
strategic positioning Enter new markets Increase scale of business
Extend range and scope of services offered
Expand and leverage customer base Increase profitability and improve
strategic positioning Enter new markets Increase scale of business
EDS IOS N.A. Softwright Brience
EDS IOS N.A. Softwright Brience
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Name Role Previous Experience
Edward Evans CEO Dobson, Bellsouth, U.S. Cellular, GTE
Raymond Lawless CFO Intermedia Communications, Bell Atlantic
Paul Wilcock CTO Verizon
Robert Garcia General Counsel Verizon
Paul Corrao VP, Network Operations Intermedia Communications, AT&T, Bell Atlantic
Charles Drexler VP, Sales Metro PCS, Lucent
Linda HermansenVP, Business Development & Strategy
Verizon
Gil Mosher VP, Operations Verizon
Michael O’Brien VP, Marketing GE, Verizon
Eugene Bergen Henegouwen
Managing Director, Europe Intervention Machine, AVIO Digital
Dennis Ng Managing Director, Asia Pacific Progress Software, Sam-Negma, AT&T
Experienced Management Team
Our team has an average of 19 years relevant industry experience
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Superior Operating Model
High Margins
61.4% Gross
Margin1
43.2% EBITDA
Margin1
Low Sales & Marketing20.7% SG&A /
Revenue1
Low Capital Intensity
4.8% Capex / Revenue1
High Visibility98% Recurring
Revenues
Suite of Services
Proven ability to extend platform to
new services
Scalable Economics
80% Transaction Based Recurring
Revenues
Scalability and Leverage: Distinct Investment Value
1 Based on Net Revenue for 1Q05, and excludes Headquarters move related capital.
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2001 2002 2003 2004 1Q05
Recurring Business Lines
Non-Recurring Business Lines
($ in millions)
16.7% Recurring Business Line Revenue CAGR (’01-’04)
$292
$267
$242
$309
$180 $202 $211
Net Revenue Growth in Recurring Business Lines
$286
$112 $65$31
$23
$76
$73
$3
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WLNP$11.715%
Enterprise$3.14%
Technology Interoperability
$23.230%
Call Processing$6.48%
Network$32.242%
WLNP$11.116%
Enterprise$3.75%
Technology Interoperability
$15.322%
Call Processing$9.313%
Network$29.844%
$76.6 million
1Q04 1Q05
10.6% Growth
$69.3 million
Diversified Product Offering Drives Solid Growth
Net Revenue($ in millions)
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$23.9
$26.6
$29.2
$5.3$7.0
$4.3
$7.4$9.1
$6.4
$27.4
$34.9$33.9
$11.3$9.6
$12.1$13.4
$11.7
$14.4
$33.1
$10.8
$13.1
$3.6
$24.7
$1.5
$5.3
$7.4
$37.7
Q1 Q2 Q3 4Q Q1 Q2 Q3 4Q Q1 Q2 Q3 4Q
200320042005
Adj. EBITDA Adj. Net Income Cash Net Income
17.7% CAGR
168.3% CAGR 90.8% CAGR
Accelerating Profitability Momentum
($ in millions)Quarterly year over year growth comparison
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Cash Net Income Adjustments
GAAP Acquisition-Related Amortization
– Approximately $24 million annual acquisition related tangible and intangible asset amortization
Tax Deductible Amortization of Goodwill
– Approximately $24 million in additional annual deductions
– Not amortized for GAAP purposes, only affects cash flow
– Duration of approximately 14 years
Long-term Benefits – driven by prior acquisitions
Near-term Benefits – NOLs as of 12/31/04 totaling approximately $80 million
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Strong Capital Structure
($ in millions) As of As of
12/31/04 3/31/05
Senior Subordinated Notes, net of discount $241.8$157.3
Credit Facility, net of discount 215.6 239.4
Total Debt $457.4 $396.7
Class A Cumulative Redeemable Preferred Stock 335.6 -
Common Stock 37.1 457.3
Accumulated Deficit & other comprehensible income (143.9) (161.0)
Total Owners Equity $(106.9) $296.4
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Investment Highlights
Leading provider of mission-critical, transaction-based technology services
Extensive and collaborative customer relationships
Well positioned for growth in existing and new markets
Proven management team
Superior operating model delivering strong financial results
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